HND Hospitality: Tour Operations Management Report

This report delves into the multifaceted realm of tour operations management, providing a comprehensive overview of the processes involved in developing and executing successful holiday packages. It begins by outlining the various stages and timescales inherent in holiday development, from market research and planning to contracting with suppliers, costing, financial evaluation, brochure creation, advertising, operational execution, and post-tour management. The report then evaluates the suitability of different contracting methods, including fixed contracts, allocation contracts, and ad-hoc contracts, emphasizing the importance of sustainability in offering quality services. Finally, it demonstrates the calculation of a selling price, providing a practical example with detailed cost breakdowns and profit margin considerations. The report references key industry sources, offering valuable insights into the practical aspects of tour operations.

TOUR OPERATIONS
MANAGEMENT

• Introduction
• Assess of different stages and timescales involved in developing holidays.
• Evaluation of the suitability of different methods of contracting
• Calculation of the selling price
• References
TABLE OF CONTENT

Tour operation management is termed to be important element in tourism industry. Tour
operator perform various activities through distribution channel like render catering services to
inbound, outbound and domestic tourist.
INTRODUCTION

There are specifically three main regulatory bodies of tour operators which are explained
below:
• Association of British travel agent: It is one of the UK travel trade association for tour
operation and travel agents which was formed in 1950.
• Association of independent tour operators: It is the British bases travel industry trade
group which represent around 120 specialist and independent tour operators.
Different stages and timescales involved in
developing holidays

Federation of tour operators: This type of tour operator were founded in 1967 who render
90 % of overseas holidays packages. In-addition to this they also render effective financila
protection to the customers and work to promote holiday makers interest to the hotels,
government, airport authority etc.
CONTINUE….

Stages and time scale involved in developing holidays are explained below:
• Market research: The very first stage involved in developing holiday is market research. It the
prime responsibility of Lcb tour operator to make an analysis regarding advancement in
technology which is taking place in order to attract large number of customers.
• Planning and scheduling : After conducting market research next stage which the Lcb tour
operator must follow is to plan and schedule the destination and sites which can highly attract
large number of customers to visit. Its time scale is 1 month.
CONTINUE….

• Contracting: The third stage involves negotiation with suppliers. It is responsibility of Lcb tour
operator to negotiate with supplier regarding the facilities they will render to the tourist.
• Costing the holiday: In this stage Lcb tour operator fragment the cost as per the different types
of services like accommodation services, food services, transport services etc. Its time scale is 7
days.
• Financial Evaluation and Pricing: At this stage Lcb tour operator evaluate and identify the
changes taking place in the inflation and deflation rate.
CONTINUE….

• Creating the brochure: In order to create awareness about the different facilities and
services Lcb tour operator render to the customers, the company create the brochure in
which each detail about the tour package is mentioned within the time scale of 8 days .
• Advertising: Along with creating brochure Lcb tour operator also uses many other
advertisement channel like TV, magazines, radio, newspaper and many more so as to
create awareness and attract more number of tourist and it is done within 1 month.
CONTINUE….

• Operation and Execution: All the essential activities which need to be operated and
executed are considered by Lcb tour operator so as to provide eminent and attractive
facilities to the tourist. Its time scale will be within 15 days.
• Post Tour Management: This is the last stage where the Lcb tour operator make an
analysis regarding the feedback of tour packages rendered to the customers.
CONTINUE….

Sustainability refers to a balance act in order to maintain change in a balanced fashion. In
different methods of contracting sustainability is must so as to offer better services to the
clients. Contracting refers to the written documents which is signed by both the
parties( Supplier and Customers) and it mainly specifies about the different kind of facilities
and services that the supplier will render to the customers.
EVALUATION OF THE SUITABILITY OF
DIFFERENT METHODS OF CONTRACTING

Different types of contracting used by Lcb tour operator are specified below(Kato, A 2015):
• Fixed contract: This is a type of contract which specifies that the facilities which will be
rendered by tour operator are fixed and both the parties ( tour operator and the customers)
are bound with each other for a fix period of time.
• Allocation: It is also referred to as allotment contract. Allotment is mainly done in this
contract between individual for specific period like in a particular season.
CONTINUE….

• Ad-hoc: It is a risky type of contract which is done between the client and the tour
operator (Sevastyano 2015). Like contract has taken place between clients and the Lcb
tour operator regarding the room facilities and services they will render, in this type of
contract client does not give any guarantee that whether he/she will visit to take their
services.
CONTINUE….