Tour Operations Management Report: Strategies, Trends, and Analysis

This report provides a comprehensive analysis of tour operations management, focusing on the British tour operator market. It examines the effects of current trends, such as technological advancements and economic factors, on the industry. The report details the stages and timescales involved in developing a tour package, including planning, budgeting, and market research. It evaluates the suitability of different contracting methods for various components of a holiday and different types of tour operators, such as mass market and specialist operators. Furthermore, the report includes a calculation of the selling price of a holiday package, considering costs like accommodation, luxury coach, and local tour guides. Strategic and tactical decisions made by tour operators are also evaluated, offering insights into effective management practices within the tour and travel industry.

Tour Operations
Management

Table of Contents
INTRODUCTION..............................................................................................................2
LO1.................................................................................................................................. 2
1.1 Analyses the effects of current and recent trends and developments on the West
cord Art hotel agency...................................................................................................2
LO2.................................................................................................................................. 3
2.1 stages and timescales involved in developing West cord Art hotel........................3
2.2 Evaluate the suitability of different methods of contracting for different
components of the holiday and different types of tour operator...................................4
2.3 Calculate the selling price of a holiday from given information below....................5
LO2.................................................................................................................................. 6
3.1 Evaluate the planning decisions taken for the design of a selected brochure........6
3.2 Suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package......................6
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....................................................................................................................... 8
LO4.................................................................................................................................. 9
4.1 Evaluate the strategic decisions made by different types of tour operator.............9
4.2 Compare the tactical decisions that could be taken by a selected tour operator in
different situations......................................................................................................10
CONCLUSION........................................................................................................... 10
REFERENCES...............................................................................................................11
1

INTRODUCTION
Tour operations management is important for each and every organization to
provides the best services to their customer. The travelling experience of each and
every people should be memorable and they always want to enjoy their holidays with
friends and family members. The tour operator is plays an important role to provides the
best services to the guest. Tour and Travel agencies provides the best services to their
customer because they always managing the facilitates such as ticket booking services,
transportation facilitates, car parking areas etc. these are important for organization to
manage their business operations in proper manner. Tailor made holiday is a leading
organization to provides the best deals and discounts to their customer. This report will
determine the different stages that helpful for development. It will identify the current
trends in tour and travel agency. This tour and travel agency is making an effective
strategy to increase their productivity and profitability in marketplace.
LO1
1.1 Analyse the effects of current and recent trends and developments on the British
tour operator
There are various type effect of recent trends and current trends in the
development of British tour.
Change the economical factor- This factor is directly affect the price of product,
price of the latest trends package and offered many necessary elements that require for
the business purpose. The tour and travel agency have spreads their quality of services
all over the world (Ramanathan and Zhang, 2016). Most of the travel agency provides
an effective quality of services in the occasion such as events, festivals, opportunities,
research analysis etc. For Example- Most of the independent traveller travel in many
areas who are mature person and have decision-making power to achieve their goals
and objectives. Advancement of technology also very helpful for aware about the trip
and particular areas. In educations system, The most successful entrepreneur always
encourages to the people who have select the best trip and freely to spend time with
family and friends.
Advancements of technology- It is very important part of each and every
organization that helpful for increase their growth in marketplace. It is the most
2

significant factor to provide the facilitates for people or widely spread their services all
over the world. Internet services provides the best services to their guest and it is the
best medium to share the information from one system to another and collaborate with
different travel companies such as transportation facilitates, travel agencies and
services provider etc (Redjemand Marcon, 2016). by using internet, it easily customized
their all services by internet. British tour operator is also used new technology to
enhance their services with the help of mobile applications, search engine optimization,
e-commerce website, online payment etc. there are different platform use for increase
their productivity and profitability in marketplace.
Integration in tour and tourism industry- For increasing this industry to making
an effective strategy to increase their popularity in marketplace. They always creating a
special bond between the components of tour and travels industry. British tour also link
with other components to expanding their business all over the world. This is the best
way to increase their popularity in front of peoples.
LO2
2.1 stages and timescales involved in developing British Tours
British tour operator is the fastest growing organisation to planning an effective strategy
to increase their productivity and profitability in marketplace. There stages are important
that involved in the planning process as discuss in given below:
Planning- It is very important for organization to planning related the tourist
destination, hotel services, booking and time schedules etc. It is done when the
feedback from the customer will collect. British tour operator is planning an effective
strategy to manage and control the business operations and functions. This operator
plays important role in the business process to plan the specific timescales to complete
their task and also providing the best services on time.
Budgeting- British tour's operator provides many offers related the discount,
voucher etc. there are many facilitates includes accommodations, research cost, local
transport services etc. The tour operator is main role to helping the organization to
determine the profits (Redjem and Marcon, 2016). There are various factors that which
is increase the cost in marketplace such as political issues, terrorist attack and weather
changes etc. This tour operator is considered the three different cost that help for
3

managing the overall activities of business process such as marketing cost, operating
costs and distribution network cost etc. these are important criteria to manage the
overall budget of organisation. The estimation cost of budget approximately $234.99.
Market research- British tour agency have efficient operator to help for people
and providing the informations related competitors in market, consumer behaviour as
well as market trends etc. This operator analyse any particular destination to planning
an effective market research for growth and development. Market research is an
essential for agency to identify the need and requirement of consumers. British tour
operator is used the market research for organizing to gather all information related the
target markets or customers. It helps for maintain the competitiveness over the
competitors.
Designing and creation of brochure- This is very important for tour operator to
creating and designing a special holidays offers to their customer so that the guest
attracts towards the packages. British tour provides the brochure that contain all
information related per day cost of stay, destinations, sight scenes and other activities.
This tour operator is mainly used the brochure to promote their services in marketplace.
It is the best technique were attracted towards the people and they also used this
concept to manage the operations.
Contracting- This is the most important to negotiation with the supplier and
services they would provide to the customers. It is a continuous process to achieve their
targets for development (Sahinand Matta, 2015). The British tour operator mainly
determine the popularity of places based on the preferences such as selecting the
different trips. The small organization should give so many preferences to contract. The
large organization has set some time periods for 10-12 months. British tour will provide
many options to the customer because they can be managed the entire service in
proper manner.
2.2 Evaluate the suitability of different methods of contracting for different
components of the holiday and different types of tour operator
Contracts are important for each and every organization that would be based on
the holidays seasons. The British tour operators has main role and responsibility to
provides the proper information of destination, total estimations related the need and
4

requirement of the organization. They have capabilities of different organization to
contract with the hotels and airlines etc (Allahyari and Vigo, 2015). There are various
type of contract described in given below:
Allocations- This is the most important method among all the hotel that all the
beds are sold. The tour operator contract with the other organization to selling their
beds and it confirms in which is they require an extra bed. British tour operator apply an
effective strategy to increase their profitability and productivity. This type of contract is
needed for tour agency to maintain the allocation services in the organization. They also
provide the extra facilities but they will charge more money.
Sale only Contract- This contract is useful for tour operators that would be
specialized on this planning. There are some steps that involves to making a group of
customers. They develop an effective strategies and planning to identify the actual
market value and targets (Burgin and Hardiman, 2015). For Example- Cox and Kings,
British tour operator are leading organization on the basis of their cost and income. This
contract will help for agency to target the sales and invest money for increasing the
brand values in global world.
Fixed Contract- This contract based on the advanced booking and payment
services while booking tickets as well as hotel rooms. This is the best contract for
customer and more advantageous because if any case the seats are not available pr
the rooms also not available therefore, they return all payment for same. British tour
agency is mainly fixed the cost of seat and price of hotel services. It is beneficial for
people to perform different task in effective manner.
Ad hoc contracts- this contract is mainly made by the tour agency and operator.
This is the best contract as well as more beneficial because they do not have any type
of risk related the tour operators (Wang and Papadopoulos, 2016). This is very useful
for operator to manage the overbooking that provides extra accommodation facilitates in
the last time. This contract is based on the risk that generated during booking. Many
tour operator is handle overbooking in seasons. There are large number of demand in
market to manage the extra services in effective ways.
5

Different type of tour operators- Mass Market Tour operators- This tour operator is selling the large number of
holidays package to the customers. They offering various type of packages
through the economies of scales. It helps for increasing the productivity and
profitability in marketplace. This tour operator is works with the local guidance
that able to give the bes recommendation and managing the task. Specialist Tour Operator- This tour operator is catering for niche market
holidays and also specialised in the particular designation as well as particular
product. This tour operator is responsible for preparing and organising the
holidays tour for customers. It is special facilities and services provided by the
operator. They also used the different brochure for the purpose of promotions
and marketing. Outbound Tour Operators- this tour operator take resistant from one country to
another. It provides the local assistance for tour that is arriving in different town.
2.3 Calculate the selling price of a holiday from given information below.
The selling price of holidays is mostly concern about the calculations of the
destination packages that would be designed on the basis of Chinese Students who are
approximately 16 number of students (Dixon and Verma, 2017). The initially destination
tour started in London and another final destination place Paris that located in France.
The table shows the actual calculation of the cost involved in the holidays package tour.
Luxury rooms has 1000 in 16 students including all services taxi cost, petrol,
accommodation etc.
Accommodation charge= 50 Euros for 5 days per person. Thus it is 43 pounds for per
person for 5 days.
Particulars Amount Total (€)
Accommodation charges 84 27048
6

luxury coach (£) converted to (€) 10800 12420
Cost of local tour guide 1200 1380
Markup 25%
Spot exchange rate of €1.15 1
No of students 46
Tour period (nights) 7
Total cost of tour 40848
Add: markup 10212
Selling price 51060
The holidays package is calculates of 16 students
Assumption= profit margin of 10% = Pound 51060 *10%= 5106
Where
the Selling Price (S.P.) = Cost Price + Profit
Hence, Selling price = 51060 + 5106 = Pound 56166 appx.
LO2
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Planning and decision is the important for organization to design an effective
brochure as well as holidays package includes all type of information such as detail of
customer and brochure that would be motivates to their customers such as college
students, young girls and boys. All the information stores in the brochure related the
name of agency that would be based on UK, destination details, food services,
accommodation, price and cost, extra charges for health safety and security.
7

They involved the cost of brochure for tour operators and selecting a different
vendor for creating a unique brochure. They have perfect format and type that would be
represented in proper ways in-front of customer. Most of the customer attracts towards
their style and presentations (Espino-Rodríguez and Gil-Padilla, 2015). The young
people attracts towards the style of brochure because most of the people spends their
holidays with family and friends.
Brochure design planning Define brochure goals- The basic goal of brochure is provided the information
regarding paper documentation. British tour agency is used this concept as a
promotions activities to share the information for customers. This agency is
distributed brochure in different ways such as mail, inserted in newspapers, mail
etc. Marketing objectives- It is a set of goals set by the brochure for business
process to promote the services in marketplace. British tour agency is targeting
the potential customer that should achieve within the given time. Gather sample brochures- There are different type of brochure available in
market so that British tour agency is selected the best one. It is very helpful for
company to increase the popularity in global world. It is also added more features
to attract the customer toward the business process. Establish budget- It is also part of brochure design planning to calculate the
overall budget. British tour operator is mainly used the tools and platform to
easily identified the actual cost spend of business process.
 Vision of brochure- The main vision of brochure to provide the information
regarding the company. Every people can use this brochure to determine the
need of consumer.
3.2 Suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package
For advancement of technology, The customer demand has been changing and
also change the expectations towards the client. In this way, it reduces the traditional
travel in the global market because most of the people preference taking an effective
8

holidays package that would be providing by travel agency. There are different type of
travel brochures discuss in the followings:
 Social media network
 Internet services
 E-Brochures
 Television Advertisement
 outdoor media
 CD ROM
 Flyers and Leaflets etc.
(Source: Travel brochure)
 Social Media- This is the best way to share the information and brochure in front
of the customers. This is the best platform to sharing all the information with the
9
Illustration 1: Tour and travel brochures
( Source: Travel brochures, 2017)

help of this medium so that customers attract towards the publicity such as
Facebook etc. It reduces the cost and sharing cost is also very low.
 Television- Television is also another platform to display all the required
advertisement. Most of the people watch television so that it is very for
organization to easily share their information in proper manner (Hoyos and
Akhavan-Tabatabae, i2015). The cost of television is very high as compare to the
other platform. It is the best way to sharing the information in proper manner.
 E-brochures- E-brochures gain popularity in between the customers as well as
tours operator. CD-ROM is another tool that appealing to their customer and it is
very flexible. It provides the important or sufficient information related the
holidays packages that offered by the tour and travel operator.
 Leaflets- It is a piece of paper where the brochures has been printed on the
paper and it also distributed in any places, houses where traffic is very high. This
is very useful for people those who has not uses the online platform. Social
media is very effective marketing tools to promoting their services all over the
world. Leaflets cost is very high because of printing and distributions.
These are different type of medium to promote and share the information to the
customers in marketplace. There are different travel agencies used this type of medium
for the purpose of promotions such as Social media network, Internet services, E-
Brochure, Television Advertisement, outdoor media, CD ROM, Flyers and Leaflets etc.
It is beneficial for collecting and maintaining all the details of tour agencies.
According to analysis, it is recommended that social media network is the best method
for British tour operator that help for promoting their services and information related
holidays package to the customers. It is the fastest method to explore all the details and
maintained the relevant information. Many people can use this medium to easily check
the details of holidays package.
10

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
Distribution is plays important role in the online marketing of items and service on
order to offers by the tour and travels operators to the customer. This is the most
important association to selecting the useful channels as well as operations that
communicates in proper manner. The supplier also plays important role in the
development of tourism industry.
Distribution is involves as third party to communicate with the business and they
directly communicate with the communication platform. There are various
communication platforms and tool to easily share the important information in proper
manner. It is important for tour operator to find out the appropriate distribution medium
to achieve their goals and targets (Jabbour and de Sousa, 2016). Tour operator is the
person that follows all essential factors required for taking a right decision.
Direct distribution channels- these distribution channels direct interact with the sales
team and contact with the customers. There are some important advantage's
associated as followings:
 They directly communicate with the consumer and it will consume very less time.
 The changes require according to the demand of customer and it is very flexible
in nature.
 There is no middle person require for direct distribution and only third party
includes that has directly paid for the consumers and hence it will increase their
profit. They provide the comfortable and security in the transactions.
Indirect Distribution channels- This is involves one or more mediators in order to
build secure transactions. They provide different benefits such as single payment
system, less costly, more variety offer, professional consultation. This system is helping
for direct channels that provides the permanent distributors with the help of tour and
travel operators. This is the best way to increase the performance of people to reach
their goals and objectives (Kotiloglu and Repoussis, 2017). They return investment at
the time of finalization and end of specific time intervals. They aware about the business
process in which tour operator deals with the other company to increase their turnover
11