Tour Operations Management: Development of a Holiday Package

This report delves into the multifaceted world of tour operations management, focusing on the development and analysis of holiday packages. The report uses TUI Group as a case study, examining current trends within the tour industry, including inbound, outbound, domestic, and special operators. It outlines the stages and timescales involved in developing a holiday package, from research and itinerary development to vendor negotiations and costing. The report also explores various methods of contracting different components of a holiday, such as accommodation and transportation, and analyzes the suitability of these methods for different types of tour operators. Furthermore, it calculates the cost of components and the selling price of holidays. The report also addresses non-traditional distribution methods and emerging trends in the sector, evaluating how competitors respond to these changes, and includes tactical decision comparisons. The report concludes with an overview of the key aspects of tour operations management and its practical applications.

Tour Operations
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Trends and development of tour operation, analyse of holiday packages........................1
TASK 2............................................................................................................................................2
2.1 Stages and timescale for development of holiday package..............................................2
2.2 Evaluating suitability of different methods of contracting various components of holiday
for different types of tour operators........................................................................................5
2.3 Carrying out the cost of components of package and calculation of selling price of
holidays...................................................................................................................................7
TASK 3............................................................................................................................................7
3.1&3.2. Covered in Posters. .................................................................................................7
3.3 Non-traditional methods of distribution used to sell holiday packages for different tour
operators.................................................................................................................................7
TASK 4............................................................................................................................................8
4.1 Emerging trends in tour operations sector and evaluating ways by which various
competitors responded to these trends....................................................................................8
4.2 Compare the tactical decision that could be taken by a selected tour operators in difficult
solutions..................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In the world of modernisation, travel and tourism has become very popular. Now-a-days,
people like to spend their time on seeing and visiting famous places. There are various factors
that involve number of elements of travel and tourism in formulating holiday and tour packages.
In this present report, TUI Group is being chosen for assessment. This report will include recent
and current trends in tour industry. In addition to this, various stages in developing holiday
packages will also be included. Moreover, various methods of distribution used to sell holiday
will also be discussed in this report. Apart from this, methods for designing brochures will be
considered.
TASK 1
1.1 Trends and development of tour operation, analyse of holiday packages
Tour operator are combine tour and travelling services component to create services. It
designs travel routes for tourists and offer perfect arrangements of hotels and airlines. In this
context, tour operator offers package holidays. A TUI group travel agent is a kind of retail
business, which is a buyer of tour operator, it sells travel-related products and services to
customers on behalf of tour operators, airlines, hotels and other entities. Nowadays, tour
operators and travel agencies are closely related to each other (Beritelli, Bieger and Laesser,
2014). There are number of current and recent a number of tour operators industry and as per the
development different types of operators provide different services to customers and tourist.
These have optimistic and counter impact on the entire industries which are described below-
Inbound operators- These are the tour operators that are belongs to all those tourists that
are belongs to their country or home city. They sell and promote there services into the country
that they operate there operations of business. Inbound operators are very best for company as
they have deep knowledge about destinations. In order to gain customer satisfaction, inbound
operators play an effective role. Beside this, sometimes it leads to negative impact on the
performance of international tour operators needs to settle there business in other countries.
Outbound Operators- These are those companies which provide tour and travel services
to those people who want to travel in another country. There are various needs and demands of
people who want to travel such as arrival and departure of tourist, food, accommodations,
transportations and travel. These all services companies provide either on respective basis or
collaboration with foreign tours. In order to enhance the tourist attraction towards foreign tours,
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outbound operators plays an essential role. It leads to optimistic impact on economic conditions
of whole industry. TUI Group is one of the largest tour operators in the world and it offers
effective services to visit all over the world (Brandon-Jones and et.al., 2016).
Domestic Operators- Domestic tour operators are also known as local tour operators as
they make systematic arrangements for transportation. They offer services to those people or
tourist who want to visit in specific boundaries. The good feature of domestic operators are that
they provide quality services.
Special Operators- These are the special and extraordinary tour operators. They make
holiday packages are per the demand and requirements like educational or adventures, sports
tours etc.
TASK 2
2.1 Stages and timescale for development of holiday package
TUI group will be focus on number of activity, competition and cope with the designs
and developed tour packages to meet the demand of customers. They must have adequate
knowledge of generating market and price factor. In addition, price are one of the most important
part to manage different kind of services and improvement must be made in planning of tour
packages. The process of development and planning of development packages. Some different
stages of developing of tour packages are as follows:
 Research: It is most important stage for crating tour packages in South America because
it will be help to find out correct information about destination in the country (Carlsen
and Andersson, 2011). It very difficult for tour operator to be arrange all things to all
people. Therefore, tour operator in South America will research not only tour seems to be
that of area of common interest of all people. Their tour product is a destination area of
tourism potential, appeal and accommodation. They also identify economic, political,
social and climatic factor that indicate future development of tour package. There are
various destinations that are famous in South America such as Salar de Uyuni, Bolivia,
The Amazon River.
 Tour itinerary development: After the completion of market research, then it comes to
tour itinerary development stage. This stage is also most important as it involves working
out an effective tour itinerary. It is the whole summary of programmes and various
crucial information like assembling point, meal optional activities and perhaps more than
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these (Stages for development of holiday package. 2017). Addition to this, it also includes
detailed summary of tour programmes that are designed to identify the destinations,
points which are Salar de Uyuni, Bolivia and The amazon River of origins, en route
points, sightseeing activities, transportation and other actives. Thus, TUI group needs to
focus on this stage in effective manner to attract more tourist in South America.
 Negotiations with tourism vendors: After the finalization of itinerary that it comes to
negotiate with potential vendors. Depending on the size and nature of tour, tour planner
works or interact with many vendors. Vendors such as lodging, airlines, transport
operators, ground operators, sightseeing, car/ bike rentals, vendors and many others.
Thus, from all these vendors, tour operators has to negotiate with the carrier directly or
by travel agency. TUI needs to negotiate with vendors and suppliers of South America
for reducing the total cost of their services as it will assist in reducing the total cost of
holiday package (Carmody, 2013).
 Costing of Tour Packages- This is one of the most important stage for developing
holiday packages for South America. All the expenses that arises in while developing
holiday packages for Salar de Uyuni, Bolivia and The Amazon River. There are number
of services that here are number of services which needs to be render by TUI group for
developing an effective holiday package for tourists so it needs to be important for
forecasting the cost of holiday package that includes cost of travelling, food, research.
Marketing, accommodation etc.
 Activities in Days 
1
 
3

4
   
8

9

1
 Market research          
 Development of itinerary          
 Negotiation with supplier and
vendors
         
 Costing of tour package          
 Human resource management          
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 Marketing of holiday package          
4

2.2 Evaluating suitability of different methods of contracting various components of holiday for
different types of tour operators
In order adopt different methods at the time of making holiday packages, there are four
types of contract tour planner. It is very important to make contract with those people who are
providing the best services of tour and travel to consumers at lesser prices (Cheng and et.al.,
2011).
Here is the tabular representation of tour operators as well as their services-
Factors Outbound
operators
Inbound
operators
Domestic
operators
Specialist
operators
Operational area These are those
operators which
covers all those
operators of tour
that are offering
travelling
packages to
tourist.
This type of tour
planner are those
who manage and
carry off inbound
overseas visitors
by providing
them various
services like
currency change,
transportation and
accommodation
services (Chopra,
and Sodhi,
2014).
These are the tour
operators whose
facilities are
limited to specific
location (Connell,
2013).
These are the
special and
extraordinary tour
operators. They
make holiday
packages are per
the demand and
requirements like
educational or
adventures, sports
tours etc.
Packages
operated
Ad hoc along
with Regular
Ad hoc along
with Regular
Ad hoc along
with Regular
Only Regular
Products and
services offered.
Ski-long, haul,
winter sun,
summer sun along
with short breaks.
Heritage tours
and self-tours.
Holiday tourism
and travel.
Adventures as per
the demands and
needs of tourist.
Example TUI Group. Evans Tours Heaven Holiday Cox and Kings
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Company. Corporation. Tourism and
Travel.
Suitability of various methods of contracting for various components of the holiday for
different kinds of tour operators:
From the above table, it can be identified that four types of tour operators are there. They
all offer various facilities and services related to travel and tours to customers on economic cost.
Tour operators make written agreement with hotels and restaurant as well as book
accommodation facilities on the behalf of the end service users in advance in fixed contracts.
Inbound and outbound operators can use this type of contracting to deliver the services to the
travellers. On the other hand, in ad hoc contracts, they reserve the rooms whenever visitors place
the order in the hotel. As per the case, TUI group should consider outbound contracting within
their organisation (Dezdar, 2012). With the help of this, the candidates who are coming from
South America can book their rooms in the hotels. Addition to this, TUI Group can also provide
tour or holidays packages outside UK.
There are various methods of contracting for various components which are as follows-
Accommodation- This is one of the most essential facility that is preferred by tour
operators ether on individual basis or by contracting with others. Stay facility is included in
accommodations. Students that neds to travel they stay at different placed during there tour.
Travelling- Travelling is one of the most important part of tour as entire process of tour
is included in this method. Travelling includes ticket booking, services of pick and drop as well
as travelling for sightseeing. TUI makes contracts with airlines and various other travel agencies
such as cab, buses etc.
Guide facility- This is also one of the most essential part of tour and travel. Guide is a
person who provides knowledge and complete information about destinations. TUI group also
hire guides in various countries to make easy for travellers to visit places.
Food and Beverages- This is the most essential part as food is very necessary. TUI
group also offer food facilities to tourist (Carlsen and Andersson, 2011).
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t
2.3 Carrying out the cost of components of package and calculation of selling price of holidays
It is very important for tour planner to analyse the selling price of services they are
offering. In order to ascertain profit, it is very essential to analyse the selling price. Moreover,
there are some aspects that are needed to be considered because it helps in calculation of selling
prices of holiday packages. Apart from this, it is also very important to examine the cost of other
tour planners so it can be easy to enticement visitors by offering services at reasonable price. On
the other hand, when there is season of tourists, tour planner can grab opportunities by offering
special discount offers which result in increasing the market share. According to given case, TUI
Group has a partnership with The Travel Foundation which supported TUI in their sustainability
journey and expertise with providing broad range of services and cope up with company ion
strategic projects in South America in economic range (Dickinson, Lumsdon and Robbins,
2011).
Selling price of holidays for TUI group is given as follows:
Services Price per candidate Price for 40 candidates
Bookings of ticket £150.00 £6,000.00
Accommodation services £85.00 £3,400.00
Service of food and beverages £200.00 £8,000.00
Transportation services £166.00 £6,640.00
Charges of tour guide £50.00 £2,000.00
Total price (South America
package)
£629.00 £26,040.00
The total cost for tour package to South America as provided by TUI group is
£26,040.00. 35% profit margin will be added by company from this cost i.e. £9114. Thus, the
total price rendered to 40 candidates is £35154.
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TASK 3
3.1&3.2. Covered in Posters.
3.3 Non-traditional methods of distribution used to sell holiday packages for different tour
operators
TUI group and other tour operators use various methods for promotion and distribution of
tour packages. TUI attracts many customers by offering the best and effective offers reasonably.
Here are several techniques or tools that are used by TUI group for selling their holiday or tour
packages among which some of them are as follows:
 Direct Selling- Direct selling is one of the most common as well as effective methods
that is used by TUI Group to sell their tour and holiday packages. In this method of
selling, company directly interacts with customers through consumers email I'd. This is
the best way to reach at the potential customers (Kuo, Wu and Deng, 2015).
 Adopting Online Method- Online method is the modern method that is used by
companies to attract customers towards their services and products. By having presence
on internet, TUI can reach to a large population without making high efforts. There are
various websites on internet such as Facebook, Instagram and Twitter, etc. These all
websites assist company to promote their services, offers and discounts to a large
audience.
TASK 4
4.1 Emerging trends in tour operations sector and evaluating ways by which various competitors
responded to these trends
There are following factors that are very important for elements while making a strategic
decision. Some of these are as follows:
Pricing strategies- Price is the most important element in business as customers are very
price sensitive. In order to attract customers TUI group has to focus on price of services. By
reducing the cost company can increase their market share as well as their profit. Thus, to gain
popularity company by providing services at reasonable price. As per the present trends,
customers are very price sensitive, they want to visit places at reasonable rates. Thus, in order to
increase customers as well as make them satisfied in the best possible manner.
Decision of distribution channels- This is also one of the most essential element in
developing strategic decision as because if the services are not able to reach to end users than
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company will not able to sustain (Brandon-Jones and et.al., 2016). Transportation, information
centre of visitors and accommodation are the best medium channels of distributions. According
to this present trends, customers are very attracted towards efficiently services in order to save
time, thus, TUI should offer the best possible distribution channel to make them satisfied.
Adding values to customers- This is another element which is very essential in
formulating plan of actions to add value in products or services offered to travellers or
customers. It refers to adding activities or entertainment factors in the tour packages.It also
includes various services such as discount coupons, spa and other services. As per the present
trends, customers are highly concern about the values that company is providing to them such as
quality of travels, taste of food and various other services.
4.2 Compare the tactical decision that could be taken by a selected tour operators in difficult
solutions
Basis Strategic Decision Tactical Decision
Purpose To find out clear broader goals
that help company to advance
the overall company and create
resources.
To use specific resources to
accomplish sub-goals that
supports the defined mission.
Roles Employees who influence the
resources within company.
Specific domain experts that
manoeuvrer limited resources
into actions to accomplish a set
goals.
Accountability All the decision that are taken
are responsible for overall
functions and operations of
company.
Tactical decision are
responsible for specific
resources.
Duration Long term, infrequent changes. Short term, market conditions
are flexible and specific.
This is the world of competition. Company has to take strategic decisions which is very
difficult for them to take in competitive world. In order to maintain positive environment at work
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place, business need to take effective decisions. By following these strategies company can
target different market in systematic manner-
Price- There is need to take tactical decisions to deal with customer perception or price
related to products. For TUI group, it is very important to assess the price of services. By setting
the best price company can offer services in proper manner. The structure of price assist TUI
group in this competitive world (Carmody, 2013). On the other hand, TUI should need to set
their prices of services in distinct position so that company can easily attract people at
workplace.
Focus on the market condition- In order to sustain in the market, it is very important
that TUI group has to focus on actual condition prevailing in market. Company should provide
innovative services that attract customers towards there services as well as make easy for
employees to work at workplace. Apart from this, company should give extra focus on internal
activities of company.
Tactical Marketing- There is need monitor the activities and programs on regular
intervals so as to review the effectiveness of the activities. TUI group should monitor there
activities to attract more customers towards there services.
The above discussion can be summarized that it can be demonstrated that there are
various tactical decisions that are implemented within organization or at workplace. Thus,
company make changes according to the needs and demands of market or customers. It is very
important that company should utilize the available resources effectively and make strategic
decisions very carefully.
CONCLUSION
The above report summarized that in today's world, tour operators has become popular
people in the world. This report has concluded trends and development of tour operation as well
as analysis of holiday packages. Furthermore, this report also include stages and timescale for
development of holiday package. Beside this, emerging trends in tour operations sector also
included in this assignment. This report was also make understood ways for evaluating various
competitors responded to these trends. Different methods of contracting various components of
holiday for different types of tour operators was also discussed in this assignment.
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REFERENCES
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Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34. pp.1-13.
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Dickinson, J. E., Lumsdon, L. M. and Robbins, D., 2011. Slow travel: Issues for tourism and
climate change. Journal of Sustainable Tourism. 19(3). pp.281-300.
Jovanović, V. and Njeguš, A., 2013. The application of GIS and its components in tourism.
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Stages for development of holiday package. 2017. [Online]. Accessed through:
<http://www.shareyouressays.com/knowledge/12-stages-of-developing-and-planning-a-
tour-package-that-will-ultimately-satisfy-every-tourist/93510>.
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