Tour Operations Management: Types, Trends, and Trailfinders Analysis

This report delves into the realm of tour operations management, examining the core functions and types of tour operators within the tourism industry. It identifies and describes four key types: inbound, domestic, outbound, and specialist tour operators, highlighting their distinct roles and operational characteristics. Furthermore, the report analyzes current trends and developments shaping the industry, including technological advancements such as online booking systems and the impact of integration strategies (both horizontal and vertical) on business operations. The report also touches upon the influence of economic factors, such as inflation, on the tourism sector, and the importance of customer-centric approaches, exemplified by companies like Trailfinders Ltd. This analysis provides a comprehensive overview of the evolving landscape of tour operations and the factors driving its growth and adaptation.

TOUR OPERATIONS MANAGEMENT
Operating a tour is the imperative task in a tourism industry. The tour operators are
those business organisations that merge tour destinations and tourism together in a
package. This package comprises of accommodation, sight-seeing, travelling,
camping etc. These are designed by keeping in mind the choice of places that the
tourist wants to visit. There are four most important types of tour operator which
are mentioned below :
Inbound Tour Operator – These are those operators who manage directly inbound
foreign tourists, and render them various services on their arrival and departure
such as accommodation, transportation, sightseeing, entertainment, currency, etc.
These tour operators develop tour packages individually or in collaboration with
foreign tour operators. Inbound tour operators are the image builders of a country
as they convert all touristic resources of a nation into a saleable commodity.
Outbound Tour Operator - These operators conduct tours for an individual or a
group of peoples of their own country. They provide those packages that emphasize
upon sending the people of native country to foreign destinations They form
collaboration from a central point where the tour starts and contracts with
inbound/ground tour operators of other countries to give information about the
different aspects of the foreign countries that an individual or group of tourists are
visiting, like accommodation, travelling, transport services etc. They act as the
mediator between the operators of the foreign country and the tourists.
Domestic Tour Operator - Domestic tour operators operate within the boundary of
home country and provide the various needs of individual and group travellers.
They promote tour packages both through their own outlets and other retail travel
agents. These tour operators work within the national boundaries of a country.
Leading tour operators usually focus on the global market where rates are higher
and in UK, USA, Japan, India and China, many tour operators are specialized in
domestic holiday packages.
Specialist tour Operator – Specialist are the tour operators that create a tour
package for the customers on the basis of their choice of transportation, locations,
food, facilities, sight-seeing and accommodation features. They offer a wide range
of packages especially focussing upon the untouched travelling destinations. They
are also known as tailor-made operators because of the option of customisation that
they offer to the tourists. These operators design a package, keeping in mind the
special features of some dream locations and the customer choice
Trailfinders Ltd is a specialist tour operator having a customer centred approach.
This approach allows them to gain a competitive advantage as they have the option
of customising the holiday packages as per the preferences of the customers.

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TOUR OPERATIONS MANAGEMENT
Current and recent trends and developments on the tour operators industry
Over the years, there have been many changes in tourism industry. Some of the
changes that have taken place in Trailfinders Ltd. are as follows :-
 Integration (Horizontal and Vertical) : One of the major developments in
tourism business over past some years is integration. It is of two types: vertical
and horizontal. Vertical integration means the collaboration of associated
business organisations and service providers operating at different levels on the
other hand horizontal integration refers to integration of two companies
operating in similar business line in order to overcome competition. By
engaging in integration, the management of Trailfinders Ltd. can gain a
strategic advantage to sustain in market in the long run.
Technological Advancements : Tourism industry has grown rapidly with the aid
of digital technology. Nowadays, features like booking over online portals,
applications and calls have promoted the development of this sector in the long
run. Trailfinders Ltd. also offers the option of booking through their site
Tourists can easily reserve or cancel their packages via internet. Management of
the company has updated the brochures of their packages over the website to
provide easy access to customers.
Impact of Inflation : The economic condition of a country largely affects the
growth and development of tourism industry. Inflation impacts the level of
disposable income of people. An increase in the expendable income of people
leads to better living standards and thus becomes an advantage for the industry to
gain interest of people in tourism.