Tour Operations Management Report: Trailfinders Analysis and Decisions

This report provides a comprehensive overview of tour operations management, focusing on the current trends and developments within the travel industry. It begins with an introduction to tour operation management and examines the effects of recent trends, such as the increasing importance of online booking and customer feedback. The report then delves into the stages involved in developing holiday packages, including research, itinerary development, negotiation with suppliers, costing, and marketing. Different methods of contracting, such as fixed contracting and sale only contracting, are also discussed. The report includes a calculation of the selling price of a holiday package and analyzes the planning decisions for brochure design, considering both traditional and alternative methods like social media and e-brochures. Finally, the report evaluates strategic and tactical decisions made by tour operators, using Trailfinders as a case study, and concludes with a summary of the key findings.

Tour Operations
Management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Effects of current and recent trends and developments ...................................................1
TASK 2 ...........................................................................................................................................3
2.1 Stages and timescale involved in developing holidays ...................................................3
2.2 Different methods of contracting for components of holiday and different types of tour
operators ...............................................................................................................................4
2.3 Calculation of selling price of holiday ............................................................................5
TASK 3............................................................................................................................................6
3.1 Planning decisions taken for design brochure ................................................................6
3.2 Alternative to traditional brochure for different types of tour operators and recommend the
best one ..................................................................................................................................7
3.3 Different methods of distribution used to sell holiday for different tour operators.........7
TASK 4............................................................................................................................................8
4.1 evaluate the strategic decisions made by different types of tour operators......................8
4.2 compare the tactical decision that could be taken by a selected tour operator in different
situations ................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Tour operation management can be defined as the combination of tour and travel
elements to create a holiday package for customers. They mainly advertise and produce booklet
to promote their products, holiday packages and itineraries. To organise, plan and direct
destination for customer's is known as tour operation management. Trailfinders is a travel agency
organisation of United Kingdom and Ireland (Wietfeldt, 2015). This is one of the leading tours
and travel firms in UK and is largely independent. Therefore, in this study the effect of current
and recent trends will be discuss on tour and travel industry. Various stages involved in
developing holidays will be discussed. Also, here different methods of contracting and
components of holiday package is seen. Selling price of holiday package is calculated before
there are taken to market. Tour operator taken various decision regarding brochure design.
TASK 1
1.1 Effects of current and recent trends and developments
This industry is
affected by tour
and travel
industry's latest
trends and
development.
There are many
innovations made
by different
organisation and
they offer variety
of package to
their customers.
This industry has
to face huge
competition in
the market and
In recent trends and development,
online market plays an important
role and online booking is provided
by every tour operator firm.
Nowadays, generally people prefer
searching holiday packages online
and customers book through
company's websites.
Trailfinders have their own website
According to current trends and
development, online reviews has
impacted on bookings. For every tour
operator firm, it is important to serve
their customers with the best services.
Also, companies need to maintain good
reputation online and this is possible by
responding to customer’s feedback.
Trailfinders is working to bring
improvement in their services and it
takes lots of hard work to make
customer's travel journey.
1

there are number
of competitors in
this
industry(Grainger
Clemson 2014).
Therefore, in
today's world,
travellers are
searching for an
experience that
could be unique
and adventure for
their lifetime.
Tourists want to
experience
nature, wants to
learn about
destinations,
culture and there
are willing to
learn more about
different
countries. Tour
operator firm
who prioritize the
quality for
delivering best
experience and
provides the
foremost
destination place
from where, their tourist can book
their packages and this organisation
also provides ticket booking
facilities to their customers.
Recently, customers are shifting
towards mobile booking services,
which will continue to grow in
upcoming years. In current scenario,
tour and travel operators are
focusing more on their customers.
2

to their
customers. These
industries are
doing well in
today's tour and
travel market and
are thriving in
2018.
TASK 2
2.1 Stages and timescale involved in developing holidays
There are various stages involved in development of planning tour package and necessary for
every tour and travel firm will develop those stages they are as following:
 Research- Destination and market: At this stage, the tour operator mainly focuses to
analyse and understand the key elements of tourist market and destination (Brewer,
2016). Trailfinders will identify their customer’s area of interest and their specialization.
This will help organisation to find potential market relating to those areas. The
organisation before entering the tourism market and making holiday packing sees
following:
◦ They identify economic, political, social and climatic factors by this way,
theydevelop future holiday packages.
◦ The firm sees target market and designed their package according to requirement of
their customers and latest trends in the market.
◦ More popular destinations are identified and compare to alternative destination and
the best one is selected (Mann, 2014).
◦ Then different channels to approaches the suppliers are find.
◦ According to above points policies and decisions are taken and it will take approx 2-3
days. Tour Itinerary Development: At this stage, the tour operator company first prepares
questionnaires, completed by previous travellers participants. This makes the tour
3

operator’s work easy and can make itinerary more effective (Clift and Page, 2015).
Therefore, the complete information regarding destination is giving in that booklet. Also,
by this, tourists get to know about their travelling plans. This itinerary contains
information about tour programme that are designed to identify origin point, en route
point, accommodation, transportation and other services. Therefore, tour planner will
have much more realistic view when there are preparation the itinerary. They will take 2
days to complete. Negotiation with tour suppliers: Trailfinders negotiates with their suppliers reach at the
best competitive price to satisfy quality price ratio. Further, the tour operator also
negotiate to other vendors like ground function, restaurants, transportation operators and
all the other vendors, which are part of tour package (Masron, Ismail and Marzuki,
2016). Therefore, reliability and honesty are important issues which should be considered
by tour planner. Clear terms and conditions should be there for non-performance and
performance, according to the standers to contract. Here time depend upon the tour
operating company. Costing of a package tour: At this stage, the organisation incurred total cost of holiday
package. Trailfinders they do not manufacture a tourism product, rather than purchase
individual components from various tourism vendors. When, holiday package is made by
the travel and tour company (Stewart, Warburton and Smith, 2016). Therefore, cost is
basis for determining the right amount of profit in organisation and this has created
challenge for tour planner.
 Marketing of a tour package: Trailfinders for marketing of their holiday package offers
different discounts on the website according to the requirements of there customers. They
promote their holiday packages from various platforms like social media, printing in
newspaper and through advertisement. This can take a week (Ding, Lin and Liu, 2014).
2.2 Different methods of contracting for components of holiday and different types of tour
operators
There are various contracts that Trailfinders signs before preparing whole holiday package for
their customer. Also, agreement is made with clear teams and condition to their suppliers and
different vendors (Xiang, Magnini and Fesenmaier, 2015). By this firm can also build trust of
4

their customer and they can travel safely and the different methods of contracting are as
following: Fixed contracting: In this method there is the contract between the tour operator and
customer. Therefore, in this the tour agent and traveller are in contract whole package is
fixed. Also, full information is provided in the contract to the customers and with all the
terms and condition (Planet, 2014). Everything is fixed by the operator and whole
package is give to the customer. Fixed contracting in this accommodation, transportation
facility, hotels and other thing are fixed from the starting. The firm provides all the
facilities in the agreement.
 Sale only contracting: This contract is provided by firm on the demand of their
customer's. According to this agreement only some facilities are provided by the
operator to the customers. Therefore, in this some operator provides accommodation and
transportation facilities only (Briggs, 2015). All other thing the travels have to arrange
themselves, it is not provided by tour operators. Also, terms and condition are written on
booklet that should be followed by both operator as well by customer's.
2.3 Calculation of selling price of holiday
Serial No. Package details Selling price for each
individual
Total amount
1 Twin room with
breakfast
£92.00 92*45= £4140
2 45 seater luxury coach £7,350.00 £7,350.00
3 Visitors attraction €52 52*45= £2340
4 Tour guides for local €1020 £1,020.00
5 Cost for all £14,850.00
6 Selling and
administrative
expenses incurred
@25%
£3,712.50 £37,712.50
5

7 Exchange rate changes £1.12 £1.12
8 Total selling price £18,770.40
TASK 3
3.1 Planning decisions taken for design brochure
Trailfinders plan their decisions for designing brochure according to the latest trends and
development in the tour and travel industry. It is very importance to design brochure for effective
marketing of the organisation and to attract customers (García-Lillo, Úbeda-García and Marco-
Lajara, 2016). Therefore, if the business is considered as tourist spot than it is necessary to
design brochure and various decision taken there are as following:
 To design a brochure first they need to identify planning decision goals
 Then they plan their marketing objectives and design that fits their into overall marketing
strategy.
 The tour operation firm gather sample design of other companies to create their own
booklet. This helps the organisation to get better idea about size, colour, image and text
edition together (Bozorg-Haddad, Azarnivand and Loáiciga, 2017).
 According to the requirement of the design they establish a budget.
 Vision and mission of the design should be clear to Trailfinders and this helps the
organisation to design in better way.
 Planning decision of designing should be effective as it represents the whole
organisation.
 They should plan the design in such a way that attract customers to they firm and this
should descried the vision of the organisation.
 Planning decision should include online marketing of design as well to attractive the
customer.
6

3.2 Alternative to traditional brochure for different types of tour operators and recommend the
best one
In tour operation sector there are various alternatives of traditional brochure and those also help
the travel industry to grow more. Also, give different ways to promote their operating services
and attract more customers (Fukuta, Matsui and Nishi, 2015). The organisation can adopt many
ways to promote their goods and services they are as following:
 Social media: Through this way also the companies can promote they brochure and
attract more customers. Social media play a very importance role in today's world and
Trailfinders should use this method as it is more populate now a day. By uploading their
brochure on Facebook, Instagram and on various other side. This can help in marking of
their operator services (Xiang, Magnini and Fesenmaier, 2015).
 E-brochure: This is the another way of promoting their online services and new way of
encourage their brochure in the market. This brochure is specially made to highlight the
work of the organisation. Through this they send e-mail to their customers and give
information about various destinations.
 Visual brochure: This is different from above two brochures and in this company users
big posters to promote their services. Therefore, pamphlet can also be used in printed
form and on paper is depend upon in which way organisation wants to use their brochure.
This method is used by almost every firm. By this customer's get to known about travel
and tour operator organisation.
3.3 Different methods of distribution used to sell holiday for different tour operators
Trailfinders uses different methods to distribute their holidays package to the customers
and also hire agents for it. Therefore, they are provided commission on sell of every package and
this help the organisation to earn profit as well. They target families in off season and provide
them discount on holiday packages and by this way they attract more customer's (Masron, Ismail
and Marzuki, 2016). They prefer going to collage to distribute their holiday package to large
groups and offer them various scheme to attract the student. Also, they talk to different tour
operator agency provide them different commission scheme. Trailfinders uses this way to sale
their holiday package and bring more traveller to their organisation.
When, tourism are more likely to arrive at the destination, then they can create alternate
package that helps the firm to increases their bookings. Therefore, by distributing package at
7

right place and time can increases the profitable of organisation. Also, they promote their sale in
colony to increase exposure and awareness about they travel and tour service (Clift and Page,
2015). The company offers an incredible package to their travellers and help them to decide their
destination. It becomes more easy for organisation to connects their customer's through agents to
distribute the holiday packages. Those all methods help the organisation to grow faster and
increases they customers. Following are different channels of tour operators:
 Online Travel agencies: In this kind of distribution channel, tour operators are working
with their website and online channels. Therefore, they are able to communicate several
benefits of their methods in different areas of the world to attract customers.
 Government websites: Government website is also channelled to attract customers with
using innovative characteristics. In this way, tour operators are taking helps from
government to focus on the different activities and advertisement as well.
 Visitor information centres:Visitors informatics centres also useful strategy that assists
to take advantages to attract maximum number of customers at workplace. It assists to
gather appropriate information in the organisation.
TASK 4
4.1 evaluate the strategic decisions made by different types of tour operators
Different tour operators uses contrary strategics decision to run their organisation.
Trailfinders offer the best price to their customers which helps them to gain more customers. The
tour operator organisation take various decision related to price strategic. They are as following:
 Price penetration: The company provides low price in order to gain market share and
attract large numbers of travellers. Therefore, offer holidays packages at low price in the
starting to their customer. Then sale the remaining package at high price and to the
remaining customers. They decision the cost of marketing and promoting the package at
minimum value.
 Economy pricing: In this decision are taken on the basics of economic of that country
and prices are set. According, to tour operators strategic are formed starting few holidays
are give at very cheap price. Then they offer medium level price to customers who come
in middle and higher price is offer to passage who comes last. All the decision are taken
8

on the basics of economic level of UK by Trailfinders for their organisation and
customers (Xiang, Magnini and Fesenmaier, 2015).
 Price skimming: In peak season the tour operators use these strategics to attract the
customers. Therefore, this firm offers holiday package at very high price with the best
destination to travellers. They are ready to pay any price to for the package, if they find it
attractive and up to their expectation. In off season they offer low price to their customers
and give them special discount. These strategics is mostly used by the Trailfinders to give
different offer to their customer's.
Strategic decisions made by tour operators can be define in following manner:
 Distribution decision: Distribution decision is the strategic decision that adopted by
chosen tour operator to take appropriate decision to fulfil demand and requirement of
tourists. In this way, decisions assists to attract and retain customers.
 Segmentation, targeting and positioning: In this consideration, Trailfinders develop
different kinds of tour packages so that they can attract customers easily. It is important
decision that made to analysis competition prevailing in the market for services.
 Promotional strategy: There are several ways to promote business with using different
tools and techniques. Overall profitability can be successfully develop that based on
certain decisions in the enterprise.
 Pricing strategy: The chosen business set competitive pricing strategy so that they can
set their budget as per competitors and gain more significant advantages at workplace.
4.2 compare the tactical decision that could be taken by a selected tour operator in different
situations
The Trailfinders take various tactical decision for growth of they tour operators services at
international level. Then compare all the tactical used by them and afterwards use the one which
is best.
Programmed and non-programmed decision: In this decision are taken by comparing
different type of tour agent and select the best offer given by the operator. The decision are take
on the basics of which agent will good cost scheme to the organisation. Therefore, they choice
the agent according to they budget.
Policy and operational decision: Trailfinders compare various policy, terms and
condition and select the best policy for they organisation structure. They compare from other
9

firms and then make choice according to the requirement to they operator services. Therefore,
make changes in the policy if required by the travel and tour operators.
Major and minor decision: In this they make comparison between both major and
minor services of the firms. Therefore, apply the one which is best for the company and take
decision of all work in the organisation. They take decision like different channels of distribute,
various scheme for customer's (Clift and Page, 2015).
10

CONCLUSION
For this report it has been concluded that this industry has to face huge competition in the
market and there are number of competitors in this industry. Trailfinders organisation uses
various stages and timescale to design its booklet. In this planning decision related to designing a
brochure are also taken. They use different way to distribute their holiday package and sell them
by hiring agents. Therefore, it is concluded that all the changes are made according to the
requirement of the travellers and demand of destination. They focusing on strategics and tactical
decision making of tour operator.
11

REFERENCE
Books and Journal
Bozorg-Haddad, O., Azarnivand, A. and Loáiciga, H.A., 2017. Optimal operation of reservoir
systems with the symbiotic organisms search (SOS) algorithm. Journal of
Hydroinformatics, p.jh2017085.
Brewer, C., 2016. Communicating the importance of pre-exposure rabies vaccination. Practice
Nursing. 27(10). pp.482-485.
Briggs, P., 2015. Rwanda. Bradt Travel Guides.
Clift, S. and Page, S., 2015. Health and the International Tourist (Routledge Revivals).
Routledge.
Ding, C., Lin, Y. and Liu, C., 2014. Exploring the influence of built environment on tour-based
commuter mode choice: a cross-classified multilevel modeling approach.
Transportation Research Part D: Transport and Environment, 32. pp.230-238.
Fukuta, M., Matsui, K. and Nishi, H., 2015, July. Proposal for home energy management system
to survey individual thermal comfort range for HVAC control with little contribution
from users. In Industrial Informatics (INDIN), 2015 IEEE 13th International
Conference on (pp. 658-663). IEEE.
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2016. The intellectual structure of
research in hospitality management: A literature review using bibliometric methods of
the journal International Journal of Hospitality Management. International Journal of
Hospitality Management. 52. pp.121-130.
Grainger Clemson, H., 2014. Trailfinders—curating an interactive city promenade experience
with mobile phones. Digital Creativity. 25(4). pp.330-342.
Mann, M., 2014. The community tourism guide: Exciting holidays for responsible travellers.
Routledge.
Masron, T., Ismail, N. and Marzuki, A., 2016. The conceptual design and application of web-
based tourism decision support systems. Theoretical and Empirical Researches in
Urban Management, 11(2). pp.64-75.
Planet, L., 2014. Volunteer: A traveller's guide to making a difference around the world. Lonely
Planet.
12

Stewart, S., Warburton, F. and Smith, J.D., 2016. Cambridge International AS and A Level
Travel and Tourism Coursebook. Cambridge University Press
Wietfeldt, R.D. and Chrisikos, G., Qualcomm Inc, 2015. Coexistence manager for controlling
operation of multiple radios. U.S. Patent 9.155.103.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services, 22. pp.244-249
13