Tour Operations Management in TT Assignment

Introduction

The role of various tour operators is to provide various services and facilities to the customers. The tourism industry give the full package to the customer involving the commute and accommodation. The main aim of these travel and tourism industry is to provide the luxurious holiday to the customers with reduced price. This assignment gives us an insight about the functioning of the tour operators in travel and tourism industry. Various stages of the holiday are also being discussed. The importance of the e-brochure have been discussed in this assignment. Brief about the strategic and tactical planning also have been discussed. This assignment helps us in gathering the information about the  travel and tourism  industry.

Task 2

Lo2. Understand stages involved in creating holidays

2.1 Assess the stages and timescales involved in developing holidays

Tour operator has to face a lot of national and international pressure and competition and meeting the demand of the market.

• Destination and marketing research: It involves the analysis of the key elements associated with destination and tourism. It also involves finding social and political system of the place. Making the tour to identify the target market.
• Tourism itinerary: Developmental process for itinerary of the tours. Itinerary is based on the new research of tour operators and the tour ingredients.
• Negotiating with the vendors: After finalizing the itinerary, the negotiation is done with the vendors. The tour operator has to negotiate with the airlines and hotel owner for increased profit. Operators also get concessions if they get regular customers.
• Total cost of the package: In this step the monetary value of the tour package is determined. The total cost of the packages is determined by combining various elements of the tour. The appropriate amount of profit is determined.
• Financial pricing: Exchange rates are determined by the tour planner by estimating the final price of the tour package. The pricing can be of two types the cost oriented and market oriented.
• Staff: In the peak season there has to be a greater number of staff so handle the business. They require skilled administrative staff to handle the tourism activities.
• Marketing of holiday packages: The tour operator plans to combine the various elements of industry at an affordable price. Marketing creates a nice image in the eyes of the customer.
• Making a marketing plan for the tour: It is important to have the clear understanding of the objective of the tour operator. All the element of the tour operators have to be managed properly.
• Inbound and outbound marketing: Generally the international marketing is more difficult as compared to the domestic marketing.
• Brochure of tour operator: The tour operator’s has to make a brochure giving all the details of the tour packages. The price and services are clearly mentioned.
• Operating and executing the tour: The success of any tourism company depends upon how the company operates in an effective manner. If all the services are provided to the customers on time then it creates a positive word of mouth.
• Management after tour: This is the critical stage as it involves making all the calculations and evaluations. The profit of the company has to be calculated in the end. (Verma, 2016)

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

There are possible two methods which allow us to book the different aspects of the package that are crafted by the company. The two methods are sale contract and fixed contract. In this assignment we have considered the two types of tour operators Flight centers and Air Tours. We will be comparing these two types of tour operators. The following two contacting methods are used by the tour operators.

• Contracts Fixed: They focus on the complete utilization of the capacity that are volume based. They also maximize the revenue collected by the company at the end of the year. Arrangements are made according to the desires of the customers. With the airline the whole airplane has to be booked. The packages are decide by the airline company keeping the peak season in mind. There is a very low chance of any vacant seat in the airplane.
• Contract sale only: This package was mainly determined for sale only contracts in London. This package was determined with the main focus on the niche customers who desire lavish and expensive tours. In this type of contract the flight centers will pay the price of transport and accommodation as utilized by the customer. These contracts are mainly made for the peak sessions to avoid the poor service to the niche customers.

After the complete analysis of both the methods used we can infer that contract fixed can offer many benefits to the customers such as discounts and availability. Contacts are made in way advance so that they reap appropriate benefits to the customers. The contract sale only will help to minimize the wastage by avoiding paying for the not utilized capacity. It also reduce any risk of associated loss. (Business Companion, 2016)

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

In this Assignment we will consider a week’s package with the flight to Paris from London on the airplane Boeing 756-789 airplane that has the seating capacity of more than 200 tourist. There is one 5-star hotel which gives multiple booking options. There will be arrangements for booking of Thomas Cook passengers on the fixed discounted price. If no customer shows up then the entire cost will be beard by the tour operator. The total expenditure in the tour will be 105.5pounds. The extra charge for the cab from the airport to the hotel will be 9.4 pounds and the additional charge for the taxi will be around 34.2. (Valentine, 2015)

The table given below list the cost for various activities during the tour:

S. No.	Details of the package	Price per person	Price per couple
1	Airplane charges cost	105.5	197.8
2	Local transportation cost By cab By taxi Other rides	0   9.4 34.2 89	0   16.8 69.3 79
3	Hotel tariff	36.8	74.3
4	Other miscellaneous charges	36.3	64.4
	Total expenditure in Pounds	274.4	501.6

The table shows the total cost involved in package from London to Paris

Task 3

3.1 Evaluate the planning decisions taken for the design of a selected brochure

In the tour operator business the brochure plays an important role as it helps in delivering important  information and knowledge  to the customers and in the sale of the holiday packages for both the national and international tourist. In this assignment, the decision related to the planning of the Adventure holidays is considered which has to be made attractive. The basic advantage of the brochure system is the low printing cost and the deep reach to the customers. This can be achieved by efficient distribution of the brochure for promotion of the tourism industry. The design making of the brochure for Adventure Holidays requires effective planning, deep research and strategic implementation of the plan. The planning for the brochure for Adventure Holidays have been listed below:

• Recognition of the planning issues: Different issues involved like the format and the aim of the brochure is decided. Timescale is an important for the purpose of design making of the brochure. These issues play an important role in designing of the brochure.
• Formatting of the content: Choosing the good format is important for making the brochure attractive. Loud colors make the brochure more visible. The color matching is an important step. Very precise an important information should be written on the brochure.
• Targeting the market and budget making: When dealing with the niche events like wedding or a big event, the target market of Adventure Holidays has to be decided. Budgeting is an important factor to estimate the spending capacity of the people.
• Stages of designing of the brochure: The exact time for designing the brochure has to be estimated. The planning of the design making has to be sorted out. The stages of the planning the brochure reflects the decision making of the adventure holidays. (Agarwal, 2011)

3.2 Assess the suitability of alternative to a traditional brochure for different types of tour operators

The present task will enable us to have an opportunity to have an insight into the alternate option for the sake of the customers with an intention of changing the traditional form of brochure and make it more attractive. Adventure Holidays has improved the quality of their brochure a lot so that it can attract a lot number of people and stand apart from the customer. Traditional brochure has been an important way of delivering the information to the customer. The introduction of technology has given the new and innovative way to the tour operators such as Adventure Holidays. Through E-brochure the designing and conveying the information to the customer has become deep rooted.

The brochure which are designed online through Photoshop has much higher chances of attracting the customer than the traditional one. It will be great source of income to the Adventure Holidays. The e-brochure are very cost effective as it does not involve printing cost. The designing and the printing cost reduction gives an upper hand advantage to the e-brochure. The advantage of the e-brochure is that it helps the Adventure Holidays enables one to have the visual advantage. It help in attracting a large number of customer and it help in increasing the profit of the company.

All the important information of the tourist destination and the visual attraction of the tourist destination can be easily shown to the customers to give them a clear understanding of the place they are about to visit. This also help in increasing the sale of the package and attracting the customers. The e-brochure which has the video can increase the promotional activity by publishing it on the social media website such as Facebook and Instagram. Uploading the video on YouTube gives it much exposure as YouTube is an important tool for popularity. After the complete analysis of the pons and cons of the e-brochure it can be said that Adventure Holidays should adopt the e-brochure. All the e-brochure elements such as video brochure and online marketing are all linked with each other. With all the tours elements combined e-brochure are very efficient and cost-effective means of conveying the information to the people. (UPrinting, 2014)

3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operators

In the present and in the past brochure have proved themselves to be very effective means of conveying the information to the customers and attracting them. The tour operators list all their services and the package on their brochure to give a clear idea to the customers. With the passing time there has been a lot of evolution in the designing and formatting of the brochure. The technological advancement has dominated the designing and formatting of the brochure in the present day. In the present day Adventure Holidays have largely resorted to the online marketing, sales directly and have a helpline center. Direct  sales and planning  is very helpful in sale of the brochure directly online to the customers is very profitable. Through online marketing Adventure Holidays are able to attract a lot number of people. Data provided online can be very detailed and help in clearing all the doubts of the customers. For the sake of adoption of the suitable method of promotion according to the target customers different tools can be used. The internet users can be targeted directly through online marketing. There should be some of the physical brochure too to attract the non- internet users. After the deep analysis of all the promotion methods we came to the conclusion that both the online and direct marketing is essential for the advertisement of the holiday tour. (Ashe, 2016)

Task 4

Lo4. Understand strategic and tactical decision making for tour operator

In this task we are preparing an article for a specialized travel magazine. We are considering the strategic decisions made by the different tour operators we have considered here. The two organizations considered here are the Thomas Cook and Cox and Kings. Thomas cook is a mass tour operator while Cox and Kings is the specialized tour operator.

4.1 Evaluate the strategic decisions made by different types of tour operators

The provided flexibility in the tour operator system is the providence of a large number of elements that will help to increase the profit of the business. In the day to day affairs as any other business organization the tour operators needs to take many strategic and planning decision. The strategic plan adopted by the tour operators includes a large number of elements such as efficiency in pricing, competitive advantage and targeting a specific group of customers. The strategic planning has a vital role in mass tour operators such as Thomas Cook and specialized tour operators such as Cox and Kings as it helps in the planning of future course of action. The proper strategic planning taken by the organization is as listed below:

Pricing Strategy giving discounts:

In the tourism business pricing is an important aspect of business. The price should be finalized by the tour operators taking the adequate profit. By considering the option of fixing the price the tour operators are able to give huge discounts to the customers. By giving a large number of fancy discounts the tour operators are able to attract a large number of customers. They design their packages in a customer friendly way and offer a lot of customization and flexibility to the customers and it gives the company competitive advantage over the others.

STP (Segmentation, targeting and positioning):

This is one of the most important element of strategic planning adopted by the tour operators. The segmentation of the industry is done, the target is set by the organization and the further positioning is done by the head of the tour operator. The final decision regarding any matter lies in the hand of the tour operators after the complete analysis of the competition present in the market and wishful segment of the customer that one needs to target. These decisions have to be made after much reviewing and because this decision can affect the decision regarding the price of the commodity, promotion of the package and a suitable place which has to be based upon the STP of the company. (MSG, 2016)

• Peak season aspect: There are different peak season of the different holiday packages. The pricing is also determined on the peak season of different places. The season can be categorized as the peak and the lean season. The season determine the pricing of the place.
• Competitive Advantage: The pricing strategy that are generally adopted by the tour operators are competitive pricing and decision making which has a direct relation to the competition that is absolutely essential for having the competitive advantage over the other. Competitive advantage is acquired through the competitive pricing. This technique proves to be a boon for the company as it attracts a lot of customers. It also makes the customer loyal to a particular company so they have a competitive advantage over the other companies.
• Promotional activities: Innovative and the creative strategy will help the tourism industry in the promotion of the tour operators company. In this method, it is the decision of the tour operator to choose an appropriate method of decision. The budget and the methods of the promotion has also to be decided by the tour operator. The decision is of utmost importance as it will directly determine the profit made by the company. Coupled with the profit of the company, the number of the customers who take the package is also determined by the above technique. (Hamel, 2016)

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

The decisions taken by the tour operators in managing the day to day business operations which are linked with the designing and purchase of the holiday packages are termed as the Tactical decisions. Tactical Decision are of deep importance to ensure the smooth and efficient running of the business. The very few important decisions related to the tactics are made by the tourism industry for the efficient functioning of the business. The functioning includes the commute arrangements, providing the various services and accommodation of the customers. There would be various ties with the different stakeholders which would increase the value of the company and widen the services provided by the different stakeholders.

Tie up with the different stakeholder is also an important tactical decision that the tourism industry is required to take. With the intention of making the important decisions the tour operators hire some of the personnel advisor. These advisors take strategic decision to improve the position of the company. There is a need of conducting the different meetings with the variety of service providers and making suitable collaborations that would cater the need of the customer. The pricing has to be done precisely for making the tactical decisions in regard with the tour operators.

In the regard with the experience of the customer of the tour package another tactical decision is made. There are variety of tools and processes that are adopted by the tour operators for enhancing and improving the experience of the customer. All the tour operators strive to give the maximum the customer experience. They develop the package in order to give to give a lot of customization to the customers according to their needs. The data is collected by different tour operators to choose the best plan. A lot of analysis will help the customer to identify the different problems associated with the package and put in lot of effort to solve them. On the identification of the problem the appropriate remedial measure has to be taken. This will also minimize the future problem faced by the tour operators. With the high level of customer satisfaction the profit of the company is increased. (Morrison, 2015)

Conclusion

This assignment has helped us in having a peep into the variety of aspect of the tour operators with the direct relation with the two joint operators Thomas Cook and Cox and Kings. The analysis of the tour operator has been made which give the improvement and development happening in the travel and the tourism industry. This assignment will give us a clear understanding about the patterns of the travel and tourism industry. The second task gives us a brief about the designing and pattering of the of the travel and tourism industry. There are various timescales and stages of the of the holiday package design. The third task is of this assignment is to explain and analyze the different methods of brochure designing. The efficient distribution and promotion directly controls the sales of the package in travel and tourism industry. Brochure also attracts a lot of customers. In the final task there is the development of strategic and tactical planning. The  customer satisfaction  is an important element of the tour and travel industry.

References

Ashe, S., (2016), methods of distributing a product, [Article], Available:http://smallbusiness.chron.com/methods-distributing-product-45501.html[Accessed 14 June 2016]
Agarwal, K., (2011), planning and decision making, [Article], Available:http://www.slideshare.net/keshavagarwal92/planning-and-decision-making[Accessed 15 June 2016]
Business companion, (2016), package tours and holidays, [Article], Available:https://www.businesscompanion.info/en/quick-guides/services/package-tours-and-holidays[Accessed 16 June 2016]
Fuggle, L., (2015), 6 travel trends for 2016 that will drive the global tourism industry, [Article], Available:https://www.trekksoft.com/en/blog/travel-industry-trends-2016[Accessed 17 June 2016]
Hamel, G., (2016), what is strategic decision making, [Article], Available:http://smallbusiness.chron.com/strategic-decision-making-23782.html[Accessed 17 June 2016]
Morrison, (2015), tour operation management, [Article], Available:https://usa-elitewriters.com/tour-operations-management/[Accessed 14 June 2016]