Analysis of Tour Operations Management: Trends, Decisions & More

This report provides a comprehensive analysis of tour operations management, covering current trends, holiday development stages, pricing strategies, brochure design, distribution methods, and strategic decision-making. It assesses the effects of recent developments on the tour operator industry, evaluates the stages and timescales involved in developing holidays, and examines different methods of contracting. The report also calculates the selling price of a holiday, evaluates planning decisions for brochure design, and assesses the suitability of alternative distribution methods. Furthermore, it evaluates strategic decisions made by different tour operators and compares tactical decisions in various situations. The report also touches on the integration of tourism industries and the European and global links of major tour operators.

Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................4
Task 2...............................................................................................................................................8
2.1 Assess the stages and timescales involved in developing holidays.......................................8
2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator........................................................................11
2.3 Calculate the selling price of a holiday from given information below..............................12
Task 3.............................................................................................................................................13
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................13
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package....................................16
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of tour operator and recommend the most appropriate for your tour package.. 17
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operator..........................18
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
Tour operators are companies that organize and provide holiday's site for those who are
interested in travel and accommodations. Tour operators combine the tour and travel to make a
complete holiday package (Fletcher, et.al., 2017). They advertise their packages through media,
brochures so that their holiday offers and products can reach many people across the globe.
Tour operator products exist in varieties such as the flight on charter airlines, the transfer from
hotel to airport and other local services. Tour operators can decide to specialize in the different
destination like USA, Germany, and France etc.
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Task 1
1.1 Analyse the effects of current
and recent trends and
developments in the tour
operators industry.
Tour operator is simply the companies
whose roles are to organize tour
packages such as traveling and hotel
accommodations. Tour operators have
got responsibilities of ensuring that
their customers are served with the
right packages of their own interests
and it varies from one destination to
another destination. In the UK there are
many types of a tour- inbound,
domestic, and outbound tour. Many of
the companies offer the combination of
domestic and outbound tours (Institute
of Marketing, 2018).
Types of services offered by the
different types of tour operators
Touring operators are offering many
services to their customers across the
globe. Among the services they offer
are traveling services. The traveling
services are too complex with varieties
of services in its search for tourism
products, destination marketing
organization, tour operations, travel
agents, and many more others. Among
other services that are offered are
accommodation, transportation,
recreation, food and beverages,
entertainment etc.
[Source: Nalam, 2013]
Accommodation: Tourism operators
have got well-vanished hotels in
different destinations where their
guests can seek accommodation.

Transportation: Transport services
are one of the key services offered by
the tour operators. Tour operators have
flights that go to various destinations
both in the UK and other countries.
Foods and beverages: To those who
border their flights and those who are
accommodated in their hotels would
want to eat and drink, therefore they
offer food and drinks to for their
customers.
Entertainments: There are various
entertainments which are being
sponsored by the tour operators such as
cultural events, musical events, and
various activities.
Recreational: There are many
recreational in the tour operator
terminals such as swimming, ball
games, athletes and many other
activities that are meant to keep people
happy.
Vertical and horizontal integration
in leading operators
Two tourism industries that are
offering the same products can decide
to merge together so that they can offer
this product while the effort is
combined. The process of these
industries becoming together is what
we call horizontal integration. An
example of the tourism industries that
merged together horizontally is First
Choice Hypermarket and First Choice
Travel Agency. The buying chain of
the two industries shows that they are
of the same level in product terms.
[Source: Jurevicius, 2013]
A tourism industry might decide to
expand the level of the product in
which they offer to their customers.
The company then decides to buy
another company that offers a product
in the different chain. In traveling
industries, two companies might decide
to take over each other so that they can
sell the product of the other company
and their services to their loyal
customer.
Major tour operation in the UK
UK tour operators are very many with
different destinations across the world.
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Among them are virgin holidays tour
operators, which is the best for
honeymoon, wedding, sports because it
has many destinations across the
world. Titan Company which offers
arranges of escorted tour experiences
in the world. Milestones tour which a
family company and it offers tour
services in different countries such as
America, Africa, Asia, Turkey, and
Canada. Brittany ferries which offer
holidays to France and Spain while
crossing the water. Saga travel is AK
Company that is leading in offering
products to the people of the UK and
the world. Among other tour, operating
companies are Balkan holidays,
Explore, Riviera tours, Kuoni and
intrepid travel which offer traveling
services across many parts of the
continents (George, 2018).
Leading operators involved in the
vertical and horizontal integration
Horizontal integration is good because
it increases the market share for an
organization. In the UK the leading
company under horizontal integration
in an airline owned by the British
Airways which was taken by the Easy
Jet company in the year 2002. When
the company took over the British
Airway, they changed everything
including the names and the logos of
the company. Since they emerged, the
Easy Jet became popular with very
many destinations which then meant
good results in terms of the business
activities they offer in the market.
An organization such as Easy Jet may
decide to own two or more companies
of the buying level chain. The Easy Jet
is an example; they went further to
offer accommodation at an affordable
price which then made people shift to
the company for the same. The
company is now engaged in vast of
hotel activities that makes it one of the
popular tour and accommodating
company across Europe as things stand
by now.
Impacts of integration on the tour
operations industry
The tourism industry is the largest
known for its market across the globe.
The industry is contributing a lot to the
economic activities not only in the UK
but in the world at large. Around
11.8% of the GDP across the world is
contributed as a result of tourism
integrated industries while the rise in
job opportunities has gone to 9.11%
which makes it one of the leading
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industries in creating opportunities for
the youths in the UK and in the world.
Integration of tourism industries
reduces heavy competition among the
tour industries across the global
(Hayward, 2010). This is because the
companies are coming together for the
common goal of serving the interests
of the people, therefore; they emerge to
offer services in equal terms other than
competing each other in the same
industries.
Stimulating the social and cultural
exchange, people of different cultures
can go visit other people and learns
more about the other communities
across the world. This brings in unity
among the people and building the
culture of different people. Among
another achievement as a result of this
is ethical behaviours adopted by other
culture, religious values and other good
values from different people across the
boundaries of ethical behaviors.
European and global links of major
tour operators
There is quite a number of European
links and global links in the tour sector.
These links have got responsibilities to
ensures that the clients who have
visited various destinations are
properly served with the right services
they need. Among these links are
European Tourism Operators
Associations which stands for the
interests of the inbounds together with
the intra-European tour operators as
well as their suppliers (Dale, 2015).
Coach Tourism Council which is
dedicated to European to promote
travel and tourism through offering
training to consumers and travel trades,
UK inbound whose major concern is to
equip people with information about
British Tourism industries and British
tourism suppliers. BAFTA is a UK
association for the group wholesales
tour agents.
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Task 2
2.1 Assess the stages and timescales involved in developing holidays
Trailfinders needs to develop various stages and timescales to develop holidays and custom
packaged for the customers. There are quite a number of stages that are involved in creating the
holidays because customers do want to know the kind of feature they do expect in the different
destination, the kinds of accommodation and the environmental factors for a particular place to
visit.
Research: The elements associated with the tour are the things to analyze. These will include
things that are involved in the tour markets and destination together with what the people
touring expect to achieve. If somebody is willing to tour in a place and he/she has an area of
interest then tour operator will equip the person with a potential market that offers additional.
Tour operators have got another work of seeking a market for their products. And finally, the
operator should identify any feature be it economic, political; social that might influence their
operations in the future.
Tour itinerary development: This involves working out the effective tour itinerary. An
itinerary is a process of developing the tour program which outlines the destination, the origin,
routs, accommodations, sightseeing activities, transportation and other tourism services. Tour
itinerary is the outline of key activities that are going to be carried in the field such as
destinations, departure, arrivals, meals available, modes of transportations etc. An itinerary
enhances the tour process because it outlines the activities together with the involved parties in
that particular activity.
Negotiation with tourism suppliers: The next step is to negotiate with tourism vendors such as
airline suppliers, transport operators, lodging companies, car rentals, ground operators, etc. this
can be done with air carrier directly or through their agencies.

Costing of packages: The cost is involved to change the need for the client into a package. The
cost of tour package depends on what the package client needs, therefore, no fixed package is
available.
Financial evaluation: The exchange rates will be the step here to know what the value of the
package offered to the client. In these steps, the tour operator will evaluate both the benefits and
the risks such as the exchange rate risks for payments of the service that can be incurred in the
process of this service.
Administrative staff: Tour guides are the sensitive job and seasonal job. Because of that, the
people required to conduct the activity are people of high integrity, sociable in nature, maintain
ethics, results oriented and can quickly make a constructive decision to enhance the growth of
the tourism business.
Marketing of the tour packages: The tour operators have a duty to combine those packages
and put them in a way that can be affordable to people. These marketing will then be carried in
the most common and known nations such as USA, India, France, Germany where they do have
destinations.
Developing tour market plan: This involves the aim in which the company is set for. The tour
company needs to understand their products and their market so that they can plan to base their
minds on the services and products they offer and whom their customers are.
Market inbound and outbound tour: The international market tour is more complex as
compared to domestic market tour. To achieve it successfully, the tour operator will be then
forced to attend the international conferences, meetings, and other associations internationally.
Tour operator’s brochures: The tour brochure is produced in a way that it contains the
products and services for the company that can attract the customers to purchase (Fletcher, et.
al., 2017). The other things that are contained in the brochures are the name of the company,
location, contacts, the products they offer, nature of the place and any other necessary service
depending on the company.
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Operation and executive tour: This part is vital because the company should make sure that
all the services they mentioned are being offered successfully. Therefore, the operating manager
must ensure that they work and deliver services according to what the tour guide stipulates.
Tour management: The tour officers should now go through their set goals and the actual
performance to see if at all they achieve their plan as per the objectives. The companies have
policies to guide them through their duties and therefore will ensure the success is meat
depending on the managements' commitment to achieving their goal.
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2.2 Evaluate the suitability of different methods of contracting for different
components of the holiday and different types of tour operator
The different types of tour operators are as follows:
Domestic tour: These kinds of a tour are whereby the citizens of the same country are traveling
to tour within their country. These tours offered within the country could be natural resources of
the country such as rivers, national park tours, cultures of the countries, oceans, train tours etc.
The UK is in the group of the most lucrative countries to visit because of their good natural
outlook. The domestic tour operator has the role of ensuring that he knows all the physical
features of the country and other features that can attract the local residents and foreigners who
get their time in the country in case if.
Outbound tour operators: In this case, tour operators take residents from a different country to
another country. In Europe, these places are the countries such as China, Australia, Patagonia,
Middle East etc
Inbound Tours: Non-resident of the country traveling to another country. There are companies
that provide assistance for the guests from another country. This is due to language issues
whereby the visitors are not conversant with the language used in that country very well. These
companies are called inbound companies or receptive tour operators. Receptive tour operators
can be formed by groups for offering transportation or they are as well called destination
management companies since they help to direct the visitors or goes with visitors to their areas
of choice in the country. Receptive tour operators are concerned with the visitors from various
parts of the world and therefore, they are concerned with barriers such as language,
uncertainties about the destinations etc.
The above tour operators contact with other components that are involved in packaging holidays
that may involve transport, hotels and attractions.
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