Tour Operations Management Report: LCB Tours and Strategic Decisions

This report examines tour operations management, focusing on the practices of LCB Tours. It delves into the strategic decisions related to brochure design, distribution methods, and pricing strategies. The report evaluates the planning decisions taken for brochure design, the suitability of alternatives to traditional brochures, and the effectiveness of different distribution methods for various tour operators. It also analyzes the strategic decisions made by different types of tour operators, including pricing, branding, and product choice, as well as the tactical decisions concerning responses to market changes, pricing adjustments, and marketing strategies. The report concludes by highlighting the key findings and implications for tour operators in the tourism industry.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in leaflet........................................................................................................................1
TASK 2............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK3.............................................................................................................................................1
AC 3.1 Evaluate the planning decisions taken for the design of a selected brochure.................1
AC 3.2 Suitability of alternatives to a traditional brochure........................................................2
AC 3.3 Suitability of different methods of distribution used to sell a holiday for different
types of tour operator..................................................................................................................2
TASK 4............................................................................................................................................3
AC 4.1 Evaluation of the strategic decisions made by different types of tour operators............3
AC4.2 Comparison of the tactical decisions in various situations..............................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Tourism consists of the activities in relation with travelling from one place to another and
staying at such places which do not belong to the usual environment of individuals (Yan and Ho,
2017). It can be done for leisure, business or any other purpose. The present report is based upon
LCB Tours which is a famous tour operator company that takes the assistance of aggressive
marketing and advertising strategies to gain competitive edge in market. These strategies are
adopted by entity to promote its tour and holiday packages. Also, this report contains the recent
trends and developments that can be noticed in tour operations management and its impact on
business entities belonging to the industry. Besides that, it also includes the stages and timescales
for developing holiday package plans of company. Apart from this, the evaluation of strategic
and tactical decisions which need to be considered by tour operators have been discussed.
TASK 1
Covered in leaflet
TASK 2
Covered in PPT
TASK3
AC 3.1 Evaluate the planning decisions taken for the design of a selected brochure
A brochure is a template creatively and captivatingly designed by tour operators to gain the
attention of customers towards their holiday and tour packages (Shyju and Lama, 2015). It is a
strategic technique used by business entities to influence people to buy their packages. Brochures
contain necessary information regarding the tour and helps the enterprise in creating corporate
image in market (KhairatP0F and Maher, 2012). Access UK Holidays and Perillo Tours are two
popular tour operators located in UK who makes use of brochures to increase their sales. The
planning decisions taken by both the companies while creating the brochure include: Design: Access UK Holidays design a 3D brochure which is eye catchy and captivating
to the customers along with providing the required information in the form fo visuals. On
the other hand, Perillo Tours develop a brochure which is 2D but communicate very vital
information required by the customer while making decision for selecting a tour package.
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 Cost: After taking into account the expenses of printing, paper, publishing and
distribution, both the companies decide the cost of package (Dhiman, 2012). While
Access UK Holidays spend a huge sum on designing and development of attractive
brochures, Perillo Tours incurr less on publishing of brochures and more on distribution. Format: Access UK Holidays create a brochure that is almost perfect in every sphere
like color combination, font, size etc. Perillo Tours design a brochure that is less
captivating yet informative.
 Target market and budget: While Perillo Tours engage in large scale distribution of
offline and also provide online brochures, Access UK Holidays aim at targeting the
customers by aid of e-brochures.
LCB Tours should opt for designing a brochure like Access UK Holiday as their brochure
is captivating and at the same time provide information in the form of visuals. This influences
the customers to purchase their holiday pacakges, thus LCB Tours can gain advantage by
adopting this.
AC 3.2 Suitability of alternatives to a traditional brochure
With latest trends in technology and innovation, traditional methods are no more
significant in increasing sales for company. Various new marketing strategies are now being
widely used by tour operators like LCB Tours. These are selling via internet, call centres and
other intermediaries (Filby, Stockin and Scarpaci, 2015). Also, entities have the option of
reaching the audience by aid of email marketing. Taking services from advertising agencies is
yet another alternative available for tour operators. By equipping social media tools in business,
company can get feedbacks and build networking with customers. Thus, these methods help in
increasing revenue generation for company.
AC 3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator
The different types of distribution methods used by tour operators along with their
suitability for various tour operators within the industry is as follows:-
 Direct Distribution: It is a method where tour operators directly come in contact with
customers so as to influence them for generating sales of holiday packages. This method
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of distribution is most suitable for domestic tour operators as they target domestic
customers, so directly networking with them will aid in generating revenue for company.
 Online travel agencies: This method involves the use of third parties or intermediaries
for generating sales by gaining advantage of the already set customer base and
networking of these agencies (Holland and Leslie, 2017). This method is suitable for
specific tour operators like LCB Tours as they provide services in selected locations.
 Visitor information centre: It is a method where businesses develop an information
centre which the customers can visit for collecting data regarding tour packages of
company. This is most appropriate for inbound tour operators as they provide services to
customers belonging to locations beyond the domestic territory.
TASK 4
AC 4.1 Evaluation of the strategic decisions made by different types of tour operators
Strategic decision-making is concerned with the ability of making decisions that are
aligned with organisational goals (Chand and Dahiya, 2014). It is essential for tour operators to
keep an update about the latest developments taking place in industry and adapting themselves
accordingly. Following are some of the strategic decisions made by operators like LCB Tours:- Pricing strategies: This is concerned with ascertainment of cost of holiday
package, keeping in consideration the cost incurred in designing and
implementing the tour. Also, tour operators have to decide whether or not to offer
discounts or rebates to customers.
 Surcharge policy: It is a pricing strategy adopted by tour operators wherein the
cost of holiday packages are increased at the time of peak seasons in industry
(Chand and Katou, 2012).
 Image positioning or Branding: This is in relation to the brand image and
position of company so as to influence the customers to make a purchase of tour
plan.
 Product choice: Tour operators are required to choose a suitable package for
customers that best serve their needs.
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 Distribution channel: Selection of an effective distribution channel is yet another
important pre-requiste for increasing revenue generation which is done keeping in
mind the target customers. Tour operators can either opt direct selling or indirect
selling wherein intermediaries are involved for making sales.
AC4.2 Comparison of the tactical decisions in various situations
Every tour operator functioning in an economy needs to take certain decisions for the
successful execution of a holiday package. Tactical decisions are the decisions concerned with
implementation of strategies in relation to tour (Cetin and Yarcan, 2017). Following are the
tactical decisions that are considered by LCB Tours:- Tactical responses: Tour operators are required to take decisions in accordance with the
changes that take place within internal and external environment of business (Buckley,
2014). Tour coordinator of LCB Tours also realise the significance of these and thus
develop strategies that remain aligned with the current scenario of industry. Tactical pricing: Changes in price of holiday package owing to economic changes or
changes in pricing policy of competitors is yet anotehr important tactical decision. In
relation to LCB Tours, it has adopted makes Surcharge pricing policy to gain a
competitive edge in industry.
 Tactical marketing: Tactical marketing refers to the advertising strategies undertaken by
comnpany. LCB Tours has adopted methods like online marketing, brochures, booking
via internet, social media tools etc.
CONCLUSION
From the above report, it can be concluded that there are various types of tour operators
who adopt diverse strategical policies. Also, it can be analysed that there have been various
development in tourism industry over years. Along with that, this report ascertains the stages
involved in the process of creation of tour package. Besides that, planning decisions taken while
creating a brochure are ascertained and analysed. Furthermore, it can be observed that a number
of tactical decisions are taken by tour operators in relation to the scenarios that may arise in
tourism industry.
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REFERENCES
Books and Journals
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Cetin, G. and Yarcan, S., 2017. The professional relationship between tour guides and tour
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Chand, M. and Katou, A. A., 2012. Strategic determinants for the selection of partner alliances in
the Indian tour operator industry: A cross-national study. Journal of World
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Chand, M.O.H.I.N.D.E.R. and Dahiya, A., 2014. The impact of Service Quality on tourist
satisfaction and loyalty in Indian tour operation industry. International Journal of Sales
& Marketing Management Research and Development (IJSMMRD). 4(5). pp.1-14.
Dhiman, M. C., 2012. Employers' perceptions about tourism management employability
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Filby, N. E., Stockin, K. A. and Scarpaci, C., 2015. Social science as a vehicle to improve
dolphin-swim tour operation compliance?. Marine Policy. 51. pp.40-47.
Holland, J. and Leslie, D., 2017. Tour Operators and Operations: Development, Management
and Responsibility. CABI.
KhairatP0F, G. and Maher, A., 2012. Integrating sustainability into tour operator business: An
innovative approach in sustainable tourism. Tourismos: An international
multidisciplinary journal of tourism. 7(1). pp.213-233.
Shyju, P.J. and Lama, R., 2015. An empirical study of new age employment in tour operations
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Su, C. J. and et. al., 2014. Tour Leaders' Impression Management and Job Performance:
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Yan, L. and Ho, H.K., 2017. Impression management of tour leaders. Asia Pacific Journal of
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Zhou, Z., 2015. Travel agency and tour operation.
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