Assignment on Tour Operations Management

Introduction

This tour operations management assignment has been prepared over the topic tour operations management. This report discusses the various aspects related to tour and travel industry. Tour and travel industry provides travelling facilities to the customers so as to make their trips easy, comfortable and memorable. With the changing environment needs of customers are changing and competition is increasing. For meeting these changes tour operator need to identify measures which helps in dealing with these issues or changes. This report discusses the stages which are involved in the creation of holiday packages by the tour operators, strategic and tactical  decision making  for the tour operators. It also covers the effects of current as well as recent trends and developments on the tour and travel industry and the different methods of distribution used by tour operators for selling packages. And evaluation of the tactical decisions is done so as to identify the suitable one. 

Task 1

In this section of the report an industry report will be prepared which will cover the analysis of the various current and recent trends and development in tour and travel industry and their impact or effect over the tour operators. These tour operators provide various services to their customers including ticketing, accommodation, travelling and pick and drop services. It has been analysed that the growth rate of tour and travel industry in United Kingdom is increasing.

Task 2

This section of the report discusses the various stages that are involved in the process of creation of a tour package by a tour operator. It also covers the calculation of selling price of a package and the various aspects related to different components of holiday and different types of tour operator. The main objective of this task is to prepare a plan which consists of all the aspects related to creation of a tour package for students. The main focus of this section of the report is on expanding the area of operations by expanding the customer base. This can be attained with the help of creation of different packages.

P 2.1 Assess the stages and timescales involved in developing holidays

Planning a tour package is a tough task which needs to be executed with the help of various stages so as to identify the needs of the customers. This helps on focusing over the demands or expectations of the customers. During the process of developing a holiday package various aspects need to be considered by the tour operators. These stages which are involved in the process of developing a holiday are as follows:

• Analysis of the market: market analysis helps in determination of the conditions of market as well helps in the evaluation of these conditions so as to generate a plan which maximises the benefit of the customers by effectively expanding the area of operation of the tour operator (Gavalas, et. al., 2015). There is a need to estimate the cost involved in different activities. 
• Forecasting: this stage involves making forecasts for the purpose of planning or deciding the tour package. And strategies need to be framed so as to prepare an effective tour package which matches with the requirements of the customers.
• Planning and scheduling: this stage is executed so as to from a plan and to decide the inclusions and exclusions from the plan. It helps in arranging the package and analysis of the cost involved in the services offered.  There is a need to prepare competitive strategies and to decide special offers which are needed so as to attract the customers.
• Examining the feasibility of the plan: this stage involves evaluation of the plan in terms of being effective in attracting the customers this evaluates the suitability of the plan in attaining the objectives of the plan.
• Contracting and negotiating: this stage involves  communication process  with the different parties who are involved in the process or plan in any manner. For the purpose of preparation of a plan there is a need to undertake contracts so as to plan the tour package and cost of the package.
• Development of tour: this stage of the process helps in the completion of the creation of the plan or tour packages and to decide the feasibility of the complete program.

P 2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator

There are various components of a plan or tour package. A tour package is a sum total of different components which makes the plan complete. These components of tour package which provides an explanation of the various methods of contracting are discussed below:

• Accommodation: accommodation includes stay facilities to the customers. For the students there is a need to undertake different contracts for accommodation with the hotels as the stay is at different places during the period of the tour. The tour is of 5 days which includes sightseeing from London, United Kingdom to Paris and France. So this includes stay at different places during the tour and different contracts need to be done.
• Travelling: this includes ticket booking, pick and drop services and travelling for sightseeing. For this purpose contracts will be made with the airlines or other mode of travelling, payment to the individual for hiring the cab and payment to the driver so as to make the whole trip comfortable and memorable for the students (He, & Wang, 2012). 
• Guide: guide is the person who provides idea of the different place during the trip. Trip is a sum total of visiting different places. For the purpose of gaining knowledge of the places visited during the tour package, there is a need of a tourist guide who will guide the students about the different places visited in London, Paris and France. A sum of amount will be paid to the guide. And a contract will be entered with the guide so as to smoothen the whole tour.
• Food and beverages: during the stay of 5 days students will be provided food and other eatables. For this purpose various contracts will be entered with different restaurants and hotels so as to offer these services to the students in London, Paris and France. 

Different types of tour operators are as follows:

There are two types of tour operators available. These are sale only contract and fixed contract. These are explained below:

• Sale only contract: in these types of contracts the wastage is minimised as payment has to be made for the services utilised rather than for the whole booked services. This reduces the chances of losses. Payment will be made to the hotels on the basis of the services utilised by the students during the 5 day tour from London, United Kingdom to Paris and France (Smith, & Zhou, 2014).
• Fixed contract: in these types of contracts various types of offers are provided to the customers so as to provide them benefits of the offers and to attract them and to satisfy them with the services offered (Lee, 2015). In this type of contracts payment is made for the utilised services as the booking is made prior to the contract of tour is undertaken. There may be chances of losses as the booked capacity may not get fully occupied and increases the losses suffered.

P 2.3 Calculate the selling price of a holiday from given information below.

For the purpose of calculation of the cost involved in the whole tour of 5 days for 15 students there are a need to identify the cost of every series provided during the tour. Calculation of the selling price of the holiday is as follows:

Details	Pounds
Cost of accommodation (60 euro is the cost of a twin room which is shared by two adults)
For 15 students, 8 rooms are booked for 5 days and 4 nights (8 x 60 x 4 x .78)	1497.60
Cost of transportation	1000
Food and beverages (10 x 15 x 4 x .78)	468
Guide cost	200
Total cost	3165.60
Add – 10 % profit	316.56
Sale price	3482.16

*value of 1 Euro is equal to .78 pounds.

Task 3

This section of the program discusses the planning decision process which involves creative thinking for designing the new brochure for the purpose of adventure holidays. Evaluation will be done of the planning decision process of the new brochure for adventure holidays. Suitability of different methods of distribution which have been used for the purpose of selling the packages by the different tour operators is checked.

P3.1 Evaluate the planning decisions taken for the design of a brochure

Brochures are used so as to attract the customers by providing or making them aware of the services offered to them. There is a need to make the brochure attractive and easy to understand so as to catch the eyes of the customers. Brochure is a technique of promotion which costs low and provides huge benefits to the tour operators. For this purpose a brochure of Thomas cook has been selected. The planning decision taken for the purpose of designing a brochure needs to be effective so as to attract the customers. During the evaluation of the planning decision there is a need to prepare the brochure in such a manner that it attracts the customers and provide them sufficient information about the tour packages (Lopez, 2012). The brochure includes the details about the tour and provides an overview to the tour offered by the tour operator.  A brochure includes various details about the services and features of the tour which is being offered to the customers. It contains information related to the tour. It contains the details about the location, way of reaching the location, services offered during the tour, booking of tickets and reservation of the hotels. The design of the brochure needs to be effective, according to the taste and preference of the customers which can be analysed with the help of market research. There is a need to identify the issues related to the recognition of the brochure and issues related to the formatting of the brochure. Before the preparation of the brochure objectives need to be identify which helps in providing a direction. 

P3.2 assesses the suitability of alternatives to a traditional brochure for different types of tour operators and recommends the most appropriate for your tour package.

Traditional brochure is one of the most suitable tools which are used for the purpose of attracting the customers so as to enhance the area of operation. Traditional brochures are considered most appropriate method for the communication of the information related to the tour packages to the customers. The most suitable alternative for the traditional brochures is the online promotional techniques. These techniques help in attracting the customers in a better manner and that also on lower cost. With the change in the technology, demand and taste of the customers is also changing. For meeting these changes online promotion is the most suitable alternative. It reaches to the large number of people as more people are connected to the online websites and applications. These promote the use of the tour packages by offering wide range of discounts and offers. These offers and discounts attracts the customers as customers feel satisfied when variety of services are offered at affordable prices and which provides comfort and makes their tour memorable. Online promotion is a part of mass media promotion as mass media is a wider term which includes promotion with the help of newspapers, televisions, radios and online. These means of mass media are effective as well as are cheap ways which saves cost, time and attract large number of people as large number of people are connected or are in regular contact with these sources of mass media (Mak, 2011). For the purpose of this tour package the appropriate and suitable method for promotion can be online promotion. As online promotion is easily accessible by the people as with the change in the technology more people are interacting with the different sources or things with the help of online application or websites.

P3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator and recommend the most appropriate for your tour package.

Different types of methods have been used by the tour operators for the purpose of selling the packages to the customers. These methods include agencies, direct selling, call centres, internet, teletext and telephone. These methods are explained as follows:
Agencies are the third party which takes the change to sell the packages among the customers for some amount in return they charges certain amount and provides an easy method to the tour operator for selling the packages (Ohr, et. al., 2014). Direct selling is the process in which tour operator directly sells the packages to the customers without taking help of third party. This can be an effective way as the tour operator can explain the details of the packages to the customers in a better manner. Call centres are also an example of third party promotional technique which includes hiring of third party so s to outsource the work of distribution of selling a holiday package among the customers. Call centres send calls or messages to the people so as to make them aware of the different packages and features of the packages offered by the tour operator to the customers. Telephonic calls can be used as this involves calling to the people for providing them  knowledge and information  about the packages and the different aspects of the packages which attracts the customers. 

The most appropriate method that can be used for the purpose of Promotion and distribution of the packages call centres or agencies. As these parties provides an assurance to the tour operator to sell or distribute the packages among the customers and to attract more and more customers. 
Task 4

This section of the report discusses the strategic decisions made by the different tour operators and comparison has been made between these strategic decisions which can be adopted in the different situations.

P 4.1 Evaluate the strategic decisions made by different types of tour operator

For the purpose of evaluation of the different strategic decisions adopted by the different types of tour operators, various aspects have been discussed. These aspects help in the evaluation of the strategic decisions. These aspects are discusses below:
Strategy adopted for pricing: it involves the strategy adopted by the tour operator for the purpose of pricing the packages so as to make them attractive as well as produces the profits or desired outcomes. 

• Image of the tour operator or branding: the image of the tour operator affects the behaviour of the customer towards the business. Image of the tour operator helps in gaining the loyalty of the customers towards the business.
• Variety of packages: the range of the packages offered by the tour operators attracts the customers as wide range of the packages are offered which includes different features and places of different regions and it gain the sight of the customers.
• Decisions regarding the distribution: distribution is the manner in which packages are offered to the customers. For the purpose of evaluation of the strategic decision related to distribution process tour operators need to identify the methods adopted by them for the purpose of distribution.
• Funding: this aspect includes investment decisions regarding the activities of the tour operations. Funds can be arranged from the external as well as internals sources. 
• Way of transportation: These include the decisions regarding the modes adopted for the purpose of transportation (Petrov, & Chappell, 2014). Various models are available for the transportation depending upon the cost of the packages. These modes include transportation with airlines, railways, waterways or roadways.

P 4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations 

Tactical decisions can be understood as the decisions taken on regular basis by the tour operators for the execution of the day to day operations.  Comparison has been made among the two tour operators of UK named as “Great days travel group and Zicasso”. Comparison is as follows:

• Competition: there is a need to take tactical decisions so as to deal with the increasing competition and to attract the customers. For this purpose discounts or offers are made to the customers.
• Price war: Different tour packages are offered by different tour operators. Tour operators need to determine the price of the package in such a manner that it helps in overcoming the impacts of price of different tour operators (O'Sullivan, 2015).
• Prices of the fuel: These decisions are taken on the basis of the problems or issues faced by the tour operators due to the rising or fluctuating pricing policies of the fuel. Rising prices of the fuels affect the cost of the packages decided by the tour operators.
• Consolidation:It includes the evaluation of the different aspects including accommodation, travelling, food and beverages. These decisions need to take according to the taste of the customers or preference of the customers.
• Tactical marketing: there is a need to monitor the activities and programs on regular intervals so as to review the effectiveness of the activities or of the programs.

Conclusion

Conclusion provides the summary of the program which covers the overview of the key aspects discussed in the report. This report discusses the various aspects related to tour and travel industry. It discusses the various current and recent trends and their impact or influence over the development of the tour and travel industry. It also provides an understanding of the two types of tour operators and different components of the holiday or tour package which affects the functioning of tour package.  It also provides an understanding of the different stages involved in the process of development of a holiday or tour package. It has helped in developing in knowledge of the way in which the evaluation of the planning decisions process and its design. Suitability of the different methods of distribution which are used for different types of tour operators have been discussed so as to enhance the quality of the services offered to the customers and to expand the area of operation of tour and travel industry in United Kingdom. It also provides an idea of the evaluation of the strategic decisions taken by the tour operators. Comparison has been made between the tactical decisions taken by a tour operator in the different types of situation arises in front of it.

References

Barratt, M., Choi, T.Y. & Li, M. 2011, "Qualitative case studies in operations management: Trends, research outcomes, and future research implications", Journal of Operations Management, vol. 29, no. 4, pp. 329-342.
Chand, M. & Katou, A.A. 2012; 2011; "Strategic determinants for the selection of partner alliances in the Indian tour operator industry: A cross-national study”, Journal of World Business, vol. 47, no. 2, pp. 167-177.
Espino-Rodriguez, T.F. & Gil-Padilla, A.M. 2015, "The structural and infrastructural decisions of operations management in the hotel sector and their impact on organizational performance", Tourism and Hospitality Research, vol. 15, no. 1, pp. 3-18.
Festa, P., Guerriero, F., Lagana, D. & Musmanno, R. 2013, "Solving the shortest path tour problem", European Journal of Operational Research, vol. 230, no. 3, pp. 464-474.
Gavalas, D., Kasapakis, V., Konstantopoulos, C., Pantziou, G., Vathis, N. & Zaroliagis, C. 2015, "The ecompass multimodal tourist tour planner", Expert Systems with Applications, vol. 42, no. 21, pp. 7303-7316.
He, Q. & Wang, X. 2012, "Realization of sustainable development of tour engineering land: Guided by the government and participated by the public", Trans Tech Publications Ltd, Zurich, pp. 3628.
Lee, C. 2015, "Tourist satisfaction with factory tour experience", International Journal of Culture,  Tourism and Hospitality  Research, vol. 9, no. 3, pp. 261-277.