Trailfinders Tour Operation Analysis: Trends, Planning, and Costs

This report provides a detailed analysis of Trailfinders' tour operation, examining the influence of current and recent trends on the travel industry. It delves into the timescales and stages involved in developing holiday packages, including research, itinerary development, negotiation, price determination, marketing, and execution. The report differentiates between various types of tour operators and the methods of contracting holiday components, specifically focusing on fixed and sales-only contracts. Furthermore, it includes a calculation of the costs associated with a luxury coach and educational tour for students, covering accommodation, transportation, and the allocation of costs for a local guide. The report also evaluates planning decisions related to brochure design and explores the suitability of alternatives to traditional brochures, as well as different methods of distribution for selling tour packages. Strategic and tactical decisions made by tour operators are compared, concluding with a comprehensive overview of the tour operation process and its key elements.

TOUR AND OPERATION

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1Influence of current and recent trends on travel industry......................................................1
TASK 2 ..........................................................................................................................................2
2.2 Different types of tour operator and methods of contracting components of Holiday.........3
2.3 Calculating the cost of entire holiday plan............................................................................4
3.1 Evaluate Planning Decision related with designing of selected brochure............................5
3.2 Suitability of alternatives related with traditional brochures................................................7
3.3 Different methods of distribution used in order to sell tour package....................................8
4.1 Strategic decision made by different tour operator...............................................................8
4.2 Compare the Tactical Decision...........................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Tour operations include those plans and procedures which help in providing different and
good quality of travel and tour packages to customers. It provides facilities through which
travellers can visit various destinations within and outside the nation. These industries have five
sectors which are beverages and food, retail, transportation, tourism lodgings, etc. They also use
the latest technologies and other resources which result in quick growth and success of this
industry (Allahyari, Salari and Vigo, 2015). The project is based on Trail finders which is a
travel and tourism company and it operates in United Kingdom and Ireland. It provides various
tour packages to people as well as tourists through which they become happy and satisfied. Main
object of making this assignment is to find changing market conditions which have positive or
negative influence on the business. Report shows the time and processes for its development. It
shows the modern promotional techniques and then compare it with previously used procedures.
TASK 1
1.1 Influence of current and recent trends on travel industry
During the World War II, various things have changed due to travel and tourism industry.
Business is growing fast due to changes in customer preferences and needs. So many companies
have started opening in the travelling sectors. They provide tour packages according to the
demands and requirements of tourists and people. It leads to the increase of profits, growth and
success in the company (Bagan and et. al., 2013) . So, the latest changes which impact Trail
finder are:
Globalization - It is the procedure of communication between people, states countries
with flow of increase of money, ideas and the culture. Many nations are integrating their own
economies in world’s economy so due to these various changes are there. At this stage, many
industries are visiting different countries in globe to adopt those changes in their business.
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Security and safety - Due to globalization and other changes, there is growth of travel
and tourism industry. So, due to the same, company has made effective procedures and policies
for safety and security of people. This is a tough challenge for them.
Diversity - World is diverse due to changes in culture, religion, caste, sex and other
changes. So, company has to evaluate various business environment and make products and give
travel packages according to needs, preferences and tastes of customers. This ultimately results
in the satisfaction and happiness of customers (Bhatia, 2012).
Technology - Due to thus factor travel company has to change itself so that it can work
efficiently and effectively. There are different variations in technology through which hospitals
or transportation industry can capture more customers. So due to it tour business has to adopt
advanced technology so that firm can take various opportunities and this results in increasing
growth and performance.
Price and demographical changes - Company sets its price according to the industry and
as per consumer demand which satisfies them which helps in increasing value of tour packages.
There is increase in population in cities, villages and in many states. So, organization has to
assess these changes and provide tour packages accordingly.
TASK 2
2.1 Timescale and stages involved in developing holidays
Holidays are generally plan for fun and enjoyment. Planning is considered as the
foremost step of every task or activity which layout overall structure of activities and assists
person in taking the best possible decision by examining available options. While planning
holiday, there are number of stages and factors that are required to be taken into consideration
such as cost, entertainment, negotiation, tour packages, etc. Manager of business made
pamphlets and brochures which include travel packages and products for its clients. This helps
them in attracting many consumers and thus, leads to increasing profits (Chaumont and Yor, M.,
2012). Thus, the process of planning and developing a holiday & thereby satisfying the
customers can be formed as a level of stages opening with market destination research and
ending with actual tour operation. Mentioned below are the detailed explanation of each stage:
Research for Destination: The first and foremost stage for developing tour package is to
research about destination which a person wishes to explore and travel. Tourists select

destination as per their demand and likes. There are different methods of analysis that assist the
person while researching about tour destination like PESTLE Analysis. The entire process is
completed within a period of two to four months.
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Developing Tour Itinerary: The next step is to prepare itinerary for selected destination.
It is in the form of travel document that contains necessary information related to travel route,
transportation, accommodation, visiting places, etc. It is a systematic and structured process that
completes the tour package without any hurdle or complexity. Once the visitor has selected
travel destination, Trail finders prepare itinerary for them as per their choices and preferences.
This can mainly be completed within a tenure of within 3 months (Dodds and Kuehnel, 2010) .
Negotiation: Trail finders deals with many vendors and suppliers. They negotiate with
them so as to control the prices of entire tour package. Group Holidays are tailored so that prices
can be more negotiated related with airlines, transportation, accommodation, etc. This stage can
be completed within a period of four to five months.
Price Determination: In this step, Trailfinders generally set up final price after
considering all other factors that affect the total price of tour package. These factors are mainly
in the terms of exchange rate, taxation rate, cost of fuel, etc. This stage is completed immediately
after tour operator has completed its negotiation process.
Marketing of Tour Package: The term “Marketing” plays a significant role in
generating awareness among target audience and stimulate them to buy products or services.
This is often used by companies in order to maximise the demand for a particular product or
services and enhance greater revenues and profitability. Trailfinders is promoting or marketing
their services mainly via print media (brochures, posters) and social media (facebook, instagram,
twitter). This stage will be completed in 5-7 months
Execution of Tour: This is the last stage in which all estimations and preparation are
translated into reality. Basically, at this stage, Trailfinders monitor and control all activities that
are related with the process and ensures to satisfy the needs and desires of their potential
customers in the best possible manner (Erdoğan, Laporte and Calvo, 2014) .
2.2 Different types of tour operator and methods of contracting components of Holiday
In the modern scenario, tour operator mainly design and prepare the packages by
considering two methods namely sale only contract and fixed contract. These types of contracts
are mainly used by airline and flight industry. Under this, tour operator enters into contract with
suppliers and vendors that offers them the best possible prices via which they effectively meet
the requirement of visitors (Fei and et. al., 2014) . Following are the detailed description of these
two contracts that is also used by Trail finders as well are as follows:
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Fixed Contract: Under this contract, Trail finders mainly focuses on adopting qualitative
and collective approach towards the sales figures. They maximise their capacity via increasing
the volumes of sales figures. With the help of these contracts, Tour operator can avail the
advantage of off season by providing huge benefits and discounts to their target visitors. In this,
referred firm is usually taking the risk of factor that are UN-utilized. But they are also liable to
pay the remaining amount to the contractor who are providing them the services.
Sales only Contract: Under this contract, prices are usually high as compared to fixed
contracts. These are mainly referred as seasonal contracts and are generally made by considering
the demand and requirement of potential customers. The risk factor involve in this is
comparatively less as compared to fixed contractors. Unlike fixed contractors, they are not
offering any huge discounts to visitors.
By examine both fixed and sales contract, it has been found out that both methods or types are
contributing towards generating higher revenues or return. Fixed contracts usually provide high
discount and associated with high risk factors whereas on the other hand sales contracts are
related low risk factors which ultimately leads to maximise the price.
Following are the type of Tour Operator:
1. Inbound Tour Operator: Such type of operators are mainly deals in inbound foreign
tourists and provide them services related to accommodation, transportation,
entertainment, sightseeing, currency etc.
2. Outbound Tour Operator: These are mainly specialised in promoting or advertising
product or services in foreign countries. They mainly sell the package of home country to
person of host country (Figliozzi, 2010).
3. Domestic Tour Operator: In this, entire market has been controlled by the domestic
players of tour operators. Under this, operators creates their own niche market.
2.3 Calculating the cost of entire holiday plan
As per the information mentioned in the report it has been figured out that the next
assignment of Trail finders is to create luxury & coach educational tour for adult students (more
than 18 years of age). This tour starts from London, UK To Brussels and Brugge, Belgium. In
this referred firm is liable to find out the entire cost of tour package and the cost of one person.
Grand Casselbergh in Bruges has given the estimation of entire budget related with their
package. They mainly provide information in the context of cost of per person for twin room
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including breakfast . They have also given the information related to price of luxury coach which
is £11, 200 that includes cost of fuel, two drivers, ferry and road taxes. Additional Information is
in the form of cost of local tour guide is £945 and exchange rate €1.12 per £1. Thus the job of
Trail finders is to prepare entire tour package of 5 nights for 42 students per group by
considering provided information.
Calculation of Accommodation Cost: The twin room is shared by two people that costs near
around 96 euros per person. Hotel is charging additional cost for extra bed. Now there are 42
number of students that can be split into 8 groups and remaining 2 can be adjusted by paying for
extra bed to Hotel. So 40 students can avail twin sharing room which cost 96 euro to one person.
Calculation of Transportation Cost: It is included in the cost of luxury coach that mainly
includes cost of two drives, ferry taxes, road taxes, cost of fuel etc. It costs near around £11, 200.
cost of rooms per person 85.71
cost of luxury coach per seat 233.33
Allocation of local guide cost per person 472.5
Total cost of tour before margin 791.54761905
Add: Profit margin 261.1923809524
Selling price per person of tour after margin 1052.74
TASK 3
3.1 Evaluate Planning Decision related with designing of selected brochure
In the travel or any other sector, it is essential to inform or educate customer about the
product or services of particular industry (Flores-Garza and et. al., 2017). Brochure is in the
form of paper document that are often used by companies in order to promote or advertise their
product or services. It mainly includes comprehensive information related to product that leads to
increase the demand for particular product or services by attracting large number of customer.
The cost related to this technique is comparatively low as compared to other promotional
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techniques and its reach is also vast i.e. attracting large pool of customer simultaneously. It can
be distributed via offline and online both (Frenzel and Blakeman, 2015). Advanced technology
and digitization has increased the scope of Brochures. Described below are the key factors that
taken into consideration while designing Brochure:
1. Issue Identification for developing Brochure: It is important for every industry to determine
the issue concerned with product or services before the brochure development takes place. Here
the issue is related with target market, market segmentation, format of brochure, promotional
techniques, relevant information and time-frame for execution process. Marketing manager of
Kuoni are require to take strategic decision and critically evaluate and compare all the possible
options and avail the best one.
2. Format of Brochure: It is a systematic paper document that is used by business enterprise in
order to advertise its product or services by providing useful information to customers. It mainly
includes sub-section and section and split the information into various segments that makes it
more understandable and attractive. It is basically designed as per the target market. The relevant
information must be in this chronological order:
 Name of the Tour Company or Operator.
 Transportation Mode
 Travel Destination
 Provided Itinerary
 Meal and Accommodation facilities
 Estimated Price with detailed distribution information
 Acknowledge other charges and condition applicable
 Fulfil all legal requirement
3. Budgeting and Selecting Target Market: Before publishing the final brochure it is important
to determine the cost related to it and target market. Market segmentation can be done by
examine the needs and desire of different consumers or clients and select the target market
through which chances of generating revenues has been increased for the firm (Gibson, 2012)
(Ha and et. al., 2013). Budget factor can also be determine by spending power of target audience.
Thus, manager of Kuoni are require to critically evaluate the likes and dislikes of their target
customer.
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4. Time Scales for Completion of Stages: It must be designed within the given time-frame as it
is considered as an important marketing document for the tourism industry (KhairatP0F and
Maher, A., 2012) . Thus, the prime responsibility of Kuoni manager is to print or publish the
brochure within the prescribed time period.
3.2 Suitability of alternatives related with traditional brochures
The classical approach for advertising product or services in the marketplace were earlier in the
form of traditional printed brochures. These are usually in the form of printed document that
contains all necessary information related to product or services but these are not effective in
terms of attracting large number of customers. With emerging digitalization and advanced
technology, various alternatives has come out that has taken the position of traditional print
brochures that stimulate the interest of large pool of customers constructively. These alternatives
are basically fills up the gap of traditional Boucher. Following are the list of different
alternatives:
 Websites
 Call centres
 Direct sell
 E- brochures
 Visual brochures
 Travel agents and retailers
 Social media
 Mobile Application
Electronic Brochures are mainly categorise as online Brochures. This is probably consider as
better alternative as compared to traditional one. The cost involve in this comparatively less and
its reach & scope is quite large as via this platform Kuoni can easily attract large pool of
customer simultaneously (Lee, Kim, and Park, 2013). Audio-Visual and Visual Brochures are
considered as the most effective way in order to stimulate the interest of customers and maximise
the productivity and demand of tourism industry. By showing videos and pictures to customers
indirectly maximise they willingness of buyers to avail such product or services. Marketing
Manager of Kuoni is also using the platform of social media websites which are trending now-a-
days. They can create their own Facebook or Instagram page that attracts the customer more
easily as they are spending most of their time on it (Lopes, Souza and da Cunha, 2013) . Kuoni
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manager is using all these modern promoting channels that is less costlier but their results are far
effective and efficient. E-Brochure, Visual and Audio-Visual Brochure are considered as the
most appropriate alternative of Traditional Brochure.
3.3 Different methods of distribution used in order to sell tour package
Every industry diversifies and expand their distribution channel in order to fill the gap
between supply and demand. Earlier in order to attract customers, traditional brochures were
used on vast extent but now with the changing time and scenario effective technological
methods has been used by tour operator in to enhance its distribution channel. Sources like
websites, E-Brouchers, online marketing, retailers, travel agent, social media etc. directly or
indirectly influence the entire distribution channel of tourism industry. With the help of these
tools, Kuoni marketing manager can increase its efficiency and profitability in an effectual
manner. These tools are time and cost efficient and possess different features that satisfy the
requirement of target customer in a structured and thorough manner. Marketing Manager of
Kuoni are required to take strategic decision concerned with selecting appropriate tools and
techniques that has an indirect or direct influence on distribution channel. Following are the main
elements of distribution channel:
 Direct Sale: It includes selling product or services directly to the customer without any
intermediary channel such as mail order or online (Mak, 2011). Under this, company
usually sell their product via direct way.
 Hiring Agents: Under this, Kuoni hires people from outside who sell their product in the
marketplace on the behalf of company. They have a contract with tour operator in terms
of lead generation and yielding higher revenues. Such Agents mainly provide assistance
or guidance to visitors which further assist them in exploring particular country or nation.
 Online Sales Services: Manager of Kuoni can sell their product or services through
online platform which mainly includes using social networking sites that is highly
trending among the young population. This enables them to attract large number of
customer in an effective and efficient way. This also entitles referred firm to assess
detailed information related to its customer choices and preferences.
TASK 4
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