TUI Tour Operations Management: Consumer Demand and Strategies Report

This report provides a comprehensive overview of tour operations management, focusing on the roles and functions of tour operators, particularly within the context of TUI. It explores the scale and structure of the tour operating industry, highlighting key aspects such as attractions, tour operators, transport, and tourism development. The report delves into the different stages involved in creating holiday packages, differentiating between direct and indirect channels. Furthermore, it examines methods for determining and forecasting changes in consumer demand, emphasizing the importance of research tools and techniques. The report also reviews package tour programs and explores strategic and tactical decision-making processes within tour operations. The analysis covers inbound, outbound, and domestic tour operators, and ground operators, providing a holistic view of the industry's dynamics.

An understanding of
tour operations
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 .The different roles and functions of range tour operator......................................................1
P2 .The scale and structure of the tour operating industry..........................................................3
TASK 2 ...........................................................................................................................................4
P3 The different stages in creation of holiday package for different tour operator
requirements................................................................................................................................4
P4 Determine and forecast changes in consumer demand using different sources of research.. 5
TASK 3 ...........................................................................................................................................7
P5. Reviewing the content of range of package tour programmes which serve a similar
product market............................................................................................................................7
P6 Explore examples of strategic and tactical decision-making in tour operations....................8
.......................................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Operation management is the one concerned with the management of whole production
process. It involves designing, controlling and redesigning of production of goods and services.
Operation management is the one which ensure that all the resources in the business are used
effectively for satisfying the customer expectations. In this current report the study focuses on
the tour operation management, Tour operators are the vital assets for the tourism industry .the
chosen association for this report is TUI which is one of the leading tour and travel company.
The company operates their business in the sector of airlines, package holiday, cruise lines,
resorts and hotels. The whole project discuss about the key roles and functions of the tour
operations and the scale on which they are operating business. This study also helps in
forecasting the customers demand and requirements and review of package tour programmes.
Additionally it also give emphasis on the strategies and tactics for the decision making of tour
operators.
TASK 1
P1 .The different roles and functions of range tour operator.
Tour operators plays a significant role in travel industry as they are the only one who are
responsible for the purchase of tourism products and services from different sources and
combine them as a tour package so that by the collection of these tourism ingredient customers
can be attracted on a large scale. Travel industry keeps on determining the packages which are
beneficial to them as well as the potential customers. Management role with the tour operators
involves researching and planning for the new packages which will help the business to grow
towards the level of profitability(Busby and Huang, 2012). There are various roles and
responsibilities which are performed in the tourism industry:
Inbound tour operator : This is also termed as the incoming tour operators. It involves
receiving the guests, clients and handling arrangement in the host nation . These type of tour
operator are mainly concerned with the operating of tour and travels business individually or
with the outsiders who are engaged in the tour operating business. All those packages which
have been created with the help of combination of all the ingredient are sell directly to the
consumers by the middlemen. The tour operator perform a range of function which are :
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 Inbound tour operators evolve tour packages on their own or with the corporate tour
entity.
 It also enables the exchange of forex currency with the host nation which is the most
important task performed by the inbound tour operators.
Outbound tour operator : these tour operator are the one who organise tour outside the
host economy such as business tours , leisure tour or the tour for the foreign destination. These
focus more on promoting the tour to the other countries.(Veltri, et. al., 2013). Outbound tours
involves arranging of the tour to the multiple countries for a particular period of time which has
been already decided. It is also responsible for all the procedure starting from documentation to
the ending of the journey. Function that outbound tour operators perform are :
 These tour operator coordinate and communicate with the ground and inbound tour
operator to provide services and also for executing their task.
 Outbound tour operator manages all the procedure and documentation of the travellers so
that the client remain free from the burden of handling these documents.
Domestic tour operators :- These tour operators are generally for operating their tour
and travels business within the economy boundaries or within the geographical boundaries
without considering the foreign destination. It also gives emphasis on promotion of their tours
and travel packages with the help of intermediaries , agents and middleman or the outlets.
Various function performed by these operators are :
 This focuses more on rendering the services which are more effective to the
travellers , travelling within the geographical boundaries of the nation.
 These also offers various packages which are related to the tours and travels to the
range of different tourists(Wang, 2012).
Ground operators :- These operators mainly focuses on the arrangement of the agencies
which helps the company in managing the tourists travelling from or within the country. There
are some functions of ground operators are as follows :-
 These operators trade with the real property organization for the tourist on the place of
foreign operators.
 Ground operators contract and negotiate with the other vendors and support in dealing
with the local traders as well as outside suppliers.
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P2 .The scale and structure of the tour operating industry.
Tour and travel industry is coined as the fastest growing industry of the economy as mass
of the people are more and more curious about travelling and exploring .the business of travels
and tourism is operated widely on the range of large scale. In this type of industries there is much
undersecretaries in comparison to the certainty about the things such as the customers
preferences , requirement may change suddenly For this the industry must focus on the creating
and development of those strategies and plans which help them in satisfying their customer
expectation over a period of time(Wang, et. al., 2016).This industry also provides individual with
many opportunities related to the job in the economy. Tour and travel industry is the most
effective business which is expanding rapidly to worldwide. To enhance the business and also to
improve its overall success and growth measure changes have been implemented. This sector has
focused more on the customers satisfaction by providing them a variety of services.
Structure of Tour Operating industry
Attractions: Various plans and strategies are formulated by the travel and tours
industries for attracting large number of customers. These strategies are implemented
considering the needs and requirement of the customers so the the expectation of the customers
can be satisfied in the most effective manner. The primary objective of this is to sustain a
valuable position in the mindset of the customers. Essential factors which are considered in this
are different shape, size and the quality of products and services that the company like TUI
offers.
Tour operators: The maintain the business the industries like tour and travels should
focus on their operation and should also give more emphasis on the preparation of the holiday
packaging the most attractive manner. The company like TUI must focus on providing all the
transportation and accommodation facilities to the customers so that the customers can get better
experience and can become loyal to the services of TUI (Hämäläinen, Luoma and Saarinen,
2013).
Transport: Plans and procedures can likewise be made by the association for giving
better transportation offices to there customer's. TUI can give transportation to client's with the
goal that they don't confront any sort of trouble in going starting with one spot then onto the
next. On the off chance that the association is effective in demonstrating these offices to client's
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than odds of move in client's to another association will be decreased. As there need and request
will be satisfied in the most ideal way(Gstaettner, Rodger and Lee, 2017).
Tourism development: The company must ensure that all the requirement of their
customers are fulfilled by the development of different strategies and plans. TUI must enable
their employees with certain rights so that the employees of the company like TUI can perform
their task in the most significant manner. By availing proper duties to the employees they can
also generate new creative and innovative ideas.
TASK 2
P3 The different stages in creation of holiday package for different tour operator requirements.
Innovation in the holiday packages may leads to the business growth and large market
and customer base. The company of TUI must focus on the offering of the different and unique
holiday package to their customers so that the unlimited wants and expectation of the customers
get satisfied within the given time frame. Creation of holiday plans are generally done on the
basis of evaluation of the market and current traits which is prevailing in the market and is
demanded by the customers. This analysis can be done by the comparison between the past
circumstances and the current scenario. The manager of the company TUI must focus on the
implementation of the strategic approach as this would allow them to look into the deep and will
provide them with the strategies which is to be applied on the each and every activities. Fresh
and advanced method will be enforced in systematic approach. By the offering of most effective
and attractive package the company generally aims at building a relationship with the customers
and comes up with the incremented loyalty(Dimmock and Musa, 2015).With the help of
attractive holiday package TUI aims at maintaining better relationship with its suppliers and
customer's. The diverse phase in formation of holiday package are discussed below-
Direct channels: Direct channels are the one which is done with the direct involvement
of customers with products and services. This involves direct selling without any hindrance in
the process. These can be modified as per the customers current demand due to their flexible
nature. Through the direct channel the company can communicate and can get the feedback from
their tourist so that if the respective company is lacking in this process can come up with the
effective measures. It will also help the organisation in direct promotion of their services by
adopting the most significant way.
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Indirect channels: this is the most informal way in which the communication is not
done directly . This process is the one which involves duplication of work due to the complex
way and is also very expensive to carry out. With the help of indirect channels it is difficult for
the company of TUI to achieve their objectives(Danner-Schröder and Geiger, 2016).
TUI seeks to adopt the direct channel for their communication and flow of information to
their tourist and suppliers. The company would be able to formulate strategies and effective
holiday package easily with the help of direct channels. Since the challenge level in this kind of
industry is high so immediate direct will help TUI in giving extreme challenge to its rivals. TUI
can without much of a stretch tackle issues and defeat difficulties if the attention in underscored
on utilizing this sort of channel. This will straightforwardly prompt increment in deal,
gainfulness and income of TUI on the grounds that client's will almost certainly fulfil there
requirements and wants Plans and methodologies can be made for utilizing most recent devices
and strategies identified with direct channel. Brand picture of TUI will be straightforwardly
expanded if the administration of association can make compelling occasion bundle for its
providers and potential customer's. This will likewise lead in satisfying the prerequisites of
different people related with the association. By utilizing the phases of occasion bundle creation
association will most likely continue in the market for longer time frame.
P4 Determine and forecast changes in consumer demand using different sources of research.
The demand and expectation of a customer in the tour and travel industry are uncertain.
To resolves these problem the company like TUI must focus on the use of different tools and
techniques of the research .by the use of these research sources there comes some advantages s
well as disadvantage attached to it which may be a drawback of the management of TUI. To
reduce the chances of the problems and challenge company may foster different changes. Some
measure changes have been discussed below :
Environmental effects: Environmental effects are those which belong to the
surrounding of the individuals (Kauppi, Moxham and Bamford, 2013). To overcome this issues
of environmental effects the company must protect the environment by using different tactics
and strategies in the best possible manner. The business of TUI is also affected with this factors :
Positive: This factor will allow the business to increase their sales by the use of best
possible alternative available to promote their products and services. This will lead the business
to the level of Growth and profitability.
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Negative: Due to uncomely running of natural environment some cultural factors can be directly
affected. These includes misdirection in water supply and unsuitable use of cultural attribute.
Tour operating sector can also gets affected by different kinds of pollution and traffic related
problems.
Economical factor : Any adjustment in this factor legitimately influences the prudent
condition in the negative and positive way. It influences the benefit and income of TUI in
negative way. Its positive and negative effect is referenced beneath (Lyons, 2012).
Positive: If suitable arrangement of polices and procedures are made by the association
than better administrations can be offered by TUI. On the off chance that client's of association
can invest better energy in these sort of ventures than it will straightforwardly lays a positive
effect on the monetary circumstance.
Negative: If there is any adjustment in the valuing arrangement of visit working industry
than client's need and request can likewise be influenced. There are numerous associations which
goes for charging high costs structure its client's so as to increment there gainfulness. In any
case, this procedure lays a negative effect on client's since techniques may not be executed
according to the paying abilities of guests. This can prompt negative effect on working of TUI as
there deals can be decreased.
Social impacts: This factor additionally influences working of the travel industry in
negative just as positive way. In the event that the association can't actualize systems according
to estimations of client's than they won't be happy with its administrations. To beat this issue TUI
centres around utilizing creative procedures with the goal that better utilization of chances should
be possible (Niranjan, et. al., 2014). Its positive and negative effect is referenced beneath
Positive: The administration of association can concentrate on creating and executing the
travel industry pride so better connection with the client's is finished.
Negative: The mentality of client's can adversely get influenced if a specific spot is
packed. On the off chance that there is high odds of wrongdoing and exploitative exercises than
client's strength not get pulled in towards the administrations of TUI. On the off chance that this
factor isn't thought about by the administration of association than its business can be contrarily
influenced.
It is essential for the company to focus on the reduction of the negative impact as it
would lead the business organisation towards the stage of success. Additionally it would also
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provide the organisation in gaining competitive advantage by the use of satisfactory strategies.
Minimising of the negative impact will also lead the business of TUI to formulate proper
decision regarding their business operations.
TASK 3
P5. Reviewing the content of range of package tour programmes which serve a similar product
market.
Brochure refers to the documents which consists of all reliable information which should be
provided to the tourist in order to increase the sales and profit margin of the business. By the
preparation of the brochure large mass can easily be attracted and also enables the tour operation
in appropriate interaction with the mass of people. The company should also focus on the use of
best technique while the creation of the brochure(Lugosi, Janta and Watson, 2012).TUI must
ensure that they have used the traditional as well as online method for gaining the best possible
and positive outcome within a short span of time. Methods used by the company are discussed
below :
Traditional brochure
Traditional brochure is the one which is used by the business in order to enlist the
relatable information about the company , its products and services in the form of pictures . The
main aim behind the preparation of this form of brochure is that the demand of the customer can
be analysed and can be satisfied in the most suitable manner. This also help the business of TUI
to transfer the reliable information to their target audience.
Online Brochures:
Online Brochure is the one which is most widely used by the organisation in regard to
attract large number of the customers. This method is far different from the traditional brochure
as it involves series of step in their formation. This help the organisation to achieve their targeted
goals within a short period of time as the customer can modify these brochure as per their
requirement. Use of this brochure will unable the business of TUI in saving the cost and time.
The business of TUI must focus on providing the better quality of services to their
customers in order to compete with their rivals(Armenski, Dwyer and Pavluković, 2018).
(Bastoe, 2017). Brand image and value of the brand TUI can be enhanced by their attractive and
innovative packages which their the offering to their customers so that the sales and profitability
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of the firm can be increased. The company must focus on using both the method of the brochure
as per the requirement of the situation. The rival firm of the respective organisation are using
both online brochure and traditional brochure for the betterment of their business. So the
management of organization can also design and utilize these kind of scheme for the
improvement of there concern. Major alteration in the working cognition can be made after
examination actual and ancient position by the organisation.
These forms of brochure are used frequently by the organisation as it support the
customer to easily determine what new features are prevailing in the market and has been
obligate by the organisation(Talib, Rahman and Qureshi, 2012).The company like TUI will focus
more on the use of the online brochure as this will cost less to their business and will provide the
customer with all the necessary information which they are supposed to get regarding the
products and services of the business. With the help of online brochure the chances of the
business loss and diminished profit will also be decreased. Sustainability of TUI will also be
maintained by the use of various suitable techniques.
P6 Explore examples of strategic and tactical decision-making in tour operations.
Tactics decision will assist the business to operate their business in the most suitable way.
The business manager of the respective company is planning to formulate better plan and
strategies for carrying their operation smoothly. TUI must focus on implementing the strategies
regarding the pricing, marketing and planning so that the business can successful lead to the
growth and can connect easily to the globe market. These conceptualisation intent the business In
their better decisions for the near future. Some of the major techniques are briefly discussed
below-
Tactical Response: These are the actions which help in solving the issues. These lays
the organisation to built and establish a environment of positivity by overcoming all the hurdles.
The manager of TUI can focus on building and maintaining better relationship with their
customers by allowing them to give feedback or by allowing them to give their point of view
regarding the specific situation(Coghlan and Noakes, 2012). Which help the business to capture
the mind of the customers.
Tactical pricing: By determining the external and internal environment the business of
TUI can plan to have tactical decision. Here the prices of the products and services are set as per
the evaluation of the strategies of the competitors this can also attract mass of competitors
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available to them. Tactical pricing decision can be made after the determination of all those
factor which influences the decision of the customers. By doing this the company can focus on
building strong customer base.
Distribution channel:
To increase the business the company like TUI can focus on the use of both the channels
of the communication is that direct or indirect as this channels would benefits TUI in different
ways. Open communication may lead the business to have strong brand image among the
potential customer and can also focus on managing and improving the task(Galeazzo, Furlan and
Vinelli, 2014).If the organisation fails to adopt these channels for the flow of information then
the chances of loss and damages of the organisation product and services will increase with
increasing rate. Proper implementation of these channels in the business organisation will also
decrease the chances of duplication of work.
Product choice:
products for this industry is the main assets which consists of the packages which the
company like TUI is offering to their customers so that the wants and expectations of their needs
can be satisfied. The vital role of the company is to produce the product which provides
attractive packages and experiences to their customers. The management of TUI must ensure that
they create most innovative and adventurous package so that the customers can retain towards
the b rand for the longer duration of time.
Image positioning and branding:
These both the aspects helps the business in increasing their profitability and overall
performance. These also enables the business to compete with their competitors. The
management of the TUI has focus on the factor of competition to compete with the rivals so that
the brand image and the value can be enhanced. Different plans and strategies must be
formulated by the business so that they can easily settle down in the minds of their customers
and can capture large market(Coghlan and Noakes, 2012).
Surcharge policy:
Surcharge policy is the one in which the management of the organization tries to charge
high prices for a particular period of time. This is performed in the organisation with the aim to
increase the sales margin of the organisation and to reduce the loss margin. It the prices and
demands for the product is generally high than the business of TUI will be able to earn high
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amount of profit and will provide their customers with the maximum range of satisfaction by the
products and services they offered.
Cheap value :
This helps the organisation to keep their cost low at the initial level as they are operating
their business in the new type of industry. By the adoption of cost leadership at the initial level
the business of TUI can attract more of the customers towards their brands products and services
and can also built strong customer base for their business. This also enables the business to
capture large market share(Busby and Huang, 2012).
These factors will enables the business in increasing their profitability and large market
share and will also enhance their working capacity with the appointment of highly skilled labour
force. Along with this, these factors also plays a vital role in decision making process of the
organisation. It would also help the business to retain their customers towards their luxurious
products and services.
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CONCLUSION
From the given assignment it can be summarized that tours and travels has their own significant
importance in the overall growth of the economy. Tours and travel operators of any industry
must focus on their different functions and roles for the achievement of the targeted goals. Tour
industry is operating their business on a wide and large scale so this is core function for them to
generate different plans and strategies as per the current traits. All the industries related to these
sectors must focus on the implementation of attractive packages in order to full fill their
customers demands within a span of time. Various foretelling method can also be utilized for
investigation future demand of customer in travel and tourism industry. This will directly lead to
accomplishment of goals and objectives in the efficient and effective manner.
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