Higher National Diploma: Tour Operations Management Task 2 Report

This report, prepared for LCB Tours, examines the core elements of tour operations management. It begins by defining tourism and the stages involved in holiday development, including market research, planning, contracting, costing, brochure creation, advertising, operations, and post-tour management. The report then details different contracting methods, such as fixed, allocation, and ad-hoc contracts, and their suitability. A calculation of the selling price of a holiday is provided, outlining costs like accommodation, transportation, and profit margins. The report concludes by emphasizing the diverse strategic policies adopted by tour operators and the evolution of the tourism industry, including tactical decisions in various scenarios. References from academic sources support the analysis, offering insights into tour research, tour guide relationships, partner alliances, and employability skills within the tourism sector.

Tour Operations Management
Task 2

INTRODUCTION
 Tourism consists of the activities in relation with travelling from one
place to another and staying at such places which do not belong to the
usual environment of individuals.
 It can be done for leisure, business or any other purpose.

STAGES OF DEVELOPING HOLIDAYS
 The stages adopted by LCB Tours in this regard are:-
 Market research
 Planning and scheduling
 Contracting
 Costing
 Financial Evaluation and Pricing
 Creation of Brochure
 Advertising
 Operation and Execution
 Post Tour Management

SUITABILITY OF DIFFERENT
METHODS
 There are different methods of contracting in tourism industry
explained below:-
 Fixed contract
 Allocation contract
 Ad-hoc contract

Fixed contract
 These are the contracts that involve the terms about the bookings done
for individual or group of tourists in advance to ensure a comfortable
stay.
 The entities which make use of this contract aim at optimum utilization
of the volume based capacity.

ALLOCATION CONTRACT
 This contract is signed between hotel manager and tour coordinator
which give information about the number of beds to be booked to the
hotel management.
 Herein, the tour operator hands over the unsold room after allotting the
rooms to their tourists back to the hotel.

AD-HOC CONTRACT
 These contracts are signed for over booking of flight seats or beds so
that the tourists do not face any problem during the tour.
 It is the most flexible way of arranging resources for the holiday
package and booking the facilities prior to the tour.

CALCULATION OF THE SELLING
PRICE OF A HOLIDAY
Facility Price(in £)
Accommodation Cost 630
Transportation Cost 185
Charges of tour guide 203
Pickup and Drop Fare 108
Cost of Tickets Sample template latest 223
Food 357
Total cost 1706
Add: Profit margin @ 33% 562.98

CONCLUSION
From the above report, it can be concluded that there are various types of
tour operators who adopt diverse strategical policies. Also, it can be analysed
that there have been various development in tourism industry over years.
Along with that, this report ascertains the stages involved in the process of
creation of tour package. Besides that, planning decisions taken while
creating a brochure are ascertained and analysed. Furthermore, it can be
observed that a number of tactical decisions are taken by tour operators in
relation to the scenarios that may arise in tourism industry.

REFERENCES
Buckley, R., 2014. Tour production costs. Journal of Travel
Research. 53(4). pp.418-19.
Cetin, G. and Yarcan, S., 2017. The professional relationship between tour
guides and tour operators. Scandinavian Journal of Hospitality and
Tourism. 17(4). pp.345-357.
Chand, M. and Katou, A. A., 2012. Strategic determinants for the selection
of partner alliances in the Indian tour operator industry: A cross-national
study. Journal of World Business. 47(2). pp.167-177.
Dhiman, M. C., 2012. Employers' perceptions about tourism management
employability skills. Anatolia. 23(3). pp.359-372.

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