Detailed Analysis of Thomas Cook Tour Operations Management Report

This report analyzes Thomas Cook's tour operations management, focusing on the effects of current trends like e-commerce on the industry. It examines the stages involved in developing holiday packages, including market research, planning, and forecasting, with a specific example of a London to Paris tour for Chinese students. The report explores different contracting methods for holiday components and the strategic and tactical decisions made by tour operators. It highlights the importance of adapting to technological advancements, providing customer satisfaction, and considering government provisions like airport facilities. The report also covers the importance of market research, planning, and forecasting in the development of tour packages, as well as different contracting methods to ensure optimal service delivery. The analysis emphasizes the need for Thomas Cook to adapt to evolving market trends and customer preferences to maintain a competitive edge in the travel and tourism industry.

Tour Operations Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the effect of current and recent trends and development of on the tour operators
industry........................................................................................................................................1
TASK 2............................................................................................................................................3
2.1 Stages involved in developing holidays................................................................................3
2.2 Suitability of different methods of contracting for different components of holidays.........5
2.3 Calculate the selling price of a holiday from given information..........................................5
TASK 3............................................................................................................................................7
3.1 Planning decision taken for the design of a selected brochure.............................................7
3.2 Suitability of alternatives to a traditional brochure for different types of tour operator.....10
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operator..............................................................................................................................10
TASK 4..........................................................................................................................................11
4.1 Strategic decisions made by different types of tour operator..............................................11
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations...................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Travel and tourism is considered as the largest service industry in terms of gross revenue
and foreign exchange. However, it is also one of the largest employment generators in the world.
The tourism industry involves different components such as attraction, accommodation and
catering, transportation, travel agents, tour operators and tourist information and guiding services
(Beritelli, Bieger and Laesser, 2014). However, tourism is considered as most vibrant industry
that helps in contributing a huge amount of resources and attain economic development of the
country. In the present study, Thomas Cook has been undertaken which is a famous travel
agency operating worldwide. It focuses upon delivering wide range of travelling services to
people and thus provide various customized services as per the requirement of customers.
In regard to this, scholar has focused upon different aspects such as effects of current and
recent trends as well as development of tour operator industry. In addition to this, researcher also
discussed different ways of contracting for different components of the holiday and different
types of tour operators (Carlsen and Andersson, 2011). The study also involves different
methods of promoting tour packages among target audience. At last, researcher also describes
effectiveness of tactical, operational and managerial decisions while promoting any tour
package.
TASK 1
1.1 Analysing the effect of current and recent trends and development of on the tour operators
industry
Travel and tourism industry has been the fastest growing industry in the world and thus
provides different luxury facilities to clients in order to gain their attention. However, this
industry has been getting maximum attention from clients as well as government because it is
one of the major source of revenue within the economy. As per the recent trends and
development in the industry, tour operators are required to emphasize upon innovative
technology so that large number of people can be attracted (Carmody, 2013). Thus, it is essential
for tour operator such as Thomas Cook to develop different tour packages and travel services as
per the needs and preferences of customers. It assists in improving the business and attaining
desired growth and success. Recently within the European market large number of 5 star hotels
have been entered that are increasing the opportunities for travel and tourism services. It
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provides wide range of luxurious services to guests so that they can attain maximum satisfaction.
Thus, because of such growth in the travel and tourism sector, Thomas Cook has also considered
this aspect within the current package and influences consumers to attain desired satisfaction
(Cheng and et.al., 2011). Hence, it assists firm to manage business according to the current
business environment. Following are the effects of current and recent trends on the tour
operations industry-
 E-commerce is one of the fastest raising trend in the market and thus each and every
business focuses upon entering into the online marketing as well as service delivery.
Thus, Thomas Cook is also required to consider such aspects so that target audience can
be given convenient services (Connell, 2013). Additionally, firm also focuses upon
customer retention and satisfaction so that desired results can be obtained. With the help
of such current trends and development i.e. online service delivery assists the customers
to save time and transportation cost. Moreover, online booking allows consumers to get
tickets and tourism services on discounted prices which results in improving company's
profitability ratio.
 Further, viewing the current trends and developments, government is required to focus
upon new provisions such as airport facilities so that large number of consumers can
prefer to travel through airlines. Thus, it results in improving the demand of tourism
services (Dickinson, Lumsdon and Robbins, 2011).
 Now-a-days each and every businesses are entering into online selling of products
because of convenience benefit. Thus, it provides convenience to Thomas Cook in the
form of marketing their tour packages online and thus influence customers to buy the
same. It helps in saving time and reduce transportation costs of customers. Further, it also
increases the habits of consumers of deriving the best products and services from online
sources and thus gain maximum benefits by comparing different packages offered by
travel businesses (Jovanović and Njeguš, 2013). Consumer uses internet sources not only
for gaining information but also making hotel bookings and other reservations. Thus,
with the help of above discussion, it can be evaluated that travellers are becoming more
independent particularly in the case of tourism services.
 Travel and tourism industry of UK has been flourishing upon recent trends and
development so that more options and choices can be given to consumers. Adopting
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innovative technology such as online services helps in improving customer satisfaction
and thus more and more people prefer to buy the same services up to a great extent. Thus,
all the tour operators are encouraged to focus upon providing information regarding
tourism services through online sources so that customers can be satisfied (Minca and
Oakes, 2012). They provide information regarding discounts, schemes and offers upon
existing services which helps in increasing the demand for tourism services.
 In addition to all these aspects, customer satisfaction is another advantage which has been
derived from recent trends and developments. It is essential for firm to deliver quality
services to clients in order to retain them for long term within business. While, at the
same time, it has also been determined that due to presence of online services, companies
are able to derive feedback from the customers on particular services (Brandon-Jones and
et.al., 2016). Moreover, it also helps all the travel agents to emphasize upon updating
their websites timely so that services can be enhanced up to a great extent. Hence, it
improves customer satisfaction ratio up to a greater extent.
TASK 2
2.1 Stages involved in developing holidays
Thomas Cook is considered as one of the fastest growing tour operator in UK and thus
provides different types of travel services to customers. Business is focused in providing luxury
and exotic services to consumers so that they can attain trust and loyalty. It is also useful for the
purpose of satisfying clients up to a greater extent. Thus, Thomas Cook has been delivering
outstanding services to the clients and provide packages involving broad range of services for the
traveller's (Chopra and Sodhi, 2004). As per the current scenario, Thomas Cook focuses upon
creating a sightseeing tour package for Chinese students from London to Paris. Company is
required to plan summer vacation package and the group size is 15 students and lasts for no more
than 5 days. The proposed package involves different services such as accommodation, transport,
sightseeing etc. Apart from this, tour guides will provide knowledge to students regarding the
culture and heritage aspects of the country. Further, it is essential for Thomas Cook to adopt
different methods in regard to plan the tour package such as-
 Market research- It is essential for company to conduct market research so that
appropriate place can be covered within the tour package. Further, it also assists Thomas
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Cook to involve different services to the clients so that they can promote it to different
customer segments. Market research assists Thomas Cook to identify the level of
competition prevailing at the market which assists them to provide best services to attain
competitive edge (Khuong and Nhu, 2015). It also assists tour operator to ascertain
different factors so that management can create an effective travel plan as per the need
and preferences of customers. Thus, through such market research, current market
conditions can also be identified and provide better food and accommodation services as
per the new service provision.
 Planning and scheduling- At the time of developing any new tour package, it is
essential for Thomas Cook to plan and schedule the activities so that proper services can
be provided to consumers. Identifying the results of the market research, appropriate data
should be collected so that as per the taste and preferences customized services can be
provided to clients (Kuo, Wu and Deng, 2009). However, it is essential for Thomas Cook
to involve duration of the tour and according to that number of destinations should be
chosen. Thus, through such way it assists consumers to decide whether to take travel
package from London to Paris or not.
 Forecasting- Management of Thomas Cook is required to forecast each and every aspect
of the tour package so that demand can be analysed accordingly. Forecasting is essential
so that prices of tour package can be determined. Moreover, Thomas Cook is also
required to make arrangement of skilled workforce so that they can deliver effective
services to consumers (Lam, 2013). It is essential for business to determine the budgetary
aspects and thus forecast the managing of different business practices to obtain desired
results. However, forecasting assists in minimizing the different uncertainties which
might arise within the tour plan.
 Contracting- At the time of developing the travel package from London to Paris,
Thomas Cook is required to involve different contracting methods so that all the aspects
of business can be managed appropriately. Therefore, it is essential for business to
involve different suppliers and agencies working in this area in regard for delivering
better services to clients (Dezdar, 2012).
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2.2 Suitability of different methods of contracting for different components of holidays
Thomas Cook assists in delivering appropriate services to the clients such as food
services, accommodation and other recreational services. Thus, availability of such services
helps the company to gain attention from clients and as a result it enhances the demand for
tourism services. In regard to maintain such things into account, Thomas Cook is required to
make contract with different suppliers in order to render the best quality services. It also assists
in meeting the demands of tourism services (Moutinho, 2011). Moreover, it involves different
methods of contracting that helps Thomas Cool to enhance their services in market which are as
follows-
 It is essential for Thomas Cook to utilize all the resources in an optimum manner so that
it helps in underpinning the service deliver procedure. While, at the same time suitable
contract needs to be made among intermediaries and operational managers who are liable
to manage diverse demand of tourists (Naji-Azimi and et.al., 2012). They are also liable
to manage all the work processes on time so that provision of service delay can be
mitigated. However, it is significant for Thomas Cook to be strict with suppliers so that
they can provide quality services to firm.
 Further, services of company should be promoted with the help of fixed contract that
states clear provision regarding service availability. While, Thomas Cook needs to ensure
that all the legal rules and framework needs to be considered so that effective services
could be delivered to clients (Law and Xiang, 2013). Thus, in regard to this, company is
entitled to follow proper legal and ethical process so that they are able to protect the
interest of consumers.
 It is essential for Thomas Cook to render proper services to the clients as per the needs
and preferences so that efficiency can be improved. Hence, it assists in improving the
standards of service quality so that target audience can be attracted towards firm
(Mehmetoglu and Normann, 2013).
 Thomas Cook is required to ensure that while delivering services, quality aspects needs to
be maintained and determined so that satisfaction can be attained among consumers.
2.3 Calculate the selling price of a holiday from given information
It can be assessed that Thomas Cook is focused upon delivering attractive and fascinating
services to the clients. Also, recently they have introduced a summer vacation tour package for
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Chinese students from London to Paris. Business emphasized upon delivering quality services to
clients and also encourage them to use the services in future course of time. Thomas Cook
identifies the needs and preferences of market and thus deliver customized packages to
customers in order to retain them for long time. Company also focuses upon the budgetary aspect
so that all the operations could be performed viewing the financial aspects. In regard to promote
the package, it is significant for Thomas Cook to involves accommodation, food and beverages,
traveling and other related expenses (Mehmetoglu, 2004). Additionally, business is required to
ensure that customers should get safe and secure facilities so that their interest can be retained.
Hence, it helps Thomas Cook to manage and allocate the funds appropriately as per the demands
of targeted customers so that it can be fulfilled appropriately.
However, in order to carry out the proposed plan, special rate has been provided by St.
Michelle hotel of France to the group in order to render best services. Following are the range of
prices set for different services such as-
 Price for twin room i.e. sharing between 2 adults on room only basis is 60 euros.
 For any additional bed or breakfast per single person is 10 euros.
 You are allowed to negotiate special rate with the transportation company.
 For 20-seater luxury coach price quoted is £1000 which includes two drivers, fuel and all
road and ferry taxes (Novelli, 2005).
 Students are required to search a local guide who will charge a sum of £200 for the total
duration till you stay in Paris.
Thus, after meeting all these expenses, it is essential for tour operator to charge
appropriate prices which involves a 10% profit margin for the firm. In addition to this,
profitability margin helps Thomas Cook to effectively sell the services and thus operating in an
effective way. Following is the calculation of the tour package which is discussed underneath-
Services Price per student
Ticket bookings £150
Accommodation services £300
Food and beverages services £100
Transportation services £80
Tour agent fees £120
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Total price (Paris package) £750
It is essential for Thomas Cook to render the best quality service to consumers in order to
maintain its brand image in market. Company focuses upon delivering luxurious services to the
clients so that they can attract consumers to plan the packages for visiting different countries.
However, Thomas Cook provides option for clients of delivering customized services as per their
needs and preferences. Thus, providing them different range of price options so that it does not
affect their purchasing power (Petia and Peter, 2014. The proposed trip to Paris will help the
students to experience and gain knowledge regarding the beauty of Paris. Company provides an
option to negotiate the amount for local tour guide and thus here they can save a little amount of
money. Otherwise, the price quoted by Thomas Cook for different services is very feasible as
they are providing high quality services at low prices. The package involves all the basic
amenities such as accommodation, food and beverage, transportation etc. within the budgetary
facets. Thus, the package is provided to students on affordable prices and thus it helps Thomas
Cook to derive customer satisfaction (Weaver, 2015).
TASK 3
3.1 Planning decision taken for the design of a selected brochure
Brochure is determined as the document wherein crucial information is provided
regarding the destination that is selected by the tour operators. It is essential for Thomas Cook to
plan effective decisions for designing the brochure so that students can get the idea regarding the
services which will be delivered to them during their vacations. Brochure needs to involve
attractive images of holiday destination where students are proposed to be taken so that it helps
in deriving attention of tourists (Giaoutzi and Nijkamp, 2013). Thomas Cook provides options to
consumers regarding customizing the packages as per the individual's preferences so that desired
results can be attained. Thus, company develops attractive tour packages for Chinese students to
visit Paris and provide clear information about the covered destination.
It is essential for Thomas Cook to plan the tour package through considering the
budgetary aspect and thus according to this financial resources should be optimally utilized. This
brochure has to be delivered among students which provides information regarding different
services such as hotels, food and beverages and transportation costs. Moreover, the mode of
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traveling from one destination to another will also be mentioned in the brochure. It involves
attractive images in order to appeal consumers and obtain the similar package from tour operator.
Also, special note need to be mentioned below the brochure which states that the services are
exclusive of all the taxes and additional expenses done by visitors (Tour operation. 2015).
Thus, it can be made clear from the brochure that it involves three different destinations
of France within the tour package. Hence, students can research on their own and visit the
popular nearby places as well so that they can best travel experience. However, as per the
determined travel package, best services should be provided to students in order to make them
loyal for long term (Beritelli, Bieger and Laesser, 2014). Sightseeing and other additional
services should be stated in the brochure that will cost extra and thus not involved in the tour
package. Hiring local tour guide will help students in developing their knowledge related to
France so that they can understand the culture and history of the country. Further, the format of
the brochure should be prepared in a suitable manner so that it can involve all the essential
aspects regarding the package. Brochure should involve detailed information regarding the
package so that quality of services can be delivered to clients and thus they can derive value
against the money spend. Pictures involved in the brochure should be enticing so that it influence
consumers to view the images before visiting the destination (Carlsen and Andersson, 2011).
Brochure contains different parts one of which is delivering information about the
products or services. Thus, Thomas Cook should involves detailed information about France I.e.
Paris, Mont Saint-Michel and Strasbourg. Here, Thomas Cook is required to identify the cost per
person for the tour package which should involve profit margin as well. The information
provided in the brochure related to travel package should be true so that it gives value to the
customers' and thus they can book their travel plan (Carmody, 2013). However, the travel
package has been proposed for 5 days and thus it divides the days to be spend at particular
destination. For this, it is essential for Thomas Cook to make proper schedule and plans and thus
influence people to purchase the packages. Brochure could be promoted upon social media or
directly sending it to the personal e-mails of clients in order to provide detailed information
about the planned packages. Following are the different elements that needs to be considered
while designing for a brochure such as-
1. Format- It is an essential component of firm to develop effective brochure that involves
color, design, images, content and structure so that clients can be attracted towards firm.
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Hence, all such factors are considered as an effective part in regard to make appropriate
brochure that enhances customer base.
2. Deciding target market and setting budget- In regard to prepare tour package, it is
essential for firm to identify the target market for whom they are designing tour package.
Thus, through preparing unique brochure it helps in attracting tourists from around the
globe. Such brochure helps tourists to attract towards destination and thus attain desired
results. Also, setting budget is an essential task that helps in identifying potential
consumers and thus attain success.
3. Required time scale and stages involves in brochure designing- Here, tour operator is
required to design the brochure for appropriate time scale and thus make decisions
accordingly. Also, it assesses the stages involves in brochure designing and thus assesses
the requirements of legal obligations so that appropriate results can be attained.
TOUR PLAN FOR THE MAJOR DESTINATIONS OF FRANCE
PARIS (2 DAYS)
Fascinating view of Mont Saint-Michel (2 DAYS)
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