Tour Operations Management: An Analysis of Trailfinders

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Tour Operations Management
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Analyze the effects of current and recent trends and developments on the tour operators
industry............................................................................................................................................4
Task 2...............................................................................................................................................8
2.1 Assess the stages and timescales involved in developing holidays...........................................8
2.2 Evaluate the suitability of different methods of contracting for different components of the
holiday and different types of tour operator..................................................................................10
2.3 Calculate the selling price of a holiday from given information above..................................11
Task 3.............................................................................................................................................12
3.1 Evaluate the planning decisions taken for the design of a selected brochure..........................12
3.2 Assessment of the suitability of alternative traditional brochure for different types of tour
operators in relation to the selected tour package..........................................................................13
3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different
types of tour operator and recommend the most appropriate for a luxury tour package...............14
Task 4.............................................................................................................................................18
4.1 Evaluate the strategic decisions made by different types of tour operator..............................18
4.2 Compare the tactical decisions that could be taken by a selected tour operator in different
situations........................................................................................................................................19
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
Travel industry today has gained an increased attention all across the world with the improved
services on the part of the tour operators undertaking all the responsibilities of planning a
package suitable for the customers. Understanding the priorities of the customers and framing
suitable tours needs proper research in order to find new and untapped destinations providing
travelers an experience of bliss. Working with an aim to provide tailor made tour packages,
Trailfinders has been chosen as an organization operating all over in UK and Ireland, to highlight
various factors and elements related to travel and tourism industry.
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Task 1
1.1 Analyze the effects of current and recent trends and developments on the tour
operators industry
Planning a suitable tour itinerary for the customers in relation to the purpose of their travel
consists of all the areas linked with the tour being food and accommodation facility, flight
bookings, sightseeing, etc. understanding the expectations and demands of the travelers and
providing the same with the help of detailed research and accumulation of all the required factors
fall on the part of the tour operators (Cetin and Yarcan, 2017). Completing all the related
responsibilities lets the travelers enjoy their stays without being concerned. These operators
providing their exceptional services can be divided into four categories based on their roles in the
industry.
Inbound operators are the one that helps international tourists coming to the country experience
a tour within the boundaries of a nation.
Outbound operators concern the travelers aiming for a tour in the international destinations.
Domestic operators are companies working with native travelers within the nation.
Specialist operators on the other hand are the companies working with an aim to create new
packages for tourists to suit their needs of travelers to gain an experience of an exquisite vacation
around the globe (Bruni et al., 2017).
The chosen organization as Trailfinders can be called a specialist operator based on its style of
framing tailor made packages best suited for their customers to gain a lifetime experience. This
has helped the company to experience a considerable growth and development in the industry.
Matching the ongoing and changing trends of the world, organizations like Trailfinders are to fit
the needs of the same impacting the travel industry in the process (Iyer et al., 2015). These trends
can be understood better with an elaborate discussion on the following points.
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Fig: Summary of the current trends
(Source: Bruni et al., 2017)
Solo trips
This is the trend that has largely impacted the industry in the recent past. Encouraging the
industry to create increased travel opportunities in reduced prices have provided tour operators
the challenge to maintain the company standards and image in the world in the process of
tailoring suitable plans to the solo tourists (Cooper and Hall, 2016). Understanding the
needs of these travelers and providing a comfortable and budget friendly plan to the tourists has
gained the attention all around the world. This has also increased the need for adaptation of the
industry to this recent trend, providing people with accommodation facilities that can be availed
within a fixed budget along with all the other criteria like food, flight and automobiles included
in the list (Goffi et al., 2018).
Technological advancements
The world today has flooded the industry with the application of technology. Starting from
booking a flight online to availing hotel facilities along with food and automobiles for
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sightseeing, all has adopted to the present technological advent around the globe (Dadwal and
Hassan, 2016). Use of online websites and mobile applications are visible throughout the world
today, which has helped the industry reach customers in some of the most mobile places,
contributing to further growth and expansion.
Food tourism
This is another trend that has affected the industry largely in the recent times. People all over the
world are opening up to the idea of travelling in order to taste and experience various cuisines,
enriching their knowledge as foodies (Hsu et al., 2016).
Fig: Current trends in travel and tourism industry
(Source: Dadwal and Hassan, 2016)
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Recent trends of travel and tourism industry impacting Tour Operations
management
Solo trips
Creation of increased travel
opportunities in reduced prices
Challenge to maintain the company
standards and image
Comfortable and budget friendly plan
to solo tourists
Food tourism
Travelling in order to taste and
experience various cuisines,
enriching their knowledge as
foodies
Technological advance
Tour operators has adopted to the present
technological advent around the globe
Booking a flight online
Availing hotel facilities along with food
and automobiles for sightseeing
Leaflet for the task
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Task 2
2.1 Assess the stages and timescales involved in developing holidays
A package based on the given scenario of a tour from London, UK, wherein 50 students are to
travel to Brussels and Brugge in Belgium for a period of 5 nights starting in summer vacation in
July 2020 needs proper planning on the part of Trailfinders as the tour operators. These steps or
stages can be understood better with the help of the following points.
Market research: this is the first and foremost step that can help in accumulating relevant
information like the attractions in the destination that can be visited by the students to know the
place well in the limited time (Pencarelli and Dini, 2016).
Budget formation: this is the step that helps in understanding the factors that can be included or
excluded in the process of formation of a tour package as mentioned above
Negotiations: this is the third step that can help to get the idea formed in reality with prices
provided at the end of the suppliers and negotiating on the same to achieve the rates suitable to
fit the formed budget along with proper maintenance of the profit margins (Font and McCabe,
2017).
Planning: getting all the elements lined up with the help of the previous steps, this step involves
the formation of a plan that can help provide the overall idea in details guiding the students
regarding the trip (Holloway and HUMPHREYS, 2016).
Marketing: this is the last step that can help in acquiring the complete and rectified plan on
social media platforms for potential customers to avail the same.
The above explained steps can be understood better with the help of a Gantt chart explaining the
timescales involved in the process of developing holidays based on the given scenario.
Activities 1st week 2nd week 3rd week 4th week 5th week 6th week
Selecting the 
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destinations
Market
study
 
Aligning
activities
and setting a
budget
 
Preparing a
plan
covering the
prices
offered by
the suppliers
upon
negotiation

Marketing
of the
prepared
plan

Monitoring
the prepared
plan

Table 1: Time taken in framing a plan for a tour for 50 students
(Source: Created by the author )
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2.2 Evaluate the suitability of different methods of contracting for different components of
the holiday and different types of tour operator
Collaboration with other businesses like hotels, flights or trains, transportation and food is
involved in planning a complete package. Introduction of contracts availing proper agreements in
order to maintain peace within the business has helped the travel industry to do the same.
Contracts formed with hotels are an important requirement for tour operators in order to assure
a comfortable stay for the travelers (Bazargan, 2016). The given scenario of 50 students availing
accommodation facilities in Grand Casselbergh as a hotel in Brugge can be considered in this
context.
Contracts formed with suppliers and vendors helps organizations like Trailfinders to avail the
maximum quality products and services in minimum prices for the travelers, maintaining the
profit margins of the business without unwanted issues in the process.
Contracts formed with travel agencies allow the organizations like Trailfinders to avail
comfortable transportation facilities for the customers, being 50 students in the given case.
Fig: The percentage of tourists that avails internet apps for booking their holidays
(Source: Bazargan, 2016)
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2.3 Calculate the selling price of a holiday from given information above.
The given scenario has provided an outline of the prices for various facilities included in the
package. Calculating the same can provide an idea regarding the cost of per student in the
package. This can be done with the help of converting the currency into Euro, as it is the
currency used in Belgium where the tour is to be conducted.
Exchange rate: 1 pound = 1.14 Euros
Facilities Given costs Total for 50 students Total
Cost of rooms per
student
89 Euros 4450 Euros
Cost of luxury coach 6949 pounds 7921.86 Euros
Cost for visitor’s
attraction per person
45.60 Euros 2280 Euros
Cost of local tour guide 896 Euros 15,547.86 Euros
Table 2: Cost of the facilities included within the package
(Source: Created by author)
The markup applied buy the organization is 28% , covering the related administrative charges in
the process of planning. This comes to a total of 4353.40 Euros. This in turn adds up to the
19901.26 Euros. This can be further calculated to gain the cost of each student for the package of
50 students travelling to Belgium for 5 days in the month of July.
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Task 3
3.1 Evaluate the planning decisions taken for the design of a selected brochure.
The concept which is related to the sector of working in this type of industry is the aspect of
marketing. Relating to the sector of marketing, one of the factor which can be stated to be crucial
is the engagement of the customers so that they would be willing to get the service in the sector.
There are different types of techniques and methods which can be implemented in the sector
which would be directing the attraction of the customers and also helps in the domain of the
reaching to the customers (Vogt et al. 2016). These techniques and model in the domain can be
implemented by means of involvement of technology or by traditional methods. This option is
widely selected by the organization according to their preference. One of the methods which can
be incorporated in the sector is the creation of brochure which in recent times plays an active role
in the domain of the gaining of the importance of the customers and gathering the view point of
the customers. The concept which is linked to the domain of the brochure information and the
concept which is related to the design are explained below:
Direction of operation: This step mainly includes the sector of the gathering of the expectation,
requirement and the target customers who would be directly be focused. This would be very
much beneficial in the domain of the planning of the brochure (Hughes and Scheyvens 2016). At
the end of this step the organization would be directly involving a plan and a path which would
be incorporated in the sector.
Format: In this step the main consideration which would be focused is the requirement
gathering and the knowledge of the need of the customers (Wan and Bramwell 2015). This step
would be directly helping the organization in the formation of the brochures which would be
attracting the customers and would be directly increasing the indulgence factor which would be
directly helping the organization gain different forms of competitive advantage.
Budget: The concept of budgeting in the sector can be stated to be very much important due to
the factor that the organization should be including the necessary detailing relating to the need
within the pre estimated budget. One of the aspects which can be taken in the sector is that t6he
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