Tour Operations Management: Evaluating Trends, Strategies & Decisions

This report provides a comprehensive analysis of tour operations management, examining current trends and developments in the tour operator industry. It assesses the stages and timescales involved in developing holidays and evaluates different methods of contracting for various components, including a calculation of selling price. The report also evaluates planning decisions for brochure design, suitability of alternatives, and distribution methods, recommending the most appropriate options for different tour operator types. Furthermore, it evaluates strategic decisions made by different tour operators and compares tactical decisions in various situations. The document is contributed by a student and available on Desklib, a platform offering study tools for students.

Tour operations management
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Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Analyse the effects of current and recent trends and developments in the tour operators
industry.........................................................................................................................................4
Task 2...............................................................................................................................................6
2.1 Assess the stages and timescales involved in developing holidays.......................................6
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator.................................................................................7
2.3 Calculate the selling price of a holiday from given information below...............................10
Task 3.............................................................................................................................................11
3.1 Evaluate the planning decisions taken for the design of a selected brochure......................11
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour
operators and recommend the most appropriate for your tour package.....................................13
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for
different types of the tour operator and recommend the most appropriate for your tour package
....................................................................................................................................................14
Task 4.............................................................................................................................................16
4.1 Evaluate the strategic decisions made by different types of tour operator..........................16
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
Tourism forms a major part of the economy and provides a great ratio in the growth and
development of the economy. Tourism refers to the travelling of people from one person to
another due to the purpose of leisure, business, education, sports, recreation etc. Tourism
operations management is the effective management of the tourism activities in order to
maximise the experiences and satisfaction of the customers. The objective of the study is to
discuss the management actions and strategies used by the tour operators for the systematic and
effective management of the tour destinations. The study has been segmented into a number of
tasks that will disclose about different aspects of tourism operations management. There will be
a discussion on the current trends in the development of the tourism operations industry.
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Task 1
1.1 Analyse the effects of
current and recent trends
and developments in the
tour operators industry.
Introduction
The operator are general
population who pool every
one of the segments and
part of the visit and go
keeping in mind the end
goal to create an entire
occasion bundle for the
clients. The operator
industry is totally made out
of these operator and all
the arrangement of the
activity associated with
them for the working of the
business. This
investigation is completely
in view of understanding
the operator industry that is
a significant piece of the
visit and travel part. This
would likewise fathom the
effects of the present and
all the current patterns that
won and would likewise
help to comprehend the
general advancement that
has happened in his
industry.
In the words of Page,
(2014), as per the current
position of the tourism
industry, the industry is
consistently growing and
expanding in the world and
attracting new customers.
The industry has a wide
scope of enormous growth
and development in the
coming years. The below
discussion will highlight
the current and recent
trends in the tourism
industry;
Increasing number of
tourists: Since the last
decades, there has been a
consistent increase in the
number of tourists in the
tourism industry that has
increased the demand of
better and systematic
demand of the operations
in the industry.
Environmental
awareness of tour
operators: The increasing
awareness of the
environment has brought
negative implications on
the tour operators as
government environmental
programs may prohibit the
tour operators to not visit
the preserved areas
(Cheng, 2016).
Different types of tour
operators: The categories
of tour operators in the
tourism industry have been
raised such as:
 Direct sell operators:
These are the operators
that sell direct tourism
packages to the customers
and offer multiple options
to the customers. The
customers can easily buy
the packages from the
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customers at a very
reasonable rate.
 Domestic operators:
These types of operators
reside in the organizations
and deal with the
customers and inform them
about the plans and
packages.
Role of trade bodies: The
role of trade bodies like the
travel association (TTA),
Association of independent
tour operators (AITO), and
Federation of Tour
operators (FTO) affects the
management of the tour
operators at a great extent.
The tour operators are
bound to follow the rules
and regulations developed
by the trade bodies.
Competition: There is no
doubt in the fact that when
the demand of the tourism
industry grows
automatically the level of
competition tends to rise.
In the growing era, there is
an extensive level of
competition in the industry
where the competitors are
giving cut throat
competition to each other
in order to maximise the
interest of the customers
(Stará and Peterson, 2017).
Conclusion
The previously mentioned
investigation is totally in
view of the visit
administrator industry and
on every one of the angles
associated with them. This
examination comprehends
the part of the operator in
market as well as
furthermore how it help
whole travel
manufacturing to develop
as well create. This
investigation additionally
understands the
significance of the operator
in the development and
improvement of the visit
and travel industry.
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Task 2
Introduction
In this task, the different period, as well as the timescale, will also involve in developing of
holiday. The assignment will too aid in understanding sustainability of various technique that is
being used in constructing timescale. Proper calculation of the selling price will also carry out.
2.1 Assess the stages and timescales involved in developing holidays
Development of the holidays is a dynamic and lengthy process for the tour operators that involve
a number of stages to be followed in a period of time. It is the hard work and efficiency of the
tour operators that lead their organizations towards successful growth and development. The
stages involved in the development of the holidays are listed as under:
Market research: The first stage in the development of the holidays is the market research in
order to ascertain the demand for the needs and requirements of the customers. Market research
offers the information like perceptions and opinions of the customers about the proposed plan
that helps the organization in implementing any changes as per the expectations of the customers
(Mariani, et. al., 2016).
Planning and scheduling: after the evaluation of the market condition, the next step is the
planning and scheduling of the activities that involve the designing of the tour packages,
development of strategies etc. while scheduling involves the setting of time of holiday for the
customers.
Forecasting: In this step, the manager plans the holiday after the measurement of the relevant
factors. The manager assesses the climate of the particular and then implements the holiday
package as per the climatic conditions of the particular destination. Also, other risks and
contingencies are predetermined by the manager and corrective actions are planned accordingly
so that the holiday will not be affected by any risk.
Contracting: This is the step where the managers at the tour operators provide the services to
the customers as per the set plan. The other additional facilities like provision of cabs, restaurant
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services are provided in order to maximize the experience of the customers and ensure that the
holiday has been planned as per the expectations (Spenceley, 2017).
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2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
An agreement is fundamentally is understanding which is prepared in the middle of two
gatherings for a few particular reason. An agreement gets a portion of the terms and conditions
that are made obligatory to be trailed marking the agreement by both the gatherings. On account
of the operator, this agreement is marked between the operator, the supplier of the administration
and furthermore the client. This makes every one of the tasks all the more simple and solid.
There are different sort of contracting techniques those can be followed by operator:
Fixed contract- The fixed contract is considered as fixed things, after doing this contract the
tour operator cannot be able to cancel the tickets or other things which they had booked for their
customers. In this contract the tour operator’s book the accommodation, flights, etc could not be
canceled afterward they have to pay for all those things if it is not used by them. it is seen that
the there are few tour operators those who use the fixed contract as it can affect the financial
budget of the customers those who get connected with them (Mattsson and Orfila‐Sintes, 2014).
It is seen that Trailfinders mainly uses the fixed contract for their customers. The main downside
of this sort is which regardless of whether rooms as well seats those are going unused then
likewise administrator is essential to compensate for it. Trailfinders utilize this sort of agreement
just in some particular area where they are certain of the quantity of the guests and sightseers. In
this agreement, the administrator needs to order his requisite number of informal lodging before
time begins as well afterward it is possessed by them for so as to entire timeframe.
Ad-hoc type contract –The administrators reserve rooms also flights just at season of
prerequisite as well as need to utilize them as it need to make propel instalments. This agreement
is a sort of on-the-spot assertion that is made by the administrators with the specialist
organizations just at the season of a prerequisite. This instalment made is non-refundable and is,
for the most part, planned to the advantage of the specialist organization. Trailfinders utilize this
sort of the agreement just on account of the extravagance bundles and don't utilize it for some
other utilize.
Allocation contract- In this contract, the tour operators could book the accommodation or other
facilities as per the number of the customers (Telfer andSharpley, 2015). This contract is a little
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bit useful for the tour operator to use, as they get the facilities of booking the accommodation or
various other facilities for the customers as per the number of customers buys their packages.
Trailfinders make the most utilization of this agreement and stay away from any sort of the
misfortune purchase the assistance of the conditions partnered to the agreement.
This enables the administrators to utilize their purchased seats and beds at whatever point they
need and is additionally permitted to discharge them for the specialist co-op to be dispensed to
another person on the off chance that they are going unused. This agreement enables the
Trailfinders to discharge the quaint little inns situates before the season closes keeping in mind
the end goal to abstain from giving additional cash for the unused ones.
Charter flights- The charter flights are specially made for the tour purpose or by the VIP
people, it does not provide services to the other people in common. These flights are booked
through the people who are VIP or those who can afford their personal flights for traveling to
some of the other places. It is considered that the Trailfinders basically provides the charter
flights facilities to their targeted customers those who can afford a good sum of the money for
the charter flights.
Distinctive kinds of operator are as per the following:
Domestic operator
Residential operator are worried about the neighbourhood tour. Clients can just go inside their
area with the assistance of the tour which is considered as domestic (Mowforth and Munt, 2015).
Outbound operator
The outbound operator gives outside outings to their clients. The outbound visit administrator
reaches the inbound operator for gathering an expansive number of nearby clients.
Ground operator
The ground visit administrator is in charge of giving ground administrations to the clients, for
example, nearby transportation, touring, convenience, food, and drink.
Inbound operator
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The inbound operator is extremely acclaimed inside the tourism area since they are in charge of
giving an extra advantage in the visit bundle like travel protection, nourishment and refreshment
and others.
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2.3 Calculate the selling price of a holiday from given information below.
Cost of a twin room for per person
96*45*1.12
11,289.6
Bus coach luxury 11200
The charge of guide for a tour £ 945
Overall cost 16983.40
Markup value
33%*17305.96
5710.966
Sales price 31168
Calculation
Given exchange rate is €1.12
Selling price per person of the overall tour is 31,168/42 = £742
The overall sale price of the tour package is £ 31,168
Each traveler is required to pay £742 to the tour operators.
Conclusion
From this task, the time stage of the timescale is being explained in it. In this task, the
sustainability of the different methods is also explained in this task. Calculation of the selling
price is being also done.
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Task 3
Executive summary
The operator industry is very subject to the hand-outs for pulling in the clients to the operator to
by the bundles. The allure and instruction would assume a fundamental part in the
accomplishment of the operator in the market. This investigation centres around every one of the
parts of the hand-out and on the noteworthiness of the leaflets in this industry.
Introduction
The report likewise illustrated the various types of the circulation channels and strategy that are
utilized as a part of the operator industry keeping in mind the end goal to exchange the occasion
bundles to the clients. This report would likewise understand the arranging choice associated
with the outlining of the chose hand-out and would likewise help to grasp the criticalness of the
development that happened in the leaflets from the conventional ones and their significance. The
pending administration report would be founded on explaining every one of the parts of the
leaflet and upon their significance in the operator industry.
3.1 Evaluate the planning decisions taken for the design of a selected brochure
Leaflet is a sort of a hand-out or a little magazine which is created by operator so as to make the
general population mindful of the scope of the items and the administrations. The hand-out is an
exceptionally successful source so as to draw in the clients and to make them a beneficial hotspot
for the organization. The outline of the hand-out at Kuoni Travel depends on the accompanying
parameters:
Deciding the format- It is essential for the company to first decide about the format in which the
leaflet has to be carried out. In this, the size, colour, paper quality, etc are decided. Outline of
handout is likewise in light of the stuff which is utilized to create it like, paper material, the
substance of leaflet, paper quality extent of paper, the arrangement of type utilized, and so on.
Target Market – The leaflet is chosen by the objective fragment of the clients (Khairat and
Maher, 2017). On the off chance that the pamphlet is for the youthful age it would be in an
alternate arrangement and on the off chance that is for aged individuals would be in an alternate
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