Tour Operations Management: Analysis of Trends and Strategies

This report provides a comprehensive analysis of tour operations management, focusing on key aspects such as the impact of current trends (like Brexit and technological advancements) on tour operators like Trailfinders Ltd, the stages involved in holiday development (including research, vendor negotiation, and pricing), and the evaluation of different contracting methods. It assesses brochure design and distribution strategies, comparing traditional methods with alternatives. Furthermore, the report delves into strategic and tactical decisions made by tour operators in various situations, offering insights into effective management practices within the travel and tourism industry. The ultimate goal is to equip tour operators with the knowledge to manage their activities and holiday packages effectively, adapt to changing circumstances, and enhance customer experiences.

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...............................................................................................................................................6
2.1 Assess the stages and timescales involved in developing holidays.......................................6
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator................................................................................8
2.3 Calculate the selling price of a holiday from given information below................................9
Task 3.............................................................................................................................................12
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....................................14
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour
package......................................................................................................................................15
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operators........................18
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................21
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
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Introduction
Tour operator is a combination of tour and travel elements which creates a holiday package.
They give core attention to the promotion and advertisement of their products, itineraries and
holiday package. In the United Kingdom, travel and tourism industry are continuously growing
which is providing the future opportunities to UK based tour operators. Tour operation is
considered as the essential constituent of travel and tourism industry. This assignment is based
on the study of tour operator management so that tour operators can manage their day to day
activities and holiday packages in most effective as well as in a systematic manner. In this report,
an influence of recent and current trends on tour operator firm like Trailfinders Ltd has been
analysed. Apart from this, each and every stage of creating holiday has been explained. While
making holiday package selling price of holiday play most important role so in this report a huge
description has been given to selling price of a holiday. Along with this, different methods and
brochures have been evaluated which is used for selling holiday packages. At last some tactical
as well as strategic decisions, have been introduced so that tour operators can take most effective
future decisions.
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Task 1
1.1: Analyse the effects of
current and recent trends
and developments on the
tour operators industry
Introduction
The tourism industry has
changed depending on the
circumstances and discovery
of historical places in the 20th
century. The expectation of
the customers has increased
and hence, the tour operators
always thrive to give the
unique experiences to its
customers. The advent of new
technologies has enabled the
customers to choose their
desired destination and visit
places of their choice at the
lower costs.
Current trends in travel
and tourism
The tourism sector is one
of the most adaptable of all
the industries since the
changes in the preferences
of the customers has
The tour operators can now establish
their businesses across the globe
which not only helps to sustain in
the market but also to enhance the
revenues. The concept of
liberalisation has increased the
competition in all the sectors
including aviation sector. The sector
operates flights at a cheaper cost
which minimises the cost of travel
(Kapiki, 2012).
Consumer Protection Legislation:
The UK government has enacted the
consumer protection and hence, the tour
operators serve the customers ethically.
For example, ATOL, which is known as
Air Travel Organisers Licence ensures
that the travellers do not lose money or
stranded abroad. It is a financial
guarantee provided to the tourists and
this scheme is managed by Air Travel
Trust (Civil Aviation Authority, 2015).
Technological Advancements:
Technology enables to interact with the
customers effectively. The use of
internet provides the opportunity for the
customers to select the destination and
tour operator easily. This helps the
Brexit: The decision of the UK to
leave the EU will impact the free
movement of tourists to other EU
countries. As per the estimates, the
contribution of EU countries
towards the movement of
passengers is 85% though maritime
transport and 64% by air travel. The
decrease in the number of
passengers will impact the revenue
generation o0f tour operators
(World Travel & Tourism Council,
2017).
Conclusion
The tourism industry provides
various services in order to
attract the tourists and increase
their revenues. However, there
are various factors that affect the
changes in the tourism sector.
The tour operators have to adapt
to these changes in order to
sustain in the competitive
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enabled the tour operators
to change the way of
operating the business. The
changes that drive changes
can be stated as:
Globalisation: The concept
of globalisation and the free
market has enabled the
movement of people from one
country to another. The
customers are now able to
select the destination of their
choices. The increase in the
number of tour operators and
the advent of technologies has
enabled the customers to
travel at a lower cost.
tourists to decide the destination and
type of travel. The tour operators are
benefited by providing the information
through internet by developing their
websites. The selection of the type of
service and payment methods are
simplified which encourages the tourists
to visit distant places. The use of
technology also enables to innovate and
provide the latest facilities to the
customers which enhance the reputation
of the tour operators (Kapiki, 2012).
market. The tour operators
should research about the current
trends and aspirations of the
customers while planning
various activities.
Task 2
Introduction
The packaged tours are preferred by the customers since they are economical and also, provide
an opportunity for visiting numerous places that could not be done on a solo trip. There are
various factors that have to be considered while planning these trips. Trailfinder should ensure
that the students feel comfortable while travelling and hence, a proper planning has to be done so
that the time allotted for each trip is efficiently planned.
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2.1 Assess the stages and timescales involved in developing holidays
Stages of developing holidays
The stages that are involved in making successful holiday packages are:
Step 1 - Research
The first step is to ascertain the climate and other factors such as social, political and economic
factors of Brussels and Brugge. These updates will help to plan each stage of the tour and also,
the places where the accommodation can be provided effectively can also be ascertained. The
destination can be changed if the weather condition is not favourable and hence, prior planning is
required as to the destinations that can be visited in case of the bad weather conditions.
Step 2- Negotiating with Vendors and Suppliers
In this stage, the arrangements have to be made to procure the goods and equipment which are
required for the trip by contacting vendors and suppliers (Tourism Council, 2018).
Step 3 - Pricing of the tour
The cost of the tour has to be ascertained including the facilities provided by Trailfinders such as
accommodation, food and other expenses. The pricing strategy can be based on cost or market
pricing strategy.
Step 4 - Development of Tour itinerary
A detailed plan has to be presented as to the various destinations that have to be planned to visit
and the places where the accommodation facilities are arranged for the students (Tourism
Council, 2018).
The various alternative routes can be considered such as travelling through Calais in France and
then to Brugge which amounts to a total distance of 183 miles or by taking a diversion from
Dover (UK) and reaching Dunkirk (France) by route A16 and then reaching Brugge to cover a
total distance of 181 miles which would be more economical for Trailfinders. The decision has to
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be taken after taking the feedback from the students and suppliers so that the flexibility is
maintained.
Step 5 – Brochure Production
The brochures have to be designed and provided to the students which should contain all the
details of the trip. This should include the price details of the trip with the bifurcation of costs as
to visiting costs, accommodation costs and other expenses.
Step 6 - Implementation of Tour package
The planning has to be made for implementing the plan in an efficient manner. The roles and
responsibilities of the suppliers and vendors have to be clearly stated in order to avoid conflicts.
This ensures that the planned trip can be completed smoothly and efficiently.
Step 7 – Post tour management
This stage involves taking the feedback from the students, suppliers and vendors. These
suggestions can be implemented in the future trips in order to enhance the customers’
experience.
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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 various vendors and suppliers have to be identified so that the trip can be planned
efficiently. The tour involves activities such as sightseeing, accommodation and providing other
facilities which include food and beverages to the visitors. Hence, the tour operators prefer to
provide various facilities in order to attract the tourists and the cost of the tour package depends
on the customer tastes and preferences (Maric, et. al., 2015). The tour packages are priced
according to the customers and hence, not every customer is priced so that the customers can be
charged according to their merits.
The types of contracting can be defined as under:
Fixed Contracting: This type of contract is done when the goods are purchased in large
volumes and the prices are fixed for the products. The fixed contracting enables the tour
operators to provide the services at a lower cost and hence, discounts are provided to the
customers for the package tours. Also, the facilities that are provided by the operators do not
change and hence, quality services can be availed by the customers at a lower price (Business
Companion, 2018).
Sale only Contracts: These contracts are designed during the peak seasons since the customers
pay the cost that has been charged by the tour operators. The prices of the services are charged
higher and the operators usually report higher profits during this period.
These contract techniques can be used by Trailfinders to increase the customer base and also, to
generate the revenue.
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2.3 Calculate the selling price of a holiday from given information below.
Calculation of Actual Cost per student:
Particulars Amount £
Boarding and Lodging facility with breakfast
(96*5=480) (480*0.8929)
428.6
Travelling expenses (11200/42) 266.67
Price charged by guide (945/42) 22.5
Total Cost (Gross) 717.76
Add: Profits (33% of total cost) 236.86
Actual Cost Per Student £954.62
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Calculation of the cost of the tour
Particulars Amount £
Boarding and Lodging with breakfast (96*42*5 = 20160) (20160*0.8929) 18000.86
Travel costs 11200
Guide charges 945
Gross Total (cost of package) 30145.86
Add: Profits (32305*33%) 9948.14
Total cost of the package £ 40094
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Conclusion
A conclusion can be drawn that the tour operators have to adapt to the changing circumstances in
order to sustain in the market. Trailfinders have to develop an effective system so that the cost of
the services is minimised and the customers can be charged the minimum rates. This will help
the company to expand the market share and increase its goodwill and reputation. The tour has to
be panned in an efficient manner and hence, services of vendors and suppliers can be utilised.
This ensures that the trip to conclude without the hassle and the customers will be happy to avail
the services in future.
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Task 3
Executive Summary:
The most usually and generally utilized showcasing instrument of the visit working organizations
is their brochure. Kuoni travels and Belmond travels out likewise need to experience such
choices that are should have been produced using their end. Arranging stage is vital for the
further execution of the pamphlet for meeting the targets of advising most extreme individuals
and it brings down cost which expands the benefits of Kuoni and Belmond travels.
Introduction:
The brochure can be said as a standout amongst the best method to speak with the voyagers
about the movement bundle and the new fields to explore. After all the customary strategies for
speaking with the explorer's new techniques have been developed like leaflets which can be of
various kinds of digital handouts are a trending pattern now. Kuoni travels is outstanding
amongst other voyaging organization offering a scope of movement administrations to the
explorers while Belmond travels is said as the polished visit operator with a rich legacy.
3.1 Evaluate the planning decisions taken for the design of a selected brochure.
Brochures allude as a standout amongst the essential advertising apparatus. Kuoni travels and
Belmond travels realize that the handouts not just characterize the nature of service and time that
clients will have amid their vacation, yet in addition have all the moment subtle elements of the
holiday package they are keen on purchasing. A pamphlet some place wins the trust of explorers
as they settle on choices of voyagers considerably simpler and help them is choosing the best.
There are several things which should constantly be joined into a better than average handout
Kuoni travels and Belmond travels must recall them while impacting a flyer for their association
to comfort the explorers like given, name of association, sorts of dinners given, concealed and
point by point costs and other traveller objectives and all strategies for transportation. There are
some steps included in developing and designing of a brochure are.
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