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MOD003507Tour Operations Management Level 5

969 Downloads I Published: 06 Apr ,2020

Introduction

Operation management in tour and travel industry is considered to be an important part. The main operations of travel companies to introduce tour packages and provide detail information about the destination as well as services to customers Other significant tour operators’ enterprise is to attract visitors and influence to visit particular destination. A tour operator has a very significant role to play in travel and tourism industry. Operational management in tour and travel industry also includes several activities such as planning, organising, directing, coordinating and controlling the all the events related to tourism.

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Purpose of report is to analyse the impact of current as well as other developments in tourism sector. It also emphasizes on identifying the phases involved in developing tour packages. It focuses on evaluating the planning decision made by manager related to designing of selected brochure.

Task 1

1.1 Analysing the impact of current recent trends as well as developments on the tour operation sector 

Tour operator organisations are those which take the liability of providing the holiday’s packages to travellers. In addition to this, main operations of tour operators companies like Trail Finder Ltd. is to provide other additional facilities like entertainment, food, accommodation and transportation services to visitors. Function of tour operator’s enterprises is to introduce the combinations of travelling and touring components in order to provide visitors a memorable experience. Role of tour operators company is to provide the specialised packages for destinations, and organise several activities for tourists at destination. The advance in technology has provided tour and travel companies a chance to improve their services and provide additional facilities to visitors such as online booking. Introduction of internet has led to increase in self-tailoring the holiday packages. It has also provided tour operators a chance to promote their goods or services to wide number of customers.

Function of American Bus Association is to provide transportation facilities to travellers and enable them to migrate from one place to another. Role of British Travel Agents' Association is to represent the interest of tour operators and make other travel arrangements. National Tour Association has significant role to play in both the formulation and execution of the government's tourism programme. It is also accountable for coordinating the various activities of all the bodies interested in development of tourism sector.

There are several types of tour operations in tourism industry such as:

Inbound tour operations: Employees engaged in these tour operations are accountable for making arrangements for the foreign tourists. It is the role of workers to provide the customers with different services such as foods, accommodation, transportation etc. Role of inbound tour operators is to create holiday packages.

Outbound tour operations: Function of these tour operators is to promote goods or services offered by travel companies.

Domestic tour operators: It is the duty of domestic tour operator to promote culture as well as destination.

Ground operators: These are responsible for managing destinations. Ground operators are basically accountable for providing ‘land arrangements’ at a specific destination.

Impact of recent and current trends on travel industry are:

Sustainable tourism development: It is also considered to be as important and biggest developed in tourism sector.

Destination marketing: tourism marketing is slowly being replaced by destination marketing. Earlier print media was the only source which was adopted by travel companies for promoting product and services. However, after the advancement in technology, social media sites have been used by tour operator companies for conducting marketing activities.

Niche Tourism: It is recognised as a much bigger change in tourism sector. Earlier travel activities were conducted with business or religious purpose. Today tourists travel to pursue their passion and aspirations (Puzakova,KwakandRocereto,2009) 

 Task 2

2.1 Assessing the stages as well as time scales involved in developing holidays

The steps involved in developing holidays for tourist from London, UK to Paris are:

Research, destination and market: It is the basic activities which are conducted by tour operator companies with the purpose of identifying the needs as well as demands of tourists. This task is executed by travel organisation like Trail Finder Ltd. with the intention of recognising the factors which have direct as well as significant influence on the choice of travellers related to destination.

Tour route development: It involves making business contract with every potential vendor in advance for putting together every component.

Negotiation with suppliers: In next phase, travel companies has to facilitate negotiation with suppliers (Mehmetoglu,2014)

Costing of tour package: This activity is considered to be as important for understanding the implications as well as determining the price of products and services.

Financial evaluation as well as determining price: At this phase, prediction related to the fluctuation rate is done by tour operators in order to determine future selling price.

Marketing: When making the market plan, there are certain factors which are required to be considered by tour operators such as operators of transport, capability in combining the different components, service standards etc. (Heung,Kucukusta,andSong,2011)

Development of a Tour-Marketing Plan

Trail Finder Ltd.

Date: 7/5/2018

Timescale for Sightseeing tour from London to France

Date of beginning of tour: 7/6/2018

Time duration : 4 days

Number of tourist: 20

Destinations to visit are Musee Du Louvre, Notre Dame Cathedral, Notre Dame Cathedral etc.

Cost of tour: 300 Euros

 

2.2 Different methods of contracting for different components of the holiday and different types of tour operator

Tourism industry has formed contract with the transportation as well as hotel sector in order to provide facilities as well as high level of satisfaction to visitors. Some of the contracts are:

Ad hoc: it is considered to be as flexible mode of arranging the resources for the package and book the facilities prior to tour. According to this method, the cost of facilities is determined on the basis of activities which have to be executed during the tour on daily basis.

Fixed contract: These types of contract assist tour operators in confirming the utilisation of the volume based on the capacity of the vendors in the off-season. Airline was a firm sector with whom Trail finder Ltd entered in to a contract (Moutinho,2011)

The Trail finder Ltd had formed contracts with following industry these are:

Transport: It plays a significant role in tourism industry. This facility is provided by travel companies to provide visitors an ease to travel from one place to another. Transportation is considered to be an important component of the tourism industry, as it helped the travel companies like Trail Finder Ltd. in expansion of business operations.

Hotels: Travel companies like Trail Finder Ltd. are able to provide accommodation facilities to visitors only with the support of hotel sector. There are various types of accommodation facilities are provided by Trail Finder such as hotel, villas, lodge, as per the budget of guests (ChangandChen,2008)

2.3 Calculating selling price of a holiday

1.15 Euro=1 Pound

90/1.5*1= 60

60 Euros= 1 Pound

Cost of room (2 adults sharing) 60* 1= 60 Euros

Number of rooms required 40/2 = 20

Cost of hotel =20 rooms for one night = 60*20= 120 pounds

Cost of 5 nights= 120*5 = 600 Pounds

BB for 1 = 10*1 = 10

Cost 40 people on 5 nights = 40*5* 10= 2000

Cost of 45-seater luxury coach is £7,400 including road, ferry and taxes

Cost of a local tour guide is €920 

Expense Type

Cost (in Pound)

Cost of Hotel

120

Cost of BB

2000

Cost of Luxury Coach

7,400 i

Cost of local tour guide

920

Total

 

10440

30 percent profit margin

3132

Total cost for package: 10440+3132= 13572

Cost for an individual: 13572 /40 =339

Task 3

3.1 Planning decisions taken for the design of a selected brochure

There are different stages and planning decisions involved in the design of a selected brochure for Trail finders.

Stage 1: Research, feasibility and strategy

The information is collected in this stage relevant to the project such as brief, background material, studying of existing brand problems and effective research. The customer should ask questions that without asking questions, the brochure is will just solve the design solitary purpose.

Stage 2: Design concepts

After the initial process of agreement and acceptance, the next step is to design preliminary ideas and concepts regarding project. This is the time when a creative idea takes over the process. The concept will be designed and completed with latest technology, graphic style and combinations (Adoga and Valverde, 2014).

Stage 3: Detailed Design development

The selected concept is further developed by the implementations of all relevant detail. Variation and mock up may further be developed. A logo is created with distinct colour and variation and different pages of the website are effectively assembled by the virtue of Photoshop and the sample pages are created on Trail finders.

Budget and target market: Under this point, Trail Finders management identify the budget of the whole process of brochure and also the target market that customers might prefer. This helps to determine all the expenses involved in the process of Brochure which helps to manage cost under the budget.

Stage 4: Implementation

In this stage, all the factors and concepts are implemented and finish artwork produced. Professional programmer helps to implement the project better and effectively.

3.2 Suitability of alternatives to a traditional brochure

It can be said that the brochure plays an important role in business for sale packages. It provides complete and detailed information regarding packages for better understanding of customers in the market effectively.

There are different alternatives used by various businesses in order to enhance their sales:

Email brochure: Email brochure helps the customers by providing services about the packages offered by Trail Finders. This helps to aware customer about business activities and latest offers through emails (Caskey, Qualcomm Inc, 2016).

Video brochure: Video brochure is little bit expensive from Email and E-brochure but also very effective to attract customers. This helps to provide photos of services and destinations that ifs offered by business in terms of packages.

E-brochure: E-brochure is the best way to interact with customers that the brochure helps to advertise services of business and aware buyer in the market. The brochure is added on website of Trail Finders that clients can visit and easily view the brochure.

 3.3 Suitability of different methods of distribution used to sell a holiday

There are different methods and techniques by which the organisation is able to sell their services in the market, either with the help of mediators or directly. The management of Trail Finders is focused on that method which helps to create benefits for business (Frantál and Urbánková, 2017). The method should be effective to provide services to customers directly and make them aware of products and services.

Some of the methods are discussed below:

Internet: It can be said that internet is one of the easiest ways from which Trail Finders is able to generate more revenues in comparison to the direct sales The IT department of Trail Finders should consider factors that helps in increasing awareness in market.

Direct Sale: Direct sales refer to face-to-face interaction with clients and business; sometimes outlets are also a way of direct selling. This helps to provide information according to customer satisfaction and gain competitive advantage.

Telephone: Telephonic calls and management with clients will help to generate interest in customers. The call will involve a detailed discussed about business discounts and famous destinations.

Task 4

4.1 Strategic decisions made by different tour operators

There are so many strategies and plans that are implemented by tour operator to expand business operational activities. Such kind of decisions is made by management to provide quality services to customers and make them aware of organisational activities. The strategic decisions such as cost of packages, brochure designing, potential customers and distribution channel (Quack, 2016).

These strategies will help Trail Finders business to gain sustainable growth and maintain the market position effectively.

Some strategic decisions are discussed below:

Segmenting, targeting and positioning: This strategy helps any business to design a policy that helps to classify customers and their cost of packages. The decisions made by management serve quality and desired services to retain customers which are profitable for business expansion.

Promotional strategy: Promotional strategies help a business to raise profits in order to maintain position of business in the market (Rice, 2014). The strategy also helps to gain competitive advantage which is crucial for firm to survive in market. In this strategy, discounts, schemes and policies are promoted through advertising that helps to aware customers in the market and increase profitability.

4.2 Comparing the tactical decisions

There are different tactical decisions made by Trail Finders Management to increase their production and profitability. The efforts are also for establishing a strong customer base. There are some external factors that affect tactical decisions in business. Some tactical decisions are discussed below for Trail Finders tour business:

Maximising contracted beds and occupancy: In order to develop and improve business growth, management always try to increase occupancy of beds with the connected hotels. It is the best and effective method to increase profitability. This will also help to gain competitive advantage which helps to establish a strong customer base. The method should to effective to provide services to customers directly and make them aware of products and services.

Utilisation of each aircraft seat and coach: Management of Trail Finders is also able to take another tactical decision such as providing coach and aircraft facilities for unique and trendy clients in order to achieve customer satisfaction and loyalty. Such customers are beneficial for business to gain revenues and sales (Sennewald and Baillie, 2015). The decisions made by management serve quality and desired services in order to retain customers which are profitable for business expansion.

Thus, it can be said that tactical decisions will help business to improve business growth and profitability to gain competitive advantage which helps to establish a strong customer base.

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Conclusion

It can be concluded from the above report that effects of current and recent trends and developments on the tour operators industry are very vital to improve operational activities. There are many stages involved in developing holidays. Different methods are used by various tour operators to select components of holiday. There are different stages and planning decisions involved in the design of a selected brochure for Trail Finders such as research, feasibility and strategy, design concepts, detailed Design development and implementation. Different methods and techniques from which the organisation is able to sell their services in the market either with the help of mediators or directly. The strategic decisions such as cost of packages, brochure designing, potential customers and distribution channel will help Trail finders business to gain sustainable growth and maintain the market position effectively. Tactical decisions made by Trail Finders management in order to increase their production and profitability.

References

  • Adoga, I. and Valverde, R., 2014. An RFID based supply chain inventory management solution for the petroleum development industry: A case study for SHELL Nigeria.Journal of Theoretical and Applied Information Technology62(1) pp.199-203.
  • Caskey, M.S., Qualcomm Inc, 2016.Power management in a mobile device. U.S. Patent 9,456,413.
  • Frantál, B. and Urbánková, R., 2017. Energy tourism: An emerging field of study.Current Issues in Tourism20(13) pp.1395-1412.
  • Quack, H.D., 2016. Organizing destination management: France and Germany compared. InTourism and Borders(pp. 97-108). Routledge.
  • Rice, P., 2014. Universal management: a proposal to change the direction of accessibility management in the Australian tourism industry to create benefits for all Australians and visitors to Australia.Review of Disability Studies: An International Journal2(2).
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