Delivery in day(s): 5
Diploma in Travel and Tourism
Unit Number and Title
Tour Operations Management Assignment
Tour operations management assignment case study delves with the aspect of understanding the stages that have their involvement in the creation of a tour package. In this regard, an understanding of the tour operators industry within the travel and tourism sector is made. Post that, there is a need to have an understanding of the strategic as well as tactical decision making for the tour operators in which the strategic decisions made by different types of tour operators are to be evaluated as well as the tactical decisions that could be taken by a selected tour operator in various circumstances are to be compared.
A significant growth that been experienced by the travel and tourism sector in the current period and there is strong possibility for it to develop more and more in the coming years. The aspects that are mostly associated with the tourism business are linked with the attraction, accommodation as well entertainment of the tourists and business tour operation.
In a report that was presented by the World Trade Organisation, there is a major contribution of tourism towards a country’s economy and is also accountable for the development of the economy of the countries throughout the world. In UK, the average growth rate of the travel and tourism sector is around 4% which is considered to be better in comparison with other industries that have their existence in the country. (McDainel, 2011) Certain significant developments in respect of the current trends associated with tourism or the tour operator’s industry are mentioned as under,
Along with these recent trends that have been discussed here, the other developments in the recent trends in the tourism sector takes into consideration tourism marketing that has recently garnered huge popularity and has become a significant aspect for the tour operators in respect of attracting and creating awareness within the customers in respect of the services, packages and the facilities that are offered by them.
It is very significant for developing an appropriate plan as well as ensuring implementing the same successfully for providing the customer experience that is satisfactory as well as comfortable. In respect of the scenario that is provided, there is a need to develop a holiday tourism package in regard of 15 Chinese students who are travelling from London, UK to Paris, France.
The stages that are associated with the development of the of the tour packages for the discussed scenario are explained as follows,
The tour operators are relying mostly on two methods in respect of the reservation of the varied scenarios of the related tour packages that takes into consideration the ‘fixed contract method’ as well as the ‘sale only contract method’. In respect of the given task the tour operators that have been selected are Thomson (a mass tour operator) and Kuoni (a specialized tour operator). Both these tour operators will be used to compare the methods used by them for contracting the services that they provide that includes accommodation, food, transports, and other associated services.(Lind, 2014) The below mentioned details will be depicting a comparative analysis among the two tour operators in regard to the methods that they are using,
The above discussion can be concluded by saying that the fixed contract method will be providing more beneficial aspects in respect of its customers in comparison to the sale only contract method and will be providing discounts also. Therefore, it can be said that the companies will gain more profit from the fixed contract method.(Thomas, 2011) On the other hand, the sale only contract method assists in saving the tour operators from paying for the non-utilised capacity and as a result there is a significant reduction in the organisational loss.
The following task will have the involvement of the calculation of the selling prices of the tour packages in respect of the Chinese students. According to the case study that has been given, there is a need for designing tour packages by the tour operators in respect of a group of Chinese students consisting of 15 individuals who are travelling from London, UK to Paris, France for the duration of five days in the year 2018 during the month of August.
Total Cost Involvement for the Tour Package
Details of the Package
Price per Person
Price for 15 Persons
Transportation Charges (Coach, taxi, etc.)
Total Cost in Euros
Total cost price = €1980
Profit % = 10%
Hence, Selling price = €1980 + €198 = € 2178
In the travel and tourism world, there exists a special significance for a brochure since it is utilised for conveying information in respect of tour packages and also their selling by utilising the online as well as offline mediums. It is considered as well to be one of the most admired and effective tool for marketing in respect of the tour operators. It is a popular fact that almost 50% of the total cost of the tour operators does the involvement of the brochure costs. In addition, the major elements associated with investments are considered to be web based components. (Romero, 2011) The brochure is considered as the broader aspect in respect of planning, organising and implementing the tour programmes. The tour operators should be taking into consideration the below mentioned stages in respect of developing a proper brochure,
In addition, the planning decisions in respect of the brochures should take into consideration the below mentioned aspects,
The brochures that are designed for holiday packages are also considered to be an important part of the marketing planning process. The brochures for holidays are majorly designed for fulfilling the objectives to provide the aspired services to the tourists to ensure customer satisfaction and also the safety as well as security of the customers at reasonably priced rates.
In the earlier periods, the traditional brochures were considered as an effective method to convey the necessary information to the target customers as well as the other individuals. On the other hand, with the technological advancements of the various mediums, the customer’s need to change, and for meeting the challenges associated with the increasing competition, the tour operators are shifting towards the alternative options associated with the traditional brochures. In the current scenario, there has begun the use of the e-brochure which is considered to be the more advanced form of the traditional brochures, which have garnered huge popularity among the target audiences. There is a much wider approach in respect of e-brochure in comparison with the traditional brochure and possesses the capability to attract a huge strength of customers as well as also possesses the capability to generate the need for travelling among the customers also. (Robinson, 2011) Because of this, the e-brochure has been able to get the approval of being much more beneficial for the tour and travel organisations or the tour operators. In addition, the e-brochures are considered to be price efficient since the involvement of cost in respect of the development of the brochures is much more when compared with the designing associated with the traditional physical brochures.
Moreover, along with the discussed alternatives, another alternative in respect of traditional brochures could also be in respect of the visual brochures that possess the capability to attract a significant number of customers. (Robinson, 2011) In addition, the best explanation of the scenic beauty as well as essence of tourist destination can be done with the help of visual brochures.
The various kinds of processes that are used to sell the tour or holiday packages are explained as under,
The primary step is associated with properly identifying the target customers. The second step is having association with a company brand. After that, the next step is designing of the brochures which are considered to be an effective mode to sell the tour packages. Even though, there has been an important change in respect of designing or developing the brochures in respect of the tour packages, the significance associated with the use of brochure has only developed with the passing of time. (Mowforth, 2015) For instance, Thomas Cook is making the use of the aspects of online marketing, direct sales, call centres and so on for selling and promoting the company’s tour packages. In respect of the brochure’s online sales in respect of the organisation, the data provided in respect of it is mainly generated exclusively from the online sources. The method associated with only sales is more beneficial, comfortable and convenient in respect of the tourists as well as the tour operators. In addition, the present generation and the next generation are very strongly attached with the internet as well as new technological advancements, as a result of which the online sales market is expected to rise as well as do the huge revenue generation in respect of the organisation as it will possess the ability for attracting an increased number of customers in comparison with the traditional sales medium. (Mowforth, 2015) In addition, tools associated with e-mail marketing can be widely utilised in respect of promoting or selling the tour packages as well as to create awareness within the target audience in regard of their tour packages as well as the amenities that have an association with it. (Robinson, 2011)
Therefore, there can occur the inclusion from the above process of evaluation, the online medium that can get adopted in respect of selling as well promoting the tour packages is considered to be more profitable in respect of the tour operators and also in respect of the customers since they are considered to be consuming less time, can be accessed in an easier way as well as, is more user friendly also.
A tour operating system that possesses flexibility takes into consideration a huge quantity of mechanisms that assists in enhancement of the business profitability. In respect of the tour operators, strategic planning is considered to be very significant for ensuring the smooth operation of the daily activities. The method of strategic planning in respect of the tour operators mainly takes into consideration the following sections that are associated with competitive strategic aspects, providing cost advantages for the organisation, adopting efficiency for price as well as proper selection of the target customer segments. The strategic planning process has been proved to be beneficial in respect of the tour operators for gaining an insight in respect of the future route of action. (Conrady, 2011) The significant strategic decisional aspects that the different tour operators undertake can be explained in details as mentioned below,
Tactical decisions can be broadly explained as the decisional aspects that are considered by the tour operators in regard of the day-to-day activities of the concerned organisations. It assists in ensuring business functioning that is smooth as well as flexible and also assists in avoiding the chance of any type of confusion in respect of the everyday organisational activities. Certain tactical decisions which are taken by the tour operators includes negotiating with the service providers, making different arrangements in respect of transportations as well as accommodation and to maintain healthy relationship with the stakeholders to keep them informed in respect of the organisational activities. (Buckley, 2011)
One of the significant tactical decisions that that tour operators take are associated with coordinating with the tour operators. For ensuring efficient coordination as well as for deriving the anticipated outcome from the same it is definitely very much significant for the tour operators in consulting various services as well as conducting proper research of the market to gain information in regard of the price rates of the services that are provided in the current period. For instance, certain tactical decisions that Thomson undertakes in regard of service processing are associated with allowing the use of internet services that are of high speed for providing instant and most efficient services for the customers. (Buckley, 2011) The channel of distribution that Thomson uses is mainly related with the channels linking the producers with the consumers in a direct manner and as a result there is reduction in the price rates for the customers also.
This case is associated with the aspect of travel and tourism management for analysing the influences of the current and recent trends and developments on the tour operators industry, then assessing the timescales that are involved in developing a holiday as well as evaluating the suitability of different methods of contracting for different components of the holiday. Along with this the planning decisions are evaluated in respect of brochure designing as well as the evaluation of the suitability of various methods of distribution are also done for selling a holiday package.
Buckley, R., (2011). Tourism and environment. Annual Review of Environment and Resources, 36, pp.397-416.
Conrady, R & Buck, M (2011), Trends and Issues in Global Tourism 2011, Springer Science & Business Media
Lind, P. (2014). Monitoring Business Performance. Routledge
McCalman, J. (2015). Change Management: A Guide to Effective Implementation. SAGE.
McDaniel, C. (2011). Essentials of Marketing. Cengage Learning.
McDonald, M. (2012). Market Segmentation. John Wiley & Sons.
Moutinho, L (2011), Strategic Management in Tourism, CABI.
Mowforth, M & Munt, I (2015), Tourism and Sustainability, Routledge.
Robinson, P., Heitmann, S. and Dieke, P.U. eds., (2011). Research themes for tourism. CABI.
Romero, I. and Tejada, P., (2011). A multi-level approach to the study of production chains in the tourism sector. Tourism Management , 32(2), pp.297-306.
Shaw, G., Bailey, A. and Williams, A., (2011). Aspects of service-dominant logic and its implications for tourism management: Examples from the hotel industry. Tourism Management, 32(2), pp.207-214.
Thomas, R., Shaw, G. and Page, S.J., (2011). Understanding small firms in tourism: A perspective on research trends and challenges. Tourism Management, 32(5), pp.963-976.