Trailfinders Ltd: Comprehensive Tour Operation Management Report

This report provides a comprehensive analysis of tour operation management, focusing on Trailfinders Ltd. It begins with an introduction to the travel and tourism industry, highlighting the role of tour operators and their importance in generating revenue. The report then delves into the current tre...Read More

Tour Operation Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1...........................................................................................................................................3
Task 2...............................................................................................................................................5
2.1 ..........................................................................................................................................5
2.2...........................................................................................................................................6
2.2 ..........................................................................................................................................7
Task 3...............................................................................................................................................8
3.1 ..........................................................................................................................................8
3.2 ..........................................................................................................................................9
3.3 ........................................................................................................................................10
Task 4 ..........................................................................................................................................11
4.1 ........................................................................................................................................11
4.2 ........................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Travel and tourism industry is growing rapidly in the present era. There is huge
contribution of this industry in the development of an economy of nation. Tour operators may be
considered as partners in the channel of distribution that caters to outbound, inbound and
domestic tourists as well. Therefore, it can be analysed that tour operation business is integrated
with other tourism businesses as linked between the service providers and tourists. In other
words, tour operation business is essential in generating higher revenues or incomes with
providing wide range of services like transportation, accommodation etc. in a professional
manner. Tour operators provide luxury services and holiday packages at affordable prices so that
more customers can be attracted. This report is based on Trailfinders Ltd. which deals travel and
tourism sector and provide various facilities such as holiday package, airlines, hotel and resorts
or accommodations to the tourists. The report will cover current trends on tour operators and
various stages in creating holidays. It Evaluate plan to design a brochure for tour package and
make tactical or strategical decision for tour operators.
TASK 1
1.1
In the modern era, travel and tourism sector is growing quickly and contributing in
development of economy and country through generation of large number of employment
opportunities and providing high flow of cash. There are various kinds of factors that have major
impacts on the travel and tourisms sector such as current or recent trends and environmental
aspects which directly affects on business performances in several ways. It is necessary to
consider changes and new trends so that company can survive in the competitive environment in
an effective manner. In the international market, competition increasing day by day so these are
creating tough situations for businesses for accepting such challenges and make changes
accordingly to attain set goals or objectives. Tour operation businesses are also facing various
complexities like political instability, terrorism etc. which impacts their business operations
negatively. Trailfinders also deals in travel and tourism sector which try to adopt best strategies
and tools for running business. They focus on creating awareness among customers regarding
attractive tour or holiday packages so that they can get their attention and results in improvement
in sales turnover . Company make favourable decision regarding adoption of strategies and

techniques by considering recent changes and current trends in the environment which helpful in
improving particular products or services to capture wide area of market place. It can be
understood by undertaking some recent trends so that Trailfinders can meet customers desired
expectations in better ways such as:
Latest technological equipment and Internet facilities: This is most trendy and new
method that many of firms have considered to run their business operations in an efficient way.
There are various alteration occurred in tools or technologies as per environmental changes
which can affects on the business activities so it is necessary to adopt such factors and make
favourable changes in an effective way. Trailfinders Ltd has opportunity to promote its products
or services amongst targeted audiences with the help of using various technologies and
equipments which includes social media, online websites etc. so that they can attracts more
customers towards firm. It is also beneficial in providing information to target customers with
the help of social media, official websites so that customers can be aware regarding holiday
packages and tours or trips that organised by operators. Internet is best source for conveying
messages to wide people by publishing online ads and websites as well.
Environmental Cocern: Every business is surrounded from environmental factors that
have direct impacts on the activities and functions of organisation in positive or negative ways.
Therefore, it is necessary to screening such environment for analysing various factors or forces
that influence company's profitability and productivity as well. In the travel and tourism industry,
new changes and recent trends can be a big factor which depends on changing environment.
Trailfinder should conduct appropriate research or survey for analysing recent trends, market,
competitors and customers for the purpose of making attractive tour packages.
Maximisation of spending power of customers: Per capita income of individuals in
society is increased over the period of time because large number of employment opportunities
are present in nation. This will enables them to spend more on their leisure and travelling
activities. This will provides the opportunity to the travel and tourism company like Trailfinders
to earn large amount of income.
Tour packages: There are many holiday packages are provided by companies as per the
need of customer's which allows then to choose one which suites them more. This will helps in
satisfaction of the needs of customers and attain their trust towards the services of organisation.

Task 2
2.1
In tourism sector, it is required that tour operators provide better services to their visitors
on the basis of their requirement and need. In it, such tour agent and organisations create
impactful strategy to plan several packages for tourists attraction. Through this, they can easily
get higher profitability and growth by maximising number of visitors toward their firm.
Trailfinders Ltd. Is also looking to grabbing such opportunities for their business process in order
to attaining higher competitive advantages easily. Below mention are some stages which is
involved in it.
Market Research – This is is the best tool which is used by every organisation for
identifying entire market trend. It is the first step, which assist in analysing customers taste,
competitors and preferences also related to the destination. There are several tour and travel
company which conduct market research for collecting information. So that they can frame
holiday packages in better manner as well satisfy needs and wants of customers. Trailfinders Ltd
is conducting online survey for analysing demands of the customers as well their behaviour also.
For this purpose respective enterprise are their official websites for this purpose.
Planning and scheduling – It is the next stage after market research of developing
holiday. Thus, in this company implement identified data for framing effective tour operations.
In this planning of tour packaging is done according to the need and wants of customers. Apart
from this schedule is done for setting time for customers. This contain appropriate planning by
keeping in mind time and peak season of holidays. With the assistance of proper planning
holiday packages can be formed in better manner.
Forecasting – Forecasting is also necessary and play important role in framing holiday
packages because through this manager can make effectual packages by the help of
measurement. In this stage climate analysing take place so that according to the weather of
particular city or country travel packages framed. Because if climates was not good then it can be
harmful for life of anyone or they cannot enjoy holidays also. So while designing holiday
packages it is the responsibility of company to forecast weather. For example, people generally
love or wish to travel London during Snowfall reason but for travel companies it is not possible
to travel at the same time because of that they deny this plan. Main reason of denying is heavy
snowfall or weather.

Contracting – It is the legal term which is involved in the organisation and help in
providing services and facilities to customers according to the guidelines mention in the contract.
Better services assist in satisfying needs and wants of the customers and they can enjoy their
holiday packages by relaxing and enjoying. Trailfinders Ltd. Main motive behind providing
better services to the client is making them loyal. In this, manager try to follow several effectual
strategies, latest thoughts and ideas as well as innovation for pulling in more peoples and for
target customers also. so that, relationship can become strong and better. Company is making
contract with several vendors for facilitating their customers such as cab facility, hotel and
restaurant and so on. Apart from this attractive and reasonable holiday packages assist company
in increasing profit and also in satisfying customers. Moreover, contract have their legal
evidence which can be used as legal proof if their any issues rise related to the term and
condition of travelling package.
2.2
In travel and tourism sector their are several methods of contracting which is beneficial
for them because it assist in cost cutting or reducing expenses as much as can. Such kind of
contract assist organisation in attracting customers as well as also in saving hard earned money
of clients. Several enterprise are using several methods for designing holiday packages and for
satisfying customers. It is important for every company to make better relation with their
customers and this activity assist in attracting them towards the enterprise. Contract play their
important role in the business because it is legal proof and can be use in court if their any
problem in future or present. Respective business use two type of methods given below :-
Fixed Contract – In such type of contracts, organisation try to fulfil needs and wants of
customers which make them satisfy by providing better services and facilities with vendor's
services also. Trailfinders Ltd maintain relation with several vendors during doing contracts.
Although, these vendors are catering, hotels, cab and so on. So that people who are travel will
not face any difficulty and travel enterprise take responsibility to serve their best to customers.
These type of contract is beneficial for both customers and travel enterprise because it covers
several risk and uncertainties.
Sales contract – In this method, tour organiser find out effectual travel packages and sell
at affordable price within customers. Such type of contract is design in peak season and then they
give to tour operators for selling these to the customers. But purchasing of these packages is

totally rely on the customers that where they want to go as well on the preferences also.
Trailfinmders Ltd try hard to satisfy needs and wants of their existing and potential customers.
Thus, buyers will pay for the goods and services they use and after that they return it to vendors.
For an instance, a group of Chinese people wish to see England and their demand is to staying
in 3 star hotel, then tour operator will book 10 rooms in hotel for them but if guest use only 8
rooms then it is the responsibility of Trailfinders Ltd to return the money of unused room to the
client and pay for 8 rooms to the hotel.
Thus, respective organisation maintain better relationship with their customers and
vendors for attracting them as well it will assist in increasing productivity. For attraction
Trailfinders Ltd. Design unique and affordable travel packages for customers as well such things
will be beneficial for the firm in achieving competitive advantages and also for achieving pre-
determined goals and objectives.
2.3
There is a special rate for the group that has been proposed by Grand Casselbergh in
Bruges of 92 euro for 2 adults sharing. So the selling price for the tour and travel package and
price per candidate has been calculated from given information such as:
Selling price of the tour
package €
Rate of twin room with break
fast 460
Price of luxury coach (7350*1.12 /45) 183
Visitor attraction charge 260
Cost of local tour guide (€1020/42) 121.45
Total cost 1756.1
25% markup 439.03
Total selling price 2195.12
Hence, it can be defined that price of food is not sum-up in the above calculation of
selling cost. Therefore, computed price of selling the tour and travel packages must be
approximately 2195.12 Pound for five nights.

Therefore, it can be identified that by considering all these aspects, students can make
their judgement related to buying and can choose a tour and travel package as per the reputation
of company, cost and several other factors.
Profit margin – Profit margin is one of the most effective analytical tool that can be used
by a company to produce numerous services. It is basically uses in many other financial
measures. It is important to analyse that profit margin is not a measure of how much cash a
company earned during a limited time period. These kind of incomes are basically denoted by
income statement. In it profit margin includes non cash expenses, such as depreciation. These
kind of aspects are basically managed by financial manager or executive of firm in effective
manner.
Fixed and variable cost - Variable costs are costs that change with several output. It is
basically increase at a invariant rate relative to labour and capital. In travel and tourism
organisation these can be used for rent , insurance policy and so on. Variable costs may consider
wages, utilities, materials used in production, etc.. Fixed costs, is fixed in total as irrespective of
the number of output that has been produced. Fixed cost changes in unit as the units produced
increases, fixed cost per unit decreases, so the fixed cost per unit is reciprocally relative to the
number of output produced.
Task 3
3.1
Brochure is a single foldable sheet which is used by marketers to highlight their products,
company or services. It is a most effective tool which is commonly used by a business firm.
Planning is a fundamental approach to design a brochure with first impression which includes
base of content, colours, pictures related to tour trip and many more. Leaflet is also available in
various ways such as online, websites that helps in making places available to their customers.
This strategy is effective, relevant and convincing which help in building up of pamphlet. There
is a need to build up brochure by every company, these are described as follows:
 A brochure is usually used to provide information which they want to convey their
customers with regard to a company. This information can be related to introducing new
product, recent changes such as new trips, offering discount for limited period that are
taken by trailfinder company.

 Brochure is an essential element as an advertising tool, which attract new customers that
will allow them to improve the selling. Advertisement is important which can easily
reach to required customers by using segmentation.
Formatting of content: It should be specific according to the guidelines which are given
by Trail finder company. This part includes point size, font, pamphlet fold and its texture. Also,
line spacing between the lines, use of picture which are relevant and reliable according to a trip.
This covers paper selection, finishing of paper that is glaze and normal or butter paper.
Moreover, involving pictures and graphics which attract more and more customers towards there
tour offer. Formatting of content is to be carried out through paying consideration to the
preferences and expectation of the target market. .
Budget and target market: This part includes budget and particular market which
should be chosen to capture more and more customer eyes. Budget is about brochure which
should be a cost effective and attractive that will able to attract their customers. It includes folder
type, paper quality and also involves target market at which market it should be delivered as per
the budget of tour trip offered to them such as targeting middle and upper class people to
enhance their productivity. The stages in brochures designing are required as follows:
 Defining the target audience for trailfinder marketing brochure.
 Creating thoughtful, targeted messaging for marketing brochure design.
 Collecting unique and meaningful images to illustrate a business firm brochure design.
 Designing brochure around pictures and branding.
 Repurpose the same design for different products.
3.2
Trailfinder company spend huge amount while distribution of brochures. But using of
cost effectiveness method can being questioned. Trailfinder is one of the most popular travel and
tourism company that provides attractive packages in UK. To advertise its products and services,
a company has basically used traditional brochure that uses different substitutes. Brochures helps
to cover wide area of targeting visitors groups and accomplished their objectives in more
effective manner.
Apart from traditional brochures tour operators have focused on marketing of their
products and services which are rendered by Tail finder company by adopting different ways.
These are described as follows:

E-mail brochure : This type of brochure is used mostly, as people are more friendly with
upgraded technology which are used by them on daily basis. It is a most effective method that
companies are using now a days, to enhance their productivity and increase sales of company. It
will be environmental friendly method that maintain and reduces the cost of paper of an
organization. This can be accessed more easily and convenient as it will appear every time on
website and online sites. It is easily get or seen by audience on their mobile phones or through
computer and laptops which are most accessible gadgets that are used visitors. Trailfinder
company can use this technique by developing websites and online booking sites.
Video brochure : This type of brochure is used to for tourism through which people get
more attracted towards picture and voice which is recorded at a time of videography. This will
easily grab customer eyes by using various medium such as television, social media and internet.
For travel and tourism organisation, it is required to implement video brochure which is a part
of advance technology that assist to provide maximum information to visitors about organisation.
This technique can be used by doing advertisement on social media and many more.
Audio brochure : This type of brochure are used to when there is lack of resources or
use at places where more electricity is provided such as rural areas. It that time these types of
brochures are used to deliver company's services to their customers by providing them all
relevant information related to there trip. This involves offers, facilities, packages, services as
well as trip. This can be done through using of radio and any other type of medium.
3.3
The holiday packages are used most recently and also popular in these days. The tour and travel
company has been experiencing in enhancing number of operates, that bring innovation in this
sector. Trail finders uses several types of distribution to circulate pamphlets to customers. The
main objectives is to reach out upper limit of customers. There are different distribution methods
such as:
Internet : It is an effective method to attract people and reach towards new visitors for
growth of business firm. Currently it is mostly used by each and every person that will provide
clear and appropriate information to their clients as per there requirements. Internet provides
transparency to their clients while showing or displaying it on their sites. Apart from this, this is
the best way of selling travel and tour packages because now a days people are addict of internet.

Direct sale : A company can target their visitors through advertisements, brochure
distribution in local newspaper, designing websites and many more. This will increase the long
term stability of company position. It is a cost effective method that will result, in increasing
profitability of tail finder company. Moreover, company can meet directly to the person who
love exploring new places and can sale them their holiday packages.
Agents : This type of method includes offline booking which is relevant for outdoors and
business activities. It used where there is wide area is needed for connectivity. Through this
visitors can get idea about tourist place and get information about different packages provided by
Trail finder company.
Tour operator like Trail finder provide holiday packages for thousands of customers who
travel all around the world. The formation of services offered by a business firm will increase in
expansion of business. By using above techniques such as promotional activities, different
methods that are adopted by an enterprise. Also, this will enlighten on various types of brochures
can be used by Trail finder company.
Task 4
4.1
Tout operators are growing with the increasing travel and tourist industry. In order to
attract user they need to identify the decision factors on which they are can sustain in the
market. There are some strategies that influences the decision of different tourist operators are as
follows -
Pricing strategies – Trail Finders is tour operator and they can capture the attention by
using pricing strategies. Because there are so many people who attracted by the low cost
packages as their purchasing power is less. Therefore, this kind of customers attractst towards
reasonable price package. . Trailfinders can allure the customer by reasonable price strategy that
can appeal the potential buyers.
Positioning and image/branding – As it is need to build brand image of tour operator
firm because there are some people who invests their money for the lavish services during travel.
Luxury services are most prominent by which they can appeal to purchase their package with an
extensive prices. Trailfinders can use the luxury services to promote the products among the high
street people as being brand image of tour operator in travel and tourist industry . The small tour

operator services can also provide some eminent facilities to their customers such pick and drop
facilities, hotel booking with a reasonable costs. This establishes their image in the marketplace
and aid to grow in the market. Trailfinders will apply the positing brand image then it is able to
take the decision to make its business strong.
Investment funded by capitalisation – There is a need of funds to develop the stratgies
and policies for the investment of funds that are availabile to the Trailfinders and they can also
go the external sources which can provide funds to them in order to develop the sell of tour
packages and expansion of operation activities like it can offer the cruise to travel with all the
eminent facilities.
These are strategies that can impact on the decision of the tour operators to grow the
business in effective way.
4.2
The tactical decisions which can be taken by the tour operator for the routine operations and
functions to run their business smoothly. Comparison of several decision taken by Trailfinders
which can taken decision depends on various things that are given below -
Competition - The tactical decision can be taken to reduce the competition and to
eliminate the rivals from the marketplace that can harm the business. Trailfinders can improve
the qualities of products and services, discount prices and low prices of the product because it
attract customer on the primary level. The tour operator can also gain the advantage of extra
facilities which are not provided by the others.
Fuel pricing – Fuel pricing is related with cost of oil and fuel and that can be arise at
any time and it can impact on the increased fare of transportation facilities. For an instance, the
rise in fuel price will increased the cost of travel and it will also impact on the business cost. Due
to increase in fuel price Trailfinders needs to manage the cost of package in which they are
providing the travel services but now it needs to increase the package price that can impact on
the business expenses.
Consolidations – The consolidation decision refers to identifying the facilities such as
accommodation, transportation, meals, amusement, etc. which are going to be included in the
package according to the requirement of customers. It is important to consider these tactics to
make a decision that can be beneficial for customer and tour operators. For an instance, the
consolidation refers to providing accommodation services like Trailfinders offers bed services in

a hotel. It needs to make a contract with the specific number of bed where the tour operator can
make the clients stay but according to the time they can reduce and maximize the contracted
beds.
CONCLUSION
From the above mention assignment it has been concluded that, travel and tourism is the
widest and fast growing sector as per the current scenario. This sector is help in development of
economy by providing several aids to the society. In this industry environment is much
competitive, thus according to that Trailfinders have to take several decision related to travel and
tourism packages which must be distinct from others. Moreover, this report includes, several
points such as identifying recent market trends and assessing time scale also for framing holiday
packages. Apart from this, there are several methods through which calculation of selling price
of holiday packages per person is calculated. Moreover, planning decision of brochure and its
suitability for several types of travel and tourism company is also discussed in the report.