Tour Operation Management Report: Trailfinder's Strategic Decisions

This report provides a comprehensive analysis of tour operation management, using Trailfinder as a case study. It begins with an introduction to the tour operator industry and then delves into the specifics of holiday development, including the stages and timescales involved, as well as the suitability of different contracting methods. The report also includes calculations of holiday selling prices based on provided information. Furthermore, it examines the planning decisions made in brochure design, comparing and contrasting the brochures of Kuoni and Thomas Cook. The report then explores alternative marketing methods beyond traditional brochures and evaluates the strategic and tactical decisions made by different types of tour operators. The report concludes with a summary of the key findings and recommendations for the company. The report also covers the regulatory bodies that impact the tour operator industry.

Tour Operation Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Stages and timescales involved in developing holidays...................................................3
2.2 Suitability of different methods of contracting for different components of holiday......5
2.3 Calculate the selling price of a holiday from given information......................................6
TASK 3............................................................................................................................................7
3.1 Planning decisions taken for the design...........................................................................7
3.2 Suitability of alternatives to a traditional brochure..........................................................8
3.3 Suitability of different methods of distribution used to sell a holiday.............................9
TASK 4..........................................................................................................................................11
4.1 Strategic decisions made by different types of tour operator.........................................11
4.2 Compare the tactical decisions that could be taken by a selected tour operator............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Tour operator industry is the integrated approach in the travel and tourism sector. The
visitors and travellers amount has been increasing rapidly in the industry from last few decades.
People visiting and travelling the whole world through the help of tour operating organisation.
Thus, these are the holiday organising companies which exercise various packages and services
of tourism for travellers (Bonilla Priego and et. al., 2011). The report will analyse various aspects
of Trailfinder which is one of successful tour operating organisation with more than 32 travel
centres in UK and Ireland. The organisation provides their services to worldwide. The major
purpose of this report is to identify the current trends and development in industry of tour
operator. This report widen on various elements such as evaluation of timescales and stages,
assess the different method suitability along with calculation of selling prices of a holiday. This
will light over the various different distribution methods and tactical or strategic decision-making
along with reviewing two different brochures of distinct organisations.
TASK 1
Covered in PPT
TASK 2
2.1 Stages and timescales involved in developing holidays
A holidays should be according to the expectation of individual filled with entertainment
and joy. Trailfinder is a large organisation which is developing in UK. The company have
planned to exercise some plans of building a holidays from London, UK to Brussels and Brugge
and Belgium. There are 42 students for the plan who have planned to stay for 5 nights. In order
to develop a holidays plan, the company have to undertake some certain stages which is
mentioned as below: Destination or Market Research: This is the major and initial step of developing an
holiday plan in order to analyse and explore different aspects about the destination.
According to the interest of students, the destination for visit is finalised. Through
PESLE analyse of Brugge, Belgium and Brussels, which can take one to two months,
analysis of market is being done.
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 Planning or Itinerary Development: In this step, the planning and package management
is being finalised and done (Brown and et. al., 2013). It consist of brief of whole designed
plan from all of places including details of accommodation, transportation, routes of
buses and trains and destination at Brussels, Belgium and Brugge. The process is a
systematic procedure which occupy more than 1 months. Negotiation: The Trailfinder in this stage will deal with different local services provider
and vendors for managing cost of services at destination. The process undertakes
minimum 4 months to meet their requirements. Cost Determination: This is the next phases in which the determination of estimated cost
is done which takes minimum 3 months of holiday date. This is very complicated process
that manage as well as control the cost of final project. Marketing: It is one of the essential procedure in order to gain the consumer and promote
the enterprise to aim more sales. This undertakes various activities such as hoarding, ads,
brochure for profitability enhancement and demands gaining that takes more than 2 -3
months.
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 Tour Execution: It is the final stage in which preparation ad estimation of package is
being executed. Manager of Trailfinder will control the students activities for proper
satisfaction and best outcome.
Thus, Trailfinder can meet to effective outcome through implementing various activities.
The plan of Belgium, Brugge and Brussels can be implemented within the determined dates
through the help of this process in deal manner.
2.2 Suitability of different methods of contracting for different components of holiday
There are various methods through which a contract can be made by an organisation
according to the different terms and activities. Through utilising suitable and appropriate method,
Trailfinder can enhance and add values in the prepared plan of Belgium, Brussels and Brugge
that can be help them in increasing sales. Here are some of those methods and there features: Fixed Agreement: It is one of quantitative approach used for increment of sales in which
operators work on the sales of provided services even in the off-season. It consist of
entire controlling risk un-utilisation that support the cost effectiveness benefits by getting
the huge discount and group cost.
 Sales Only Contract: In this contractual method, higher cost are determined as this
demands and buyer number are higher in the period of on-season. This contains less
liability and lower level of risk of failure along with no scope of discount.
By analysing various elements, Trailfinder can meet high revenues amount. The
determined agreement cost include more discounts and risk whereas the other one includes
higher cost and less danger of failure (Chon and Yu, 2012). There are various types of trade
which operates the functions of Tour operators in the industry of travel and tourism sector. Here
are some of those regulatory bodies mentioned as below:
ABTA (Association of British Travel Agents): It is mandatory for the agents of British
Travel that is providing help to the disappointed visitors. This administrate some strict rules and
code of conduct with which organisation have to agree as the remedies. This consist of 2300
agencies and 6000 operators of tour.
Association of Independent Tour Operator: This is one of the British industry based
entity that represents approx. 110 professionals and 170 countries along with liberal operators in
United Kingdom.
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Civil Aviation Authority of UK: CAA is a statutory entity which controls and handle civil
aspects of aviation in United Kingdom which is liable for the British territories air overseas
safety.
Tour Operators Federation: Such entities are formed for ensuring achievement of long
terms of holidays by influencing the former of opinions and state on supporting benefits to
buyers. This was structured in 1967 through FTP members.
Trailfinder need to implement the entire package of tour according to the requirements of
students and comply the activities and guidelines according to terms of such regulatory bodies.
Through this, proper alignment and management of entire resources and plan can be done in
ideal way.
2.3 Calculate the selling price of a holiday from given information
The packages formed by Trailfinder is made for 45 students which is planning to visit the
different places and destination at Brugge, Brussels and Belgium from London and United
Kingdom. The budget of trip is determined according to students level. The Trailfinder have their
reach to the destination in order to manage over-costing. The tour period have been set to five
days stay (Dietz, 2011). The organisation has determined the stay at Grand Casselbergh in
Bruges which has aggregate costing of £107 each night and £96 Euros per twin along with the
breakfast. The cost of luxury coach of 48 seater is £11,200 along with two drivers, fuel, ferry
taxes and fuel. The local guide is taking More than £945 and spot-exchanges rates is £1.12 per
£1. Here are the mentioned calculations:
Table 1: Presenting total cost including in package Brugge, Brussels and Belgium
PARTICUALRS TOTAL COST IN POUNDS
Room cost 9000
Luxury coach 11200
Local tour guide 945
Total costs 21145
Profits@33% 10414.7
Total tour package cost 31559.7
Local Cost
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PARTICUAR COST PER PERSON
Room cost 42.85714286
Luxury Coach 266.6666667
Local tour guide 22.5
TOTAL COST 332.0238095
add: Profits @33% 163.5341151
TOTAL PACKAGE COST 495.5579247
TASK 3
3.1 Planning decisions taken for the design
It is paramount for an organisation to use the tools of marketing and promotion in their
travel and tourism industry for increasing sales of company. Kuoni is one of developing tourism
and tour operator organisation in United Kingdom (Gass and Harris eds., 2012). Such
organisation including Kuoni use various types of promotional tools such as pamphlet brochure,
hoarding etc. Brochure is sort of document which contains the relative details along with
comprehensive information of packages in order to enhance the sales and demands. This is lower
cost and best tools of marketing which is online and offline brochure.
In this report, two brochure of two different organisation would be undertaken, in which
one is Thomas Cook that is one of largest organisation in UK and other is Kuoni, a tour operator
and tourism organisation which has wide business range in various sectors. Here is the major
different and design of brochure which has been analysed under:
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Illustration 1: Brochure of Kuoni, 2017

Overall Content and Quality: Kuoni brochure is very appealing and concise aiming
toward the people destination perfection and joy to touch the feeling of people (Disch, 2016). As
this focus over the entire details in summarised way along with presenting the major places of
the place. On the other hand, the brochure of Thomas Cook is more concentrating over the fun
places and destination. This contain descriptive details along with the quality of place in order to
reach the wanderlust of visitors. Thus, both are effective and better in their own way.
Times stages and Limits: The planned brochure design must have been finished in the
prescribed frame of time. Whole organising, planning and execution stages should met within the
allocation time limits for every and each stages. Thus, both Kuoni and Thomas Cook need to use
this elements in these brochure which is essential for both entities as these have wide business in
UK.
Images Use: Kuoni have utilised 8 pictures in their brochure all relayed on the specific
places, destination, major events and other things. Thus, the organisation have focused over the
destination more than the emotion in order to gain more wanderer and traveller toward their
beauty of place (Kauppi and et. al., 2013). On the other hand, Thomas Cook is using proper
utilisation of photos including destination and food aiming to traveller, visions, and business
class of people.
Easy Use: Kuoni brochure is convenient and easy to utilise whereas Thomas Cook's
brochure is containing wide information areas as well as entire page planned brochure that can
not made. But both are convenient and easier to use and are assisting for consumer as these
contain entire information and details of places.
3.2 Suitability of alternatives to a traditional brochure
The company create different types of brochure containing various details images and
information of destination in order to help client of whole packages. Kuoni and Thomas Cook
both utilise various methods and techniques that plan effective brochure in impressive way for
grabbing attention of service buyer for planes and activities of organisation. Here are various
modification available for several kinds of tour operators including used example such as: CD and Video Brochure: It is one of effective and attractive manner of working and
delivering the packages details to the users of services which consist of series of
photographs and videos. In CD, whole content is helping techniques and tools that is
rendered to the consumer for description of services. This is a better and effective
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techniques for inbound operators as well as can aid in increasing for new consumer and
clients. Internet: It is helping for outbound sort of operators which support and render whole
information in regard of the packages by tactics of internet like e-brochure, email
brochure etc. In email brochure, the information and description of place is send through
email which is one of effective and cheapest medium of gaining consumer base. Thomas
Cook and Kuoni, both organisation utilise this method with more innovative and creative
ideas for attracting and informing buyers. Television: It is also best traditional but expensive method of brochure advertisements
that is being aired by organisation in the form of ad (Luis and et. al., 2012). It is need to
gain more logistic outbound. Both organisations utilise this method for gaining more
buyers in order to meet the television marketing which is also one of credible medium
among other.
 Intranet: This is also good for an organisation for communicating and interacting the
message among the internal environment of an organisation. This method is used for
removing communication barrier and issues which is effective as well. This is a good
medium which need to organise and met by a company which is maintained by both
organisation.
Thus, both Thomas Cook and Kuoni should make use of a proper combination of
aforesaid brochure. This is required to develop integrated that consist of various benefits such as
e-brochure, visual brochure and video brochure, visual brochure and many other. Thus, these
approaches of traditional method can help both enterprises in meeting the best outcome in
effective way.
3.3 Suitability of different methods of distribution used to sell a holiday
Every organisation desire deploy their business by helping and modifying the channel of
distribution in order to cut the cost and manage the equilibrium of demands and supply. Through
managing brochure in styles of traditional manner to inform the clients in effective and necessary
style. By the trends and technologies variation, sales and distribution techniques can be evolved
by Kuoni and Thomas Cook. In the advanced technological time, there are various distribution
styles such as call centres, telephone, agencies, internet, direct selling etc. These organisation
utilise these distribution strategies of brochure in which some of them are mentioned as below:
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 Direct Selling Distribution Method: Through the help of direct selling, worker of an
organisation are rendered the services of organisation. This technique can be served in
both ways i.e. direct selling the services or enquiry based selling in which consumer are
straightly delivered or explained the services from the organisation. Agencies Distribution Method: This is a distinct styles of distribution of brochure used
by both Kuoni and Thomas Cook in which the organisation take the assistance of other
enterprise in order to meet more consumer base. These are manciple. Multiple and
independent used with the purpose of sales and gaining more consumer base. Internet Distribution techniques: It is more favoured and used techniques in the recent
scenario in which the selling and marketing of brochure by the assistance of various tools
of internet is done such as social media, website brochure, e-brochure and other style that
can be accessed by internet (Medlik ed., 2016). According the consumer and other
people, this techniques is more influencing and utilised by an enterprise for information
and details, which can aid meeting the level of accessibility and trim the higher
distribution cost of services. Call Centres and Telephone: This is also one of the best distribution method which is
majorly used by small organisation and managed by large tour operator in order to solve
the queries of consumer and manage the sales. The company can meet the clients and
persuade them for purchasing the deals through communicating them by telephone and
call centres.
 Teletext: This is a good distribution approach that aid in advertising organisational
products and services through information broadcast by radio and television station and
this is also known as the videotex.
Thus, there are the major methods of distribution which can be used by an organisation.
This is very essential to manage appropriate technology in order to meet effective outcome that
depend on various factors such as types of target consumer, destination place, country and
culture of people etc.
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TASK 4
4.1 Strategic decisions made by different types of tour operator
The industry of travel and tourism sector can carry various decision on the grounds of
operational flow and craft development in the business outcome. For meeting the standard and
objectives of business, different organisation come up with different judgements and plans for
decisions. There are basically two types of strategic techniques which is: Strategic Decisions: these is also refer to major action choices ad impact on whole main
part of business organisation. These often have long term goals in the organisation which
contribute in the success of goals and objectives of organisation.
 Tactical Decision: Such judgements are linked with the strategic decision execution.
These are directed toward the plans of individuals, workflows structuring, forming the
channels of establishment and resources acquisition which is undertook by the middle
level of individual of management.
This report will analyse organisation which is leading tour operating enterprises in UK
which offers various types of services and products (Robinson and et. al., 2016). Here are
mentioned some strategic decision assessing trends and economic situation: Cost Decision: This is paramount and effective decision that is formulated by the travel
and tourism organisation. For example: on grounds of observation from Thomas Cook
and Kuoni, they have determined actual cost on grounds of company cost and focused
groups. Targetting, Segmentation and Positioning: By focusing over the demands and quality
standard, higher authorities of both organisation related to packages. For example, by
utilising the information or details related with packages that Thomas Cook render, they
the target consumer segments. Organisation focus over the families, students and
business individual. The organisation several marketing and promotional activities which
has enable organisation in building a very good and reputed positioning among the
marketplace. On the other side, Kuoni undertakes the tactical decision-making procedures
on grounds of segmentation and positioning that is majorly aiming to the wandered and
business persons (TOP 10 WAYS TO DISTRIBUTE YOUR BROCHURE TO THE RIGHT
TARGET AUDIENCE, 2017). This tour operators use various approaches for supporting
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creative and best services that has made good recognition of enterprise in the travel and
tourism sector.
 Competitive Strategy of Pricing: This consist of the decision which consist of the
evaluation of cost charged by an rivalry organisation for the specific trip as well as
determining the cost of one's package in order to attract more buyers to purchase the
packages of holiday. The judgements need to appropriate according to organisational
situation and challenges which is faced in the competitive business environment.
4.2 Compare the tactical decisions that could be taken by a selected tour operator
In different condition, the higher authorities of both organisation make the tactical
decision and modification on grounds of the demands and requirements of consumer. Here are
mentioned some of decision-making that these both organisation utilise for effective decision-
making and functioning of the operations of company: Discounting: Kuoni and Thomas Cook will evaluate the judgements and decision of both
organisation in which Thomas Cook is focusing over more outbound tour operating
business in order to deal in international market for selling their products and services.
On the other hand, Kuoni use the strategies of offers and discount for increasing more
buyers and consumer along with benefiting oneself. External Factor: The several environmental factor which affects the business activities
of has a great impact on business of both tour operating company's business. This is
require to analyse such elements in order to overcome from the issues and problems
emerged from political, technological, social and environmental factors. The organisation
use and comply the Green Policy for regulating entire business of organisation in
effective manner. Kuoni make optimisation of modified and advanced technologies for
proper evolution and management of activities along with proper judgements.
 Government Support: Kuoni and Thomas Cook work at the international market level
which often high interruption amount from state of nation where the organisation plan the
tour. This is required for organisation to implement the activities according to different
deals and regulation of government in order to make the specific decisions. Government
of a nation support such activities as these avail in tourism sector of a nation which
enhance the economical status of an organisation.
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Thus, through the assistance of such elements analysis, a company can reach to level of
achievement in their organisation (Sigala, 2014). Travel and tourism sector is essentials for a
country which help them in development and evolution of a nation.
CONCLUSION
Above report summarise that tour operator industry is the integrated approach in the
travel and tourism sector. There are various types of tour operator organisation such as inbound
tour operator, domestic operator, outbound operator, tour operators specialist. There are various
trade bodies which has wide role in the functioning of such operators such as ABTA, FTO, UK
Civil Aviation Authority etc. In order to develop a holidays plan, the company have to undertake
some certain stages. It is paramount for an organisation to use the tools of marketing and
promotion in their travel and tourism industry for increasing sales of company. The industry of
travel and tourism sector can carry various decision on the grounds of operational flow and craft
development in the business outcome.
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REFERENCES
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operations. Routledge.
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Kauppi, K. and et. al., 2013. Should we try out for the major leagues? A call for research in sport
operations management. International Journal of Operations & Production Management.
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economic planning sciences.46(1). pp.88-97.
Medlik, S. ed., 2016. Managing tourism. Elsevier.
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Sigala, M., 2014. Customer involvement in sustainable supply chain management: A research
framework and implications in tourism. Cornell Hospitality Quarterly. 55(1). pp.76-88.
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