Tour Operation Management Report: Trends and Strategic Decisions

This report analyzes the tour operation management, focusing on the industry's dynamics, particularly for LCB Tours. It begins by examining the effects of current trends and developments, such as technology advancements and Brexit, on the tour operator industry, differentiating between various operator types like inbound and outbound tour operators. The report then assesses the stages and timescales involved in holiday development, evaluating different methods of contracting and calculating holiday selling prices. Further, it evaluates planning decisions for brochure design, comparing traditional brochures with e-brochures, internet, social media, and video brochures, and assesses the suitability of various distribution methods for different tour operator types, including direct distribution, two-level distribution, online travel agencies, review sites, government websites, concierge services, and social networks. Finally, the report evaluates strategic and tactical decisions made by tour operators, including pricing strategies, branding, product choices, and distribution decisions.

Tour operation
management

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the effects of current and recent trends and development on the tour operator
industry........................................................................................................................................1
TASK 2 ...........................................................................................................................................3
2.1 Assessing the stages and timescale involved in developing holidays...................................3
2.2 Evaluating the suitability of different methods of contracting for different components of
the holiday. .................................................................................................................................4
2.3 Calculating the selling price of a holiday from give information.........................................5
TASK 3 ...........................................................................................................................................6
3.1 Evaluating the planning decisions taken for the design of a selected brochure ...................6
3.2 Assessing the suitability of alternatives to a traditional brochure for different types of tour
operator.......................................................................................................................................7
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operators..............................................................................................................................7
TASK 4............................................................................................................................................9
4.1 Evaluating the strategic decision made by different types of tour operator. ........................9
4.2 Comparing the tactical judgements that company could apply in different situations.........9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Tour operator industry is an integrated approach towards travel and tourism sector. Tour
operator combines tour and travel components to create a package a holiday. In order to promote
their goods and services, there are different types of tour operators which offers different variety
of services to their customers. Present study will be based on Tour operator industry for which
study will be taking Lcb tour coordinator company. Further, study also discussed about the
hospitality industry on Hilton which is the most famous. Report will be discussing about the
effects of current and recent trends and developments on the tour operations industry. Tour
operator companies are also presenting different scaling and approachable holiday tours for their
clients. Further study also discussing about the different types of contracting for components of
the holiday and different types of tour operators regulations.
TASK 1
1.1 Analysing the effects of current and recent trends and development on the tour
operator industry.
There are different types of tour
operators which conduct their
business accordingly. Some of
them are discussing below:
Inbound Tour Operators : In
bound tour operators are based on
Australian based business which
helping to provide itinerary
planning, products selection and
coordination the reservation and
also provides confirmation on the
behalf of their overseas clients for
example retailer and wholesaler.
Inbound operators bring some
services like accommodation,
Specialist Tour
Operators: specialised
operator is another type
of tour operators those
are very much flexible
for the clients. These
kinds of all tour
operators are able to
cater and specialise to
what the tourists
interests are for
example wants to on a
cycling holiday.
However, they planned
variety of tours
The effect of Brexit on
Tourism: This is another current
trend which affects the tour
industry UK. Due to exit of
European Union will in the long
term which affects tourism
industry and their holiday
regions. Due to this impact
people get reduced their
investment on making shopping
on holiday more expensive
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tours, transportation, meals to
create fully inclusive itinerary.
Domestic Tour Operators :
these types of tour operators
provides accommodation,
transportation, meals and overall
planning of itinerary services to
clients within the country that
they are physically located in.
UK Outbound Tour Operators:
Outbound tour operators are those
who take residents from one
country to travel in another
country (Abrate and Viglia,
2016).
according to the new
needs and wants of the
clients.
Current or recent
trends and
development in tour
industry
Advancement
in technology:
Technology and
innovation is very
much essential for tour
operators to gain the
attraction level of
customers. From past
years, it has been
observed that, tour and
traveller companies
have adopts so many
new techniques and
growth in order to meet
the client’s needs
(Baggio and Klobas,
2017). Lcb tour
operator should
focussing on to develop
customer experience
must always be on the
back of travel and
tourism companies.
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Technology has always
been in the current
trends that help to
create new
opportunities for
travellers (Bowie and
et.al., 2016).
TASK 2
COVERED IN PPT
TASK 3
3.1 Evaluating the planning decisions taken for the design of a selected brochure
Brochure related to tourism, its design requires a real understanding of psychology of
audience and what they are looking for in that tourism brochure. Planning of brochure has been
started from first impressions which must be attractive and long lasting as per the growing
performance of best target performance (Elliot and Litvin, 2016). Planning is the best tool or
results which affect the long term goals and make the best effective product or services. Planning
of brochure for the most adventures holiday package must includes all necessary essential data
which helps to motivate and convince the consumers. For planning tour operator needs to
considered
Cost : cost is the most essential element which needs to be considered. To designing the
brochure there is cost involved for the tour, selection of vendor for making designs of brochure
which must be looks best and essential (Giaoutzi, 2017
Grant, 2016).
Deciding the format : format of brochure should follows the code of conduct of the
principle of AIDA which stands for getting attention of customers, developing interest, creating
desire to purchase and call to action.
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Target market and budget : Brochure of Lcb must be according to the target customers.
Such as target customer are students, youth, solo travellers etc. so that, brochure must be
attractive and according to the need of buyers (Guo, Barnes and Jia, 2017).
Determining print specifications : this is the another factor which must be essential for
presenting the best brochure outcomes. Brochure must be well labelled in order to communicate
well and properly.
Timescales and stages of production : Timescale is the tool or form of activities which
is very essential. Time scale activities helps to perform the different function according to the
planning (Masiero, Nicolau and Law, 2015).
3.2 Assessing the suitability of alternatives to a traditional brochure for different types of tour
operator
E-brochure: E-brochure is the best source which helps outbound tour operator to serve
the services to clients into more effective manner with the help of e-mail. In electronic mail
company can easily provides best information regarding packages. It also helps to provide the
best services and make all customers happy and aware about the current offers of the company.
In E-mail Tourism Company also involves the information regarding prices and the overall data
regarding the destination places. It is the most important and essential forming goals which it is
the most essential or important part for making better resourceful and managing performance
channel (Nagle and Müller, 2017). This method is the cheapest method or way to promote the e-
brochure.
Internet: internet is another most essential or best option to promote brochure of
different manner. This facility or method can easily adopted by inbound tour operators; internet
is the tool which spread into different channels that makes attractive channel of growth. Internet
is the apart from that most essential goals.
Social media: social media platform form a different channel where tour operators can
easily approach so many different customers towards the company services. This alternative
modern tool which helps to promote company services or products (Veal, 2017). Apart from that,
social media brochure can make visual presentation were customers can easily checkout the
current information and all required information about the company.
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Radio/TV advertising : Radio TV advertisement is the another mode of promoting
company brochure in which customer can watch limited video or audio clip about the
information of all current scenarios (Vellas, 2016).
Video brochure: video brochure is the attractive way to grab the customer attraction
level of buyers. In this brochure contains the video of the company services and photos of the
different destination that helpful to attract number of new clients. These clients towards the new
level of approaching task full growth (Mowforth and Munt, 2015). Overall it helps to bring
global reach which helps tour operators to take global national buyers.
3.3 Suitability of different methods of distribution used to sell a holiday for different types of
tour operators.
Direct distribution: direct distribution channel is organized or managed by the firm
itself. This is beneficial for the tour operators without the involvement of intermediaries to
perform most or all distribution functions, otherwise known as wholesale distribution. In this
form of distribution channel can easily perform so many functions which company requires their
own logistics teams and transport vehicles (Sharpley and Telfer, 2015). In the indirect channel
organisation liable to maintained the good relationship with third party.
Two level distribution: every distribution involves producers, wholesalers to retailers to
consumer this also brings so many channels and distribution which includes better opportunity
and growth. Two level of distribution involves producers to wholesalers to retailers to consumer.
From producers to retailers to end customer. In two level of distribution channel there are flow of
service is producer to retailer or retailer to consumer (Vellas, 2016).
Online travel agencies : Inbound tour operator can easily adopts online platform to
promote brochures which is more helpful to seek attention of customers. Online travel agencies
are the another option for the company to develop the new managing successful task in order to
meet out the goals and objective levels. Company can sale its holiday packages to different
online travel agencies through which they can easily sale out its holiday package.
Reviews sites: with the help of review sites or feedbacks of customers can easily meet
out the needs of the customer focus which brings new management skills and long term goals.
Review sites type of method can adopt by inbound or outbound tour operators (Bridges and
et.al., 2018). This brings new profit sales for the company.
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Government website : many governmental bodies have launched holiday packages for
enhancing the scope of tourism. For that, they offer low price based holiday with full security.
Tour operators can tie up with tour operators to make more money and growth.
Concierge services : it is an employee or kind of lifestyle manager like secretary which
provides instant help to customers which helps to take suggestions and advice for taking best
price of holiday tour packages (Giaoutzi, 2017).
Social network websites: Ground operators can take help of social networks websites to
identify the current needs of customers. Online selling of holiday packages will be more helpful
and major growth effective charge which is more essential for the organisation to be
implemented in the best possible actions. Thus, they can use the methods such as internet selling
and of all centres.
TASK 4
4.1 Evaluating the strategic decision made by different types of tour operator.
Tour operators needs to make many decision making approach or steps in their tour
operations and tour programs. Some of them are discussing below :
Pricing strategies: Decision making in making pricing of tour packages is essential term
which involves costing, and other strategic decisions made by tour operators such as
Surcharge policy: it is another decision made by tour operators which involves fee,
charges, tax involved to cost of goods and service (Grant, 2016). It is kind of service tax that
company needs to bear.
Positioning and image/branding :
Choice of product : This type of decision involves the determination and selection of the
products per the requirement of customer needs.
Distribution decisions : This strategic judgement involves the decision making approach
in which Lcb needs to decide the source of distribution to sell out their product or services.
4.2 Comparing the tactical judgements that company could apply in different situations.
Tactical decision are those decisions which taken by the company that includes day to
day activity and functions as well. It helps tour operators to make smooth functioning to run the
business activities (Guo, Barnes and Jia, 2017).
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Tactical responses : Tour operators makes new packages or plan in order to meet out the
managing performance. Company makes different efforts provides tour packages, services,
offers etc. so that, it is also very essential to take feedbacks from customers.
Tactical pricing : Tactical pricing is the most essential and managing decision making
approach that needs to be taken by the company operators. Tour operators needs to fix the prices
and also adopting prices in order to meet out the goals. Due to changes in prices of oil, fuel,
transportation etc. company needs to manage those prices within the system level of packages.
Tactical marketing : tactical marketing decisions taken by tour operators which involves
the daily activities such as taking customer reviews, tracking number of travellers, enhance
promotional advertisement, all these tactical strategies helps to encourage promotional activities
(Masiero, Nicolau and Law, 2015).
CONCLUSION
On the basis of above section or discussion it has been cleared out that tour operation
management involves many activities to perform the task in effective and performed manner.
Besides, study discussed or prepared for the management of travel agency packages for Lcb
group. Present study has been discussed different types of tour operators and current trends
which affect the company.
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REFERENCES
Books and Journals
Abrate, G. and Viglia, G., 2016. Strategic and tactical price decisions in hotel revenue
management. Tourism Management. 55. pp.123-132.
Baggio, R. and Klobas, J., 2017. Quantitative methods in tourism: A handbook. Channel view
publications.
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Bridges, J. F., and et.al., 2018. A patient and community-centered approach selecting endpoints
for a randomized trial of a novel advance care planning tool. Patient preference and
adherence. 12. p.241.
Cornelissen, S., 2017. The global tourism system: Governance, development and lessons from
South Africa. Routledge.
Elliot, S. and Litvin, S. W., 2016. Comparing the Influence on Trip Planning Behaviour of Using
Selective “Place Appeal” Versus an “All Inclusive” Style in Destination Marketing.
Giaoutzi, M., 2017. Tourism and regional development: New pathways. Routledge.
Grant, R. M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Guo, Y., Barnes, S. J. and Jia, Q., 2017. Mining meaning from online ratings and reviews:
Tourist satisfaction analysis using latent dirichlet allocation. Tourism Management, 59,
pp.467-483.
Huertas‐Garcia, R., Laguna García, M. and Consolación, C., 2014. Conjoint analysis of tourist
choice of hotel attributes presented in travel agent brochures. International journal of
tourism research. 16(1). pp.65-75.
Masiero, L., Nicolau, J. L. and Law, R., 2015. A demand-driven analysis of tourist
accommodation price: A quantile regression of room bookings. International Journal of
Hospitality Management. 50. pp.1-8.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
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Sharpley, R. and Telfer, D. J., 2015. Tourism and development in the developing world.
Routledge.
Veal, A. J., 2017. Research methods for leisure and tourism. Pearson UK.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
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