Tour Operations Management Report: Strategies for TUI Group in UK

This report examines the tour operations management of TUI Group within the context of the UK tourism industry. It delves into various aspects, including the significance of the tour and travel sector, recent technological and marketing trends, and the stages involved in developing a tour package. The report analyzes the costs associated with creating a sample 5-day, 7-night UK tour package, detailing transportation, accommodation, and other expenses. It also explores the role of brochures and alternative promotional methods like e-brochures, visual media, and social media. Furthermore, it discusses non-traditional distribution channels, such as street marketing, to enhance customer reach and awareness. The analysis provides insights into the complexities of the tour industry and strategies for success.

Tour Operations Management

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1................................................................................................................................................3
Task 2...............................................................................................................................................4
2.1................................................................................................................................................4
2.2................................................................................................................................................5
2.3................................................................................................................................................5
Task 3...............................................................................................................................................6
3.1................................................................................................................................................6
3.2................................................................................................................................................9
3.3................................................................................................................................................9
Task 4.............................................................................................................................................11
4.1..............................................................................................................................................11
4.2..............................................................................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

INTRODUCTION
Tour and travel industry one of the complex industry specially in the present era. The
significance and scope of tour industry is developing day by day. There are various sub-sections
of this industry. It involves hospitality, adventure tourism, cultural tourism, leisure, medical
tourism etc. It is one of the largest civilian industry which provide large number of jobs directly
or indirectly. TUI group is a tourism company in UK. They provide a wide varieties of services
to their customers (Baddeley, and Font, 2011). There main objective is to provide better services
to their customers as compare to their customers. The purpose of this report is to evaluate and
analyses the factors affecting tour industry and make effective strategies to compete in the
market. This report is explains the recent trend and new development in the industry.
TASK 1
1.1
The importance of tour and travel industry on of the major source of income in the UK
economy. The tourism sector in UK has grown a good rate of growth which is good sign for their
economy ((Brent Ritchie, Wing Sun Tungand, and JB Ritchie, 2011)). There are various recent
trends and development in tour and travel sector which affects this sector directly and indirectly:
Technological developments:
Technology is one of important aspects for any industry. The new technology specially in the
tour industry have good affects on that industry. The increasing number of internet users latest
development in the industry. This is helps to booking the tickets through online and they plan
design their journey. It helps to increase the number of potential customers for truism sector. Use
of social media is also support to contact new customers. There are other development in tourism
sector are as follows:
Adventure tourism:
Educational tourism
Medical tourism
Industrial tourism
Cultural tourism
Rural tourism

Marketing in tourism: Marketing is played a prominent role in the tourism sector. This is one
of the new trends in this sector (Brown, and Lamming, 2013). Marketing helps to attracting more
consumers for their holiday plan and packages. The information regarding their tour package
along with services provided by the organisation.
Increase in income level and spending power: Spending power of the consumer is increasing
day by day which is good for the industry. A will has been developed in the consumers for
spending more on the tours and travel as the income level has been increased to a good extent
and as result there has been a growth and development observed in Trail-Finders and also
increased the profitability of the firm.
TASK 2
2.1
There are various stages involves in developing a tour package in UK. A proper and
appropriate planning is required to develop a holiday package in UK (Cros, 2008). For TUI
group requires that to fulfil the need of their customers. There are various issues involved a in
holiday planning are appropriate time for travel, tax information of that country and currency
fluctuation etc. There are following stages involved in developing a tour package:
Examining the destination: This is the first stage of creating a holiday package. For that TUI
group first to examine and evaluate a appropriate destination for travelling. It requires a proper
planning and research. It will take approximately 2-4 months. In this stage the company requires
that they make a combined tour which includes heritage, wildlife and beach holiday package tour
according to the needs of their customers. For a holiday package tour company can select old and
new town of Edinburgh which is located in Scotland. For wildlife site the company can select
Highland wildlife Park which is also located in Scotland (de Sausmarez, 2007). For beach
holiday organisation can choose Blackpool Sands.
Research: In this stage the organisation can make a deep research for their selected destination.
This stage is played a prominent role in creating and developing a tour development. For that
they can carry out a survey report on the needs and preferences of the consumers. A research
report requires minimum two months.
Negotiation: There are various service providers and middle man to provide services like
accommodations, transportations, cab providers, food and other service facilities provider. TUI

group requires that to make contact with them and negotiate with them. It will take a period of 5-
6 months.
Tour development: After negotiation with service providers the next step is to make and
develop a tour package. In this stage company design a tour package according to the needs of
the customers. In this stage they also consider all factors which affects a tour programme
(Dwyer, Edwards, Mistilis, Roman,and Scott, 2009).
2.2
After negotiation company requires to make contract with service providers. There are
two methods which can be used to make contract with these parties. These methods is useful for
the company and the service provider as well. There are various service providers like
accommodation, food, transportation, and other service provider. In developing a holiday plan
these methods played a important role. These methods are as follows:
Fixed Contract: In this contract service providers and organisation both are make a contract on
fixed term. In this approach company have to according to the capacity utilization. The service
provider charge on the basis of volume of customers. There is a disadvantage of this contract for
the company is that in off-season they have to pay money to their service providers which will
reduced their profitability. The advantage of these type of contract is to take maximum
utilization of their capacity in peak session (Font, Tapper, Schwartz and Kornilaki, 2008).
Because there are very little chance to non utilization of their capacity.
Sale only Contract: In this type of contracts company make their contract for the niche
customer in the market. This type of contract is too expensive and these are designed according
to the of their niche customers. These type of contracts made at in lean session. There is no risk
involved because a minimum customer also sufficient for them.
2.3
There are various cost involved in developing a tour packages. This holiday package 5
days and 7 nights from 7 march to 13 march to UK. The package include a heritage site, wildlife
park and beach holiday in UK. Etihad Airlines is too carry 220 passengers in a flight. The
accommodation arrangement in a 5star resort in the city of London. The rooms are twin sharing
in the resort. Tickets are booked by 160 passengers till now on the fixed contract basis with
Etihad Airlines. There will be 10% discount available on advance booking. And additional 5%

discount for couples. There is no bargaining with customers. Refund will not available if
customer turns back. These are following cost are involved:
Transportation charges: Transportation charges involves flight charges from home destination to
holiday destination (Gibson, 2006). There are various transportation cost are as follows:
Flight charges
Cab charges
Food charges: Food charges involved food charges which is from outside the accommodation.
Accommodation charges: These charges includes charges of hotels, food, telephone charges and
other service charges.
In Pounds
Sr. No. Particulars Sale per Person Sale for Couple
1 Flight charges
(Etihad Airlines)
180 350
2 Cab charges 50 100
3 Food charges 120 220
4 Hotel Booking charges 140 250
5 Charges for sightseeing 60 100
Total 550 1020
Note: 10% discount available for advance bookings+5% additional discount for Couples.
TASK 3
3.1
Brochure is played a prominent role in promoting and communicating the information
regarding their tour package. It is used to conveying important information involved offer price
of package tour, attractive discount, tour destination and other facilities provided by the
company. Brochure is can be online or offline. This method is very attractive with law cost with
high reach (Higham, Bejder, and Lusseau,2008). It requires proper and appropriate planning,

detailed research, effective implementation. There are following planning decisions for designing
a brochure for their current holiday package:
Identifying and recognition of planning issues: Planning is an important aspects in design in
brochure. There are various problems regarding brochure format and structure, objectives and
goals of brochure, target customers and time scale in the designing a brochure. These are all
issues are played an significant role in brochure.
Basic structure of the brochure: An attractive brochure attract new customers. Therefore a
brochure must be attractive which increase its visibility (Hojeghan, and Esfangareh, 2011). TUI
group requires to a pre decide make structure of their brochure and focus on their target
customers.
Focus on target market: The target market is essential in a designing a brochure. For example if
company can is focusing on niche segment like adventure tour or health tour they make it
accordingly. It will helps to make their brochure more attractive. If they have their corporate
ambassador on brochure it can also attract more customers.
Make a budget: Budget is another factor which affect the brochure. Income level of consumer
also to be identified for their target customers.
Timescale in the brochure design: timescale must be considered at the time of implementing
their planning decisions and designing their brochure.

THIS IS UK
Winter in Edinburgh is a magical time. Wrap up warm and explore the historic
streets, visit the twinkling Christmas markets – where delicious food, mulled
wine and beautiful crafts await - take a turn on the dazzling star flyer, cosy up at
an unforgettabl
Welcome to UK
Trail Finders
The world is our home
You are our guest

3.2
Apart form brochure there are traditional brochure also there to attract their customer in
an effective way. TUI group requires that they can also considered alternative for traditional
brochure. These brochure can improve the brochure quality and also can be attract more
customer at same time. It is an important medium for conveying important information of their
tour package.
E-brochure: E-brochure is method is used to promote and conveying the information of their
holiday package. It is cost benefit method for the company. It covers the large number of
customer through internet. The cost including in this method is to developing and designing e-
brochure (Higham, Bejder and Lusseau, 2008.). The cost of e-brochure is less than a printed
brochure. It is more attractive as compare to printed brochure.
Visual medium: Another effective method to conveying the information regarding their holiday
package. It is covered more people as compare to other methods. A visual medium is provide
information of a tour package more attractive manner. It can help to provide real beauty of
holiday destination. It helps to increase in the sale of their tour products in much better manner.
It is much expensive as compared to other method.
Social media: Social medial is another platform of promoting and conveying information of their
holiday package to their potential customers. There are various platform like Facebook,
YouTube, Instagram, Twitter, and other social media. These tools are more effective and
attractive.
TUI group can use their tools effectively for conveying information to the customer to promoting
their tour product mare efficiently.
3.3
TUI Group is a tour and travel group which is providing the services of the travel and
tourism. The entity can use various non traditional methods as a distribution channels, by this
they will be bale to address to the needs and requirements of the people. It is very important for a
business to create an awareness I the mind of the customers about the travel packages so that
they will be able to afford and approach the corporation (Hojeghan, and Esfangareh, 2011.). The
distribution channels which can be used by the entity these are described as under:

 Street Marketing: The sculptures can be highlighted about the packages of the company
so that the people can have the attention on these, the company can use these on the no
parking zones also. Seminars: the company can organise the seminars for the customers so that the people
can take participate in it and they can be able to know about the trends and techniques of
the corporation. Events: it is the another most important element of the traditional marketing by this the
people will be able to address the various and different kind of travel packages (Kogan,
and Tapiero, 2007).
 Theme Parks: The corporation can use this tool so that the people can be able to know
about the brand image and the other information of the entity.
 Museum: in this term the people can be invited for a particular place so that the services
of the travel and tourism packages can be managed. Along with this the customers can
discuss about the features of the tour packages and their queries as well.
The company has to follow any of the distribution channel of the non traditional
marketing. By this the people can be made ware about the services of the company. If the
seminars are being organised these can be helpful in letting people join the company. The
corporation can use some channels which are traditional as well. The marketing is having very
vital role in making people ware about the products and services of the entity (Mak, 2011). If the
business is to be done in the most effective way then it is essential for the company to have the
most effective distribution channels for marketing of the goods and services of the corporation.
The business is relied upon the services of the entity if the services are provided in the efficient
way then it will be able to attract more customers towards it and this can be done by using the
marketing strategies. The focus of the entity is to attract more customers towards it. So in such
situation role of non traditional distribution channel is very wide. In the seminars are having a
vital role as in this the managers of the corporation will be having the option to meet with the
people and to describe the strategies to them so the seminars are having a great role in making
the people ware about the attractive tour packages. The trade activities can be done properly of
the marketing channels are used (Mok, Sparks, and Kadampull, 2013).

TASK 4
4.1
Strategic decisions are too important for each and every organization for sustain in the
market and maintain their profitability. There are various tactics and decision regarding their
strategies. To sustain in the market and maintaining their profitability there are various decisions
like focus on their target customers, provide better and unique products as compare to their
competitors, making their strategies like pricing strategies, competitive strategies and other
strategies. Strategies planning and implementation is played a prominent role for the success of
the organisation. There are various strategies planning and decisions are as follows:
Segmentation, targeting and positioning: Segmentation is essential for each business. In this
strategy they divide market in to small small segment (Mok, Sparks, and Kadampull, 2013). It
can be on the basis of age, gender, education, profession, income distribution etc. It can helps to
make focus and concentrate for that segment and make strategies accordingly. Once
segmentation is done company is focusing their target customer. For example company is focus
on niche market so that they can make their strategies and implement these strategies effectively.
It requires a proper evaluation of the situation their strategic decisions like product, pricing,
promotion and place. Product must be unique and better product and service as compare to their
competitor. TUI group requires that their tourist destination is much better and different which
gives a competitive advantage to them. Promotional strategies are another important strategic
decisions for the company. Their promotional strategies must be more aggressive (Pullman, and
Rodgers, 2010).
Competitive pricing strategies: it is one of the important strategy for the company. Competitive
pricing strategies means to set their pricing of their product is much attractive as compare to their
competitors. TUI group make their strategic decisions on pricing of their holiday package. There
product price should be attractive which gives competitive advantage to them. In a peak season
they make pricing of their product more aggressive and provide effective offer to their
customers. They can focus on volume in peak season by providing attractive offer and effective
utilization of their capacity (Russell, and Taylor-Iii, 2008).

4.2
Tactical decisions are related to those decisions are taken by tour companies for their operational
activities. These activities involves from designing a tour plan to sale their products to end
customers. These tactical decisions are help to the company for their operational effectiveness
and efficiency. Negotiation with service providers, effective organizing accommodation, and
food, maintain good relation with their stakeholders like their customers, investors, management,
government and society (Sigala, 2008). Because they are part of entire value chain.
Relationship with their service provider also important for the company. It requires an effective
tie up with their service providers which provide long term benefit to them. Personal selling is
another important tool which is help to maintain their profitability. The relationship with their
sales person also important for the company. Because they are regularly communicate with their
customers.
Customer satisfaction is one of the care objectives for any business specially for the tour and
operating industry (Swarbrookeand Page2012). Feedback from their customer is another
important consideration for the company. Data collected from feedback is help to improve their
services and it can meet the future needs of their customers . There will be a help for the tour
operator to identify the problem associated with the tour packages and also solve them.
Depending on the types of the problems identified, remedial actions will be undertaken to
prevent the consumer from encountering such issues in future and it will also help to generate
high level of consumer satisfaction from the planned tour packages (Zhang, Song, and Huang,
2009).

CONCLUSION
From the above mentioned report has been carried out the analyse the recent development
in tour and travel industry. This report is focus on the process and steps involved in creating and
developing a holiday plan. It also evaluate how different methods of contracting can be used by
tour operators. This report also explain of planning and creating a tour brochure.

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