Tour Operations Management: Trends, Pricing, Strategies & Brochure

This report provides a comprehensive analysis of tour operations management, focusing on the effects of current and recent trends and developments on the tour operator industry. It assesses the stages and timescales involved in developing holidays, evaluates different contracting methods for holiday components, and calculates holiday selling prices. The report also evaluates planning decisions for brochure design, assesses alternatives to traditional brochures, and evaluates distribution methods. Furthermore, it compares strategic and tactical decisions made by different types of tour operators, using examples from companies like Trailfinders and Thomas Cook to illustrate real-world applications and data-driven understanding.

Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
P 1.1 Analyse the effects of current and recent trends and developments on the tour operators
industry........................................................................................................................................5
Task 2...............................................................................................................................................8
P 2.1 Assess the stages and timescales involved in developing holidays....................................8
P 2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator........................................................................10
P 2.3 Calculate the selling price of a holiday from given information......................................11
Task 3.............................................................................................................................................12
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure..................12
P 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....................................14
P 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 a luxury tour
package......................................................................................................................................16
Task 4.............................................................................................................................................17
P 4.1 Evaluate the strategic decisions made by different types of the tour operator.................17
P 4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations....................................................................................................................................18
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Introduction
The tour operator industry of the United Kingdom has undergone several alterations and
modifications owing to several trends in the industry. The report is aimed at identifying and
analysing the current and recent trends contributing to the varied changes. The tour operator
industry also incorporates various types of tour operators such as inbound, outbound, specialised
and mass tour operators. The report will depict an understanding of analysing the various types
of tools and techniques applied by the tour operators in order to market and sell the developed
tour packages.It will develop various ancillary reports to present a greater understanding. The
report is aimed to provide with focused and better understanding of the types of tour operators,
the decisions made in developing a brochure, tactical and strategic decision undertaken etc. The
report will consider various organisations such as Trailfinders and Thomas Cook to execute real
time and data drivenunderstanding for the report objective.
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Task 1
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P 1.1 Analyse the effects of
current and recent trends
and developments in the
tour operators industry.
Introduction
The report presents with a
description for analysing the
impacts of trends on the tour
operators industry. It will
depict with an understanding
of trends such as product
developments, increased
disposable incomes,
information technology and
internet etc.
The industry of tour operators
has undergone several changes
and alterations due to various
modifications and trends
emerging in the industry on a
timely basis. The industry has
observed several trends such
as the introduction of
information technology,
internet and its increased
applications, increases in the
disposable level of income etc.
The tourist now performs the
activities of bookings and
reservations through online
websites and portals(Ayazlar,
2014). Further, the payments
system has taken a form of
online transactions.
The trend of Product
development- The industry is
engrossed in the activities of
producing customised and
specified tour packages and
programs. The tours are
designed as per the needs and
requirements of the tourists
and according to the
destinations.
Effect on the Industry-
The industry has been
impacted in apositive manner
by the trend of product
development. It was analysed
in a recent survey executed by
Conclusion
The report has executed an
understanding of the effects
depicted by the recent and
current trends in the tour
operators industry. The report
has identified positive impacts
on the industry in the terms of
profitability and productivity.
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(Mowforth and Munt, 2015).
The effect of the recent trends
and development over the
industry are studied as below.
The trend of Technology
application in the industry-
The tour operator industry has
witnessed the application of
information technology in the
sector at an increased rate. The
industry has observed a
growth of 16% due to the
application of information
technology in the past few
years.
Effect on the Industry-
The technology application in
the industry has resulted in
several changes and
modifications. The tour
operator industry now
functions with the information
technology as an integral part.
The industry has observed the
payments systems and
bookings have turned up to the
online mode.
Trivago that almost 47% of
the torus operations are
organised as per the demands
and requirements of the
tourists. The trend has
impacted withthe development
of specialised and customised
tour packages(Ayazlar, 2014).
It has resulted in increased
consumer satisfaction and
enhanced services.
The Trend of Increased
disposableincome –
The consumers of tour
operator industry have
depicted a shift from tour
needs of business to tour for
the purpose of leisure and
relaxation. The consumer
disposable income has
increased and the preferences
havechanged from business
tour to leisure tours.
Effect on the Industry-
The industry has been
impacted by the trend of
increased disposable income.
The industry has a developed
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a differentsegment of leisure
and luxurious tour packages
and activities. This effect has
resulted in increased income
and profitability for the tour
operators and the tourism
sector as a whole(Mowforth
and Munt, 2015). The living
standards and requirements
form the tour activities have
increased form medium levels
to relaxation.
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Task 2
Introduction
The report has been drafted to develop an understanding of stages included in the process of
developing a holiday. The report will further analyse the sustainability of the methodologies for
developing the packages. Lastly, it will calculate the marketing price for an educational tour
package. The report has focused on the tour operators Trailfinders.
P 2.1 Assess the stages and timescales involved in developing holidays.
The developing of a holiday package involves various stages and timescales these are discussed
as below:
Market Research- This is the first stage of developing a holiday package. It requires for
identifying and analysing the desired location for holiday. The tour operator Trailfiders is
required to execute demand research in order to assess the demand of touring in the identified
locations. Further, it is required to execute economic research which will enable to identify the
various economic factors affecting the costing and marketing of the tour package.
Planning and scheduling- Further the tour operator is required to plan and schedule the various
touring activities of the tour. The tour operator Trailfinders will analyse the best time and season
to travel the desired location(Steinbrink, et. al., 2012). It will also require scheduling the
accommodation and transportation services. The Trailfinders are also required to communicate
the forecastedrequirements to the desired and selected service providers.
Contracting- It refers to negotiating and determining the prices of various tour activities and
services. The contracting is required to be furnished before 12 months of the expected touring
activities. The contracts can be fixed either by fixed contracts or ad-hoc contracting.
Determination of Price- The next stage is to determine the price of the packages. It will require
the Trailfinders to determine the costs for all the services along with a profit margin to be added
to the costs. It also requires for developing coupons, discounts, and special offers etc.(Arnall and
Kothari, 2015)
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Marketing and Execution of the Packages- The last stage is to market the packages with the
help of various promotional techniques such as broachers, mailing lists, programs, events,
pamphlets etc.(Steinbrink, et. al., 2012). Trailfinders will lastly execute the tour package by
communicating the details and information of the package to the interested consumers.
Timescales Involved
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P 2.2 Evaluate the suitability of different methods of contracting for different components
of the holiday and different types of tour operator
There are several types of tour operators depending on the types and requirements of the tours.
These are listed as below:
 Inbound tour operators
 Outbound tour operators
 Mass market tour operator(Evans, et. al., 2012)
 Specialist tour operator
 Domestic and international tour operator
The different components of the holidays are listed as below
 Accommodation
 Tour routes
 Recreational activities
 Niche markets
 Attractions (Hsu, 2013)
 Transportation
 Touring Programs
The suitability of different contracts methods is as below:
 Fixed Contracting- This type of contract is suitable for holiday components such as
accommodation, transportation, and niche market and visitor attraction.
 Ad-hoc Contracting-It is suitable for holiday components such as accommodation and
transportation. When there is an urgent need for reservations these contracts are
suitable(Evans, et. al., 2012).
 Charter Flights-It is suitable for specialised and mass market tour operators for
reserving a whole flight in order to serve a specific tour program.
 Allocation of Rooms and Flights-This is suitable for outbound and specialist tour
operator requiring for accommodation, transportation and niche market tourismactivities.
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P 2.3 Calculate the selling price of a holiday from given information
Package Details Total (Amount in €)
Accommodation and food 42*€90 3780
Cost of Transportation £ 7400 8510
Cost of Local tour guide € 920 920
Total cost 13210
30% mark up 3963
Selling price for the package 17173
Price per persen €17173/42 408.8809524
Calculation of Mark up: (30/100)* €13210
0.3* €13210= € 3963
Conclusion
The report has presented with an understanding of diversified types of tour operators involved in
the tour operations industry. The report has provided with exemplification of several contracting
methods applied by the tour operators. The report has also identified the timescales and stages
involved in the development of a tour package. It has lastly calculated the market price for an
educational tour of 40 students organised by Trailfinders.
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Task 3
Executive Summary
The report will provide with empirical and evidence based understanding of strategic planning
and processing undertaken in order to develop a brochure. The report will provide with the
interpretation of traditional brochures and the modern form of promoting and advertising applied
in the tour operator industry. Lastly, the report will provide with an understanding of different
methods applied to sell the holiday packages.
Introduction
The report provides with an understanding of various concept an planning involved in the tour
operator industry. It will provide with drawingmeaning conclusion towards the planning of a tour
package. Further, it will provide with information for marketing and selling the brochures to the
consumer.
P 3.1 Evaluate the planning decisions taken for the design of a selected brochure
Brochures are referred to informative paper or documents that are used as a marketing tool to
educate and communicate the details of the promotional object. It is directed towards the target
market and the potential consumer segment in the market.Brochures have a longer shelf life and
are cost effective marketing tool applied by the tour operator(Razzouk and Shute, 2012).
Brochures provide with complete information and details of the tour package in a smaller size.
The evaluation of the planning decision involved in designing of the brochure is as follows:
Defining the Purpose of Brochure:
The aim of developing a brochure must be identified in order to develop an effective
brochure.Trailfinders are required to identify and define the objectives for which the brochure is
to be developed(Semenenko, 2013). The planning decision requires ascertaining the type of
information that is to be communicated to the consumers.
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