Tour Operations Management: A Case Study of Trailfinders

Desklib provides past papers and solved assignments for students. This report analyzes Trailfinders' tour operations management.

TOUR OPERATIONS MANAGEMENT

Table of Contents
INTRODUCTION............................................................................................................................. 2
TASK 1............................................................................................................................................ 3
TASK 2............................................................................................................................................ 6
2.1.............................................................................................................................................. 6
2.2.............................................................................................................................................. 9
2.3............................................................................................................................................ 10
TASK 3.......................................................................................................................................... 12
3.1............................................................................................................................................ 12
3.2............................................................................................................................................ 13
3.3............................................................................................................................................ 15
TASK 4.......................................................................................................................................... 17
4.1............................................................................................................................................ 17
4.2............................................................................................................................................ 19
CONCLUSION............................................................................................................................... 21
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INTRODUCTION
The organizations that provide the facilities that are linked to the holiday packages and
promoting their services with the help of the advertising media such as the generation of the
brochure and publicly advertising through the hoardings. In this assignment, the current trends
that are existing in the travel and tourism industry have been explained. The assessment of the
different operation of the travel agency in the attracting the tourists from all across the globe
has bee discussed in the assignment. In the first segment of the assignment, the key aspects
that are responsible for the development of the tourism industry will be discussed. Secondly, in
the assignment, the understanding of the several stages that are involved in the creation of the
various holiday's packages has been evaluated in the assignment. Lastly, the strategies that are
implied by the Trailfinder for providing the services to the consumers that are existing across
the globe is given in the assignment.
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TASK 1
Travel and tourism industry is one of the
most vibrant industry from the different
sectors that have been contributing in the
global economy. The changes in the
external business environment occurring in
the travel sector all around the globe. So,
for avoiding any kind of the bad situation in
the organizations it is necessary that the
travel organizations adopt a different kind
of the changes that have been happening
(Robinson et al., 2016). The current trends
in the emerging industry of travel and
tourism have been evolving on a continuous
basis leading to different transitions that
have been evaluated. Trailfinder’s product
development team has been examining the
business environment with the combination
of the EU package. The company designs
the different kinds of the brochures for the
tour packages that are offered by the
company. There are several kinds of trends
that directly influence the business
operations of the travel companies. The
several kinds of trends that impact the
organizations in the tourism industry are
given below:
Globalisation
 Accessibility to the tourist that are
present in the different parts of the
globe
 Discovering the new tourist
destinations
Globalization is the process through which
the different economies have become
integrated and interdependent. It is more of
the dynamic state rather than the end state
(Qian and Law, 2018). The Trailfinder needs
to develop and design the tour packages
such that the individuals from all around
the globe can easily explore the various
packages that are offered by the company.
Marketing Approaches
 Provision of the discounts
 Promotion with the support of the
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government
Trailfinder has also combined with the
government of UK for raising the funds for
the promotion of the tour packages that are
offered by the companies.
Enhanced Technology
 Booking of the tour packages with
the online websites
 Enhancement of the infrastructure
Customer Satisfaction
 Increase in brand loyalty with the
consumers
 Retention of the consumer base
Tour programs have been organized by the
Trail finders that are based on the needs of
the travellers that are visiting the
organization with the enhancement of the
experience of the customers (Kotiloglu et
al., 2017).
The various kinds of tour operators that
have been providing the services are given
below:
Inbound Tour Operators
The operators that are inbound are greatly
contributing in the generation of revenue
by providing the services to the tourists that
are visiting the tourist destination.
Outbound Tour Operators
The companies that provide the outbound
tourism services serve the people,
particularly that are visiting the host county
(Flores-Garza et al., 2017).
Domestic Tour Operators
In this, the organizations provide the
services and packages within the
boundaries of the country.
Major Tour Operators in the UK
TUI AG
Figure 1: TUI Logo
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Source: Flores-Garza et al., 2017
Origin: Germany
Revenue/ Year: 26 billion Euros
No. of Tour Operators: 85
Thomas Cook AG
Figure 2: Thomas Cook Logo
Source: Caber and Albayrak, 2018
 Origin: Germany
 Revenue/ Year: 8.5 billion Euros
 Areas of Operating: Germany,
France, Egypt, Canada
 No. of Tour Operators: 35
Vertical Integration
This comprises of the two organizations
that merge with each other that belong
from the different sectors such as the
transport and hospitality (Caber and
Albayrak, 2018). Thomas Cook has
implemented this as the strategy in the
organization.
Horizontal Integration
This is the process of combining the two
companies so that the profits that have
been attained by the companies can be
maximized and reduction in the competitive
rivalry can occur.
Role of Different Trade Bodies
ABTA:
Figure 3: ABTA Logo
Source: Flores-Garza et al., 2017
This is a well-known organization that has
been providing advice that is related to the
planning of suitable tour packages (Byrnes
et al., 2016).
UK CAA:
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Figure 4: UK CAA
Source: Caber and Albayrak, 2018
This is the public sector organization of the
UK government that establishes the policies
for the aviation industry of the nation.
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TASK 2
INTRODUCTION
The report represents the educational tour proposal for the individuals that are at the age that
is above 18. They belong from London, United Kingdom and the tour proposal is established for
the tour that will start from the UK to Brussels and Brugge, Belgium. In the process of the
development of the holiday package, the assessment of the several levels and time scales has
been executed by the organization (Allahyari et al., 2015). At last the selling price of the tour
package has been evaluated as per each individual.
2.1
The several methods that are based on the progress and planning of the holiday package are
given as below:
Market research
In the initial phase of the planning the tour package for the customer, the fundamental step is
to gather the information that is associated with the market of a tourist destination. There are
various components that are to be considered before the execution of the plan of the tour
package. This further is beneficial for controlling the budget of the overall plan also.
It is necessary in the given case of the tour that is to be organized by the Trailfinder that the
organization discovers the several opportunities for the company in Belgium. Through this, the
high quality of the services can be provided to the customers (Redjem and Marcon, 2016).
Planning and Scheduling
This is the second step after the conduction of the important market research that involves the
preparation of the best plan. The plan will help the consumers in selecting the best option from
the various services like transportation and accommodation. The maximum advantages can be
easily attained with the implementation of proper planning. In the case of the tour that has
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been organized by the Trailfinders of 7 nights that travelling distance will be calculated that also
involves the sightseeing. The proper plan has the tendency to reduce the operation cost and
time that is required to visit the different places. With this, the overall experience of the
consumer can be enhanced as with the saved time they can explore more destinations in
Belgium.
Contracting
This is the process of obtaining the services from the different local providers of the tourist
destination is known as the contracting( Lima and Weiler, 2015). Through this, the products
and services are availed by the tourist destination at the affordable prices with the appropriate
negotiations with the providers. In the case of the Trailfinders services involves the
accommodation services that are required by the travellers while travelling from the Uk to
Belgium.
Cost assessment
During the process of the formation of the tourist package, the tour operator like the
trailfinders estimates the overall expense of the tour that is helpful in providing the packages at
affordable prices. The key benefits of the cost assessment that are offered to the Trailfinder
include the management and controlling of the expense of travelling, accommodation and cost
of other researches.
Managerial Staff
It is the duty of the management of the tour operator should recruit the right candidate with a
suitable amount of the experience and knowledge about the tourism industry. They must have
an understanding of the tourist destination, decision-making process, customer services and
successful management of the problems that might arise during the procedure (Hoyos et al.,
2015).
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Analysis and Evaluation
The development of the marketing strategies takes place in this stage with the assessment of
the effectiveness of the tour packages by the tour agencies. The feedbacks are collected from
the customer for evaluating the errors in the services that are provided to them. After this, the
improvements in the tour packages have been made so that the high quality of the services and
products can be supplied to the consumers of the company.
TIME
SCALE
MONTHS 1 2 3 4 5
MARKET RESEARCH
CONTRACTING
MANAGEMENT OF
STAFF
COST ASSESSMENT
ANALYSIS AND
EVALUATION
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2.2
The contract can be identified as the agreement between the two parties that agree on the
particular topic along with considering the several aspects that are related to the contract. In
the tourism industry, the contract is related to the tourists, tour operators and providers of the
services is formed (Lacej and Kalaj, 2015). This is vital for safeguarding the rights and legislation
that has been the protective shield from the various issues that can hinder the problems. The
various manners in which the contracting in the travel business is performed is given below as
follows:
Fixed Contract
The cost of the packages in this type of the contract is fixed by the customers of the tour
operators. Through this, the consumers of the packages are facilitated by the increased amount
of advantages that are offered by to them if they buy the packages in the bulk.
Sales Only Contract
In the peak season of these contracts are generally costly as compared to the fixed contract the
thus facilitating with the opportunities to the user of the service such that the highest amount
of the profits can be attained easily (Bazargan, 2016). This kind of contract is emphasized on the
enriched quality of the products and services provided to the customers of the organization.
The reduction in the interest in the customers of the company and rise in the prices in the
market is the disadvantage of the contract.
Ad-hoc Contracts
In this, the improved quality of the services is provided to the customers of the company with
the establishment of the provision. This provision is associated with the extra arrangement of
the seats for the customers.
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In the given case the fixed agreement has been implemented for the purpose of the booking
the services such as the flights, accommodation and hotels.
2.3
There are some of the special services provided by the Grand Casselbergh in Bruges to the
Trailfinder. In this, the room for two individuals is given at the cost of 96 Euros with the
breakfast facilities (Bamford et al., 2015). They are also providing the bus services with a seating
capacity of 45 under the £7,350. The local guide will cost over £1060 for the complete tour.
Along with this, the markup cost of the Trailfinder is almost 25% of the overall cost. The
expenses of the tour packages are given below:
Cost Calculation Amount
1 Cost of rooms and BB 96*45*6 £ 19,720.00
2 Total variable cost £ 19,720.00
1 euro = 0.89 pounds
3 The variable cost in pounds 19,720.00 *0.89 £ 16,356.80
4 Bus Cost £ 12,400.00
5 Guide Cost £ 1,205.00
The total cost of the complete tour is approximately £ 29,541.90
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