Tour Operations Management: TUI and Casas Cantabricas Comparison

This report provides an in-depth analysis of tour operations management, focusing on the impact of current and recent trends on the industry. It begins with an overview of tour operators, defining their role and functions. The report then examines the operations of two specific tour operators, TUI and Casas Cantabricas, comparing their structures, activities, and responses to industry trends. Key trends such as the internet and customized packages are explored, along with their effects on tour operators. The report evaluates strategic decision-making processes, comparing the choices of TUI and Casas Cantabricas in areas such as product selection, pricing, and branding. Furthermore, the report delves into tactical decision-making, analyzing responses to competition, pricing strategies, and marketing tactics. The analysis provides clear explanations for the rationale behind different decisions and offers a comprehensive understanding of strategic and tactical management within the tour operations industry. The conclusion summarizes the key findings and implications of the analysis.

Tour Operations
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................1
Recent trends of tour operators: .................................................................................................2
Define reasons for these changes as well as their effects on tour operators...............................2
Evaluation of strategic decision making.....................................................................................3
Provides clear explanations for the reasons for different decisions of selected tour operators. .5
In-depth understanding of strategic management of tour operators............................................5
Comparison of different tactical decisions..................................................................................5
Comparisons analyse the reasons for these decisions.................................................................6
Comparison of strategic and tactical decision making................................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Tour operator is considered as a company which are mainly concern for providing travel
facilities to the people. In the present scenario, travel and tourism industry in the UK considered
as one of the fastest growing industry as it generates higher income within the marketplace. In
order to understand the whole tourism industry the taken organisation is TUI which was formed
by Thomson corporation of Canada and the headquarters of this company is situated in UK and
London. The current study will analyse the current trends and also assess the time scale which is
involving in creating holiday packages. It will also identifies different methods of contracting for
several components of holiday along with the evaluation of different methods of distribution
which have adopted to sell a holiday for various tour operators.
TASK 1
Analyse the effects of current and recent trends and developments on the tour operators industry.
Tour operators: A tour operator is considered as a business which is comprising two or
more than two travel services. In other worlds, it refers to those who are giving their focus on
controlling, booking and devising whole trip (Redjem and Marcon, 2016). These operators are
developing a package by considering various elements like hotel, activities, transfer, restaurants,
airport and many others. In the modern era, tourism industry has covered a huge marketplace
which can be seen by presence of travel industries or operators. All the travel industries has
different structure and operation which can be understand by given two organisational examples
in which one is TUI and other is Casas Cantabricas which is a small outbound company as it
providing their services to travel from one to another country.
Basis TUI Casas Cantabricas
Activities It is listed in one of the largest
company as it is operating
activities in providing a range
of services like hotels &
resorts, cruises, destination
experience, airline and tour
operators.
This industry is operating their
activities in rendering curated
collection of tailor made and
self driving touring holidays in
Portugal and Spain.and also
offer in selected villas in
northern Spain.

Structure Due to the large size of the
company they have adopted
Hierarchical structure in their
organisation as it allows free
flow of ideas and strategies
within workplace and also it
makes easy for employees to
contact with their top
authorities (Espino-Rodríguez
and Gil-Padilla, 2015).
Due to the small size and
limited number of employees
they have adopted flat
structure in their organisation
as in this all employees are
responsible for report to the
single authority.
Recent trends of tour operators:
As in the present world, travel and tourism sector is a fast growing and vast industry as it
is able to attract huge number of clients. This also has huge scope in UK as London is one of the
most attractive destination which makes it essential for the TUI to consider all the current trends
as it can impact on their performance in a great manner. Here are describing some of the current
trends:
Internet: It is the biggest source to attract a range of customers as it allows diverse
customers to search different destination of holidays. Also, It help the organisation like TUI to
update all the essential information about their packages online and do the global business so that
they can attract several customers towards their services.
Customised packages: As in this busy schedule, each customers wants to book their
holidays as per their required. In this case, it is necessary for the manager of TUI to provide
various facilities or services to their customers as per their choice and preferences so that higher
satisfaction of them can be attained (McNicol, 2016).
Define reasons for these changes as well as their effects on tour operators
In the present economy, innovation or development has taken a huge place due to which
frequently changes in tourism industry are occurring because of the various reasons like
demographics, technological development, shifting social, religious factors and many others.
These all have huge impact on the performance of the organisation in both positive and negative

manner. For example, by adopting these changes TUI can get higher competitive advantage and
sustainability as well. On the other hand, it might increase their overall cost of business as
adopting of new technologies not an easy task due to which profitability of the business can
affected in a bad manner (Kauppi, Moxham and Bamford, 2013).
Justified conclusions about the benefit of these changes
As by discussing all the current trends it can be stated that all these trends like flexible
booking options, internet, technology, niche tourism, destination marketing etc. have huge
significance for the company like TUI. As by considering all these changes or trends an
organisation can take on a leading position as it allows the organisation to provide various tour
packages as per the customers demand, preferences and market segments which will enables
them to attract various customers effectively and to earn higher profitability, sustainability and
competitive advantage within the marketplace.
Evaluation of strategic decision making
Strategic decision making refers to the long terms decision of a company which may
affect the manner organisation moves forward. While formulating decision for the company
management look at the big picture as it consider various aspects like its goals, organisational
mission, market condition and customers segments. They also consider those factors which can
lead huge impact on the company like economy conditions and competition in the marketplace.
Each and every organisation has made their strategies in a different way which can be
understood by following organisational examples.
Basis TUI Casas Cantabricas
Choice of products Due to the large size of this
organisation they have
considered a vast portfolio of
services in which they have
decided to provide various
services like hotel, cruises,
airline, restaurant etc. in order
to make a strong customers
base within the limited period
For enhancing the customers
attention and interest they are
giving their priority to
offering accommodation
services to their guests in some
selected areas.

of time.
Surcharge policies Surcharge is defined as a
service fees or extra charge
which required to be paid by
an organisation. In context of
TUI they have determined
15% of surcharge on the total
bill.
As they are offering some of
the services in limited areas
due to this they have added
10% surcharge on their
services which has determined
by considering various factors
like ground and air fuel,
international shipping,
oversized and fragile items etc.
Branding image As because operating the
business activities at global
level business organisation of
TUI able to create a higher
brand image in across the
world (Kotiloglu and et. al.,
2017).
Management of this also make
higher efforts to make their
brand image strong. They are
well-known for offering
charming hotels in Span and
Portugal. But due to their
coverage at limited areas they
are not able to make their
image worldwide.
Pricing strategy TUI has adopted premium
pricing strategy as because
they are offering a range of
quality services to their guests.
But sometimes they are also
adopting competitive pricing
strategy as per the market
condition in terms to get the
higher competitive advantage.
As they are operating their
operation at limited scale due
to this they have given their
focus on adopting skimming
pricing strategy in which at the
initial level they are offering
various at higher price then
lowers the price as per the
time.
Distribution decisions TUI has adopted direct
distribution channels as in their
In order to enhance their
customers management of this

organisation because it incur
lower distribution cost and
higher customers base.
organisation giving their
emphasis on adopting online
channels so as to reach a range
of customers within a limited
period of time.
Provides clear explanations for the reasons for different decisions of selected tour operators
As per the above discussion is can be seen that both of these tour operator has different
decisions process for operating each of the activity. There are various reasons behind differences
in their decisions like their objectives, market situations, competitors, strategies, goals, target
customers and many others. For example, TUI is leading their business operation across
worldwide due to which they are giving their focus on taking decisions related to choose a vast
category services which will help them to attract various people across globe. Whereas, Casas
Cantabricas is offering their services in limited areas due to this they are mainly concern for
adopting online channels so that they can make their huge presence worldwide (Allahyari, Salari
and Vigo, 2015).
In-depth understanding of strategic management of tour operators
In order to attain to make organisational sustainability for a longer period of time a
hospitality industry must give their focus on assessing the conflicts which can arise in future and
also they needs to identify opportunities which would come for their business. Therefore,
strategic management is helpful in evaluating marketing environment, assessment of threats and
opportunities of the business. Within the tourisms sector successfully strategic management
refers to the appropriately analyse internal and external environment, flexible motivation of sales
managers and effectively management staff so that all the desired objectives and goals of the
business can be attained (Dhiman, 2012).
Comparison of different tactical decisions
Tactical decision making is an effective business strategy in which decisions are
formulated with the end result by thinking that it will ensure succession and growth of the
company. In other words, in this company make decision by considering that it will highly
contribute in rising profitability, sustainability and bring continual improvement in each area of

the business. This type of decision are taking in some situations which can be understood by
following points:
Basis TUI Casas Cantabricas
Response to competition In order to beat their
competitors they have adopted
strategic advertising methods
and also giving various
impressive offers and
customize packages to their
guests (Lifset and Boons,
2012).
For competing their
competitors in a significant
manner they are using drastic
promotional channels like
social media marketing and
digital TV. This helps them to
attain higher customers base
despite of their limited size.
Pricing to maximise yield
management
In order to influence the
customers behaviour in a great
manner they give their focus
on using competitive pricing
strategy which enables them to
operate their business
appropriately by attaining huge
profit and customer base.
In terms to maximise their
revenue they are considering
economy pricing strategy in
which they offer various
quality services at lower price.
Tactical marketing It is related to the management
agency which give their
emphasis on rendering service
to outdoor lifestyle industry by
placing aids, websites etc. In
this aspect, TUI is utilising
social media so as to
effectively regulate their
marketing plan.
They are using this marketing
method to give support in
making effective marketing
strategies like it will enables
this organisation to know
detailed profile of their
customers so that they can
conduct their operations
accordingly.

Comparisons analyse the reasons for these decisions
As per the preceding discussion, it can be stated that tactical decisions are taking by an
organisation when they requires to compete their competitors and to attain higher success in the
marketplace (Flores-Garza and et. al., 2017). As this techniques enables them to get assurance
that they will surely get success and growth by making effective strategic plans or strategies for
their business. In regards to TUI, it will give them huge benefit in competitive market which will
results higher profitability and succession of the business.
Comparison of strategic and tactical decision making
Although, these both are related to take decisions for the organisations but these both are
using by an organisation like TUI to make appropriate decision for different purpose. As Tactical
decision making technique tends to be actual means which are directed towards structuring
workflows, acquisition of resources, creating development plans etc. Whereas, the strategic
decisions considered as overall plan of the business which directly contribute in achievements of
goals and objectives (Wang, 2012).

CONCLUSION
From the above file, it can be concluded that in the present world travel and tourism
sector has covered a huge marketplace which makes it essential for an organisation to operate all
the activities as per the current market trends. Form this, I have learn that before making any
kind of strategy related to operate a tour operator business consideration of each element like
business environment, pricing, competition and many other aspects are essential so as to operate
all the activities effectively and to provide higher satisfaction to the customers so that the success
and growth of organisation can be assured.

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