Tour Operations Management Report: Analyzing Trends and Packages

This report provides a comprehensive analysis of tour operations management, covering various aspects of the industry. It begins with an introduction to operation management and its significance in the travel sector. The report then delves into the effects of current trends and developments, such as the rise of e-commerce and changing demographic patterns, on the tour operations industry. It assesses the stages and timescales involved in developing holiday packages, including research, itinerary creation, supplier affiliation, costing, and marketing. The report includes the creation of a 10-day holiday package for Hawaii Big Island. Furthermore, it evaluates different contracting methods, such as fixed and sale-only contracts, and their suitability for various tour operators. The report also includes a cost analysis for the components of the packages and calculates the selling price of the holidays. Additionally, the report examines the planning decisions taken for brochure design and evaluates alternatives to traditional brochures. It analyzes non-traditional methods of distribution and emerging trends in the UK tour operations sector. Finally, it compares tactical and strategic decisions within the context of Kona Coast Air Tours.

Unit 14 Tour
Operations
Management

Contents
Unit 14 Tour Operations Management......................................................................................1
Introduction................................................................................................................................3
Task One....................................................................................................................................4
1.1 Analyze the effects of current and recent trends and developments on the tour
operations industry.................................................................................................................4
Task Two....................................................................................................................................6
2.1 Assess the stages and timescales in developing holiday packages and prepare an
itinerary for a combined heritage, wildlife and beach holiday and develop a package in
stages......................................................................................................................................6
2.2 Evaluate the suitability of different methods of contracting the various components of
the holiday for different types of tour operators when developing holidays.........................7
2.3 Carryout the cost of the components of the packages and calculate the selling price of
your holidays..........................................................................................................................8
Task Three................................................................................................................................10
3.1 Evaluate the planning decisions taken for the design of a selected brochure................10
3.2 Assess the suitability of alternatives to a traditional brochure for the operators of the
Kona Coast Air Tours..........................................................................................................11
3.3 Analyze and evaluate the non-traditional methods of distribution that can be used to
sell holiday packages for different types of operator within Kona Coast............................11
Task Four.................................................................................................................................13
4.1 Analyze the emerging trends in the UK tour operations sectors and evaluate the
response of the various tour operators.................................................................................13
4.2 Examine the difference between tactical and strategic decisions and compare tactical
decisions taking Kona Coast to different situations.............................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

Introduction
Operation management refers to the functions of an organization building the image of the
design and control of the processes related to production and other aspects regarding the
organizational goal. Ensuring the resources needed and efficiency of the functions in terms of
the progress in order to meet the customers need are the responsibility of the operation
management. Operation management in Tour and Travel industry refers to the area of the
management in travel agencies ensuring the control of the business operations to develop the
service of the organization and serve customer satisfaction.

Task One
1.1 Analyze the effects of current and recent trends and
developments in the tour operations industry
Tourism has become one of the major sectors to make a booster in the economy of
developing countries as well as the developed countries in the world. Developing countries
with glories and splendors; are having great opportunities to establish a great platform for
visitors from abroad and make assuredly boosted up the condition of their economy. In such
mode; recent trends regarding the recent developments have been taking place in all countries
in opening their exotic beauties to the world. The current and recent trends and developments
are described below:
According to the Tourism development in Europe (2007), the increase of the spending and
expenditures by the customers in the tourism sector has made the possibility of expansion and
development of the industry. In such case; the development of the functions and customers
service of the agencies in most of the countries; even in the UK, has taken place and profit
maximization has been ensured. Customers nowadays are getting dependent & reliable on the
E-Commerce which is developed recently. Providing fundamental and travel information
online has increased the attractions of the clients and the online booking services as well.
These sectors have reflected the increase of the visit of the foreigners as the number of visits
have increased to 36.115 million and the spending of the customers have increased to 22.072
billion dollars in Britain in 2015.
Alongside with the development of the online service; change of demographic patterns, as
well as the niche market segments, have taken place recently. To exemplify; services have
been classified in accordance with a demographic pattern like nucleus family, friends;
alongside with the market segments like married couple package systems. Developments in
the tourism industry are shaped by being able to comply with the PESTLE factors regarding
the technological, economic and political factors and various strategies have been made to
overcome due to perfect market research. In such case; the role of the government in many
countries such as the UK reflect the flexibility of the VISA policies, investment on the
industry, easing taxation policies etc. Moreover; concentration on the customer service for the
impression and making strong customer relationship with the same tour operator has been

considered the main objective recently. However; the marketing activities in the industry has
helped the operators has been spreading the awareness about the offering and scenarios of the
destination to have a clear knowledge about the specific tour spots (Page, 2011).

Task Two
2.1 Assess the stages and timescales in developing
holiday packages and prepare an itinerary for a
combined heritage, wildlife and beach holiday and
develop a package in stages
As has been the case in all countries; tourism industry has thus focused on their assessment
on the stages and timescales. Making a comprehensive itinerary and innovative packages are
considered the main objective of a destination promoter whereas the term itinerary refers to
the identification of the origin, a destination all the stopping points in a tour managed by an
operator.
Stages regarding the development of the holiday packages
There have been 6 stages assessed regarding the development of holiday packages (Summers,
2015). Some the sequent stages to be assessed in order to prepare an itinerary are mentioned
below:
As the first stage; research process has been done where the market analysis for the spots in
Hawaii Big Island & the tourists market have been implemented. Destination research shows
that unique destinations having different aspects and weather conditions are to be researched
and explored for having stoppage system. The new lava oozes in the ocean of the island is
very exotic and this spot must take less than 2-3 months to explore and research for travel.
Consumer research indicates despite having the variety of the spots and view; research for
customer service is one of the fundamental objectives. Assessment of the data collected
regarding the segments; to exemplify, making wedding packages for consumers would be
appreciated as the Mauna Kea Starfield is the best spot for spending memorable moments.
Food research includes that some foods can be served as per the negotiations which can fit
the timescale during the tour. Laulau is served during the visit of Hawaii volcanoes national
park and the Poi has been served with pleasure during Manta Ray night dive for being so
energetic. On the contrary; Lomi Salmon is served in Hapuna Beach to serve the greatest
delicacy of the seafood.
Here; approach to the suppliers, finding out the significance of the spots, meeting the
requirements of the customers and making decisions alongside with policy prevail. To the
second stage, an itinerary has been made such as The Seychelles where spot origins, the

route to destination, privilege, transportation etc. have been included for customers. After
that; affiliation with service companies, vendors are the next stage where service has been
developed for customers and make the best operations. Package negotiation has been done in
a proper manner. Customers will appreciate the provided lodges in Hawaii Island like
Waipi’o valley and the traditional foods such as Poi, Laulau, Poke and Tako etc.
Transportation; is also negotiated with customers with a view to fulfilling their demands.
Affiliation with Kona Coast Airlines has been done as well. Apart from that; holiday
packages require costing alongside with pricing of the expenditures during the tour; the
cases have been done with forecasting profit. Development design is the design of the tour
packages which must be done through the negotiations and conveying the features in order to
assure the promotion of the fully prepared new designed tour packages (Moryson, 2011).
After implementing the previous stages, developing marketing process for the holiday
package is the next one where package promotions have been done through billboard
advertisement, TV commercials, newspapers, taxi wraps and so on. As the final stage; post
tour management for the holiday package has been done where after sales service is done
through providing membership and receiving reviews from tourists regarding the tour.
Package developed through stages and timescales for Hawaii Big Island
During the process of making the assessment of the stages and timescales involved in
creating holidays; a procession of unique and complex information is necessary to make
exotic arrangements in exquisite spots. As having developed a 10-day holiday package in
Hawaii Big Island, the features in the package are discussed below:
An air transportation by Kona Coast Airlines will get to the island on Day 01. Shift-system
during trips will be much more accurate to feel the exotic feelings during the visit. The
Mauna Kea Starfield will be visited after dusk on Day 02. Because the stars in the sky will be
gazed clearly and bring a wonderful trophy experience. Hiking in Waipi’o valley will be done
on Day 5 & 6. Due to segments; not all customers are physically approved for hiking such as
adults. Visitors will have a stay out at Akaka Falls on Day 08 Manta Ray Nigh Dive on Day
09. Study Travel Catalogues will be provided to tourists while visiting Pu’uhonua O
Honaunau National Park; covering with temples and teeth baring idols on Day 10.

2.2 Evaluate the suitability of different methods of
contracting the various components of the holiday for
different types of tour operators when developing
holidays
Different methods regarding the make of contracts between customers and operators take
place in many countries. Two of the exclusive methods and their suitability are described
below:
Fixed contract: the assurance of the utilization of volume based capacity and maximization
of revenue collection by the tour operator is made by Fixed contract; as they are made during
offseason. A total air tour system is applied in this manner and customer expectation is fully
maintained throughout the exquisite service. Operators meet the risk of unutilized capacity
and have to pay as per the unutilized capacity. The season is given more priority as the
visitors come to Hawaii Big Island during summer most of the time and there are low chances
of unutilized capacity left for the risk. In such mode; profit maximization is assured and
operators can add unique strategies to attract customers like putting high discount for the
package.
Sale only Contract: consumer segment is highly prioritized in this contract system as this
method is maintained by flight centers designing for niche consumer segment because of
highly expensive features. Such particular consumer segments are given attractive
advertisement for traveling on and the flight centers have all the maintenance themselves. In
that case; all the costs including hotel expenditures, transportation cost, food expenditures,
extra luxurious offers as well as the river cruise party in Hapuna Beach are paid by the flight
centers. Moreover; the lean season is more prioritized to this method system with a view to
reducing the risk of unutilized capacity and avoid the loss thereby.
Sale only contract is considered signature method among the methods regarding the contracts
for different components but as seen far; the method is mostly available and appropriate in
South America. Moreover; this method ensures the risk minimized at its level best and profit
maximized at highest possible. Nevertheless; the fixed method system can several offer
benefits to the customers. In such mode; high discount, common market segments,
availability, flexible expenditures are the best characteristics of this method. Moreover,
paying in advance is a more highly exclusive benefit for both customers and operators.

2.3 Carryout the cost of the components of the
packages and calculate the selling price of your holidays
The newly determined package system will include a 10 days trip during fall season
regarding Hawaii Big Island by Boeing 747-800 plan with the highest capacity of 170
tourists. Arrangements will be made in Sullivan Estate which will rate 199 dollars per night
individually. As a 5 star hotel; twin sharing for couples and extra sharing system for nucleus
families will be arranged in a proper manner. For 90 passengers, Kona Coast (KOA) airlines
will be given the order to book the seats on a fixed cost basis and the summed up costs will
be 225 pounds and extra 70 pounds will be charged for the coach to the hotel from airport and
taxi rate will be 50 pounds. Given the mentioned incursions and expenditures; the summed up
amount of the selling price during the tour is given below:
Serial Package Detail Sales price per
individual
Sales price per
couple
1 Charges for airplane
transportation
225 275
2 Local Transportation
Coach service
Taxi rate
Guide Charge
70
50
90
90
70
110
3 Hotel Booking 80 120
4 Miscellaneous costs 70 115

& others
Total Costs in
Pounds
585 780

Task Three
3.1 Evaluate the planning decisions taken for the design
of a selected brochure
According to Godfrey (2006), conveyance of the information of the itineraries and details of
holidays to be sold through online and offline are assessed by brochure; which is prioritized
to be the signature model of the functions of a tourism company. The designing of the
brochure for the current packages by Kona Coast Airlines meets the requirements for proper
planning and research in order to show the functions regarding implementation and
organizing process related to the service. The planning decisions with a view to meeting a
perfect brochure for Kona Airlines are described below:
 Recognition of service: the Format designed by the operator such as the tour
package systems, the sum of the costs or selling price, target segments including
couples and nucleus families, and timescale of 10 days trip to Hawaii Island of the
dream should be enlisted to the brochure as vital elements.
 Format: the design and appearance of the detail should be in a proper format with
rich content and the website of the Island tour service should be given such as
www.gohawaii.com in order to improve visibility by the tour operators of Kona
Coast.
 Target Market: Identification of the target market as the operators prioritize the
couple segments and nucleus family segments should be done in a proper manner
alongside with better presentation & appearance.
 Budget: overall detail of the selling prices and other expenditures regarding the
travel on the airplane that is ranging from 225 pounds round trip alongside with the
local transportation costs should be mentioned accurately and the discounts given
should also be mentioned by the Kona Airlines.
 Stages and Timescales: stages including the inceptions, stoppage points and the
ultimate destination from Hawaii Volcano national park to Hapuna Beach should be
mentioned and the night shift for Manta Ray dive fall, dawn shift for Akaka Falls and
dusk shift for Mauna Kea Starfield should be mentioned as well.

3.2 Assess the suitability of alternatives to a traditional
brochure for the operators of the Kona Coast Air Tours.
An alternative to a traditional brochure by the operators for the customers is the best way for
attraction as well as having a strong hold in specified target markets. The change alongside
with the traditional brochure given by kona Coast Air tours will tend to bring profit
maximization and expansion in quick short of time. Due to emerging growth of technology
and dependency of the customers online; E-Brochure is the best alternative for such operators
like Kona Coast airlines.
The online based E-brochure has a quick reach to customers in a time of conveying
information and useful details as well as the selling prices and costs. In that case; the cost
efficiency will take place and bring a reduction of costs for the operators. Moreover; rather
than a physical brochure, E-brochure tends to create customers more dependable on due to
quick delivery of detail better than another medium. Visualization of the E-Brochure tends to
attract more customers through exotic appearance and design to get attached to the operators
so easily. In such mode; Kona Coast airlines will tend to have more strong relationships with
the customers and the market segments including couples will get attracted to the detail and
promote the operators through word of mouth promotion system (Deitel and Nieto, 2011).
3.3 Analyze and evaluate the non-traditional methods of
distribution that can be used to sell holiday packages
for different types of operator within Kona Coast
As seen far; the development of the past trends regarding the designing of the brochure has
been gone too far beyond obsolesce. As being an effective medium for the selling for the tour
packages; brochure tends to bring continuous functions & progresses revenue maximization,
and profit maximization. Being highly technology oriented, the brochure helps to bring the
attraction of the customers through their dependency. Not only that; different methods of
distribution like online marketing, direct sales, call centers, telephone calls, hot numbers can
be useful to ensure to reach of the brochure to the customers continued. Moreover; direct sale
directed for the sales of the brochure will succeed to reach the customers in person whereas
the online marketing will tend to deliver the detail needed to the customers throughout
promoting their brochure. However; alongside with the basic service systems; E-mail
marketing is used to sell the holiday packages to targeted customers segments as well.