Tour Operations Management Report: Trends, Planning, and Decisions

This report provides a detailed analysis of tour operations management within the UK travel industry. It begins by examining the effects of recent trends and developments on the tour industry, highlighting the impact of online bookings, budget airlines, and market competition. The report then explores the stages and timescales involved in holiday planning, using a case scenario of an educational tour from London to Belgium. It evaluates the suitability of different contracting methods, such as fixed and sale-only contracts, and calculates the selling price of a holiday package. Furthermore, the report delves into planning decisions for brochure design, assessing the suitability of traditional brochures and their alternatives. Finally, it presents strategic and tactical decisions made by tour operators, providing a comprehensive overview of the key aspects of tour operations management.

TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Presenting the effects of recent trends and development on tour industry.......................1
TASK 2............................................................................................................................................2
P2.1 Presenting stages and timescales involved in holidays..................................................2
P2.2 Presenting a suitability of different methods of contracting for different components of
holidays...................................................................................................................................3
P2.3 Presenting selling price of a holiday..............................................................................4
TASK 3............................................................................................................................................5
P3.1 Presenting a planning decision taken for design brochures...........................................5
P3.2 Assessing a suitability of alternatives to traditional brochures......................................6
P3.3 Evaluating the suitability of different methods of distribution......................................7
TASK 4............................................................................................................................................8
P4.1 Presenting strategic decisions made by different tour operators....................................8
P4.2 Comparing tactical decisions selected by tour operators...............................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality means providing services to person and it plays an important role in travel
and tourism sector. The present report helps to understand a travel industry in UK and it also
deals with case scenario and analyses the effects of current and recent trends as well as
development on tour operator’s industry. It also assesses stages and timescales that are involved
in developing vacation and evaluates the suitability of different methods of contracting for
various components of holiday with calculating selling price of vacations from a case scenario. It
also presents planning decisions of brochures and assess suitability of traditional brochures for
different types of tour operators. It describes various methods of distribution used to sell holidays
and also present strategic as well as tactical decisions that have to be taken by tour operators at
various situations.
TASK 1
P1. Presenting the effects of recent trends and development on tour industry
THE EFFECTS OF RECENT TRENDS AND DEVELOPMENT ON TOUR
INDUSTRY
Tour operators in UK provides
travel components to create
holidays packages and also
designs travel routes with
perfect arrangements with
comfort zone of their
passengers. There are different
types of tour functions such as,
a travel agent is a buyer of tour
operator and sells travel
related products/ services on
behalf of tour operators.
Whereas, other tour operators
use their own distribution
In the context of travel and
tourism sector, industry
structure changes a lot. Big
tour operators maximize online
bookings and occupy a wide
market in UK. From last many
years, millions of visitors came
and spent more than 30 billion
pounds in UK and as a result
volume increases and it
directly affects the GDP of
UK. There is an expansion of
cruise market that affects
external factors such as
It almost covers more than 90
percent marketplace share in
British market and its
member’s ranges from small,
there are specialist tour
operators as well as travel
1

channel even they set their
retail shops to sell products
directly to their customers in
order to establish close
relationship with them (Tan
and et.al., 2018).
discounting on current
holidays packages, budget
airlines, emergence of e-
commerce etc. For UK, 2007
merger activity has been a key
feature of outbound tourism
activity and it lost a large
amount which affected the
economy of country (Martin,
Mendoza and Roman, 2017).
Apart from this, UK’ outbound
tour operators tries to attract
visitors which are now
increased up to 1.8 million but
in 2008 ABTA and FTO
merges which combines and
form to continue integration
related to travel and tourism
sectors .
The Association of British
Travel Agents (ABTA) now
represents more than 5000
travel agency and near about
1000 tour operations.
agencies who help them from
call centres to internet
bookings and attract wide
number of customers. But as
per the report presented by
ABTA annually, it has been
analysed that bookings are
down approx. 5 percent as
compared to past years. Tour
operators who provide package
holidays are significantly
decline as compared to cruise
tours or flight bookings while
Association of Independent
Tour Operators (AITO)
represents around 120
independent tour operators and
also monitor the high quality
of services that are provides by
them to customers. It also
occupy almost 60 percent
market share of British market
place and plays a significant
role in tour and travel industry.
TASK 2
P2.1 Presenting stages and timescales involved in holidays
In the context of case scenario, Trail finders organizes a journey of 42 students that is
proposed for an education tour from London to Belgium, Brussels and it contains various stages
which are mentioned below:
2

Market Research: It is the first stage which includes research of market such as
identification of economic, political, social and climatic factors of the Belgium and Brussels that
influence package tour. A good market research will definitely help to raise a wide number of
customers for tour. The main target of travel and tourism agency is to attract wide number of
customers with big percentage not only to capture small percentage of number of visitors in a
city. The tour must meet all needs of target market and positive approaches must be adopted by
journey operators which must be based upon researching tour ingredients as well as market
(Schegg and Stangl, 2017). The time scale for market research should not be more than 5 to 10
days.
Planning and Scheduling: It includes all other factors such as budgeting, financial
evaluation and pricing, administrative staff, developing a tour market plan etc. As 42 students
per group will be going for Brussels, Belgium so it should be plan accordingly. Such as tour
operator charge 52 pound per person and cost of local guide is 1020 pound and extra charges will
be 25 percent of selling and administration cost. The time scale should not more than 5 nights
and as the tour is educational tour so this is start from August. In order to develop tour market
plan, it also coordinates resource of a tour company in order to achieve set targets (Decrop and
et.al., 2018).
Forecasting: It is the last stage of tour development that includes promotional activities
that should be included at the end of tour. There are various promotional techniques such as
advertising, travel marts, telemarketing, personal selling, brochures etc. in order to create
awareness and build brand image in market (Tussyadiah and Sigala, 2018.). This technique is the
best and effective communication of tour ingredients which helps people know about different
offers and products.
2.2 Presenting a suitability of different methods of contracting for various components of
holidays
Every tour and travel operators uses various methods in order to attract wide number of
customers and even uses different contracts which help for the better commitment with their
customers. As a tour operator, there are different types of contracts that has to make while
planning a tour some of them are as follows:
Fixed Contract: Basically this type of contract is made by tour operators to increase the
volume of customers as well as to generate more revenue at a time of conducting a tour. In this
3

contract all the arrangements are done as per needs of customers. The booking will be done by
air tours and even whole payment will be made as per utilized capacity. As whole package is
related to education tour so under fixed contract, commitment will be done to the hotels, who
provide accommodation facility and as well as transport installation such as a luxury bus.
However, this package is basically designed in summer which is a peak time of tourist visits and
even there is a little chance of non- utilization of capacity. The fixed contract will come as a
result of high discount which helps to attract wide number of customers (Camilleri, 2018).
Sale only Contract: The contract is generally made for niche consumer segments
because they cannot bear such high expensive tours. There will be particular consumer segments
where only selected people prefer to visit and for education tour, students must demand for basic
accommodation facility, low cost tour, various discount of offers. But in the context of tour
operators, there must be competitive pricing, skimming and various offers related to a plan this
will help to attract wide number of customers and as a result it will help to get benefited to raise
their overall performance. To set a plan, operators must see profit margin and then allot exact
price per student (Mulet-Forteza and et.al., 2018).
P2.3 Presenting selling price of a holiday
In order to find a selling price, Trail finder organizes an education tour of 42 students
which charges 52 pound and apart from it, a local tour guide charges 1020 pound for each night.
There will be extra expenses which are selling as well as administration that will be charged 25
percent extra and beside, this room facility will be charged as 92 pound in between two persons
(Buhalis and Foerste, 2015). So overall costing for each student will be calculated as per
mentioned below:
4

As per the above calculation, overall cost for an education tour will be around 21000
Pound and this will decide what amount should be charged in order to make tour successful.
TASK 3
P3.1. Presenting a planning decision taken for design brochures
Brochures are the simplest way which helps to attract a wide number of customers. As
Trail finder is conducting an education tour, of 42 persons so it is necessary to use different
promotional techniques in order to let people know about their tour. So the company chooses to
use brochures and there are some planning decisions that helps to create brochure which are
mentioned below:
 For planning, brochures must include different types of pictures or scenic spots of
Belgium, Brussels which helps to attract wide number of people (Xiang, Magnini and
Fesenmaier, 2015). This is a best way to lend the right deals and it must include great
shots of popular tourist attractions and after this, there should be proper description of
those beautiful areas which also indicate a list of reasons why students should visit the
places.
 Another step comes while planning a design for brochure is related to colours. In a
brochure, where the tour is operated, those places must be highlighted by using proper
background colours and it must look beautiful and attractive. While using black colour
will look unattractive or unnatural as compared to other colours.
 In order to engage reader while reading a brochure, Trail finder can use different words in
the description such as explore, taste, witness and so on. The description about a tour
must be in right side of brochures because it will look good as well as attractive. The font
size should not be as large which looks unattractive. As it depends on a size of brochures,
which font size should be used (Boniface, Cooper and Cooper, 2016).
 A company can also add other necessary details in order to let tourist or visitors know
why they must read brochures because it will help them to get know about the
destinations where they are visiting. Other information must be included while designing
brochures such as name of hotel, activities which should be add on brochures at the time
of organizing tour, transportation facility, provide local guide as extra facility etc.
5

 The brochures must include all necessary details related to the attraction point or number
of days on which the tour is going to be held. A company also uses different reward
practices at the time of activities done on a destination in order to attract wide number of
people. As a company is conducting an education tour so, it is necessary that it must
include some adventurous plans or activities to enhance the knowledge of each and every
students (Martín, Mendoza and Román, 2017).
By using this planning, a well-designed brochure can be developed and of course, this
strategy will be effective because it will contain all necessary information with relevant materials
and as per the convenience of a student.
P3.2 Assessing a suitability of alternatives to traditional brochures
Since, Brochures are the best marketing mix elements that helps to promote any events.
In the context of Trail finder, a company also chooses brochures as a promotional technique. But
now a days it is not considered as one of the best traditional methods because to get news from
social sites have become more digitalized, that is why they do not prefer such techniques. There
are various suitability methods available in place of traditional brochures some of them are as
follows:
Social sites: It is one of the most important promotional method which helps to attract
wide number of customers. It is also considered as most suitable technique to raise awareness
regarding the products or services which are offered to customers. Social sites generally include
Facebook, Twitter and so on. These are regular sites where public relations are established and
they help to share a new offer or services very frequently. More than half of population uses
social sites that is why it is considered as one of the best and suitable option which replaces
traditional brochures (Tan and et.al., 2017).
Flyer/ poster: Flyer is considered as another alternative of traditional brochure and it is
quite cheapest as compared to other marketing tool. Flyer helps to provide a short message and it
is only highlighted to some basic points only. While on the other side, posters are mostly used in
supermarkets or public spaces in the form of announcements or advertisement. This promotional
tool helps in providing bulk amount of information which mainly targets campaign which is
going to be held in future. Flyers as well as posters are used to give some specific information
regarding a tour which is organized by a tour operator.
6

Advertisement: Advertising is one the most common promotional technique used in tour
and travel agency. It is another traditional as well as modern form of marketing mix tool.
Advertising generally comprises a long content and even it can be used in public places in order
to attract wide number of customers (Khan and et.al., 2017). Advertising are helpful to provide
information to bulk number of customers. They are also considered as one of the cheapest
promotional activity among all and it also saves time that is why big tour operators generally
uses this form of promotional tool in order to promote their tour in market.
E- Brochures: This is most common form of promotional tool which is generally used
by travel agency in order to save cost as well as efforts (Schegg and Stangl, 2017). The main
objective of e- brochures is to provide a digital format information that has to be provided by
tour operators to their customers. It is quite similar to brochures but they are quite cheaper as
compared to them. The biggest advantage of using e- brochures is that it requires less space as
compared to others and it can be kept with themselves while travelling. Thus, tour operators in
travel agency finds this way most suitable than others.
P3.3 Evaluating the suitability of different methods of distribution
Distribution of channel is a link between a producer and a consumer. Basically there are
many channels of distribution such as direct mail, internet, telemarketing, call centre etc. The use
of multiple distribution of channel is common in most travel company and that is why they plays
an effective role in hospitality sector because they provide the latest information to the consumer
while on the other side these channels help to provide information related to customers need to a
tour operator (Methods of distribution of channels, 2018). Some Methods of distributing products
or services in the context of Trail finder are mentioned below:
 Direct selling: Many tour operators uses direct selling as a channel of distribution
because it will help organization to know about a market research and aid to keep all
revenues under control of company (Decrop and et.al., 2018). However, it has been
evaluated that it takes a lot of time as compared to other methods.
 Online: It is another method of distribution of channel which replaces all traditional
methods. The online selling feature generally, removes all intermediaries and reach large
group of people. This method of selling is generally used by big tour operators who
organizes tours for rich persons. By using social sites, network and online campaigns
help to spread broad messages which aid to achieve good sales volume. It is a best
7

method that helps to keep customers engaged while reading the offers which are provided
by tour operators (Tussyadiah and Sigala, 2018).
 Mail Order: It is low cost distribution channel which is convenient for customers. But
this method is only used when a tour operator wants to invite special people in a tour.
However, it is also evaluated that mail order does not help to attract wide number of
customers and mailing list is prepared to target particular demographic group of people
who are interested in order to go on a particular tour.
 Internet: It is another most important and frequent channel of distribution which helps
to reach large number of people. By making websites that includes photographs,
information related to products, prices that are charged at a time of tour and a detail plan
related to particular spot (Remington and Kitterlin-Lynch, 2018). Using this method will
help customers to pay instantly by using online service or through debit or credit cards.
TASK 4
P4.1 Presenting strategic decisions made by different tour operators
For successful tour and travel, strategic decisions play an important role and it totally
depends upon balancing tactical as well as strategic marketing. Strategic decisions mainly
focuses on long term product/ services which are provided to users such as an education tour is
organized by Trail finder in summer time and it mainly comprises five basic elements such as :
 Forecasting demand
 Find different ways to reduce offered cost
 Maintain long term relationships
 Help a tour operator to decide a best way of distribution and
 Build brand strength related to products or services which are offered to customers.
Strategic decisions are generally taken in different ways by each tour operators such as a
domestic tour operator has defined their decision for their own purpose. And every tour operator
must have to define all the strategic decisions according to their tour and travel. They must
estimate future budget which will be surrounded by risk because uncertain nature of business
environment. While it has been evaluated that other tour operators must have proper knowledge
related to their customer profile as well as their behaviour as a result provides better chances of
reducing risks (Camilleri, 2018). There are different strategic decisions which are used in order
8

to attract wide number of customers in market such as a better quality, choice of colours,
different styles of brochures and photographs used in websites helps to select a mark audience
while the tour operators related to up market target groups responds better as compared to low
market.
On the other side, outbound operators travel from generating tour of one country to
another and they use strategic decisions such as attracting high volume of sales with different
price strategy by choosing brand attraction point. However, it has been evaluated that inbound
operators choose international country visitors whose choice of products is directly related to
customer’s portfolio (Mulet-Forteza and et.al., 2018). Even they use online mode of channel for
distribution and can invest more money in order to attract large number of customers.
P4.2. Comparing tactical decisions selected by tour operators
Tactical decisions are quite different from strategic conclusion and they are more focused
on short term problems as well as solutions in travel and tourism industry. There are many
external factors that affect directly to tactical decision by a tour operator such as innovations in a
tour and travel industry, use of latest information as well as communication technology, price of
fuel, the growth of economy in particular industry, exchange rate of fluctuation, issues related to
environment etc. These factors generally affect the decision of tour operators and as a result they
somehow raise the price of tour (Tactical decisions, 2018).
A tour operator must have tactical decisions in order to respond to an increased
competition by using different pricing strategy. Generally, travel and tourism industry follows
cost leadership strategy in order to respond high competition in market. Other responses related
to internal factors are financial status, organizational challenges etc. These responds are accessed
quickly as possible and a company can even cut a price of their services to raise financial status
of it (Prebensen, Chen and Uysal, 2018). As a result, a wide number of visitors will be
automatically attracted by it. Another tactical decision is response to plan of action marketing. A
tour operator uses short term market planning in order to tackle some specific issues such as a
sudden decrease in number of tourists, this will affect a whole journey and as a result may be a
tour will be cancelled.
Tactical planning is generally made in order to conduct a tour whose aim is to achieve a
short term or medium objectives to ensure operational processes are working in an effective as
9

well as efficient way. The success of promotional techniques used by a tour operator is directly
related to a knowledge of a manager who operates a tour in order to achieve best profile, needs
and behaviour of a customer’s segment through which they are dealing.
CONCLUSION
By summing up above report, it has been concluded that there is increase in number of
tourists in UK. The report helps to understand a current trend of tour operators within travel and
tourism industry. It assesses different stages as well as timescales that are involved in developing
holidays for visitors and also presents different methods of contracting by various types of tour
operators. A report helps to plan a best design for brochures in order to conduct an education tour
of students from London to Brussels and Belgium. It also presents different types of channels of
distribution as well as alternatives of traditional brochures which are chosen by a tour operator.
The report also presents different strategic as well as tactical decisions that are taken by tour
operators in order to achieve all targets and fulfil needs of their customers.
10