Tour Operations Management: Strategic Decisions - Trailfinders & Kuoni

This report provides a comprehensive analysis of tour operations management, focusing on Trailfinders Ltd. and Kuoni Travel within the UK travel industry. It examines the impact of current trends and developments, including customized packages, technological changes, and diverse tourism types. The report assesses the stages involved in holiday development, from market research to responsibility allocation, and evaluates different contracting methods for transportation, accommodation, meals, and tourist guides. A detailed calculation of selling price is provided, along with an evaluation of brochure planning and distribution methods. Furthermore, the study compares strategic and tactical decisions made by different types of tour operators, offering insights into effective management practices in the tourism sector. Desklib provides access to similar solved assignments for students.

Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1 Leaflet..................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry............................................................................................................................................4
Task 2 Report...................................................................................................................................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..................................................................................10
2.3 Calculate the selling price of a holiday from given information below..................................12
Task 3 Management report summary............................................................................................14
3.1 Evaluate the planning decisions taken for the design of a selected brochure..........................14
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........................................15
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...............16
Task 4 Management report summary............................................................................................17
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.....................................................................................................................................22
References......................................................................................................................................23
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Introduction
Management of tour packages is essential to provide a quality of services to targeted customers
will be explained in the study. A tour package is totally based on its customers’ demands so tour
managers are having a huge pressure to maintain all of their operations according to customers.
This report study is based on the Trailfinders Ltd. and Kuoni Travel which is working in the UK.
The below presented report will provide an analysis of impacts on the trends in travel and
tourism industry. Designing of a holiday package takes a lot time in different stages which all
will be assessed in the report. Tour operators have to make contracts with different service
providers to develop an appropriate package. These methods of contracts will be discussed in the
report. Tour operators developed a brochure for their tours in which they have to take a different
kind of decisions regarding making and distribution which will be explained in the report.
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Task 1 Leaflet
LO1 Understand the tour operators industry within the travel and tourism sector
1.1 Analyse the effects of current and recent trends and developments on the tour
operators industry
Title
Analyse the effects of current
and recent trends and
developments on the tour
operators industry
Impact of trends and development
The travel industry is changing very fast by the effect of the
customer’s needs. Most of the changes are made in traveling
methods, food and accommodation. It creates a compulsion
within tour operators to make changes in their work
accordingly. Some of the points are given under here to explain
the impact:
Change in meals: Most of the tour operators are providing a
wide range of foods and meals to attract more customers
towards them. Now, most of the tourists are having a focus on
the exploration of new places and their specialties (Kaurova,
and et. al., 2014). So tour operators are having the focus to
connect their customers with tourist places.
To provide a local
taste of food hotels
are providing
homemade food to
customers to connect
with visitor place.
Introduction
Trends and development are
having a huge impact on
customer’s attraction so it is
necessary for tour operators to
like; Trailfinders Ltd. to
convert themselves
accordingly. Effects of trends
and development are
presented in this leaflet on
tour operators.
Conclusion
In a concluded manner, an
organisation working in the
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tourism industry has to
develop themselves as per
trends and developments in
industry and customers.
Customisation of tours is the
main factor which has created
a compulsion to all
organisations e.g. Trainfilders
Ltd. to make changes in their
working style.
Technological change: It has created a drastic impact on the
tourism industry and customers also. Staring at the promotions
of tours and booking of tickets, most of the customers prefer
online method. So it is essential for those organisations which
are working by the offline method to make changes in the
working style to compete in the tourism industry.
Customised package: In the current trend most of the
customers preferring to customise package in which they can
get all of the desired facilities. It helps to tourists to feel better
in the tour to enjoy it. Customisation is based on the traveling
method, food, and accommodation.
Different kind of tourism: In past years tours just a way to
enjoy and to spend holidays but now in these days tours are
designed for particular motive (Holden, 2016).
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Educational, historical, devotional, natural and urban tours are
designed by tourism organisation to work on needs of their
targeted customers.
Different traveling method: Random change in technology
has created a huge impact on travel ways, most of the long-
distance travels are done by airplanes, cruise ships, trains, and
buses. Most customers prefer airways for inter-country and
continental travel.
But in the site visit
traveling methods are now changed, Segways and bicycles are
now used into site and city visit. These types of changes have to
be implemented by the tour operator companies. These all-new
traveling methods attract visitors and provide an extensive feel
for a tour.
Facilities: Trends are generated by the customers’ needs and
most of the customers prefer those tour operators which are
providing them extra benefits or facilities in tours (Horner and
Swarbrooke, 2016). Wi-Fi, guide etc. are some relevant
facilities which attract customers to towards a designed tour.
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Special events: It is a current trend in the tourism industry that
tour operators provide or conduct a special event for their
customers. Night parties, evening shows are mainly organised
by tour operators which provides memorable moments of the
tour. This kind of shows or events has to be organised by the
Trailfinders Ltd. also which can help them to get more
customers for a particular tour.
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Task 2 Report
LO2 Understand stages involved in creating holidays
2.1 Assess the stages and timescales involved in developing holidays
Development of tour takes time due to several stages are involved in it, as Trailfinders Ltd. going
to design an educational tour for students from London to Brussels, Bruges, and Belgium. Stages
of these holiday development process are stated in below-mentioned points;
Market research: It is the first stage of the holiday planning in which Trailfinders Ltd. has to
make a pestle analysis of Brussels, Bruges, and Belgium. Political, economic, social and
technological conditions of these cities will make a huge impact on the tour so the company has
to develop their tour accordingly (Munar and Jacobsen, 2014). It is essential to enlist all
educational sites in the tour which can help to the company to conduct a visit for tourists.
Brussels and Belgium are well-developed cities so it is essential
Planning and scheduling of tour: This is the second stage in which company decides schedule
of the tour and make a plan accordingly. It is an educational tour and in the month of July 2019,
it is only for five nights different cities. Planning for accommodation, traveling and site visits are
made at this stage for this tour. Time schedules are also decided at this stage which can help the
company to design their tour accordingly.
Contracting: It is essential for the company to make contracts with hotels, aviation companies,
traveling agencies to provide a local guide. Different types of contract methods are available and
now it depends on the company to select the best and profitable one for them.
Cost determination of holiday: After the contracts with agencies, hotels and aviation
companies, Trailfinders Ltd. can set the cost of their tour (Mason, 2015). Selling process of the
package is based on the cost so it is essential for the company to maintain their cost to gain
maximum profits.
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Brochure for promotion: It is essential for the organisation to company promote their package
so it is essential for them to develop a brochure. It contains the key features of the tour and all
other relevant information’s which is essential to communicate with the customers.
Responsibility allocation: This is the last stage in which company has to allocate all
responsibilities to authorised people which can be employees and contract parties.
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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
It is essential for the company to make contracts with travel agencies, hotels and transportation
companies for the educational tour for Brussels, Bruges, and Belgium. An explanation for
different contracting methods for different services is given under the below-mentioned points;
Transportation of passengers: It is essential for the company to make contracts with those
aviation companies which are providing the services at lowest fares which can help them to
make more profits. Fixed contracts can be suitable in this with a small sized aviation company to
provide charter plan services for a group of students (Wang, Moustier and Loc, 2014). Also for
site visits in the Belgium and Brussels Company has to use fixed contract method to make an
agreement with travel companies. In this kind of contract, a fixed payment will be paid by the
company for decided travel roots and methods.
Accommodation: It is the second prior thing for the tour operator company. It is based on the
customers that which kind of accommodation they prefer and a number of rooms they want. As
the duration of this tour is four days and five nights in three cities. For this kind of tour variable
based contracting will be suitable for the payments.
Figure 1: Accommodation
Source: Hotels in Brussels. 2018.
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Trailfinders Ltd. has to make spate contracts with different hotels which they use to provide
accommodation to their tourists. Payment will be made as per the rooms were taken and rooms
they booked. This method of the contract will be profitable for them.
Meals: This is an area which cannot be predicted by the company to make a payment so the
fixed contract is not suitable for them (Clough and et. al., 2015). So they have to use variable
based on contracting method which can help them to make a payment of used meals.
Tourists guide: It is necessary for the company to provide a guide on each site visit which can
help to the students explore better these educational sites in the Belgium and Brussels. So they
have to use a specialised guide which can provide detailed information to the student of each
educational site. For this kind of service fixed contract will be suitable for the company because
the company will pay a particular person for his service. There lesser chances to occur variance
in this service so the fixed contract will be effective and profitable for the company to make
payments.
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2.3 Calculate the selling price of a holiday from given information below
The selling price of the package is based on the cost so it is essential to determine cost by
suitable methods. As Trailfinders Ltd. is developing an educational tour for 42 students in three
different cities so it is essential for them to calculate the cost of each stay in a hotel. As per the
given information of costs calculation of selling price given under the table;
Exchange rate of Euro in pounds = 1/1.12 = £ 0.8929
Calculation of selling price per person
Particulars Amount £
Accommodation facility with breakfast (96*5=480) (480*0.8929) 428.6
Travelling (11200/42) 266.67
Cost of guide (945/42) 22.5
Cost per person 717.17
Desired profit (33% of cost) 236.86
Selling price person £954.03
Calculation of selling price of overall tour package
Particulars Amount £
Accommodation facility with breakfast (96*42*5 = 20160) (20160*0.8929) 18000
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