Comprehensive Report: Tour Operations Management at Trailfinders

This report provides a detailed analysis of tour operations management, focusing on the practices of Trailfinders Ltd. The report begins by examining current trends in the tourism sector and their impact on tour operators. It then delves into the timescales and stages involved in developing a holiday, different types of tour operators, and the calculation of selling prices. Furthermore, the report explores planning decisions for brochure design, the suitability of alternatives, and various methods of holiday distribution. Finally, it investigates the strategic and tactical decisions made by tour operators in different situations, providing a comprehensive overview of the key elements involved in successful tour operations. The report also contains case studies and calculations, providing practical insights into the field.

Tour Operations
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Current and recent trends and its effects on tour operators industry.....................................1
TASK 2............................................................................................................................................1
2.1 Timescales and stages involved in developing holiday........................................................1
2.2 Different type of tour operators.............................................................................................3
2.3 Calculation of selling price .................................................................................................5
TASK 3............................................................................................................................................5
3.1 Planning decisions for design a brochure..............................................................................5
3.2 Suitability of alternatives of a traditional brochure for various type of tour operators.........6
3.3 Different methods of distribution to sell a holiday and its suitability for different type of
tour operators..............................................................................................................................7
TASK 4............................................................................................................................................8
4.1 Strategic decisions made by different type of tour operator.................................................8
4.2 Tactical decisions that could be taken by tour operators in different situations...................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the modern scenario, tourism sector can be stated as one of the fastest growing
industries. There is basic advantage that this sector is that it mainly contributes in the economic
development of nation and Govt. country also supports this. There are number of trends along
with the phase of growth. There are some factors which directly affect the decision making of
visitors and those factors can be utilised to formulate effective and appealing packages and thus
attract large number of customers (Allahyari, Salari and Vigo, 2015) . Company chosen for this
report is Trailfinders Ltd. that mainly deals in tourism sector. This company is among one of the
firms that mainly deals in travel and tourism sector. There are various things which are being
involved in this report like recent and present trends which are being present within travel and
tourism sector. Moreover, there are various planning decisions which are involved for designing
up of brochure and suitability of various kinds of methods. There are various tour operators who
make the strategic decisions. In addition, various tactical decisions are being taken by tour
operators in different kind of situation.
TASK 1
1.1 Current and recent trends and its effects on tour operators industry
To be Covered In leaflet
TASK 2
2.1 Timescales and stages involved in developing holiday
There are many individuals who mainly visit various types of places for the purpose of
enjoyment and recreation. At the time of holidays, there are many people who mainly opt for
travelling to another places mostly with family or friends, colleagues and others. The very first
stage of this is making plans before doing anything and going on trip. Planning is an essential
factor which helps individuals to carry out all the activities in a better manner. There are various
stages which are included in the formulation of tour packages and other elements. Planning helps
in considering all the factors which can directly affect choice of visitors. Timeline is described as
below for pre-planning:

Step/Activities Description Time taken
Relevant and detailed data
and planning and
preparation of holiday tour.
This type of stage mainly
consists of detailed and
appropriate investigation
which is done by tour
enterprises for making
effective decisions which are
related to price, cost, facilities,
attraction places,
accommodation and other
factors for making packages
much more effective and
appealing (Baddeley and Font,
2011). Prices are being
checked along with other
factors for gathering data
through online website. This
in turn provides data about the
feedbacks and past experience
of real customers.
Approx. time of 3 to 5
months is being taken for
gathering data regarding the
accommodation and other
facilities which are being
offered.
Negotiation In this, there are two parties
who come together with the
mutual agreement. Common
solution is being chosen by
both the parties. In this,
negotiation mainly helps
number of vendors, owners,
travelling organisation and
hotel management for offering
effective services at
reasonable price.
At least 2 months are being
taken for the purpose of
contracting each and every
service provider which in
turn gives various benefits
to both the parties.
Minimum cost of packages
are being offered to the
clients.

Development of tour In this, final destination is
being chosen and thus,
development of various
countries and places is done.
This can be stated as one of
the most essential stage and
this will take approx. 3
months for completing it.
Price determination In this, travel company mainly
focuses on analysing the
pricing strategies for finalising
price so that large number of
customers can be attracted
(Bonilla Priego, Najera and
Font, 2011). There are number
of factors which directly affect
the pricing strategies like
foreign exchange rates, fuel
price and taxation of host
country. For serving number
of customers for satisfying
customers by Trailfinders.
Process of set right and
prices for the packages
formulated which requires
minimum 2 months for
completion.
Marketing and promotion of
tour packages
After setting up of final prices,
it has become highly essential
to utilise effective channels for
getting better outcomes from
marketing strategies.
1 month is minimum which
is being needed for
completion.
After tour management Collecting feedbacks from the
customers for making the
services much more effective
in nature is highly needed
(Bititci And et. al., 2011).
Opinions can be collected by
Trailfinders by taking the help
of questionnaire .
This type of stage needs
approx. 1 month for
gathering data about the
experience.

2.2 Different type of tour operators
One of the most popular tourism company in UK is Trail-finders. One of the main reason
for this is to provide quality products and services for all the customers at reasonable prices. The
main focus of the firm is to provide better packages to all the clients for satisfaction of customers
in better manner. As per they case study, package is being designed by the product development
team for around 42 students which mainly consist of all basic and relevant services.
There are two methods of contracting which are being used by tour operators:
Fixed Contracts: This kind of method is being utilised maximising the revenue which is being
collected by the company at the end of year. There are some of the arrangements which are being
made as per the needs of customers. Various kind of packages are being designed by the airline
sector along with keeping in mind of the peak season. Therefore there is very low chance of
empty seat within the flight.
Contract Sale Only: This kind of package was mainly designed for the sale of contracts by Trail-
finders within UK. This kind of package was being formulated with the motive of giving feel of
luxurious tour to the niche customers. In this kind of contract, price is being paid by the Airlines
for the transportation along with accommodation for the customers. These kind of contracts are
being made in the peak seasons in order to avoid the poor services specially for the niche
customers.
There are four types of tour operator which are being stated below:
Inbound Operators: these are the types of operators which are connected directly with the tourist
services. Services and facilities are directly served to the customers. Various type of facilities are
provided by the inbound operators such as information support, currency exchange,
entertainment and currency exchange.
Outbound Operators: these operators are used to create the package plans and best options for
visitors and tourists. these operators basically support the structure of tour packages and selling
the product and services to potential clients and customers. promoting tour packages, tour
services and the foreign trips are the main objectives of outbound operators.
Domestic Operators: These are the type of operators which make their efforts to attain domestic
attraction and customer interest. tourist services are provided to local customers. promoting
domestic tourist services is the main objective of domestic operators.

Ground Operators: These operators works around gain providing ground facilities such as
accommodation, sight seeing, local transportation services to incoming passengers etc.
2.3 Calculation of selling price
As per the above case, tour plan is being formulated by the students of Europe who are
travelling from London to Brugge and Brussels with education motive and enhancing up the
knowledge level. In this context, budget is being prepared for the trip of 5 nights by considering
all the major factors. Trailfinders mainly deal in travel and tourism sector and has positive image
within the market (Chon and Yu, 2012). Product developing team consist of skilled workers and
they mainly focuses on developing the tour packages with offering better quality services for all
the visitors and thus attractive offers can be offered along with discounts. For this, it is highly
essential for calculating the actual cost of trip along with other extra activities which are being
offered at time of journey.
Number of Students on the trip = 42
Number of Nights = 5
Hotel per Person = 96 euros x 0.892857 (Exchange Rate) = £ 85.71
Van for 42 students = £ 11200.00
Tour Guide = £ 945.00
Mark Up = £ 33%
Selling Price of the Tour
Hotel = £ 17999.10
Van = £ 11200
Tour Guide = £ 945
Total Cost (17999.10 +11200+945) = £ 30144.10
Mark Up 33% = (33/100x30144.10) = £ 9947.55
Total Cost price = (30.144.10 + 9947.55) = £ 40091.65
Price per Person = 40091.65/42 = £ 954.56
TASK 3
3.1 Planning decisions for design a brochure
There are some major planning decisions which are being taken for designing up of
Brochure in which the data is being incorporated. It is highly essential to consider the data and

encouragement should be given to individuals for formulating up of tour packages and thus take
decisions as per the needs and wants of the customers for extracting out better holiday
experience. One data which must be consisted within the Brochure in the name of tour firm, data
about the destination, ways of transportation which will be used, prices, duration of whole tour ,
risk consists in adventure, extra charges, type of food, resources which is needed by an
individual for carrying out himself on the trip (Deresky, 2017). Along with this, cost is involved
while formulation of Brochure, selecting the vendor which can design the Brochure, final format
of the Brochure which can be used to influence the customers for all the major factors while
process of its making.
For the most part, a Brochure is something which a venture made with a specific end goal
to make mindful to its clients about its items and administrations. This provide assistance to
guests in opting better choices. If there should be an occurrence of Kuoni travels, it is
exceptionally fundamental for firm to plan an appealing and compelling handout as this will help
venture in draw in more number of explorers (Gibson, 2012). For this, number of techniques are
there which can be use by Kouni goes to get consideration of numerous guests. There are various
factors which must be consider by company during the process of design a Brochure are as
follows:
 Format of brochure: Brochure can be stated as document which mainly consist of
genuine data regarding the products and services which company offers to its
customers. There are certain sections within the Brochure and they are classified into
various parts. This make the document much more appealing and attractive for
attracting large number of customers.
 Selection of target market and budget: Budget if being formed for tour packages which
is very essential and this can be done by the help of conducting the research regarding
the needs and wants of the customers (Guo and He, 2012). Research make the tour
operator about the purchasing power of the customers for deciding up of final prices.
 Time require to complete a specific stage: in order to have more number of customers,
it is highly essential for the company for designing up of attractive Brochure within
allocated period of time in effective manner. This in turn saves up the time and cost of
the firm along with formulating up of better and effective Brochure.

3.2 Suitability of alternatives of a traditional brochure for various type of tour operators
There are many of technologies which are being introduced in the place of old methods.
There are various new techniques which are being adopted like using of websites, online
platforms and many others. Now-er days many of the companies are using this kind of
techniques for marketing goods and services. Tour package are being sold by the tour operators
to the customers by showing them its attractive elements. Old Brochures which were being used
to draw the attention of large number of customers which in turn will failed to create the demand
of tour packages (Jaafar and Maideen, 2012). Opportunities are being provided by the
introduction of technology for designing better and effective brochures. The main feature of the
technology is that it provides help in overcoming from all the barriers related with traditional
Brochure and thus helps in making it much more effective and impressive. There are number of
alternatives of traditional Brochure which are provided as below:
 E-brochures: Utilisation of Internet provides help to a company for formulating up of
impressive and attractive Brochure along with this it also saves company and provide
various other advantages.
 Visual: In this, there are various effective images which are being used for attracting
large number of customers regarding tourist destinations.
 Social media: In this, various social media platforms are being utilised like Facebook,
Twitter and many others.
 Websites: This mainly consist of developing various sites related with tourist destination
which mainly consist of data about the features of the destination.
Use of technology helps in company in making up of electronic features which are most effective
in nature as well as attractive when compared to old physical Brochures. In addition, there are
number of companies which take help of audio and video for getting large number of customers.
3.3 Different methods of distribution to sell a holiday and its suitability for different type of tour
operators
There are various customers to whom Kuoni wants to sell its products and services. In
order to attain the same, it is highly essential for the company to utilise proper and effective
channels of distribution. There are number of tools for which the company can choose like
selling its services directly to the customers or help can taken of mediators. There are various
tools which must be considered by the company to sell its tour packages as one of the methods

does not provide benefits to the company (Khairat and Maher, 2017). Focus should be on various
methods by the company for dealing with customers directly. Moreover, Kuoni uses some of the
major methods in order to sell its products and they are described below:
 Internet: This can be stated as one of the most popular and famous method. This is one
of the major feature of the factor which makes the firm to sell its tour packages to
increase the profit ratio of the company. IT department of the firm apply various posts
in website regarding the tourists which attractions.
 Direct sale: There is another approach which can be utilised by Kuoni travels for selling
its tour packages. In this, staff members of the company mainly deals with clients and
manipulate them for purchasing up of tour packages. The major benefit of this kind of
approach is that it helps in creating and maintaining up of good relations with the
customers which provide help to the company for retaining its customers for long
period of time. In addition, market share is being enhanced for the company and its
profits.
 Telephone: As the name suggests, management of the company calls some selected
number of clients for making them aware about the products and services which in turn
influence them to buy (Martinez, Stapleton and Van Wassenhove, 2011). There is major
feature of this factor is that it provides help in generating the interest level of
customers. Kuoni call their loyal and old customers for visiting different destinations at
reasonable prices.
All these are the major methods of distribution and with effective use of all these Kuoni can
serve more number of customers by make them aware about its products and services.
TASK 4
4.1 Strategic decisions made by different type of tour operator
There are various tour companies which take number of strategic and tactical decisions
which plays major role in sector of travel and tourism sector. It is highly essential that company
should take their own decisions after considering the every type of factor which can directly
affect the decisions along with its output. Both the tour companies Trafalgar and Thomas Cook
takes various kind of decisions in relating with marketing tools, positioning up of brand, price
packages of tour and many more. It is highly essential for the company to include the supplier

which it will choose along with the quality of products and services which firm will offer for the
target market. Furthermore, decisions which are related to the media along with the final design
of Brochure (Naji-Azimi and et. al., 2012). Media is being chosen by the company according to
the budget and its other needs as well. There are various decision which are being taken by the
company which relate with the price of tour packages, discount and special offers which
company will offer to its customers, utilisation of other equipments and many more. There are
some following factors which indicates the strategic decisions which tour operators take as
follows:
 STP (segmentation, targeting and positioning): In this kind of segment, tour operations
are basically classified on the basis of various factors like age, interest, spending power
and many more. This provides assistance in choosing and target the segment which
have potential growth. Moreover, this mainly supports in doing positioning up of
products in effective ways which mainly attract the large number of customers.
Thomas cook do the segmentation on the basis of behavioural, psycho-graphic and
demography.
 Strategy for competitive pricing: In this, the main focus is on attaining the competitive
advantage and that can be done by the setting up of unique prices for the tour packages
as compared with the prices of other tour operators. In this aspect, final price is being
decided by the Thomas cook after analysation of prices of packages by its competitors.
 Strategy for promotion: In this, there are some various tools and techniques which are
being utilised for carrying out the promotions for the products and services. Opting out
the best channel for the promotion is highly essential as this helps out in acquiring the
attention of customers (Distribution Channels, 2016). Example can be taken of
Thomas Cook who mainly adopts the exclusive strategies for promotion of tour
packages and other services. Furthermore, various tools and techniques are being
utilised like electronic and print media in order to serve large number of customers.
 Strategy for discount pricing: This type of factor is being highly utilised by the for
grabbing large number of customers, this provide platform of opportunities to the
company for capturing large market share and thus provide competitive advantage.

 Tour packages seasonal scenario: large number of customers choose to visit the various
places in the time of festivals or in school vacations. In this, there is always a variation
among the prices of tour packages.
4.2 Tactical decisions that could be taken by tour operators in different situations
Decisions which are being taken by tour operators for managing the regular operations
and activities of the company are called as tactical decisions. This mainly consist of the decisions
which are highly related to the design of tour packages. They mainly play crucial role in
obtaining growth and success of firm. Moreover, this mainly ensures that the execution of the
business process along with availing up of various kinds of benefits. In modern scenario, there
are number of decision which are being taken by the tourism sector for setting up of aims and
objectives of firm in the business process and its activities (Chon and Yu, 2012). This mainly
ensures that there are quality services which are being provided for the better accommodations of
people. In order to attain the same, amalgamation can be done with various stakeholders for
increasing up the quality of services and widen up the offering up of company.
Various of procedures and strategies are present which visit administrators can decide for
offer some benefit like cash to its clients and to include a positive note as far as they can tell.
Ventures can plan visit bundles which will offer them a chance to clients to customisation the
items and administrations according to their advantage and needs. Visit administrators gathered
information related with necessities of guests keeping in mind the end goal to detail a superior
and powerful arrangement. Research helps in distinguish the issues related with visit bundle and
after that visit administrators do endeavours keeping in mind the end goal to expel the same. It is
essential that medicinal move must be made so as to take care of the issue. This assistance in
limit the snags looked by visit administrators amid plan of visit package.
In this way, better and higher satisfaction can be provided for satisfying the actual needs
and wants of the customers in order to enhance the profit ratios of the company. In short, it is
highly essential that tactical decisions must be taken by the Thomas Cook for making out
effective process of business operations and various activities which are directly related with the
company.