HND Tour Operations Management Report: Package Development Analysis

This report on Tour Operations Management, prepared for a Higher National Diploma (HND) in Hospitality Management, examines the tour operator industry and the stages involved in creating holiday packages. The report details the role of tour operators, including regulatory bodies like ABTA and AITO, and the stages of package development: market research, planning, contracting, costing, brochure creation, advertising, and post-tour management. It discusses different contracting methods, such as fixed and allocation contracts, and provides a case study on calculating the selling price of a holiday package by LCB Tours. The report concludes by emphasizing the significant contribution of the travel and tourism sector to the economy and provides references to relevant academic sources.

Tour Operations Management
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Tourist is the fastest growing industry in the world and also contribute to the
GDP of the country's economy. The increasing spending power of
customer helps the tour operators company to develop different tourist
packages according to the need and expectations of the different target
customers. The presentation will discuss about the stages involved in
developing a tour package.
INTRODUCTION

 Association of British Travel Agents:
It is UK's chief trade association for the tour operators and travel
agents. ABTA members are responsible for the maximum sale of UK
holidays. The main functions of ABTA includes raising standard of tourism
industry by providing them guidance. Provision different schemes of
protecting their finance. The ABTA regulated travel agents and tour
operators comply with rules that designed to protect the money of a
company.
Different types of tour operator’s
regulators.

 Federation of Tour operators:
This associations works to ensure the continued long term success
of the air inclusive holiday by influencing government and opinion
formers on the benefits to consumers and other stakeholders of all
inclusive holidays arrangements. They have provided effective financial
protection to customers, work to promote holidaymakers' interest the
government, hotels, airport authorities and others who have a part to play
in ensuring high standards of customer satisfaction environmentally
sustainable tourism.
Continue.

 Association of Independent Tour Operators:
AITO is a British based travel industry trade group that represents around
120 specialist and independent tour operators. The members of AITO
operates in over more than 170 countries, including in UK. They planned
different holiday packages that involves different range of activities
includes adventures, city break , culture etc. it ensures that every packages
sold by the members of AITO have full protection of . All the members of
AITO promotes an ethical and sustainable approach to travel.
Continue.

 Marketing research
 Planning and Scheduling
 Contracting
 Costing the holiday
 Creating the brochure
 Advertising
 Post Tour management
Stages and timescale involved in
developing holiday packages

Stages involves Time scale
Market research 15-20 days
Planning and scheduling 7 days
Contracting 7 days
Costing the holiday 1 month approx.
Creating the brochure 10-15 days
Advertising 1 month
Post tour management 7 days
Continue.

 Fixed Contract: it refers to the deal done on the high consumption basis.
Fixed contracting has the fixed package provided by the operators. The
prices are fixed between the operators and suppliers in the destination and
the distributors involves. In fixed contract there can not be any change in
agreement neither by operators nor by tourist or suppliers.
 Allocation Contract: It refers to situation arises in the tour and the
responsibility of the operators to handle it. Whether the availability of
rooms in hotels or risk associated with the activity planned during the trip.
The operators are responsible for such allocations
Suitability of different methods of
contracting

Particular Price (in pounds)
Hotel charges (200x7days) 1400
Transportation cost 300
Activity cost (per head) 200
Food and beverages cost(per head) 100
Guide cost 100
Total cost 2100
Add 20% profit margin 420
Selling cost of a holiday package 2520
Calculation of Selling price of a holiday
by Lcb tour company

By summing up the above report, it can be concluded that travel
and tourism sector plans a significant role in contributing to
the country's economy. The presentation has concluded
various regulation of tour and operators. Different stages has
included for developing a tour package with all the necessary
information.
CONCLUSION

Books and Journals
 Giaoutzi, M., 2017. Tourism and regional development: New pathways. Routledge.
 Erskine, L. M. and Meyer, D., 2012. Influenced and influential: The role of tour
operators and development organisations in tourism and poverty reduction in
Ecuador. Journal of Sustainable Tourism. 20(3). pp.339-357.
 Ashworth, G. and Goodall, B., 2013. Marketing in the Tourism Industry (RLE
Tourism): The promotion of destination regions. Routledge.
 Guo, X. and He, L., 2012. Tourism supply-chain coordination: The cooperation
between tourism hotel and tour operator. Tourism Economics. 18(6). pp.1361-1376.
REFERENCES