Unit 14 Tour Operations Management Assignment - Malaysia

Programme	Travel and Tourism Management
Unit Number and Title	Unit 14 Tour Operations Management in Travel and Tourism
QFC Level	Level 4

Introduction

This  Tour Operations Management Assignment is aiming to explain the effects of recent trends and developments on the tour operations sector of the Travel & Tourism Industry. It also helps to understand the tour operators industry within the travel and tourism sector and explains stages involved in creating holidays and preparing Itinerary (Cook, 2002).
It explains the calculation of the selling price of the tour packages and how the brochure is planned anddesigned for the purpose of promotion of the package. Different methods of distribution used to sell holidays are also explained in the assignment. A tour package for new breed of customers interested in excursions visiting ancient heritage sites and wildlife parks along with a few days of beach holidays in a tropical destination is planned and a holiday package is developed with costing and pricing. The place Selected for discussion is Malaysia (4 nights) + Singapore (3 nights).

TASK 1

Examine the recent trend and developments in the tour operations sector with a brief analysis of the type of holidays taken and the emerging popular destination.
Global tourism trends are shaping into new and previously unknown destination exploration. A few decades ago tours and travelling was considered as an option only for the elite class of society and not everybody could have travelled internationally. However recent trends are shifting towards international travelling and tour because of increasing disposable income, rapidly developing infrastructure for transportation to remote locations and increasing information of exchange because of social media. More and more destinations are getting popular because now visitors are able to provide their experiences, reviews and best time to visit to a global community via social media, blogs etc. Before rise of social media only destinations, which are promoted, by governments and books etc. or conventionally known tourist spots were population (Poon, 1993).
According to GIDB approximately 3.6 percent of total GDP worldwide is contributed by tourism industry and it is projected to grow further in coming years. Trends for travel and tourism industry are turning into one of the biggest employer directly and indirectly. According to a rough estimate approximately 77 million people globally are employed by tourism industry. One major shift which is observed in tourism globally is that now it is not a strictly season industry now a day. Tourism is now open 365 days a year only difference is that now it is a theme and season based tourism, for example in summers tourism industry would focus majorly in European region, Canada, UK etc. while in winter season it would shift to warmer places like Africa, Australia, New Zealand, India etc. Sports which are related to seasons like Skiing, snorkelling, Rafting, mountaineering, etc. for example in winters Alps mountain suddenly becomes a hot destination of tourism because of the skiing opportunity it’s slopes provide.
Types of holiday destinations are also based on the purpose of a tourist and interest. For example there are historical tours and travels where tourist wants to visit places of historical importance and explore it. Such holidays are designated as back to your roots tour or historical tours. Second type of tours is for the purpose of special occasions in life like honeymoon, baby moons, retirement tours etc. In such tours people prefer to go to places where they can have some privacy, serenity and calm environment. Such tours are mostly focused towards destination with mountain ranges, sea beaches, islands and dense forest resort etc. Third type of tours is pleasure tours with specific interest in mind. For example there are a few destinations in world, which are very well known for their casinos and nightlife like Las Vegas, Bangkok, Pattaya etc. People who have interest in those places and activities can visit those destinations and have a pleasure filled holiday. Holidays can also be categorized as family holidays, couple holidays, single back packing etc. depending upon the people involved and type of environment a tourist is looking for (Miller, 2003).

TASK 2

Prepare an itinerary for a heritage plus wildlife and beach holiday and develop a package with stages (evaluate the destinations and attractions, appropriate timescale, and the components of the package to be purchased with contracts) (Collins, 2000).
A great deal of time and effort goes into planning a package holiday programme. The following points are kept in mind while preparing an itinerary-

• Destinations
• Accommodation
• Excursions
• Additional services
• Transport

Itinerary for a trip to Malaysia (4 nights) + Singapore (3 nights)- 

1. DESTINATIONS

Day 1: Arrival Kuala Lumpur.(8^th July 2015)
On arrival your local representative will be waiting outside the customs area to meet you and take you to your hotel. The evening is free for you to enjoy the city’s night life.
Overnight at your hotel in Kuala Lumpur.
Day 2: Kuala Lumpur (9^th July 2015)
Guided City Tour of Kuala Lumpur
Today, we take you on a panoramic city tour of the sprawling capital city of Kuala Lumpur. See the 88 storey Petronas Twin Towers, Lake Gardens with National Monument, National Mosque and Merdeka Square. See the ‘Menara Kuala Lumpur’ popularly known as ‘KL Tower’, majestically poised at a breathtaking height of 421 meters. Overnight at your hotel in Kuala Lumpur
Day 3: Kuala Lumpur - Genting Highlands. (10^th July 2015)
After breakfast, transfer to Genting. En-route we take you for a short visit to Batu Caves, a Hindu Shrine. Check – in to the Hotel.
Overnight at your hotel in Genting
Day 4: Genting Highlands (11^th July 2015)
After breakfast you will be transfer to Genting Highlands to enjoy a splendid view of the islands from the mountain peak where it is situated .Enter a world of fantasy and adventure at the Genting Outdoor Theme Park. Enjoy high-tech rides, games, roller coasters, etc.
Overnight at your hotel in Genting.Day 5: Genting-Kuala Lumpur- Singapore (12^th July 2015)
After breakfast transfer to Singapore and check-in the hotel.  During evening can opt for Night Safari.
Overnight at your hotel in Singapore
Day 6: Singapore (13^th July 2015)
After breakfast, Half day city tour-See ‘Swissotel The Stamford’ one of the tallest hotels in the world, Parliament House and City Hall. Drive pass Mt. Faber and the city of Singapore. Take a photo stop at the Merlion - Singapore’s famous symbol.
Overnight at your hotel in Singapore
Day 7: Singapore. (14^th July 2015)
Enjoy  breakfast at hotel. Transfer to  Sentosa Island till sunset. Enjoy one way cable car to Underwater World, Dolphin Lagoon, Luge & Skyride, Butterfly Park & Insect Kingdom with tea and Songs of the Seaon SIC basis
Overnight at your hotel in Singapore
Day 8: Singapore – Delhi(15^th July 2015)
Return home with wonderful memories after breakfast, we check- out and drive to the airport for your flight back home. It’s time to say goodbye to all the new friends you have made.

2. ACCOMODATION

Hotel-  4*

•    Kuala Lumpur-Grand Seasons
•    Genting- First World
•    Singapore- Park Royal Kitchner

3. EXCURSIONS

Inclusion:-

• Half day city tour in Kuala Lumpur & Singapore on SIC basis.
• Night Safari, Sentosa Island by coach.
• One way cable car, Underwater World, Dolphin Lagoon, Luge & Skyride, Butterfly Park ,Insect Kingdom and Songs of the Season SIC basis

Optional: -

• Singapore flyers
• Universal studios
• Jurong Bird Park

4. ADDITIONAL SERVICES

Price Includes –

• 2 Nights accommodation in Kuala Lumpur & 2 Night in Genting.
• 3 Nights accommodation in Singapore.
• 07 Breakfasts.

Price Excludes –

All Casino games + all alcoholic and non-alcoholic Beverages+ Use of Spa and Beauty Salon + Laundry + Telephone calls + Mineral Water + Shopping + Medical facilities and doctor on call + Childcare centre + Internet cafe usage + any other miscellaneous expenses.

5. TRANSPORT

• Air fare from Delhi to Kuala Lumpur and Singapore to delhi
• Airfare: App. 630 SGD
• Flight Details:

9W 20W 08JUL FR DELKL SS2 0830 1650 #1/O $ E
9W 17W 15JUL FR SINDEL SS2 1210 2015 #1/O $ E

• Transfer from Kul-Genting/Genting–Kul/Kul-Singapore on SIC basis.

TASK 3

Carryout the cost of the components and the package and determine the selling price.

The concept of ‘tour cost’ is focussed to understand the meaning and practices of tour management in determining the financial value of a tour package. In simple terms, ‘cost’ means the total expenses gained to change the shape of individual ingredients into a tour package. As a general rule, the elements that make up the total cost of a tour package can be broken into various categories as, air travel cost, accommodation cost, payroll cost, local arrangement cost, research cost, marketing cost and other expenses (Stephen and Connell, 2006).
Further, the cost sheet is designed to show the total cost/cost structure along with the breakup of individual cost elements. It gives an idea how the profit margin is to be fixed. Till today, there is no specific costing approach, which is used in tour operator industry. However, as per the prevailing costing practices, one can visualize the following step-by-step procedure widely used in the tour operator industry.

TASK 4

Design and plan a brochure and assess the suitability of alternative methods of communication and promotion.

PLANNING A BROCHURE

The information that should be included in a tour operator’s brochure are listed below:

• Name of tour company responsible for tour;
• Transport mode(s) – carrier name, aircraft type and use of scheduled or charter services;
• Details of destinations, itinerary;
• Duration of tour – nights and days;
• Description of destinations;
• Type of accommodation and meals;
• Services of ground operators;
• Price;
• Extra charges clearly indicated;
• Details of special arrangements and facilities
• Full booking conditions including cancellation terms;
• Any optional or compulsory insurance cover;

Thus, the tour brochure consists of several sections and sub-sections. A brief itinerary, modes of transportation, types of accommodation, payments, unique appeal of destination(s), payment conditions, insurance, internet address, website (s).

DESIGNNING A BROCHURE

TASK 5

Evaluate and discuss the non-traditional methods of distribution that can be used to sell holiday packages.

Non-traditional distribution methods rely on new and untraditional marketing methods. Anything that falls outside the categories of traditional marketing can be considered non-traditional. The goal of non-traditional advertising is to create striking advertising experiences that capture interest through their imagination. Much of non-traditional methods involve putting ads in unusual places, or displaying ads in unusual ways, hoping to command the attention of ordinary viewers.
Clients tend to view non-traditional ads as more organic, genuine, and relevant. Because they stand apart from the majority of advertising, they are largely immune to the distrust that is applied to print, radio, and TV ads. Non-traditional ads also tend to be targeted, speaking directly to specific demographics on their own territory. For example, Beer makers might advertise on coasters, or shoemakers might place ads around basketball courts.
This type of advertising tends to be cheaper as well. Print ad campaigns can cost thousands of dollars, but a clever street marketing strategy might cost less than a hundred. Managed well, non-traditional distribution can deliver huge returns on investment (Chang, 2004).

TYPES OF NON-TRADITIONAL MARKETING-

1. Prospect List- Develop a good list of people who are interested in travelling and once the plan for any trip is designed you can contact them directly.
2. Events- Using established, scheduled group events to announce upcoming travels and take reservations.
3. Sell while travelling- Sometimes small informal group of friends travelling together can be informed about the upcoming travels and bookings can be made.
4. Brochures- Brochures are sent directly to the past clients and others who have been identified by market research, particularly corporate houses.
5. Seminars – Attract people by gifting them a tour package and then calling them to attend the seminars for enrolling them in various memberships of the company.
6. Through mergers and takeovers- Buying a competitor company that offers similar holidays will immediately increase market share and reduce competition.
7. Improving Quality- This can improve customer satisfaction and increase repeat business and recommendations to family and friends.
8. By reducing prices- This can increase business and is often used when new companies start up.
The only requirement for using non-traditional marketing is vision, creativity, and commitment. Since it is often significantly cheaper than classic forms of advertising, non-traditional marketing is an effective tool for companies with modest marketing budgets. The only drawback is that the results are unpredictable and there is the risk of wasted effort (Miller, 2003).

CONCLUSION

Every country seeks ways to promote and develop tourism in their country. Tourism Industry Growth in any country is prone to the changing economic conditions. The Ministry of Tourism adopts many policies to stabilize hurdles, which come in the way of the development of Tourism in a country. Policies adopted are aimed at enhancing services and tourism tools to attract as many tourists as possible. Compared to other sectors of the global economy, the industry is one of the fastest growing and is accounting for more than one-third of the total global services trade.By the end of this decade the tourism industry will have exceeded all others to become the largest global industry. Modern tourism is closely linked to development and encompasses a growing number ‎of new destinations. These dynamics have turned tourism into a key driver for socio-‎economic progress.‎ This global spread of tourism in industrialized and developed states has produced ‎economic and employment benefits in many related sectors- from construction to ‎ agriculture or telecommunications (Affolter, 2001).

ASSIGNMENT 2

INTRODUCTION

This assignment would include a brief analysis of the emerging trends in UK market and response by various tour operating agencies to those trends. Second part of this report would also include the difference between strategic and tactical decision of tour operators and identify a few tactical decision which can be recommended for the tour operator identified in assignment 1.

TASK A

1. Using the findings from task 1 in assignment 1, analyse the emerging trends in the UK tour operations sector and evaluate how the various tour operators (competitors) responded.

Modern tourism industry in UK is going through a phase of recovery and re emergency as a theme based tourism where tourist like to have specific tours which also includes their hobbies, preferences, sports etc. Adventure tourism, historical tourism, exploratory tourism, and even extreme sports tourism are some of the key trends which are emerging in markets (Wurzinger & Johansson, 2006).  Tours are also designed according to following a famous celebrity on world tour, following lectures and rock shows etc. Tourism preference in UK is ranked as 8th most visited tourist destination, with an approximately more than 29 million annual visitors. The estimated money spent by the global visitors is around $17 billion for UK tourism. The tourism statistics suggest that US ranks as a high value spending tourists for UK tourism and is valuable for the UK tourism inbound tourism. However, in the count of the number of visitors, Europe tops the list as compared to USA (Klemm & Parkinson, 2012).
Various tour operators are in different stages of identifying these trends and accordingly they are modifying their tours and offerings. Role of social media is also continuously increasing and development of mobile application is changing the way they are doing their search and comparison of tours with each other and making a booking.
First change which is observed in all major tour operators is that they are increasing their presence on social media and they are also investing in developing mobile applications which are easy to browse and quick in making bookings. Social media presence also includes hiring of celebrity bloggers, trend setters and even expert opinion about a tour is being promoted on social media. It is rapidly changing the way customers are targeted and attracted. There are some policy changes as well on government level and companies are also changing their operational part according to that. A higher level of transparency can be seen in tour operators pricing, especially in air fares, taxes and cost of lodging etc. This is improving the overall efficiency of tourism industry in UK and it is also attracting more international visitors in UK thus contributing to the economy of UK (Kurtzman, 2005).
Some tour operators are also organizing tours which are very expensive and once in a life time opportunity like cruise through melting polar glaciers, touring to the places where reefs are on the verge of destruction and even space tourism is also one of the trends which are attracting billionaires in UK. These ultra expensive experiences which are only forte of high and ultra high net worth individuals is also one of the fastest growing trend in UK tourism where companies are entering.

TASK B

1. Briefly examine the differences between tactical and strategic decisions and identify and compare some of the tactical decisions that could have taken by your chosen tour operator.

Ans:- Tactical decisions are short term decisions which are taken up by a  company to solve the problem immediately or make the most benefit out of a situation. A strategic decision on the other hand is a long term decision which changes the way a company operates and targets its market. Tactical decisions can be made by tour companies like dropping prices for last few seats on a tour, flash sales, giving festival offers etc or off season discount. Aim of these tactics is to fill the tours up to capacities so that economies of scale can be gained and services do not get wasted because of low number of consumers. As services cannot be stored it is important for companies that they have sufficient number of tourists in a tour to make it viable. Off season discount is also a tactical decision to use the built up capacity while in prime season these capacities can be sold at a premium.
Strategic decisions like focusing on emerging markets of Asia, developing strong social media presence, launching adventure tours are some of the strategic decisions which are taken by tour companies over the last few years. These decisions would have an impact on the operations, profitability and brand presence of the company in a slow and steady manner. Strategic decisions cannot be rolled back easily from a company and their impact are Lasting on a company. Thus a strategic decision should be taken after due consideration and analysis of various aspects (Kurtzman, 2005).
Some of the tactical decisions which we think should have been taken by our tour operator are as follows.

1. They should develop a strong social media presence and also give discounts to those customers who make their booking through mobile applications. These way even regular customers would start using mobile application which will shape the business of future and company would be able to have a first mover’s advantage.
2. Company should have included a few community specific tours like for Singapore they can target Asian community specially and offer them perks like Asian cuisine, theatrics, and multi lingual interpreter etc to promote their tours. Entire tour can be organized keeping specific communities and themes in consideration.
3. Third tactical decision should be to start promoting off season discounts and repeat customers discounts. Even referrals should be honoured with discounts and gifts cards to encourage customers to recommend company to others (Pearce & Lee, 2005).

CONCLUSION

In conclusion it can be said with confidence that the sector of travel as well as tourism is referred as the significant industry for the contribution to the nation’s economic growth bringing foreign currencies and thereby also contributes to the economy of the world. It is conclusive that the tourism creates considerable economic advantages to all the tourist countries (Davies & Downward, 2001).

REFERENCES

Poon, A. 1993. Tourism, technology and competitive strategies. CAB international.
Miller, G. A. 2003. Consumerism in sustainable tourism: A survey of UK consumers. Journal of Sustainable Tourism, 11(1), 17-39.
Cook, RA. (2002). Tourism: the business of travel. Prentice-Hall, Upper Saddle River, NJ: 2nd ed. P46-210
Collins, VR. (2000). Becoming a tour guide: the principles of guiding and site interpretation.Continuum, London, New York: 2^nd ed. P243-378.
Stephen J and Connell J. (2006). Tourism a modern synthesis, Thomson Learning, London, UK: 2^nd ed. P48-178.
Affolter, D. (2001). The tourism marketplace: new challenges, in Tourism and hospitality in the 21^st century, Oxford, Boston: 3rd ed. P123-243.
Chang, TC. (2004). Local Uniqueness in the Global Village: Heritage Tourism in Singapore, John Wiley & Sons. New York: 1^st ed. P91-133.
Pearce, P. L., & Lee, U. I. (2005). Developing the travel career approach to tourist motivation. Journal of Travel Research, 43(3), 226-237.
Davies, B., & Downward, P. (2001). Industrial organization and competition in the UK tour operator/travel agency business, 1989-1993: an econometric investigation. Journal of Travel Research, 39(4), 411-425.