Delivery in day(s): 5
Tourism is fastest growing industry in world and having the significant contribution in the GDP of nations. In addition to this, the spending power of people is increasing that helping the organizations to develop the different and sustainable plan according to needs and expectation of different target groups. Tour operation management is generally considered as market evaluation, planning, implementation and monitoring of the tasks and activities to meet the business objectives and maintain the flow of functions in professional manners. The Unit 14 Tour Operations Management Assignment TUI & Thomas Cook will analyze the effect of current trends and developments of tour operation industry within UK by using the examples of TUI. In the next tasks report will explain different methods of contracting and assess the timescale for developing the holidays. Moreover, report will evaluate the planning decision taken for designing the brochure and assess the suitability of alternatives for different types of tour operators as well as the methods of distribution used to sell a holiday for different types of tour operators. At the end, report will evaluate the strategic decisions made by the different types of tour operators and compare the tactical decision that could be taken by the tour operators in different situations.
The industry is reshaping the structure to deliver maximum comforts and services to customers as according to changes in customer demands. Recent changes in industry has affected the organizations to customize them self according to trends. TUI group which is a leading tour and travel organization in UK has effect of trends in business operations. Organization has analysed several effects on operations of organization.
Technological changes: Traditional way to book ticket and to collect information about the packages is being replaced with technological approaches. TUI group is using mobile app or/and website to facilitate customers at door step to deal with tickets and packages. Customers can book their tickets or can cancel prior to travel and has no need to go outside for booking. They can now most of the information about packages and can select the most suitable for them. As internet has become the inseparable part of modern life style, TUI group like big organization are putting their efforts to attract the customers on online interface (Moutinho, 2011). This helps the customer to query on most of information about the packages and ticket details whereas organization gets the benefit of reduced overload and human resource along with the cost minimization to manage the customer relations. Technology is helping organization to bring the most of task in more effective and automatic form.
Increase in purchasing power: Increase income of customer is leading them towards the luxurious travel and trips. Customers are expecting more facilities to them during the travel and tourism period. They are seeking for speciality in comforts and amazements for their tour. As a result, TUI group is investing much of capital to analyze the customers’ satisfaction and appraisement sources. TUI group has defined several holiday packages and regular programs to meet the need of customers those are different in income (Moutinho.et.al.2011). Organization is also making special programs to get the benefits from the luxurious packaging and tours demanded by upper level of customers enrich in income and expenditures.
Climate awareness: TUI group manages the availability of packages according to the climate at destination. Organization analyzes the customers and destinations to find the most appropriate session to enhance the customer experience at destination. For instance, if a place is more awesome and amazing to visit in winter, then TUI group organize the special events to aware and attract the customers about the beautiful impression of climate at destination. This trend is leading to pre forecast the upcoming climate and nature at destinations so that customers can be drawn in bulk towards the organizational tours services. Addition to it, TUI group is providing climate details to customers those are planning for their own tours and travel via the TUI group services. Demand of personal tours to specific locations is leading the trend to be aware with climate at destinations (Thomas.et.al.2011).
Cost effectiveness:As the business is going online, customers have also facility to compare the services and packages of TUI group with other organizations. Thus to take competitive advantages, TUI group is making strategies to cut the cost of packages so that more comfort and services can be offered to customers against the services of opponents in market. To cut the cost, organization is focusing on the demand of customers to a specific destination to visit so that arrangement of resources and travels can be done in better way to reduce the cost on per package. Customers are being attracted towards the comparison of services and there prices with organizations, TUI group needs to find the alternative ways to deliver the high quality services with the balance in maximum benefits and minimum cost for holiday and standard packages (Richards, 2011).
Dynamic Packaging: Customers are demanding their custom packages for their own tours as personal tours and independent travels are in trends. Customers are choosing their own destinations to visit in preferable time. TUUI group provides the facilities to customers to put their wishes on destinations and services so that organization can manage the resources to make their tour personal and customised. For example, customers willing to visit a place that is not in current service of TUIO group, then TUI will organization the need of customers to specific destination. Also, the pricing and packaging in such cases may be dynamic and depends upon the selection of services and number of customers in tour. Current trend of making dynamic packages is a challenging task for TUI group to offer the desired satisfaction to the customers in cost effective manner (Sharpley, 2011). However, organization may charge differ from other organizations but quality of services are preferred by customers willing to take dynamic packages.
Assistance of services: Customers are demanding the assistance in accommodation and guiding services from tourism industry. This trend is affecting the industry to offer and arrange the accommodation for customers in addition to tours. Customers are expecting the arrangement of accommodation from tourism business so that they can make their experience more concentrated on tourism destination. As a result, TUI group is making partnership and contracts with other organizations to assist the tourist in accommodation. The increasing trend of accommodation with tourism is encouraging tourism business to dive into the hospitality industry. As a result, TUI group is clearing the concept of hospitality services to establish own accommodation to customers in different locations so that cost can be cut on accommodation charges and more benefits can be generated. Addition to it, TUI group is also providing their employee as a guide to assist in historical development and special destinations so that customers can make the more understanding about the destination details (Mariani.et.al.2014). All this, is becoming the part of tourism industry as to enhance the customers satisfaction and trust in services. Personal guide service is helping customers to know the untold realities of destinations.
It is necessary for tourism industry to be aware with recent changes so that sustainability and improvement can be managed in order to survive. Customers’ satisfaction is at core of changes but it should be managed parallel to the future of business.
According to the given scenario, a holiday package for the Chinese students had to be developed. The students are planning to travel France and Paris for sightseeing from London. The packages would be designed for approximately 15 students and is been estimated that the tour would be of 4-5 days. Moreover, TUI which is the leading tour operator group in UK would be developing the holiday package as per the demands of the Chinese students. It has been identified that the tour operator is seeking to expand its market coverage and thus had initiated with new attractions and offerings as per the requirements of the travellers and the market trends (Becker, 2016). The holiday package would be proposed for the August 2018 and would include various attractive offering by TUI. In order to develop an effective holiday package TUI would follow certain steps which would help in acquiring fruitful results and develop the most appropriate and profitable package out of it. TUI would follow the steps given below:
In addition to this, it has been anticipated that the entire planning of developing the tour package would be completed in 6 months. The activities are been depicted with the help of a Gantt chat below:
Table 1: Gantt chart
In order to provide the best services to the customers and avail best deals out of the package, TUI comes into prior contracts with different hospitality vendors such as airlines and hotels at the proposed destinations i.e. Paris and France for Chinese students for 5 days period. The tour operator gets into contract prior 1 year so that to get best offers and negotiation with the vendors and earn higher profits out of the package as well. There are various types of contracts which the organisation could adopt and get into contract with the vendors. However, TUI would mainly adopt two types of contract for booking various facilities for the holiday package. The contracts are:
In addition to this, there are various types of tour operators which serve people in different ways. Some of the major tour operators are inbound tour operator, domestic tour operator, Outbound tour operator and ground tour operators.
The tour is planned for a group of 15 people for 5 days. The stay would be organised in St Michelle Hotel which is offering a twin room for two people at 60 Euros. The functional currency for calculating the tour cost is pound. Hence the cost of hotel would be converted to pound and the conversion rate considered is as of today which is 1 Euro =0.84 pounds.
Cost of Room (2 adults sharing) is = 60 * 0.84 = £ 50.4
For 15 people (room will be shared by two), number of rooms required = 15/2 =8 rooms.
Cost of Hotel for 8 rooms for one day=50.4 * 8 = £ 403.2.
Cost of hotel for 5 days = 403.2 * 5 = £ 2016
Cost of BB for one person = 10 *0.84 =£ 8.4.
Cost of BB for 15 person for 5 days = 15 * 5 * 8.4 =£ 630.
Cost of 20-seater luxury coach =£ 1000
Cost of local tour guide =£ 200
Cost (in pound)
Cost of Hotel
Cost of BB
Cost of Luxury Coach
Cost of local tour guide
10% profit Margin
In order to create the awareness and market the plan that TUI has developed for students, management would take following decisions for planning the design of brochure. This will help organization to target the potential customer groups and gain the competitive advantage. Following are the key decisions that will be taken by TUI management.
Figure 2: Brochure design
There are majorly four types of tour operators performing the business according to capacity and resources to meet their business objectives. In the recent time changes in the marketing tactics due to globalization and use of internet services has forced tour operators to select the different ways to offer information through brochure. For example, the inbound tour operation organization like TUI that directly deal with the foreign tourist can use the e-brochure for promoting and offering the information to target customer groups (Goodall and Ashworth, 2013). This kind of brochure will help to cover the wide areas for targeting the customers and meet the objectives more effective manners. Apart from that, the outbound operators like Tomas Cook and Thomson also use the online alternatives for promoting the packages and gain the attention of customer. By using the email functions that, management of these organizations could offer the information about the plan with effective design and detail information about the transportation, accommodation and local sightseeing with images and prices.
On the other hand the tour operators like domestic and ground level could stick to traditional brochure for offering the information about the accommodation and transportation which are the major services provided by these organizations. For example Kuoni is domestic tour operating organization that offering the high quality services for local areas and creating packages for niche segments which could be promoted through traditional marketing concept of brochure. This kind of advertising will be beneficial for home customers who are looking for low cost services (Moutinho.et.al. 2015). However online market is major trend in the travel and tourism industry that helping the organization to meet the objectives more easier manners but for ground level and domestic tour organization traditional brochure are more effective. In addition to this, promotion through website and email are key trends in the travel and tourism industry to gain the competitive advantage and reach to the high numbers of customers.
For distribution of brochure and information about the packages and plan that has been developed by TUI and other tour operating organizations could use the following options:
The tour operators such as Thomas Cook adopt numerous types of strategies in their business with the purpose to expand their business globally. These decisions are taken to achieve customer satisfaction, increasing profit, expansion of business, achieving goodwill, etc. These decisions are taken in day-to-day operations like, fixing the prices of offered tour packages, identification of consumer segments, developing and designing brochures, etc (Grant, 2016). A strategic decision made my Thomas Cook is very important because it help the organisation to face efficiently with any emergency or crisis in the business. The business of tour and travel is very flexible in nature and to face with this, appropriate strategy is required at every step for the smooth running of the business. Some of the strategic decisions made by the Thomas Cook are as follows:
Tactical decisions are basically those which are taken for implementing the strategic decisions in the organisation. These are short term decision which may influence the organisation for a shorter time period (Radford, 2012). There are various tactical decisions which are made by the organisation in their day-to-day operations. These include arrangement of the accommodation, food and other facilities, negotiation with service provider, etc. The comparison of tactical decisions taken by the Thomas Cook and Cox & Kings are as follows:
From the above Unit 14 Tour Operations Management Assignment TUI & Thomas Cook it is been considered that travel and tourism business is having significant impact on the GDP of nations. The resent trends and development in the industry are beneficial for tour operating organizations like TUI and Thomas Cook that are offering services across the globe. Report has provided the information about the effect of trends and development in UK tour industry and different methods of contracting for holiday packages. Moreover, report has evaluated the designing decision taken by the organization for brochure and alternatives of traditional brochure. At the end, report has evaluated the strategic decisions made by the different types of tour operators.
Books and journals
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and Schuster.
Bellman, R.E., 2015. Adaptive control processes: a guided tour. Princeton university press.
Bickhoff, N., Hollensen, S. and Opresnik, M., 2014. Step 2: Strategic and Operative Marketing Planning—Segmenting, Targeting, Positioning. In The Quintessence of Marketing (pp. 47-110). Springer Berlin Heidelberg.
Buckley, R., 2014. Tour production costs. Journal of Travel Research, 53(4), pp.418-419.
Candela, G. and Figini, P., 2012. The Production and the Sale of Holidays: Tour Operators and Travel Agencies. In The Economics of Tourism Destinations (pp. 243-268). Springer Berlin Heidelberg.
Chan, G.S.H. and Guillet, B.D., 2015. Implementing Revenue Management for Travel Agencies. Journal of Management and Sustainability, 5(4), p.17.
Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.
Duffy, R. and Stroebel, M., 2015. Protecting Holidays Forever: Climate Change and the Tourism Industry. Brown J. World Aff., 22, p.7.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Lu, F., Huang, G.Q., Niu, W. and Zhang, J., 2015. Incentive Contracts on Tourism Service Quality under Asymmetric Information. Journal of China Tourism Research, 11(4), pp.402-423.
The Unit 14 Tour Operations Management Assignment TUI & Thomas Cook will analyze the effect of current trends and developments of tour operation industry within UK by using the examples of both companies, We are posting Locus units solutions so scholars can explore the our Assignment Help in UK and get review the quality of our work.