Tourism industry is surrounded by different trends and issues that directly affect its growth. So, in order to respond to these trends, tour operators have to change their services. They have to provide different services and packages to people to retain them. Moreover, operators have to promote and advertise their packages to attract a large number of people. This helps them to increase the sales and profits. Besides this, by providing unique services to people, operators can generate more revenue. This report will analyse the current trends in tour operators. Also, different methods of contracting and distribution used to sell holidays will be studied here.
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1.1 Analysing the effects of current and recent trends and developments on the tour operators industry
Hospitality sector is providing variety of services to people. It has enabled them to use those services. Trailfinders limited provide different facilities to people. They provide ticket, hotel, etc. facilities to people. In order to retain customers they need to respond to changing trends. It will help them to develop products and services.
There are various trends and development that is affecting tourism industry. It is described below :-
Technological trends – It the major trend that is affecting tourism industry. Due to significant development in technology, services are been renewed and expanded. This has provided people to choose from a variety of services. Also, tour operators are improving quality of services to attract large number of people. Moreover, strategies are been developed to promote packages in markets.
Expansion of Airlines- Due to development in infrastructure of airports, many airline companies have expanded their operations in regional and small airports. It has enabled people to travel from one place to another. But, rise in prices of airlines will restrict people in doing so. This will affect this sector as profits and sales will be reduced.
2.1 Assessing the stages and timescales involved in developing holidays
There are many changes that are occurring in tourism industry. So, tour operators need to develop different strategies and packages in order to overcome those changes. It will help them to attract customers and generate profits. Thus, Trailfinders limited need to analyse those changes so that different products or services can be developed by them. Moreover, there are different stages involved in developing holidays. These are described as below:-
- Market analysis- This is the first stage in which Trailfinders limited analyses market conditions. It helps them to identify what current trends are occurring and the way it can affect their growth. In this, external environment is evaluated that includes political, legal, environmental, social, etc. Along with this, change in tastes and preference of customers is also analysed.
- Scheduling- It is a process in which Trailfinders limited makes schedule by taking help of employees. In this, complete data and information is collected from employees and checklist for activities is developed.
- Forecasting- It involves comparing pricing of other tour operators in the market. It helps in setting price of product or packages. The estimated price is sent to all clients.
- Contracting- The company will contact with hotels and suppliers to make necessary arrangements for clients.
- Negotiation- In this, company negotiates the price of lunch, dinner, rooms, etc. with hotels. It helps in managing the budget and pricing of package as well.
- Design- A proper design of brochure is selected in which all details regarding package are described.
- Implementation- It is the final stage in which company collects money from clients by booking.
2.2 Evaluating the suitability of different methods of contracting for different components of tour operator
Generally, there are four types of tour operators that exist in the tourism industry. They provide different types of services to people.
- Outbound tour operators- These operators provide foreign trips or tour to people. They are having contact in different countries. They perform various roles such as providing visa, completion of necessary documentation, etc.
- Inbound tour operators- They work with outbound operators. It is because; they just want to build a strong brand image in the market. They provide international as well as national tours.
- Domestic tour operators- They are known as local tour operators who operate within the boundaries of a country. Also, they provide services to people by collaborating with retail travel agents.
- Specialist tour operators- They create common tour packages on the demand of people. These packages are generally developed for the specific purpose. It is done by identifying the needs of people. It takes a lot of time in developing the special package.
Trailfinders limited is considered as the outbound operators as they mostly provide foreign tours to people. Apart from this, there are two important methods of contracting which are described as below:
- Fixed contract- This type of contract is done by people who have already done their booking. It is usually made in off season. The benefit of this contract is that it offers discounts to people. Also, package is developed before deciding the number of people. This helps in attracting people to buy that package. Sometimes, only few people are involved in these types of contracts. This results in the wastage of money and time.
- Sale only contracts- The contract is developed after identifying the demand of people. It helps in developing an effective package that includes price, tour duration, etc. It is a seasonal contract. This also helps customers to know the budget of package. Trailfinders limited often makes this contract. It helps them to attract a large number of people.
2.3 Calculating the selling price of a holiday
It is essential for tour operators to estimate the price of package so that it will be easy to attract people. Also, it is beneficial for people to know whether that particular package fits in their budget or not. Moreover, it becomes easy for operators to charge price of services. Determining each service price helps in finding out quality of services and tour package. Trailfinders limited offers most packages in seasonal time. They provide high class services to people. Trailfinders will adopt several methods to design the quality packages of 45 students. The expenses are in the Euro and pound. The exchange rate considered as 1 Euro is equal to the 0.85 pounds.
1 room cost= 54 * .85= 45.9 Euros
cost of 23 rooms for 5 days will be = 23*5*45.9= 5278.5Euros
cost of 1 person = 12 euro = 12*.85= 10.2 Euros
cost of 45 children for 45 days = 45*5*10.2= 2295 Euros
Selling price of holiday will be :
Profit margin is 30 % I.e 2774.7 Euros.
Selling price of package = 13873.5 + 2774.7 = 16648.2 Euros
Selling price of 45 students = 16648.2 Euros
Selling price of per person = 16648.2/45= 370 Euros.
3.1 Evaluating the planning decisions taken for the design of brochure
A brochure is the most important element in promoting a package. It contains entire details about a tour package (Lacej and Kalaj, 2015). Brochure should be designed in attractive way so that it can attract large number of people. With this people can identity what are product features and price. It can be promoted both online and offline way. Tour operators must finalise a package before designing a brochure. It will help in effectively promoting their package. Moreover, attractiveness of brochure depends upon its designing and content. Following steps can be taken in doing so:
- Deciding budget for brochure design- It is first step in which budget is decided for designing a brochure. It gives a brief idea of expenses that will be incurred.
- Objective- It is a step in which objective is decided that why brochure is been designed.
- Target customers- In this target customers are decided for promoting of brochure (Ramanathan and Zhang, 2016).
- Collecting locus assignment- It is the main step in which graphs, language, content is decided. These all elements must be attractive so that it is easily read and understood by people.
- Deciding formatting- It is related to formatting of brochure. In this colour and font of content is decided. These two must be properly selected so that brochure looks attractive. Moreover, image and pictures are also included in it.
- Paper quality- the quality of paper is decided on which brochure will be printed (Filby, Stockin and Scarpaci, 2015).
- Draft content – in this entire detail of tour package is written. In includes services, places, price, etc.
- Timing- It is the most important stage in planning brochure. In this it is decides at what time brochure will be completed and introduced in the market.
3.2 Assessing the suitability of alternatives to a traditional brochure of tour operator
Tour operators needs to designed attractive brochures to attract more people. So every company is focusing on how effective brochure can be designed so that people automatically gets attracted. This has enabled Trailfinders limited to provide brochure on their website. It has led to reduction in expenses and effective promotion (Mobasher, Ekici and Özener, 2015). The expenses of company have reduced as they have stopped printing brochures. Moreover, by doing this company is protecting environment. Website has allowed customers to access 24/ 7. By this they can know recent offers and packages provided by company. Furthermore, Trailfinders limited can promote brochure using social media. It will help in wide area from single platform.
Local tour operators operates in small areas. So it becomes easy for them to promote brochures by printing it. By this people gets attracted towards them. In this brochures are designed for people who have low budget. They also provide high quality services to them (Rosenfeld and Vincent, 2018). Thus, it is clear that Trailfinders limited is promoting through website that is more effective.
3.3 Evaluating the suitability of different methods of distribution used to sell a holiday for tour operator
In the present era, rise in intermediaries has made distribution of tour packages to people easy for companies. By using the same, companies can attract a large number of people to buy their package. There are many methods through which holiday packages can be sold to people. These are as follows:-
- Travel agent – They are local tour operators or agents that helps in providing packages to people. They link with customers to identify their needs. They provide different types of packages to people (Piboonrungroj and Disney, 2015). Their role is to book tickets, hotel, etc. Trailfinders limited can take help of these to increase customer base. For instance, for selling tour package of Rio de Jenerio all the booking and reservation of hotel is done by tour operator.
- Online booking: It is the most common and easy way of booking. It is been highly used by people these days. It does not involve any intermediary or agent. The customer is in direct contact with company. It provides a variety of options to people according to their budget. Moreover, it helps in promoting product through social media.
- Collaboration with big firms: in this tour operators can collaborate with big companies. It helps them to provide tour packages to people in form of gift (Van der Wagen and Goonetilleke, 2015). This helps in promoting product. Also, it is beneficial in increasing profits and customers. Moreover, packages are provided to people by offering discounts.
- Dealing with hotels: It is a new way of promoting packages. In this, company collaborates with hotel in order to promote their products. So if any customer arrives in hotel, they promote services of their company. It benefits both hotel and company. This can be used by Trailfinders limited to attract people.
4.1 Evaluating the strategic decisions made by different types of tour operator
Many companies have effectively responded to change in trends. They have taken the effective decisions. Trailfinders limited has started providing services in various areas. It has started own website through which people can book the tour packages. Along with this, company is providing several services such as flight ticket, hotel booking, etc. Also, they have promoted the products by giving advertisement in newspapers. Company is effectively using social media to promote their products. This has attracted people to use website for booking. Enterprise has also lowered their prices of product. It will help them to increase customer base and profits.
4.2 Comparing the tactical decisions that could be taken by tour operator in different situations
Trailfinders limited can take different decisions according to market situation. It will help them to respond to trends and development. Tactical decisions are as follows:-
- Competition: There has been intense competition among companies in tourism sector. This has affected the growth and development of each one. Therefore, it is important for Trailfinders limited to make effective decision to survive in market for long term. For this, they need to develop products and services by collecting the information of competitors. It will help them to modify the products (Armenski, Dwyer and PavlukoviÄ‡, 2018). Also, it will be easy to determine its price. Hence, it will become easy for Trailfinders limited to gain competitive advantages in the market by promoting products in an effective way.
- Price wars: - In every business, customers are very concerned about price. They want high quality product at cheap price. Trailfinders limited is facing this issue as the prices of services are increasing. So, they have to revise their pricing strategy so that it can help in attracting people (Eriksson, LeBel and Lindroos, 2015). They need to lower their price to compete with competitors. It will help in increasing the customer base and retaining them. Moreover, they can make changes in the price according to market conditions. Besides this, they can charge different prices from customer segments. It will be beneficial in gaining the market share
- External factor: - Tourism industry is highly affected by external factors. Any change in factors such as political, legal, etc. directly influence strategies and decision. Moreover, change in tastes and preferences of customers force industry to modify their products and services. Thus, Trailfinders limited can do effective planning to develop strategies according to changes (Tirasattayapitak, Chaiyasain and Beeton, 2015). It will help them to manage and control critical situations. Also, it will help in controlling operations and activities. With this, it will be easy for company to maintain stability in profits. Furthermore, it will help in minimising the impact of changes on firm.
This report summarises that different trends and development exists in the travel and tourism sector. There are many changes that are occurring in tourism industry. So tour operators needs to develop different strategies and packages in order to overcome those changes. Generally, there are four types of tour operators that exist in tourism industry. They provide different types of service to people. It is very essential for tour operators to estimate price of package so that it is easy to attract people. A brochure is the most important element in promoting a package. It contains entire details about a tour package. In present time the rise in intermediaries has made it easy for companies in distribution of tour packages to people.
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