Analysis of Tour Operations Management: Trends and Strategies

This report provides a comprehensive analysis of tour operations management, focusing on the key aspects of the industry. It begins with an overview of recent trends and developments, including mass market tourism, niche tourism, and the impact of technological advancements and demographic changes. The report then delves into the process of developing holiday packages, examining the stages and timescales involved, from market research and financial evaluation to planning, contracting, and post-tour management. Different methods of contracting, such as fixed, ad hoc, and allocation contracts, are discussed, along with their suitability for various scenarios. The report also includes a practical example of calculating the selling price for a student-focused tour package. Furthermore, the report evaluates process and planning decisions, assesses the suitability of communication and promotion methods for different tour operators, and explores non-traditional distribution methods. It concludes with an examination of emerging trends in the UK tour operations industry and the differences between tactical and strategic decisions. The report highlights the importance of adapting to changing consumer preferences, leveraging technology, and complying with legal regulations to ensure success in the competitive tour operations market.

TOUR OPERATIONS
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A. Recent trends and developments in tour operations industry.................................................1
TASK 2............................................................................................................................................2
Assessing the stages and timescales in developing holiday packages........................................2
B Different methods of contracting and their suitability............................................................3
C Calculation of selling price......................................................................................................4
TASK 3............................................................................................................................................5
3.1 Evaluating process and planning decision............................................................................5
3.2 Assessing suitability of alternative methods of communication and promotion for different
type of tour operator....................................................................................................................6
3.3 Evaluating non-traditional method of distribution that can be used to sell holiday packages
.....................................................................................................................................................7
TASK 4............................................................................................................................................7
A Emerging trends in tour operations of UK and compliance of Tour operators with emerging
trends...........................................................................................................................................7
B Difference between tactical and strategic decision.................................................................8
CONCLUSION................................................................................................................................9
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A. Recent trends and developments in tour operations industry.....................................................1
TASK 2............................................................................................................................................2
A Assessing the stages and timescales in developing holiday packages.........................................2
B Different methods of contracting and their suitability.................................................................3
C Calculation of selling price..........................................................................................................4
TASK 3............................................................................................................................................5
3.1 Evaluating process and planning decision.................................................................................5
3.2 Assessing suitability of alternative methods of communication and promotion for different
type of tour operator.........................................................................................................................6

3.3 Evaluating non-traditional method of distribution that can be used to sell holiday packages...7
TASK 4............................................................................................................................................7
A Emerging trends in tour operations of UK and compliance of Tour operators with emerging
trends................................................................................................................................................7
B Difference between tactical and strategic decision......................................................................8
CONCLUSION................................................................................................................................8

INTRODUCTION
Tour Operations management is the business functions and tasks of organization which
prepares holiday packages with detailed information regarding tour that attracts visitors and
travellers across nations by enhancing sales turnover of tour operators. Tour Operators has a
significant role in travel and tourism sector or industry as they arrange holiday packages and
vacations, seeking new destinations and experiences for satisfying the changing needs and
expectations of travellers. The operates in partnership with airlines, hotels, car hiring companies
and other travel service suppliers for packaging their holiday products and services. The present
paper will explore the tour operators industry in travel and tourism sector, examine stages of
holiday creation by tour operators, reviewing of brochures and selling holidays. The assessment
will be prepared on behalf of Thomas Cook Group which is a British global travel company
listed on the London stock exchange that was founded in June 2007.
TASK 1
A. Recent trends and developments in tour operations industry
According to the Union tourism report the development of domestic and international
tourism sector will rise in future with a growth rate of 4%. With the help of advance technologies
like e-commerce and development of internet international tourism is able to expand itself into
several geographic locations and potential markets where the physical presence of tour operators
were not possible. Some current trends in tour operations industry includes mass market, niche
tourisms, customised holiday packages, changing demographic conditions, market research and
PESTEL factors. Mass market tourism is the recent trend in tourism industry where people travel
along on a tourism destination for leisure and this is gaining popularity in places that holds
heritage locations, wildlife parks, sunny beaches etc. As large number of people travel together
the overall cost for the tourist would reduce as a result of economies of scale. Another rising
tourists interest are flora and fauna, artistic works, culture or heritage or other attractions
becoming the reason for visiting the particular destination. Special tour packages are designed
and offered to such tourists by the tour operators while keeping the preferences or interests for
these special travellers in mind. Tourism industry of UK is considered the largest industry and is
known as the biggest contributor to economy of country. The transportation infrastructure is the
biggest supporter of tourism trends and increasing efficiency in tourism services. Heathrow
Airport of London is the best example which reflect increasing international travellers in country.
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Further the proposal of group vis at 44 pounds is another offer of increasing tourism in UK
which denotes developing trends of industry. Further, awareness about green issues to protect
environment is another change which is encouraged by tourism industry with support of
government. Increasing social event in UK is the supportive factor of economy for tourism
because it is attracting people across globe to participate in domestic events of UK which is
another factor which is encouraging trends of tourism industry. In accordance with Brexit it
analysed that tourism industry is able to secure its contribution to UK economy only which led to
tremendous change in contribution and growth of England.
Technological innovation has boosted trends of tourism industry because it has created
opportunity for the tour operators to connected with people across the globe vis social media
platforms which is offers best advantage of gathering attention of travellers. Further, innovation
of air planes which owns less efficiency of carbon emission. However, tourism industry of UK
has compelled with al legal regulation like, environmental concerns, consumer protection,
seeking permission to visit tourist attraction, proper licensing and many more regulation which
assist in safe and secure tourism planning for economy as well as for travellers.
Demographic changes are the current major trend in tourism industry as the young
population of UK, are more interested in adventurous activities and solo travelling than being
more attracted towards heritage and cultural aspects. Due to the shift in change places that holds
historical values, culture, etc., are having more demand and research in this field of tourism have
generated new trend where tour operators are conducting investigations and studies based on the
historic data of trends for the visits of tourists to such destinations. Depending on these trends
various holiday packages are being planned by tour operators that is leading to a change from
existing market trend. South America is one of the emerging tourist destination for which
Thomas Cook as planned heritage, beach and adventurous trip altogether which is discussed in
itinerary.
TASK 2
Assessing the stages and timescales in developing holiday packages
Time scale for combined
heritage, wildlife and beach
holiday
Market research: InN this
focus of tour operator will be
on studying climatic condition,
Financial evaluation and
pricing: In this Thomas cook
evaluates prices factor that is
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Nature of tour: Adventure tour
Tour location: South America
Date of commencement of
tour: 12. 12. 20189
Duration of tour: 7 days8 days
10 nights
Number of travelers who will
take for tour: 25
Nature of tourist: Students
Place of Visiting: Galapagos
islands, Ecuador. Further, the
beaches will be explored that
is Salinas and Santa Cruz
Island Cartagena is located on
Colombia's Caribbean coast.
Tour Cost: 230 pounds
hotels, transport facilities and
costumer expectation from the
tour package. In accordance
with market research focus of
operator is on managing social,
political and economic
condition to set relevant price
and appropriate travel
facilities.
Planning and scheduling: In
this the company will focus on
aligning adventure destination,
travel and hotel booking
according to tour package. In
this focus of tour operator is
on managing systemic tour
plan with proper booking and
availability of transport
facilities (Coles, Poland and
Clifton, 2015).
Contracting: In this contract
will be made with suppliers,
hotels, transport agencies and
airlines. In this focus of
Thomas cook will be on
cost of entire tour for accessing
fund which will be planned
and executed. It is based on
prediction where firm analyses
profits from tour package.
Advertising: This is the final
promotion of adventure trip to
south America where the focus
of Thomas Cook will be on
social media advertising in
order to target potential group
of students interest in
adventure plan for December.
It is most necessary step of
tour plan and scaling because it
is the step of sharing tour
package with buyers. It helps
in determining relevancy of
plan which is most effective
way of determining response
of customers.
Post tour management: It is
based on follow up where the
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negotiation with suppliers
because it is the best of setting
appropriate prices.
Costing: In this focus of
Thomas Cook is on evaluating
all the necessary cost involved
in tour (Luebke, 2015). Cost
comprise research, local
arrangement, travel and
accommodation.
firm analyses experience of
travelers on the basis of their
satisfaction (Enoch, 2016). It is
the essay tool and step for
Thomas cook because it helps
in outlining relevancy of tour
package and changes which
needs to be managed for future
tour plans.
B Different methods of contracting and their suitability
There are various types of method of contracting which are used by researcher in
different situation of tour planning. Some methods used by Thomas Cook are discussed below:
Fixed contract: It is the type of contract which is rigid in nature and cannot be changes
due to any fluctuation in tour planning. It is done with transportation, hoteliers, aviation, etc, In
this there are very fewer chances of bargaining (Coles, Poland and Clifton, 2015). In this there
are very less chances of negotiation and therefore Thomas Cook will focus on prior booking in
order to grasp certain seasonal package or schemes for booking. This is done to manage cost
effectiveness in tour plan. This is managed to make affordable tour package by minimizing
profits.
Ad hoc contract: This contract is prepared for route collaboration with potential
customer or suppliers (Types of Contracts, 2018). It is done by Thomas Cook for some
immediate purpose without pre planing. It is generally required for meeting travelers expectation
during travel package. Like in case during adventure trip travelers ask for mid night
entertainment like camp fire then in this case the arrangement by tour operator is done with the
help of ad Hoc contract. Thus, It can be said that this is beneficial type of contract for the tour
operators because it helps the business in managing customer expectations.
Allocation contract: This is the most essential type of contract which is considered by
Thomas Cook when planning a travel package. In this booking are done according to rooms,
seats by making estimate on the basis of customer interest and buying response. It is estimated
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by Tour operator at the time of volume of sales, negotiation and estimation. In accordance it can
be said that it is done for special purpose where distribution and allocation is done on the basis of
planed travel trip (Lin, 2016). The best example of allocation contract is room allocation which
is done on the basis of registration of customer and is done till end of closing of travel package.
Thus, as per this, it can be said that travel package is schedules and planned in advanced for
making appropriate bookings and reservation on the basis of allocation of accommodation and
.transport.
C. Calculation of selling price
Selling price is value of services in which travel package will be offered by Thomas
Cook. The focus of firm is on including all the charges including average profit in etch to make
one specific price on which package will be offered to travelers (Wu, 2016). However, when
setting selling price the focus of tour operator is on considering each and every expense and
booking of trip with own earnings. This is set of exceptional price where there is margin of
offering discounts and schemes in order to attract potential travelers. The travel package is
specifically of student and therefore the price is affordable.
Expenditures Price per person
Airline charges £ 345
Accomodation £ 814
Meals £79
Entertainment £189
Guide £49
Mark up 21%
Total cost 1+2659.58= 2660
The selling price of travel package is set by Thomas cook according to competitive
pricing in which the company is able to set relevant cost of every expenditure but little less
according to competitors like TUI group, LCB tour operator, etc. Making little variation in
selling price according to rivalries is the best strategy of attracting potential travellers. Further,
the travel package is especially for students which are bothered about price and therefore it will
be effective for gaining their attention.
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D1 Itinerary for the proposed package
The trip will start from adventurous location which will comprise, Galapagos islands,
Ecuador. Further, the beaches will be explored that is Salinas and Santa Cruz Island with this
heritage location will be visited accordingly that is Cartagena is located on Colombia's Caribbean
coast. The plan will go according to Itinerary description which is in table where trip will start
from Ecuador.
Days Travel location Duration Type
Day 1 and 2 Galapagos islands, Ecuador 1.5 Adventure
Day 2 and 3 Salinas 1.5 Beach
Day 4 and 5 Santa Cruz Island 2 Beach
Day 6 and 7 Cartagena 2 Heritage
TASK 3
3.1 Evaluating process and planning decision
Many types of brochures are
used for evaluating the
promotional tactics of
companies especially that of
tour operators. Thus the
planning process of all
brochures will be depending
upon availability of funds and
that would be designing the
first impression for customers
in way of its content, photos,
colours and others. So there
will be certain planning and
process for the preparation of
brochures which will be
The planning decision will be
that of who would be doing or
taking the responsibility of
planning of brochures.
The planning decision involves
certain steps that would be
involves for planning process
of the proposing brochures:
Generating idea- This is the
first step that would include
what is the proposed idea for
the generation or formulating
the brochures so that it could
be good.
Planning for resources- This
would include searching and
finding out the resources that
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including various types of
websites, online applications
as well. Thomas Cook Group
as would be planning for
launch of any sort of touring
packages that they would be
able to plan and forecast for
the purpose of giving or
providing information to
people and customers as well.
would be required and are
important as well.
Putting plan into action-
This will be the last step that
involves putting all planning
and resourcing into clear
action so that brochures could
be ready for company to get it
displaced in front of all
customers.
3.2 Assessing suitability of alternative methods of communication and promotion for different
type of tour operator
The non- traditional methods of communication within the tour operator company would
be including those which are not modern like that of telemarketing, direct mail and personal
selling as well (Robinson, Cameron and Crotts, 2016). These are regarded to as green marketing
methods which will be certainly more expensive for company like that of Thomas Cook. As this
would be depending upon unorthodox marketing methods whose ultimate goal will be creating
striking advertising experience in way of capturing interest with way of creativity and
unpredictably. These are also called to as alternative methods of communication and promotion
which various type of tour operators are using other than that of traditional one. There are
various types of non-traditional methods which are used for marketing and promotional purpose
like that of:
Museum and factory tours- These are done in way of gaining more clear information and
knowledge about the products and service which are produced or manufactured so that customers
are having knowledge about how the factory is working or producing products as well.
Street marketing- Kinkos placed huge sculptures of Highlighters and White Out on city streets
so that they looked like they were colouring in no parking zones and the lines in cross walks.
Events- Harley Davidson sponsors large group rides and meet-ups for motorcycle enthusiasts to
connect with each other. Event will be having merit that this is very much effective as people
could be able to see in real what is happing while demerit include that all customers would not be
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able to gain knowledge. As the events are not widespread among larger people or customers so
this is regarded to as disadvantage of events.
Social media marketing- This is one is the most common form of marketing which will be
helpful for company so that they could be reaching out to more customers into market. The merit
of this type of marketing techniques is the cost effectiveness of the method which is used. While
the demerit will be the negative publicity of company into market which is not allowing
customers to use the products which firm is offering.
Direct mail- This is also type of non-traditional marketing which includes mailing all sort of
information and discount offer to customers so that they are able to clearly understand. The merit
includes that company could be able to communicate number of people at particular point of
time while demerit include that there are increased spam messages which are sent through mail
and customers are not paying much attention on them.
3.3 Evaluating non-traditional method of distribution that can be used to sell holiday packages
All the various types of non-traditional methods of distribution that are used for selling
holiday packages are very good as they would be attracting more number of customers then the
other traditional methods (Frost, Getz and Gordon, 2014). The travel agents are tend to sell out
more number of products who are also called to as retail distributors who are selling and
adopting to sell the products like that of holiday packages. For this they would be getting
commission of about 10-15% for booking up of all product that would be putting it all together
for selling the product to customers.
While there will also be having direct distribution method that would be selling product
for the tour operator operates with the customer directly by using smartphone, internet or may be
with the help of social media. For number of operator’s distribution via travel agents have
become less important and is in less demand when compared with the modern techniques of
selling the product as internet, smartphone, etc (Hoyos, Morales, and Akhavan-Tabatabaei,
2015). As customer ownership is important for the operator so they put their efforts in selling the
product directly. The internet is one of the most effective method of communication which is
used by companies as this will be allowing them to interact with larger customer segment in
single moment of time. This method could be used for distribution of selling the holiday
packages by companies as they will be able to communicate with people and inform them about
all data and information as well. Social media is the most effective tool to be used by companies
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which will be helping them to get in touch with more number of people over certain specified
period of time so that information could be distributed. With the help of social media company
would be able to increase their customer base and revenue or profits of company as well.
TASK 4
A Emerging trends in tour operations of UK and compliance of Tour operators with emerging
trends
In accordance with analysis, it is determined that trends of tourism industry have been
revolutionized and has changed at great pace. Some of the highlighted trends of tourism industry
of UK are as follows:
Advanced technology: The tour operator of UK are make use of online advertising
which owns attention of majority of travelers. With the help of which the firms are able to
understand changing market expectation with one click which is the best way of managing
changes in tour plans (Kavousi-Fard and et.al., 2014). Further, promotion via social media has
made easy reach of tour operator to travelers which has increased scope of advertising. For
example, Thomas Cook imply the use of Facebook and Instagram for promoting travel plans and
taking follow up of customers.
Urban and rural destination: There are tremendous development in urban and rural
tourism in UK. There are various tourist attraction of region where entertainment at t activities
are organized to attract domestic visitors (Luebke, 2015). This change and increasing
entertainment activities at tourist spots denotes the increase in inbound tourism.
Seniors seeking adventure: In accordance with this, it is determined that there is
tremendous change in preferences of travelers. Initially the adventure travel packages were
planned and offered to only students and young people but due to increasing safety and need of
exploring tour operators of UK have started offering travel packages to senior’s people and
families.
Globalization: Globalization is offering people opportunity to integrate and interact with
people across the globe. This demonstrate increasing interest of people in their other countries
which is the majorly supported for emerging trends in outbound tourism of UK.
B Difference between tactical and strategic decision
Bases Tactical Strategic
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View This will be based on how and
who will the process be
talking about (Espino-
Rodríguez and Gil-Padilla,
2015).
While this would be including
what is the planning and
decision all about
Definition A plan for attaining particular
goal
To lead all resources, plan,
methods. Or series of
manoeuvres or stratagems for
obtaining specified goal or
results
Organisational example Staff level auctioning,
developing programs that
teach civic responsibilities and
leadership in context with
Thomas Cook
Organisational level
determiner fosters the growth
of youth to be the strong leader
of tomorrow for Thomas Cook.
As per all the trends and development which is shown in the above section it could be
included that Thomas Cook was able to change their strategies and tactics regarding to adaption
of trends. It was very much important that they are responding in positive manner with the
changes and development which are coming into their market so that they could be able to adopt
it in more effective manner. So they were planning so that they are able to identify these trend
and then reacting according to it only.
CONCLUSION
From the above report on tour operator management it could analysed that there are many
type of management which will be very much required so that company could be doing their
work according to planning and process. it is very much essential that for developing holiday
packages company like that of Thomas Cook is doing the proper planning which must be also
including preparing of budgets and analysing recent trends and development. The tour operations
industry should be following all trends and development so that they could be easily analysing
types of holiday takers who are emerging within the popular tourist destination and impact of
these trends. The report also concluded the stages and timescale within the developing holiday
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packages and then having the combined heritage, wildlife or beach holiday package. The
different non-traditional methods were evaluated based on the distribution and communication
purpose which would be used for selling up of goods.
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REFERENCES
Books and Journals
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Enoch, M., 2016. Sustainable transport, mobility management and travel plans. Routledge.
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of operations management in the hotel sector and their impact on organizational
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Frost, W., Getz, D. and Gordon, I., 2014. Noreen Breakey has worked in hotels, resorts, tour
operations, travel agen-cies, restaurants and events in Australia and overseas. Dr Breakey
has a national reputation for her research on tourism and hospitality educa-tion, and her
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Management: Challenges for Sustainable Development.
Hoyos, M.C., Morales, R.S. and Akhavan-Tabatabaei, R., 2015. OR models with stochastic
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Kavousi-Fard, A. and et.al., 2014. Impact of plug-in hybrid electric vehicles charging demand on
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Lin, S. W., 2016. The critical success factors for a travel application service provider evaluation
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Robinson, P., Cameron, H. and Crotts, J.C. eds., 2016. Operations management in the travel
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Wu, C.L., 2016. Airline operations and delay management: insights from airline economics,
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Luebke, A., 2015. TOP 5 CURRENT TRENDS IN UK TOURISM. [Online]. Available through:
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