Tour Operations Management: Evaluating Tour Operator Strategies

This report on tour operations management provides a comprehensive overview of the industry, analyzing current trends and developments, such as food tourism, easy booking options, globalization, and customized products. It assesses the stages and timescales involved in developing holidays, including market research, itinerary development, and negotiation with suppliers. The report evaluates different methods of contracting for holiday components, exploring fixed and sale-only contracts, and examines the planning decisions for brochure design and alternative distribution methods. Furthermore, it evaluates strategic and tactical decisions made by different types of tour operators, using Trailfinders Ltd. as a case study to illustrate key concepts and practices within the tour operations industry. The report also includes calculations for the selling price of a holiday package.

Tour Operations Management

Table of Contents
INTRODUCTION........................................................................................................................................................................................................3
TASK 1.........................................................................................................................................................................................................................3
1.1 Analysing the effects of current and recent trends and development on the tour operator industry.................................................................3
TASK 2.........................................................................................................................................................................................................................3
2.1 Assessing the stages and timescales involved in developing holidays..............................................................................................................3
2.2 Evaluating the suitability of different methods of contracting for different components of the holiday and different types of tour operator. 4
TASK 3 ........................................................................................................................................................................................................................5
3.1 Evaluating the planning decisions taken for the design of the brochure...........................................................................................................5
3.2 Assessing the suitability of alternatives to a traditional printed brochure.........................................................................................................5
3.3 Evaluating the suitability of different methods of distribution used to sell a holiday package.........................................................................6
TASK 4.........................................................................................................................................................................................................................6
4.1 Evaluation of strategic decisions made by different types of tour operators.....................................................................................................6
4.2 Comparing the tactical decisions that could be taken by a selected tour operator in different situations.........................................................7
CONCLUSION............................................................................................................................................................................................................7
REFERENCES:............................................................................................................................................................................................................8

INTRODUCTION
Tourism industry is the one which work for people by creating various innovative plans of holidays and reaches the customers with the
help of producing brochures and various other channels of distribution. It is one of the major industry of economy which adds greatly to the
Indian economy. The report will include the current trends of tourism industry, changes made in the operations, ways of reaching and
distribution channels and different decisions that is normally taken by the tour operators in order to offer the best to its clients. Adding to it the
report will be including the planning of the attractive brochure and suitability of various alternatives to traditional form of printed brochure on
analysing the ways to improve and innovation techniques in the format and design of a brochure of a tour operator. Different tactical decision of
the tour operators will be completing in the report.
TASK 1
1.1 Analysing the effects of current and recent trends and development on the tour operator industry
A tour operator basically means the combination of tour and travel
elements in order to develop holiday packages. The advertising style of
an operator includes brochures for promoting their products, holidays
and itineraries. An individual wants the travelling experience to be
memorable for lifetime therefore nobody wants the experience to be
spoilt by mismanagement of travel agency. There are various players
offering the tour and holiday packages and running the tour operations
in UK but one of the best among them is Trail-finders Ltd. The
company offers different unbeatable value and award-winning services
on the basis of tailor-made travelling worldwide from a long duration
that is from last 47 years (Xiang 2015).
 Food tourism- Tourism industry has been emerged with food
tourism as a current trend among the travellers everywhere. It
has not only limited to dining out. Various tour operators has
tied up closely to the culture of different locations so that they
can provide the best food of locality to their customers.
Travellers have the mindset that with the food of particular
location, it will be easy for them to know the history of that
place therefore in order to make understand the history and
story of place, tourism industry has developed this trend of
food tourism which is one of the best and valuable resource for
companies to attract more customers (Xiang and Fesenmaier
2015).
 Technology- It is one of the changing driver for the industry
which opens up various opportunities for integration and
greater efficiency in order to improve the guest service.
Technology made so much of changes which are important for
the tourism industry to grow and develop. It has been a
business activity that brought the development of strategic
resources and is considered one of the best tool to increase
competitiveness. Various advanced software and
communication tools has enhanced the operational efficiency of
tour operators in the industry in recent years. The changes
made by technology to tourism industry are orders can be made
faster by the clients or customers, various decision support
tools has made the decision making faster of the customers,
manager's job has been assisted by different databases and
modelling tools.
Following are the current and recent trends of tour operator's industry
in UK:-
 Easy booking option- In this automated world, consumers are
searching for best deals in travel packages, therefore various
tour operators in UK satisfies their clients by offering the best
deals with easy booking option available online. The industry
has enabled the data persistence over different booking
channels and equipments in order to make the booking process
smooth for the clients.
 Globalization- Today people are more interested in travelling
and exploring the world more than ever. The data shows that
number of international tourists has been increased from 674
million in 2000 to 797 in 2005 which is n increase of 18.25%.
Similarly, it has been seen that recipients from international
tourism has increased at a high rates in the recent years which
is one of the great signs for tourism industry for development
(Giaoutzi 2017).
Customized products: It is another trend in the tourism industry of UK.
Tour operators are now designing tour packages as per the needs of
consumers. All these products can be accessed by travellers easily.
Packages have variety of features that attract people towards the tour
operator.

Holiday packages: Now operators are providing special holiday
packages to consumers as per their requirements. Many people like to
travel for education, research, entertainment purpose thus, these
operators offers them services accordingly so that they can be satisfied.
TASK 2
2.1 Assessing the stages and timescales involved in developing holidays
 Market research
The Trailfinders Ltd. make a research study to figure out the appropriate destination places and the target market, person wishes to plan in his
packages and will also figure out alternative destinations (12 Stages of Developing and Planning a Tour Package that will Ultimately Satisfy
Every Tourist, 2014). The manager will plan the tour to meet out the needs of the people.
 Itinerary development
The next step involved is in the stages of developing holidays by Trailfinders Ltd is itinerary development which is a compact design of the
activities and the places which are to be visited during the holidays. It includes destinations, hotels, restaurants, transportation, sightseeing, etc.
 Negotiation with suppliers
Depending on the nature and size of suppliers the Trailfinders Ltd will plan the tour. It includes negotiating with the suppliers of air ticket,
hotels, cabs, restaurants, etc (Veal, A.J., 2017). The main aim of the stage is to reach the best price to avail profits.
 Quoting the package
After assembling the various components involved in a tour package, the prices are quoted by the entity on the packages according to the
requirements of clients, strategies, size of the tour, and other market requirements.
 Costing the holiday
The next step is to price the holiday according to the destinations. Like price of the package, future selling price, a proper pre-planning would be
done before finalising a tour. Trailfinders Ltd. will price the package with cost oriented tour pricing or market oriented tour pricing.(absorption,
skimming, penetration, product cost, rate of return)
 Additional staff
Since the business of tours and travel does not run on regular basis, the Trailfinders will keep a list of the seasonal staff required in the business
(Ganor, B. 2017). They should posses the qualities of skills, intelligence, good sense of humour, and must have a crux about the destinations in
the packages.
 Inbound and outbound packages
A proper panning is to be done by Trailfinders because international tours are more complicated and costly then that of a domestic tour.
2.2 Evaluating the suitability of different methods of contracting for different components of the holiday and different types of tour operator
Different components have been taken into consideration by Trailfinders that can prove helpful in meeting target of company and
accomplishing the desired goals which can give a good rise in the satisfaction level of customers. Following are the main elements of a contract:-
 Transportation: This element of a contract will include the Trailfinder to fix the transportation process according the contract signed
between the customer and the entity. It also includes the details related to driver, fuel, toll tax and parking charges.
 Accommodation: It is one of the important part of a contract as it is linked with the tourism industry and therefore will help in good rise
of the customer satisfaction level. The accommodation details is totally based on the time duration. Different contracts related to the stay
of the tourists are been made and according contract has been decided by the Trailfinders and client.
 Meals: Meals are been taken as an important part in the contract because the food and beverage of a customer at the tourist location is
the hole and soul responsibility of Trailfinders Ltd and thus it will be covered in the contract between the entity and tourist (Horner and
Swarbrooke 2016).
The two major types of contract that are been followed by the tour operators are as follows:
 Fixed contract: It is on a high consumption basis that cause the firm to provide the service in a better way. This is usually been followed
in the off season of the tourism that causes the reduction in prices and help the travellers to get the suitable discounts and offers. It will
include the high number of tourists but causes the wastage of time money and resources. However, it is beneficial for tourist with
minimum requirements.
 Sale only contract: This element has been developed by the entity on the basis of the estimation and assessment of the requirement of
clients within a contract. It is been followed within the seasonal period of the organisation. It involves cost estimation, duration of tour

and number of tourist going on a tour. Tourist cancelling the registration doesn't get the refund and the payments are been made on the
basis of services provided.
Different types of tour operators are as follows:-
 Mass market tour operator : They buy services from vendors in large and at low price and sell them to customers high-priced.
 Specialist tour operator: They provide services to particular group of people who have certain interest areas. They handle their tourist
depending upon the niche market.
 Outbound and inbound tour operator: Outbound are those who provide international packages to people visiting outside home
country and inbound provide domestic packages to people visiting in our country.
 Direct sell tour operator: Does not involve any travel agent, they sell their packages to people directly without any involvement of any
travel agent.
 Wholesale and Retail tour operator: They open shops or website to sell their packages with some % of commission.
2.3 Calculate selling price of holiday
Cost of room 42*92*5 €119320
Luxury coach 5*7350 €136750
Visitor attraction 42*52 €12184
Local tour guide 1020 €11020
Total cost €159274
Mark-up 25% €159274*25%=14818.5
Exchange rate 1.12 €116596.72
Per person price €1395*16
TASK 3
3.1 Evaluating the planning decisions taken for the design of the brochure
For a tour operator it is very essential in the process of arranging tour packages that they design the brochures first. So that, a traveller
can carry a hard copy of it with himself. Brochures are one of the best way by which Trailfinders can reach their target audience. The entity
needs to concentrate on the previous information and on the number of brochures going to produce with number of pages and types of packages
should be included. Cost should also be analysed to produce brochures. If company wants that this strategy proves successful for them then it
should focus on the content which should be relevant and convincing to customers. Following are the ways which can be helpful in designing a
brochure for Trailfinders Ltd:-
Including pictures of attraction and different scenic spots- Tour operators are just mediator but it should be kept in mind by Trailfinders that
they are selling holidays, therefore it is important that the brochure they are going to distribute should be attractive enough for customers.
Brochure of Trailfinders Ltd should include the beautiful images of different tourist attraction. Adding to the photos. The entity should not forget
to give a clear description of the places mentioned and the reasons behind visiting the same, which should be convincing.
Using colours for enhancing the image- Any attractive place of the locality which a customer is interested to visit should be highlighted in the
brochure. Background colours also can be used to enhance the picture (Xiang 2015).
Easy readable descriptions should be inserted- Using the sentences that that implies a call to action can easily engage a reader, so that the
close and personal witnessing can be done by a customer.
Adding connective useful details- This strategy can prove helpful for a customer or a reader to familiarise themselves with the place they are
visiting. For helping a client, Trailfinders can include information which should be based on the basic necessities. The company can enlist
different names of the hotels that is situated near the point of attractions. A good and attractive travel brochure should be convincing enough in
order to make an appeal to a tourist that they should try to visit and experience the benefits offered by company and scenic attractiveness of the
destination.
Format: There should be appropriate tour operator name, facilities that will be provided by the firm and all charges etc. This will help in
attracting more people towards the travel package.
Budgeting and target market: Before designing the brochure, individual has to identify the actual budget and according they have to select
correct paper and colours. They have to ensure that their photos and design can attract target audience significantly.
Time scale of completion: It is essential that it is designed within specified period of time.

3.2 Assessing the suitability of alternatives to a traditional printed brochure
Holiday brochures are considered as an important part of marketing mix of any tour operator since the invention of packaged holidays.
None of the elements except brochures has been considered traditional important regarding to informing the tourists and convincing them to buy
it. Therefore, Trailfinders spend a good amount on designing and distributing brochures. The increasing cost effectiveness of brochures has been
questioned. It has been estimated that one out of ten brochures has been used ever in order to actually promote a booking from Trailfinders Ltd.
Traditional strength- Importance of brochures are not hard to see as it plays a key role for Trailfinders in advertising the process of buying
holiday Recent research by Trailfinders on attitude of the customers to paper brochures has confirmed the strength of the element of the
marketing in the efficient way.
Therefore, following are the alternatives available for traditional printed brochures:-
Brochure in the form of E-mail (E-mail Brochures)- This form of brochure includes the e-mail facility for promoting and advertising the
product and services of Trailfinder Ltd. The organisation sends the e-mail which includes all the important information about the product and
services such as location, food, cost of package etc. this one is one of the fastest method can be used by the entity. This method is suitable for
company as it is the cheapest form of brochure and a very easy process to carry information to customers.
E-brochures- It is one of the versatile and flexible way of interacting can be used by Trailfinders to communicate with the customers for
delivering all the relevant information about product and services. For using this form of brochure, the entity have to develop its own webpage
containing all the information in a single webpage only. It is one of the preferred way of interacting with the clients as it is the best and esay way
can be carried out by the manager with the publication of the information on a single webpage.
Video brochures- It is yet another alluring way to provide the data to the customer about the packages and benefits of a tour package can be used
by Trailfinders Ltd. Depicting the bundles to customers can be done easily by influencing a video appeal and focussing on the introduction sides.
Trailifinder promotes the holiday packages by creating some of alluring video and incorporation of the all data which is connected with the goal,
dispersion, time, date, costs and so forth. It is the simplest strategy for client for getting all the information with the help of just a single video.
Visualising the things they are demanding for will make a client more easy to understand the package.
3.3 Evaluating the suitability of different methods of distribution used to sell a holiday package
Trailfinder Ltd is a firm which offers few administrations like contract, planned travellers, aircraft, bundles. The entity provides amenity
of customised travel benefiting both the client as well the business. There is the access of few procedures available from the luxurious occasion
bundle of Trailfinders Ltd. Following are some strategies used by various tour operators in UK:-
Method of direct selling- Direct deal is the best method to make an elective choice for dealing with administration of clients. This method
includes promoting office representatives specifically who associateswith clients with no go-betweens through visits, regular postal mail and so
forth (Cazcarro, Hoekstra and Chóliz, 2014). With help of this strategy, the organization can straightforwardly contact the potential customer for
identifying their issues, perspectives and audits with that of administrations. On application of this strategy, the entity can enhance upper hand in
the industry market.
Employing operators- Hiring employees for appropriate work and promoting the administration is yet another a good choice by which the
organization can convey various packages to its customers with the help of specialised individuals. Operators help the entity by giving more
client to enterprise. There are various commission to be charged by specialists from the organisation depending on the quantity of clients. By
hiring operators entity can make direct communication with the consumers. This will help in making them aware with new package and
influencing their decision.
Online method of selling the service- This method focuses on association which can be can receive with the help of E-handout system in order
to make the offer their of packages by Trailfinders Ltd. With the help of this E-handout, customers can easily check their booking identified with
transportation, voyaging and goal in very convenient way. This procedure serves the information about holiday packages to the potential
customers in the market with the help of E-handout. . In the recent time many tour operators use this strategy , they use facebook, Twitter to
make people aware with the tour packages and additional services. By this way they get attention of mass audience. This is considered as cost
effective and fast distribution method.
Telephone system- This method aims at offering the packages to the clients by making the use of cell phones or telephones. This system is
suitable for the organisation to reach to its old clients by making division calls in order to convince them to visit the entity to fulfil their various
tour goals by making the offer at sensible or rebate rates. Entity can call to its existing buyers in order to make them aware with the new
package. This will support in raising their interest and increasing sales of the firm.
Email system: It is another distribution method, firm can distribute brochure through email to all its existing consumers. This is the fastest way
to sell package and enhance awareness of people.
Trailfinders Ltd can use the online method of selling the services and can emerge as an online travel agency(OTA's) as the online surfing has
been increased among the individuals therefore, this method can increase the booking of organisation as more and more of clients will be able to

know the services and offered by the entity, subsequently the attraction of clients and booking will be increased for the enterprise (Horner and
Swarbrooke 2016).
TASK 4
4.1 Evaluation of strategic decisions made by different types of tour operators
Successful market in tourism industry proves to be efficient when there has been a balance maintained between tactical and strategic
marketing. For tour operators tactical marketing which means making the use of tools such as yield management is an essential activity to carry
out in order to ensure that remaining capacity has been sold out. But it is very important for the superiors in an organisation to make the effective
strategic decisions for the smooth functioning of business operations. The strategic decision manages the scope of exercise of the organisation,
therefore it is very critical for the organisation to make the strategic decisions in the proficient way. The administration of Trailfinders Ltd. Have
made various vital choices which has been discussed below:-
Pricing Strategy- It is considered as one of the significant strategy made by Trailfinders in the tourism industry which influences the benefits
and revenue of the organisation. Planning the technique in regard of cost and cost of visiting the entity should be reasonably decided by the
organisation. When it comes to developing the pricing strategy by Trailfinders Ltd., the organisation made sure that they don't get blogged with
administrative tasks. The company is following the mark down pricing strategy which allows the clients to input all the prices suitable and then
let the software should take care after that on behalf of clients.
Various strategic decisions taken by different tour operators are as follows:-
Seasonal strategic decisions- This decisions are mainly focussed on long-term product development by the organisation. Seasonal strategic
decisions can be defined as decisions which are fully based on seasons (Cuccia and Rizzo 2014). By making these decisions organisations
provides various seasonal offer, therefore the decisions are influenced by changes in the season. Seasonal decisions are beneficial for
organisations to attract the clients more towards the business and fulfilling the seasonal demands of customers.
Determining the size, profile and needs of the target audience- It is very important for an organisation to decide the size, profile and different
needs of customers in order to operate smoothly in the industry. Clients are the most important factor for a tourism industry for the establishment
and sustainability in the market. It is the responsibility of tour operators to think about the benefits of their customers at high priority. These
decisions ultimately makes profits for the organisation itself as more clients will get linked to business, high will be the profit.
Promotion strategy- Promotion strategy is the effective decisions made by the organisation which adds quality in the eyes of customers for the
organisation. On setting the advancement techniques, it paves the way for an organisation to plan the means by which it can publicize the offers
and reach to its customers. Currently there are various advancement techniques adopted by the tour operators which includes web based life, post
office based mail etc. through which firm can advance its visit administrations.
4.2 Comparing the tactical decisions that could be taken by a selected tour operator in different situations
In order to accomplish the goals and objectives of an organisation, it is very important to take tactical decisions by an organisation.
Trailfinders can focus on business environment analysis stakeholder analysis, pricing strategy, negotiation among suppliers and company, ensure
coordination among functional department etc. one of the effective decision is pricing decision of different products and services offered. For
setting the prices of commodity and service, company have to consider demand and requirement of customers. The end goal of the entity should
be always in mind that is to take the estimation of choice for its administrations and item, therefore the company need to comprehend the real
request and necessity of client identified with occasion bundles. Likewise, the entity can make the strategies to face the problems in different
situations. For example it can maintain the sound relation with the partners and competitors which can reduce competition and there can be an
increase in profit of the organisation. In the same path, the next decision can be that Trailfinders can visit administrator who is identified with
use of mentor and air ship office to clients (Dann and Liebman Parrinello 2015). This decision can serves the association in making the unique
sign of the administration for customer and can be helpful in upgrading the income of business. On utilizing air mentors in the movement
bundles, organization will be able to give viable offices to client which can be an effective decision of the organisation to increase the market
image in the industry.
CONCLUSION
The above report is an analysis of operations in tourism industry. It has been evaluated that travel and tourism plays a vital role in the
operations of economy. It has been concluded that there are various roles and responsibilities which has to be taken by a tour operator and should
excel in the industry. The process and elements of a contract formation has been clearly discussed. Furthermore, planning decision for the
brochure designing and various suitable alternatives to a traditional tour brochure have been analysed that should suggest the most appropriate
tour package to a customer containing all the important information of a tour. Also, the various distribution method and tour package has been
recommended on the basis of selling of holidays packages by tour operators.

REFERENCES
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Dann, G. M. and Liebman Parrinello, G., 2009. The sociology of tourism: European origins and developments. (12). Emerald Group Publishing
Ltd.
Ganor, B., 2017. Conflict Management and Counter-Terrorism in Israel and the Middle East Study Tour in Israel The International Institute for
Counter-Terrorism (ICT) at The Interdisciplinary Center (IDC) Herzliya.
Giaoutzi, M., 2017. Tourism and regional development: New pathways. Routledge.
Holland, J. and Leslie, D., 2017. Tour Operators and Operations: Development, Management and Responsibility. CABI.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge
Chaudhuri, S. and Ray, N., 2015. Application of web-based Geographical Information System (GIS) in tourism development. In
Encyclopedia of Information Science and Technology, Third Edition. pp. 7026-7036. IGI Global.
Cazcarro, I., Hoekstra, A. Y. and Chóliz, J. S., 2014. The water footprint of tourism in Spain. Tourism management. 40. pp. 90-101.
Li, Y et.al. 2017. The concept of smart tourism in the context of tourism information services. Tourism Management. 58. pp.293-300.
Veal, A.J., 2017. Research methods for leisure and tourism. Pearson UK.
Xiang, Z. et.al. 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet.
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