Tour Operations Management Report: Strategies and Planning Details

This report provides a comprehensive analysis of tour operations management, using Trailfinders Ltd as a case study. It delves into the stages and timescales involved in developing holiday packages, exploring various contracting methods like fixed, ad hoc, and sales-only contracts, and their suitability for different tour operators. The report also examines the process of determining the selling price of a holiday, considering costs such as accommodation and transportation, and evaluating planning decisions for brochure design, including the suitability of alternative marketing methods. Furthermore, it assesses the strategic and tactical judgments made by tour managers within the context of Trailfinders Ltd, comparing different scenarios and providing insights into effective tour operation practices. The report concludes with a discussion of the current trends in the travel and tourism industry.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in Leaflet.......................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Stages and timescales involved in developing holidays.......................................................1
2.2 Suitability of different methods of contracting and different types of tour operator............4
2.3 Selling price of a holiday from given information................................................................5
TASK 3............................................................................................................................................6
3.1 Evaluate planning decisions for designing of a selected brochure ......................................6
3.2 Suitability of alternatives to a traditional brochure...............................................................7
3.3 Methods of distribution used to sell a holiday......................................................................8
TASK 4 ...........................................................................................................................................9
4.1 Evaluation of strategic judgement Trailfinders Ltd made by various kind of tour operator
.....................................................................................................................................................9
4.2 Comparison of tactical judgement taken by tour manager in different situations................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
In today's environment, travel and tourism industry is growing at fast speed. In order to
handle business operations and functions, there is highly needed of some tour managers to
provide effective package (Tour Operations Management, 2018.). Tourism sector in United
kingdom is the quickest developing business and it creates maximum sales in the marketplace
(Barratt, Choi and, 2011). Tour managers seems as business organisations which offers different
packages, transportation, accommodation and many other facilities to the visitors. It is very
beneficial and valuable for the company to attract large number of the tourist towards company
products and services in an effective manner.
This assignment is based on Trailfinders Ltd., it is the biggest travel and tourism industry
in Ireland and United Kingdom. It was established in 1970 and covers approx 29 countries. This
report shown about recent and current trends in such kind of sector. Timescales and main stages
which includes in creating holidays trip in an effective and efficient manner.
TASK 1
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TASK 2
2.1 Stages and timescales involved in developing holidays
Planning is very important and essential part of the business success and development. In
this Trailfinders Ltd manger plan an effective trip for the all visitors who are interested for
visiting specific destination. In during the planning process, business entity face large number of
problems like estimation of tourism cost, it highly effected by few cause such as inflation rate,
currency fluctuation, tax structure or rate and other many ways (Cook, Hsu and Marqua, 2014).
Therefore, tour operators have to followed several phase in order to achieve more benefits in
limited time period. All these are determined as below:
Marketing research: It is identify as first phase which is very essential and important for
the company to identify market trends and customer preferences regarding destination, services
and many other. One of the main objective of company is to analysis best and attractive place to
the tourist. Along with this, manager of the respective business is mainly emphasis on
determining social, climatic, economic and political force, in this they require to choose a target
place where different tourist visit happily.
Selection of destination: After conducting the market research, manger mainly focussed
on selecting attractive and healthy places to the visitors for travel. They mainly choose 5 to 6
destination which is beneficial for both individual and company in order to increase their
awareness regarding tourism destination.
Financial planning: It is also a main phase which is needed by business manager in
order to plan an effective tour package for the tourist. Such kind of planning encompasses
identification of financial value (Guo and He, 2012). In simple word, tour manager require to
analysis the all expanses, it will be obtain to provide an accurate design to a holiday trip. On the
other hand, TOM is very complex judgement in nature, there should be followed different forces,
including, market segment, government policies, climate, inflation, competitive price,
modification in exchange rate, terrorism within demand of tourism. It will assist managers in
order to built a proper budget, so they can recognise the accurate amount of capital.
Negotiation with suppliers and vendors: It is next phase which is also important and
valuable for the respective organisation to plan an effective trip for the tourist. In this company
negotiate with vendors and suppliers related to tour prices. Tour planner is mainly work with
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some vendors such as hotels, lodging companies, transport operators, airlines and many other. If
they has better connections with marketer then he negotiate prices in an easy manner.
Marketing and Execution of the plan: It is identified as last phase which is use by the
manger of company in order to execute plan in an effective and efficient manner. By this they
completing entire legal needs so in this tour manager easily execute such kind of plan. Each and
every nation has its own legislation which have to be fulfilled and known by arrangers
effectively (Hoyos, Morales and Akhavan-Tabatabaei, 2015). Afterwards, Trailfinders creates its
marketing schemes for encouraging the customers in futures. In this venture of the company
select different ways in order to advertise its plan related to tour with the use of web portals,
social media, online promotion and many other.
A timescales, it is prepared for creating a holiday trip, the Gantt chart which is valuable
for the company. It will be created as below:
Activities 1 to 7
Day
8 to 14
Day
15 to
21 Day
22 to
28 Day
29 to
35Day
36 to
42 Day
43 to
49 Day
50 to 56
Day
Marketing research
Selection of destination
Financial planning
Negotiation with
suppliers and vendors
Marketing and Execution
of the plan \
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2.2 Suitability of different methods of contracting and different types of tour operator
In this present time period, it is the responsibility of the tour operators to design or can
say prepare the effective tour related packages which are at the reasonable costs through
including the three different methods and those are fixed contract, Ad hoc and also sale only
contract. These kinds of contract are used in the industry to travel and tourism. In addition to
provide the better and effective services, it is a responsibility of tour operator to provide better
tour packages to visitors at reasonable costs (Jaafar and Maideen, 2012). From this large number
of people will be attracted towards it in an effective and efficient manner. Trailfinders Ltd,. Is the
most popular travel business firm in United Kingdom country. This travel comp[any gibes the
better quality of goods as well as travelling services to visitors at the affordable cost. The main
motive of this company is to earn more profit by attracting large number of consumers. On the
basis of given scenario, team of Product development of Trailfinders is to prepare educational
packages for almost 42 students which included all the relevant as well as basis services. In
addition to this, it is a duty to tour operator to deal with visitors in a fair or proper manner and
also provides the attractive or better places where they want to visit. In thus, the tour operators
are enter in to contract with vendors as well as suppliers which provides them best and effective
services on reasonable costs. There are various kinds of contracts given below which are used by
the Trailfinders company:
Fixed contract- This kind of contract is used for specific term and then end after the
limited time period. In this contract, the main focus of Trailfinders business firm is to adopting
the collective as well as qualitative approach towards sales figures. This travel company wants to
enhancing its capacity with the help of maximising the sales volume in an organisation (Kerzner,
2013). This kind of contract is helpful for tour operators in assuring use of volumes based on
capacity of the vendors in off season. In context to this, tour operator can provides an advantage
to visitors in off season through giving more discounts as ell as advantages to the target tourists.
Under this, Trailfinders Ltd. Company is taking risk factors and which is UN-utilized.
Ad hoc- This contract is regarded as most flexible methods of arranging all resources for
books and packages all travelling facilities prior to tour. On the basis of this contract, amount of
all facilities are per according to the activities which are carried out the tour on daily or hourly
basis (Khairat and Maher, 2017). It is helpful in managing all financial resources and get
confirmation through emails as well as other documents.
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Sales only Contract- In this, the cost is high as comparison to the fixed contracts. Under
this kind of contract, services and products both are sold at high cost than fixed contracts. These
kind of contracts are developed according to needs and demands of consumers. Under this, risk
is less involved because in this travellers done the payments to their services which are taken by
them (Khairat and Maher, 2017). Its main advantage is that it minimizes the chance of failure or
loss and conducting business in an effective or better manner.
These all the methods are give their contribution in increasing economy of United
Kingdom country. There are different kinds of tour operators which are mention below:
Inbound Tour Operator : These kinds of tour operators are generally deals in reg foreign
tourists and give them effective services concerned with providing transportation, sightseeing,
accommodation, entertainment and many other facilities.
Outbound Tour Operator : These kinds of tour operators are specialised in the advertising
as well as promoting the goods and travelling services in the foreign countries (Lenahan, 2011).
They are expert in selling packages of the home country to the host country.
Domestic Tour Operator : Under this, whole market is under controlled through domestic
payers of the tour operators. This type of tour operators develops their own market.
2.3 Selling price of a holiday from given information
On the basis of given case study that European students make the plan of tour to travel
from the London to Brugge and also Brussels with the purpose of education and also increase
their knowledge with the help of this. In addition to thus, it is necessary for all students to
prepare an effective budget related to the 5 night trips through including all necessary factors. As
Trailfinders Ltd. Deals in travelling sectors and it has a positive reputation at the market place. In
Belgium, this company has strong and better contacts with the hotels (Luis, Dolinskaya and
Smilowitz, 2012). So, it is necessary to the team of product development to prepare an effective
tour packages to those students and provides them all the necessary facilities which they need. In
context to this, it is necessary for the students to make their budget in a proper manner and also
calculate the actual cost.
Accommodation cost: 96*21=2016
96/1.12= 85.7
85.7*21= 1800 (For One night)
1800*5= 9000 (For 5days)
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Details Price(in £)
Accommodation cost 9000
Transportation cost 11200
Charges of tour guide 945
Total cost 21145
Add: Profit margin @ 33% 6977.8
Sale price 28122.5
From the given calculation, it has been concluded that cost of food is not considered in
selling cost. So, in regards of this, total selling price will be: £28122.5.
For per person:
=28122.5/21= £1339.18
TASK 3
3.1 Evaluate planning decisions for designing of a selected brochure
Each and every enterprise have its own department of marketing which are doing batter
work in an effective manner. Main aim and motive of this department is to creating awareness
about business services and products amongst clients (Martinez, Stapleton and Van Wassenhove,
2011). There are various kind of tools and technique's that can be used by respective firm and
team of marketing for acquiring necessary information. Trailfinders Ltd is a greater travel and
tourism industry who mainly gives suitable and important data to the visitors regarding holiday
trip.
Brochure is a beast technique's which is requires by all businesses during planning
decision of holiday trip. It is consider by the respective firm on the way of these responds which
are determine as below:
Planning issues: Trailfinders Ltd is a travel and tourism industry which provide
essential and accurate information to the tourist related to trip. In this business face different
issues which can hinder its profitability and productivity (Martinez, Stapleton and Van
Wassenhove, 2011). There are some problems such as contend, format, style, structure, paper
quality, size and many other. All this issues are mainly concentrated with the designing of
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effective brochure. It is important and beneficial because it give correct and accurate data about
luxury holiday package to their clients. It is essential for organisation is to given relative message
with this love so it is significant to attract million customers. In other words, such forces like
size, paper quality, and many other factors are play a vital role in this. In this need and
requirement of business manager is to identifying the brochures structure so this is accurate for
adding data it. It is also essential for the company is to designing before utilising planning
activity in an appropriate and correct way.
Target market: It is also very important for the business entity in order to evaluate the
target place and clients for increasing more attention of customers (Moutinho, 2011). For
determining the main difficulties, it is essential and valuable for deliver entire data for targeting
marketplace. An effective package is needed to give maximum consumable income level of
person so that business get famous these people and achieve ultimate customers base. In this
marketing team analysis the market which they wants to target for specific aim. In brochures, an
enterprise have detailed information of prices or budget of trip.
Attracting brief: In this all information should be accurate which is needed in specific
time period. It coves specified destination to travel with attractive pictures and colours to built
trip is interesting and easier. Dream of the person is to travel at such destination with their
relatives and friends.
3.2 Suitability of alternatives to a traditional brochure
Brochures is an effective tool and source which assist in providing necessary and proper
data in target and other market. In paper format, traditional brochures is expansive and not give
accurate information related to business operation and activities. So in this tour operators decided
to evaluate an effective and essential brochures in order to increase their turnover and sales in
limited time period (Naji-Azimi and et. al., 2012). Effective brochures help the business entity in
transferring proper data regarding business functions. With modifying inclusion and era of
advance technology in travel and tourism industry, they required to select few practices and
strategies for acquiring as well as giving accurate data. There are some tools which help in
providing necessary information are as below:
Video: It is refers to the modern technology which is beneficial for the company to
directly and face to face deal with its clients. In this they can upload different videos on various
sites such as social networking i.e. Facebook, Instagram, You Tube etc. it assist both kind of
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operators such as inbound and outbound for encouraging their business operation or activities.
Developing and publishing video on certain social sites as expansive and must be designed
accurately by tour operator.
Internet: It is refers to the cheapest tool of digital advertisement which support them to
expand their business activity in international place (Nakayama and Bucks, 2012). It is one of the
foremost and essential source for providing entire information and data to the clients regarding
holiday trip. With the use of this technique's they can increase their sales and turnover in limited
time period. There are different online firm related to travel and tourism industry which can
make web portal with the aim of attracting tourists.
3.3 Methods of distribution used to sell a holiday
It is an essential and foremost technique for an enterprise in order to select best approach
for distribution of sleeted brochure to target client. It support them to attain better output and
increase prosperity or popularity in market (Distribution Channels, 2017). In this they make sure
in order to select batter approach for convincing all message and information to target clients.
Trailfinders Ltd use different distribution channel for offering their holiday trip to inbound and
outbound clients which are determined as below:
Direct selling: This technique use when the enterprise start in order to distributing its
brochures to the clients directly due to different social media sites i.e. texts, mails and many
other (Page, 2014). It is an effective approach which assist in making better image and create
belief among their clients.
Call centres: This is also essential method of delivering all information and data to the
customers. With the use of this tool, Trailfinders Ltd can easily contract with other agencies in an
effective and essential manner. They are capable in giving accurate data regarding holiday trip
which help them in reducing all issues. Manager of the company also emphasis on offering few
facilities such as cash back, discount and many other which attract large number of the visitors
for travelling specific destination.
Internet: There are various networking which help the tour operator for making effective
brochures on internet sites. So it is identify as an essential scope of clearness in giving data
regarding business and travelling plan. It is beneficial tool which provides data regarding rating
of company. It support clients to evaluate performance and profitability of organisation in
marketplace.
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TASK 4
4.1 Evaluation of strategic judgemen Trailfinders Ltd t made by various kind of tour operator
In the travel and tourism sector, few judgement are made by the operators for running
business operation and activities smoothly. These type of decision concentrated with designing
and developing an effective brochures, distribution channel selection, fixation of pricing and
deciding the target market. There are main strategic decision which are mainly related with
tourism sector are determined as below:
STP(Segmentation, targeting and positioning): In this, tour manager select who's
costumers of the organisation for various facilities like: airline passengers and many other. In this
manager segment marketplace on the way of different forces such as interest, age, spending
power, etc. It assist company to select the section which have success and growth potentials.
Trailfinders Ltd do classification on the basis of demographic, psychographic ans behavioural.
Competitive pricing Scheme: In this, business emphasis to accomplish a competitive
benefits by set the effective cost of trip as compare to another strategies (Ronen, Pliskin and
Pass, 2012). In case of Trailfinders Ltd, they decide end price or cost of its holiday trip after
evaluate the packages cost by its competitors.
Strategy of advertisement: With the use of this, an enterprise select effective technique
for advertise the services and products. Select accurate channel of advertisement is very
important for an organisation as this assist them in hold the million number of audience attention.
Scheme for discount: It is also assist in order to attract various visitors towards business
facilities. It will give a better chance to the enterprise in capture maximum number of market
share.
4.2 Comparison of tactical judgement taken by tour manager in different situations
Organisation have various hierarchy which covers various level of enterprise, it covers
operations, middle and upper level. In this administration plays an essential role in involvement
of their work or function within organisation (White, 2016). In the area of tourism sector
manager of the company handle all demand as per the requirement of market.
Middle level management needed to signify entire policies and activities in marketplace
which assist better preparation in working situation and attain target or goals effectively. Various
kind of decision are taken by various tour managers as per the needs of business entity. For
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example: at national level, price warfare is different from inbound enterprise. It is also very
important in order to take an effective decision regarding attracting large number of the clients
towards business facilities.
Duties and role of administrator must evaluate entire forces related to various conditions.
In this they must design to built the work or function in an easier by seeing various parameters
management. Trailfinders Ltd manager must decrease influence of external force such as
modification in marketplace and reduction in productivity (Wu, 2012). It must be make as well
as regulate coordination between external and internal which support in success and development
of enterprise.
CONCLUSION
It has been concluded from the above given report that various kinds of tourism trends
impacts on the development of growth of tourism industry. Trailfinders Ltd. Company provides
better and effective services to its consumers and also satisfying their all needs and demands in
an effective manner. In this given report studied about the suitability of the various methods of
contracting and also the different kinds of tour operators which provides better travelling
services to the visitors. Strategic decisions which are made through various kinds of tour
operators discussed under this given report.
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Tour Operations Management. 2018. [Online]. Available Through: <http://somo.co.ke/bachelor-
of-travel-and-tour-operations-management-at-moi-university-sm2-493.html> .
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