Analyzing Tour Operations Management for Trailfinders Ltd

This report provides a comprehensive analysis of tour operations management within the travel and tourism sector, focusing on Trailfinders Ltd. It examines the effects of current trends and developments on the tour operator industry, assesses the stages and timescales involved in developing holidays, and evaluates different methods of contracting for various components. The report also includes a management summary that evaluates planning decisions for brochure design, assesses alternatives to traditional brochures, and evaluates distribution methods for selling holidays. Furthermore, it delves into the strategic and tactical decisions made by tour operators in different situations, providing a thorough understanding of the industry's dynamics. This document is a valuable resource for students seeking insights into tour operations management and strategic decision-making in the context of a real-world company like Trailfinders Ltd.

1
Tours operation
management

Table of Contents
INTRODUCTION................................................................................................................................4
TASK 1..............................................................................................................................................5
LO1. UNDERSTAND THE TOUR OPERATORS INDUSTRY WITHIN THE TRAVEL AND TOURISM
SECTOR.............................................................................................................................................5
1.1 ANALYZE THE EFFECTS OF CURRENT AND RECENT TRENDS AND DEVELOPMENTS ON THE
TOUR OPERATORS INDUSTRY......................................................................................................5
TASK 2- REPORT...............................................................................................................................8
2.1 ASSESS THE STAGES AND TIMESCALES INVOLVED IN DEVELOPING HOLIDAYS....................8
2.2 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF CONTRACTING FOR DIFFERENT
COMPONENTS OF THE HOLIDAY AND DIFFERENT TYPES OF TOUR OPERATOR.......................10
2.3 CALCULATE THE SELLING PRICE OF A HOLIDAY AND THE PRICE PER PERSON........................12
TASK 3 – MANAGEMENT REPORT SUMMARY...............................................................................13
3.1 EVALUATE THE PLANNING DECISIONS TAKEN FOR THE DESIGN OF A SELECTED BROCHURE
...................................................................................................................................................13
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...............................................................................................................16
3.3 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF DISTRIBUTION USED TO SELL A
HOLIDAY FOR DIFFERENT TYPES OF TOUR OPERATOR AND RECOMMEND THE MOST
APPROPRIATE FOR A LUXURY TOUR PACKAGE.........................................................................17
TASK 4 LO4 UNDERSTAND STRATEGIC AND TACTICAL DECISION MAKING FOR TOUR OPERATORS
.......................................................................................................................................................18
4.1 EVALUATE THE STRATEGIC DECISIONS MADE BY DIFFERENT TYPES OF TOUR OPERATOR 18
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4.2 COMPARE THE TACTICAL DECISIONS THAT COULD BE TAKEN BY A SELECTED TOUR
OPERATOR IN DIFFERENT SITUATIONS......................................................................................20
CONCLUSION.................................................................................................................................22
REFERENCES...............................................................................................................................23
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INTRODUCTION
Tour operators of travel and tourism industry are the main stakeholders of the industry. The role
and function of the tour operator have increased due to the dominance of some tour operators
and their management. Tour operators can be referred as the business agents who offer the
combination of the various service packages like transportation, accommodation and other
potential services (Couper, et al. 2017).
This assignment would assess and examine the role and function of the tour operator in the tour
and travel industry within the context of the Trailfinders Ltd. It will also throw light on the
various stages and phases involved in the development of the tour packages. Further, the
examination of the brochures and reviewing of the methods of selling holidays will take place.
The last part focuses on the tactical and strategic decisions made by the managers of the tour
operators in the tour and travel industry.
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TASK 1
LO1. UNDERSTAND THE TOUR OPERATORS INDUSTRY WITHIN THE TRAVEL AND
TOURISM SECTOR
1.1 ANALYZE THE EFFECTS OF CURRENT AND RECENT TRENDS AND DEVELOPMENTS
ON THE TOUR OPERATORS INDUSTRY.
The tour and travel industry is in the
booming period as there are various
improvements and development in the tour
operator industry that is being adopted by
them for the success of the organizations.
There is a positive effect of the current and
recent trends on the tour operator that is
proved to be beneficial for the organization.
SOME OF THE RECENT AND CURRENT
TRENDS IN THE TOUR OPERATOR
BUSINESS WHICH ARE AS UNDER:
Advancements in the technology: With the
help of the technological advancements it
has become easier for the tourist to gain
the details and information of all the
services offered by the tour operators like
Trailfinders. Technology advancements
proved to very beneficial for the tour and
travel industry. Trailfinders has launched
their application for the tourist so that they
can book their tour packages online (Nieves
and Segarra-Ciprés, 2015). It has also
enabled safety purposes for their tourist
and customers of the Trailfinders as there is
a tracking system in the app which can
ensure the tourist they are safe and secure.
Apart from this Trailfinders has enables the
online payments, Google map, online
booking in their applications.
A shift of customization from the mass
market: With the changing time, the tour
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operators like Trailfinders has adopted the
customization of the service instead of the
Mass market offerings. Trailfinders focuses
on the particular segments and targets
them with the attractive offerings and the
services. The segmentation is done on the
basis of the key accounts segments which
have higher growth opportunities.
Trailfinders also started the customized
holiday packages according to the
requirements of the particular group and
individuals (Benur and Bramwell, 2015).
Minimization in the cost of the airlines:
With the help of the Low-cost airlines the
cost has been minimized and the efficiency
of the services has been increased. There is
a development of the low-cost lines which
has been emerging in the UK in recent
times. The expansion of the Tour operator
industry leads to the Trailfinders to
minimise the airline's costs. This has
increased the profit of the Trailfinders as
the attraction of the customers has been
increased (Sharpley and Telfer, 2015). The
increasing number of the tourist activities
and the selling of the holiday packages has
led to the reduced cost of the holiday
packages.
Safety and security: It is the most
important concern of the tourist and the
visitors while travelling as there are various
unauthorized and criminal activities going
on in the market like terrorist attacks,
kidnappings, robberies etc. Trailfinders have
invested more in the improvement of the
security and safety measures at the hotels,
international airports, destinations, sites,
rail lines etc. Trailfinders have also launched
the security system in the mobile
application of the company so that tracking
can be done and effective measures can be
taken in the case of the emergency or any
suspect Sharpley and Telfer, 2015).
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Changes in holiday package’s economics:
In recent times the spending on the tour
and holiday packages has been increased by
the tourist. People are becoming more fun-
loving and started engaging themselves in
the leisure and recreational activities which
leads to the chosen of the holiday packages.
This all results in the increase in the
revenue of the tour operator like
Trailfinders. Trailfinders has also faced the
increment in the revenue by the selling of
the tour and holiday packages, especially in
the summer season and monsoon.
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TASK 2- REPORT
INTRODUCTION
As a product development manager of the Trailfinders Ltd. an educational tour and luxury coach
for the adult students will be created that will include the five-night journey and the location will
be from the London to Brussels and Brugge, Belgium. A layout will be prepared for the 40
students going on a holiday trip in August 2019 which includes timescales and various stages
required for the development of the holiday with the assessment of the different methods of
contracting.
2.1 ASSESS THE STAGES AND TIMESCALES INVOLVED IN DEVELOPING HOLIDAYS
On the basis of the current scenario, there will be the preparation of the plan that is having
various stages required for the developing the holiday packages. It will take approx.14 to 18
months for designing the plan. Following are the stages and phase that will be undertaken for
the planning of tour and holiday from London to Brussels and Belgium for the 40 students:
Research of market: The first stage of the developing holiday includes the conduction of the
market research of the tourist destination i.e., Brugge and Brussels with respect to the political
environment and other factors like weather, culture and climatic conditions. Trailfinders need
to analyse the macro and external environment of the Brussels and Brugge in order to plan the
tour holiday. It will process within four months (Hair et al. 2015).
Planning and scheduling: In this stage, proper scheduling of the activities will ensure that will
include the traveller’s convenience and provides major benefits and advantages to the students
during their journey and holiday trip of Belgium. All the activities will be planned and
arrangements will be made for the students like accommodation facilities, Food and beverages
etc. in advance so that the students feel convenient and comfortable (Vanhove, 2017). The
planning and scheduling of all activities will require four months.
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Negotiation with agents and suppliers: This stage focuses on the effective contracting and
negotiation with the suppliers and agents to get most effective deals within the affordable
prices. This will control the prices of the holiday packages for the students' trip to Belgium
through the effective contracting with them (Horner and Swarbrooke, 2016). Trailfinders need
to maintain the good relationship so that they can get more offers and discounts on the holiday
packages. Trailfinders can make an effective contract with the hotels and restaurants,
transportation. This stage can complete in about 3 months.
Developing cost of the holiday: This will include all costs and charges that will require the
journey At London and Belgium. In this stage, the final cost will be determined of the holiday
packages. The cost will cover all the expenses bear by the Trailfinders and they should also
don’t charge much fees from the students.
Following are the timescale:
ACTIVITIES DATE AND TIME
The departure of students from London 06/08/2019 (Evening)
Arrival at Brussels 06/08/2019 (Night)
Visits at Ixelles and Anderlecht 07/08/2019 (Full day)
Visits at Schaerbeek and Saint-Gilles 08/08/2019 (Full day)
Brussels Departure 08/08/2019 (Evening)
Arrival at Brugge, (Belgium) 08/08/2019 (Night)
Visiting Belfry of Bruges and Groeninge
Museum
09/08/2019 (Full day)
Visiting Huisbrouwerij De Halve Maan and
Choco-Story
10/08/2019 (Full day)
Departure from Brugge 10/08/2019 (Evening)
Reaching London 10/08/2019 (Night)
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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.
There are different methods of contracting for the Trailfinders that can involve the cost
estimation and contracts capacity for dealing with the different hotels and airlines agents.
Following are the different methods of contracting that can be evaluated for the feasibility of
the different constituents of the holiday trip of students at Belgium:
FIXED CONTRACT: This contract aims at providing various offers to the tourist for attracting and
satisfying them and is used by the Trailfinders. In this contract, all the related components are
booked in advance like hotels, rooms, beds, buses, airlines tickets etc. (Schegg and Stangl,
2017). These prove to be more beneficial for the Trailfinders as the cancellation of the bookings
provides major advantages to the Trailfinders.
SALE ONLY CONTRACT: Virgin uses the sale only contract as the contracting method. These
contract costs are high and the prices charged by the tourist is also quite high as the demand
surges in the seasonal time. The risk is low as compared to the fixed contract as the Virgin need
not to pay the extra amount for the advance booking.
AD-HOC CONTRACTS: The method focuses on the fluffing the need and requirements according
to the specific situations and problems. This contract is provisional, temporary which deals with
the specific problems. This contract is suitable for the emergency need of the bed, rooms,
ancillary services etc. Virgin and Trailfinders both engaged in this contract also (Schegg and
Stangl, 2017).
Types of different types of tour operators:
INBOUND TOUR OPERATORS: This type of the tour operators are engaged in the direct bonded
and connection with the tourists. They render the services and facilities on time. It includes the
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handling and dealing with the inbound foreign tourist and serving them according to their
needs and wants.
OUTBOUND TOUR OPERATORS: These tour operators are engaged in the developing, designing
and promoting the multinational tours. They work and operate outside the host country also
and prepare a tour package for the specific time period (Evans, 2015). They also aim at
providing the all facilities and services which is required in the journey and the holiday tour.
DOMESTIC TOUR OPERATORS: They work for only the host country and focus on the providing
services to them and work within the boundary of the home country. They prepare the holiday
packages as per the customers’ choices of the local area only. They promote and encourage the
beauty and diversity of the destinations (Schegg and Stangl, 2017).
GROUND TOUR OPERATORS: These tour operators aims at providing the packages at a
particular destination. They do not deal with the car rentals, hoteliers, transport operators and
does not have their local office and branches. They are also successful in the management and
arrangements of the group holidays and foreign tours (Evans, 2015).
Trailfinders is the type of Inbound and Outbound tour operators as they operate outside the
country also and prepares the holiday packages for the inbound foreign tourist too. Apart from
these, Virgin is the type of Domestic and outbound tour operators with the successful operation
in the country and outside the country.
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2.3 CALCULATE THE SELLING PRICE OF A HOLIDAY AND THE PRICE PER PERSON
On the basis of given scenario for the 40 students, the Trailfinders will calculate the selling price
of the tour packages that have twin room sharing and the educational tour will be from London
to Brussels and Brugge.
Rate of exchange for the one person’s room (€1.15= £1) = 90€ / 1.15€
An exchange rate of cost per person's room= 78.26 (supposing the cost of a room for a day)
Particulars Cost Cost and expenses
for 40 members for 5
nights (£)
Expenses per person
(£)
Cost of Hotel £78.26* ( 40*78.26*5)
15652
(78.26*5)
391.3
Cost of Local Tour
Guide
- 920 23
Cost of Luxury Coach - 7,400 185
Total Tour Cost - 23972 599.3
Margin of Profit
(30%)
- 7191.6 179.79
Actual Selling Price - 31163.6 779.09
*- per person twin sharing
The total cost of the tour package will be (£) 31163.6 and it will be the actual selling price for
that.
The selling price per person will be (£) 779.09
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TASK 3 – MANAGEMENT REPORT SUMMARY
Introduction
The understanding and knowledge of the planning process are required doe designing
brochures and this will be discussed in this report summary. Further, the best suitable
alternative will be selected for Trailfinders and Virgin with the distribution methods of selling
will be described. Both have taken the following planning decision for their holiday brochures
and below are the information gain from their planning decisions:
3.1 EVALUATE THE PLANNING DECISIONS TAKEN FOR THE DESIGN OF A SELECTED
BROCHURE
The decision for planning for the preparation of the brochures will involve many components
and points that will be discussed as follows:
Costing and formatting: The first consideration will be the decision of the costing and
budgeting which will prepare for controlling the costs. Further, the decision will be taken for
the colour, style, cover, quality, paper, structure etc (Curta, at al. 2015).
Trailfinders uses the attractive colour and style for their brochures with the good quality of
paper while the Virgin has the attractive format of the brochures.
Design developments: After the formatting part, the next step is to design the brochures which
focus on the graphics style, content, keywords, promotional message, photos and graphics etc.
Moreover, it aims at the detailed information and description which contains the logo and
brand name of the company (Beedie, 2017).
The design of the Trailfinders and Virgins brochures are very attractive as they have used their
company’s logo and name with the promotional messages of the holiday packages.
Implementation and monitoring: The last step focuses on the printing of the selected
brochures after the analysis of the paper’s quality and all the decision will be taken before the
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implementation. Trailfinders and Virgin have monitored the consistent results of the brochures
promotions.
Figure 1: Brochure of Trailfinders
[Source: https://www.trailfinders.com/ brochures]
Figure 2: Brochure of Virgin
[Source: Http://besplendid.uk/portfolio/travel-industry/]
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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
Following are the alternatives to traditional brochures for the Trailfinders and Virgin which can
be used in the place of the traditional brochures:
Mobile applications: With the use of the mobile and handset the Trailfinders and Virgin can
launch a mobile application for their company so that they can promote their company and
various offers through the application. It will ensure the promotion of their services all the time.
E-brochures: In the world of the digitalization, all the working of the company is going
digitalized. Similarly, it is the best option for a replacement of the traditional brochures.
Trailfinders and Virgin can enhance the effectiveness of the brochures through electronic or
online media (Lumsdon, 2016).
Social media: Social media can be proved as the best substitute to the traditional brochures. As
it is very popular among the people so the promotion of the tour package can be done by the
social apps like youtube, Whats app, Facebook etc. It can be the best option for the Virgin and
Trailfinders.
Television: Advertising and promotion can be done by the Trailfinders and Virgin and it can be
the best substitute to the traditional brochures. The main benefit of this alternative is it reaches
to the wide audiences (Lumsdon, 2016).
The best suitable alternative for the Trailfinders would be the Television and social media as
they can target the wide audiences at a single time. E-brochures and mobile application can be
the best suitable alternative for the Virgin for the promotion.
E-brochures, television advertising and internet would be a most appropriate option for the
educational tour of Belgium.
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3.3 EVALUATE THE SUITABILITY OF DIFFERENT METHODS OF DISTRIBUTION USED TO
SELL A HOLIDAY FOR DIFFERENT TYPES OF TOUR OPERATOR AND RECOMMEND THE
MOST APPROPRIATE FOR A LUXURY TOUR PACKAGE.
Following are the given methods that can be used for selling the tour packages by the
Trailfinders and Virgin:
Direct mail: Trailfinders and Virgin can use the direct mailing as the method of distribution for
selling a holiday. Potential and target customers can send a mail including the tour packages
information and details. So it will be the best method for the selling the holiday packages
(Mattiola, et al.2017).
Travel agencies: Trailfinders and Virgin can contract with the travel agencies which will act as
the mediator between the tour operator and tourist. The holiday package can be sold with the
help of the travel agencies that can prove the best for selling.
Selective distribution system: It can be used by the Trailfinders and Virgin by selling the
holiday packages in various outlets and selecting one of the best outlets for the selling of the
holiday.
Websites and Internet: Trailfinders and Virgin can use their company's website for selling
holiday packages. The company can post the blogs and videos of the tour packages so that the
company can reach easily to the potential customers.
For a luxury tour packages travel agencies, and websites can be the best distribution method
for selling a holiday tour packages.
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TASK 4 LO4 UNDERSTAND STRATEGIC AND TACTICAL DECISION MAKING FOR
TOUR OPERATORS
INTRODUCTION
This section of the assignment focuses on the tactical and strategic decisions made by the Virgin
and Trailfinders Ltd. Both the decisions are crucial for the tour operators which need to be
taken in the different situations. The decisions related to the strategic situations include pricing
decisions, promotions decisions and many more while the tactic decisions focus on the
completion faced in the market.
4.1 EVALUATE THE STRATEGIC DECISIONS MADE BY DIFFERENT TYPES OF TOUR
OPERATOR
Tactical decisions would be taken by the Virgin and Trailfinders LTD. in order to smooth
operation and running of the tour operator business. Following are the strategic decisions being
made by the Trailfinders and Virgin:
Pricing decisions: There are various expenditure and expenses incurred during the developing
the tour packages and also the tourist face some expenditure that may be experienced during
the travelling. Thus the tour operator like Trailfinders and Virgin need to make specific and
particular decisions while deciding the tour packages prices. There is various pricing strategy
adopted by the tour operators of the holiday and tour packages like discounted pricing
strategy, promotional pricing strategy, competitive pricing strategy etc. Trailfinders has
adopted the competitive pricing strategy and the virgin has adopted the promotional pricing
strategy (Pettigrew, 2014).
Positioning and image branding: Brand focuses on the making goodwill for the company that
will assist the company to earn a profit. It is very essential for the business to position and
branding the image in the minds of the customers and maintaining the same in an appropriate
manner (Boyle, 2017). Trailfinders and Virgin have focused on branding by increasing the
promotions with the help of several mediums like YouTube channels, Social Media, and
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advertisements. Customer satisfaction also plays a vital role in the brand development and
promotion.
Decisions related to the distribution: These are the modes through which services are provided
to the customers and the method of getting paid by the customers. Trailfinders and Virgin made
the decisions by taking care of the medium of the distribution. It includes the methods of
distribution for selling a holiday package (Boyle, 2017). Trailfinders and Thomas Cook also focus
on the making decisions related to the employing the number of the intermediaries, agents and
suppliers.
Marketing decisions: Trailfinders and Virgin focus on the decision related to the marketing of
the services and products offered by the industry. Trailfinders is highly focused on the
promotion of the services with the help of the brochures and online media. The Virgin is aiming
at the advertisements of the services through social media and Televisions. Marketing decision
is very crucial for every tour and travel industry as it is the only medium through which the
awareness can be spread among the tourists about the services and persuasion can be done for
the offers and discounts of the services (Boyle, 2017).
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4.2 COMPARE THE TACTICAL DECISIONS THAT COULD BE TAKEN BY A SELECTED TOUR
OPERATOR IN DIFFERENT SITUATIONS
The tactical decisions are taken by the tour operator in order to survive in the market only and
it does not include more decisions making as compared to the strategic decisions. These are
less complicated than the strategic decisions. It focuses on the responses of the company
against the competition in the market. Following are the comparison of the tactical decisions
that should be taken by the Trailfinders and Virgin in the different situations:
Competitive market: The heavy competition has the direct impact on the pricing decisions of
the Trailfinders and Virgin. Trailfinders made the tactical decisions in order to face the high
competition by providing the offers and discounts and also the quality products. In case of the
Virgin the decisions made focuses on the providing wide range of the product with the
attractive packages and prices (Chang, et al. 2017). These all decisions made by the tour
operators in order to the gain the competitive advantages as it can hamper or foster the growth
of the tour operators.
Decisions taken in case of the emergency situations: There are various tactical decisions that
need to be taken in the case of the emergency situations like sometimes the demand of the
tourist surges in the summer vacations. In case of this, the Trailfinders can manage the stay of
the number of the tourist by making a contract with the competitive firm and taking the
commissions on that it will help Trailfinders not to lose the income and can earn a profit. The
Virgin takes tactical decisions by arranging the staying of the tourist in other areas when there
is a shortage of the beds arises suddenly (Pettigrew, 2014).
Decisions are taken in the case of the technological changes: In the modern age, there are
various improvements and developments which have been made in the tour and travel
industry. Trailfinders has started the booking system through the application seeing the modern
developments. There are various versions which get updated and the existing software cannot
19

run on the old version, in this case, the Virgin has made the decisions of the changing and
updating the version of the software and informing the customer that the site is on repairing.
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CONCLUSION
It can be concluded that the tour operator is the heart of the travel business which has been
improved due to the recent developments in the industry. There are various stages involved in
the holiday development. Tour operators have to make planning for designing the brochures. In
today's world, there are various substitutes available for the traditional brochures and also the
different distribution methods available for the selling of holiday packages. Marketing manager
of the tour operators needs to take several tactical and strategic decisions in different
circumstances.
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