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Unit 14 Tour Package Management Assignment
Diploma in Travel and Tourism
Unit Number and Title
Unit 14 Tour Package Management
Tour package management assignment is mainly discussing in respect of the tour operators, the services of the tour operators in respect of the tourists that ultimately leads to the tourism sector’s development. The managers working for the tour operators are doing the arrangement of the tours in respect of the individuals that are having the interest by providing different other services in addition with the main service. One more beneficial aspect in relation with these tour operator’s packages are associated with cost as well as saving time.
P1.1 Analyze the effects of current and recent trends and developments on the tour operators industry.
The influence of the current trends and developments on the tour operators industry are mentioned as under,
- Globalization: In the current context, individuals are travelling more freely across the globe. From a statistical report it was cited that the arrival of the global tourists peaked from 674 million in 2000 to 797 million in 2005 and from there it skyrocketed to 940 million in 2010. Therefore, in comparison to 2000, there was a 39.46% growth and 17.94% growth in respect of 2005. As a result, the global tourism receipts grew from 475 billion US dollars in 2000 to a whopping 918 billion US dollars in 2010 which means that the growth was almost 93.26% in comparison to 2000.
- Safety and security: There has been a significant rise in the concern of the industry regarding security because of growing number of terrorist attacks that is taking place internationally, and also due to the kidnappings of the tourists along with assaults as well as robberies. It is therefore, vital to have tight security regarding each and every kind of hospitality and tourism operational aspects and there should be the formation of disaster plans regarding the various types of threat that are breaching the security as well as affecting the security of a place. (McDonald, 2012) The topmost priority should be provided to the tourist’s personal safety. There is the presence of growing security measures in each and every international airports and majority of the airline companies have been upgrading their security assessments through the investment of huge sum of money. In addition to that, these airline companies are trying to execute their plans for exceeding the need of the airline industry with the help of advancements made through technological aspects.
- Diversity: In respect of staff population as well as number of guests, the industry for travel and hospitality is considered to be among the most varied of the different industries. A distinctive scope is being presented by hospitality and tourism for the understanding of new cultural experiences in respect of the staffs as well as the tourists. It is considered significant in respect of the personnel towards understanding as well as appreciating various cultural aspects for the enhancement of the communication with the tourists coming from varied cultures, races, religions, and so on. Due to this, the tourism and hospitality organizations are making it their prime effort in training their staffs for appreciating as well as accommodating the individuals from different backgrounds throughout the globe. (McDonald, 2012) Hence, it can be stared that diversity, along with facilitating an ease of understanding of various cultural, economical as well as social perceptions, is also doing the enhancement of delivering services that are considered to be satisfactory with the assistance of traits like communicating as well as observing.
- Service: As the growing service sector is changing due to the international competition as well as consumption of the market, a growing important part is being played by quality towards the attraction as well as retention of the service customers. The quality of service as well as amount of satisfaction that is gained from the services is turning out to be the most significant factors of differentiation in majority of the hospitality surroundings. The growing competition as well as expansion of exclusive services as well as conveniences in respect of the hotel industry has compelled the hoteliers for steadily searching the competitive advantage. The guests always have the expectation to receive very good service and this is their topmost priority but unfortunately, there are limited numbers of organizations that are providing services that are considered unique. (Page, 2012) It is not possible that imparting world class services will occur suddenly, and in that respect there is a significant need to provide training to deliver quality service for satisfying the expectation of the guests.
- Technology: In respect of presenting scopes for larger effectiveness as well as incorporation of better services for the guests, technology is being considered as the driving force towards the changing aspects. For developing strategic resources, technology is becoming an activity for tourism business as well as regarded as a tool for increasing competitiveness. Information technology when used in an effective manner will be making important functional developments. The advanced software as well as tools for communication is allowing for the enlargement of the functional effectiveness, for instance, there is the possibility of making improved, faster as well as low priced orders. (Vanhove, 2011) Moreover, the job of the manager is being assisted with the help of making decisions with the help of tools for supporting decisions, databases as well as tools for modeling.
- Price-value: In respect of today’s perceptive guests, the essential factors are considered to be price as well as value. There has occurred a change in the customer’s perspective in respect of pricing. It is often seen that, guests are somewhat reluctant towards the payment of more money and the tourism establishments are required taking steps for solving this crisis scenario. The role of value is pivotal in the present scenario as value is considered to be what a person is receiving in comparison to the amount that the individual is paying. (Moutinho, 2011)
- Changes in the demography: There is occurring a gradual increase in the number of the international population and various retired individuals possess the required time as well as money for travelling as well as utilizing the services for hospitality. There has occurred the decreasing volume of population, the increasing domestic and global migration as well as changes in age, gender, educational as well as household structural aspects in the current scenario and this will keep changing till 2020.(Mowforth, 2015) The changes in the demography will be influencing various tourism aspects. The demand of the tourists associated with volume and structure is directly impacted by the changes in the demography as well as the labor market for tourism i.e. the number as well as qualification of the staffs, is also influenced by the same and is influencing the jobs indirectly in the industry for tourism as well as services associated with tourism.
P2.1 Assess the stages and timescales involved in developing holidays.
To develop a better tour package, there is the requirement to undertake planning by focusing on the targeted customers. It is considered as the most essential part of the entire business related with the development of travel and tourism since it is having the involvement of evaluating the place, activities for research, understanding the needs of the customers as well as negotiating with the service providers that are needed. Towards the designing of the tour package, the foundation is being provided with the help of planning in accord to the expectation of the customers as well as setting the prices in relation to the standards of the organizations. It normally takes around a year towards the development of a tour package in respect of a chosen destination. (McDaniel, 2011) Certain essential aspects for assessing the stages as well as timescales involved in the development of the holidays are mentioned as under,
- Carefully examining the destination place: In the given assignment, Europe is being considered as the destination for conducting an educational tour that is required to be assessed in respect of environmental aspects, cost factors, various places for sight-seeing, the well-known areas, famous restaurants and many more. A prior assessment of each of these factors is done and in that respect almost 3 months duration is taken for the completion of the process. (McDaniel, 2011)
- Research: The activities for research take into consideration the involvement of investigation into the different facilities that are available that the customer is being offered in the destinations that are being selected. By conducting research of the concerned area, it can be determined whether performance of these activities can take place at the previously selected location (in this case it is Europe). Therefore, the activity for research is considered to be an important aspect of marketing planning and will be taking almost two month’s time.
- Negotiation: It is required negotiating with the different service providers for offering facilities for transport, facilities for accommodation, facilities for food as well as other facilities that the tourist is requiring. The process of negotiation will be taking almost three to four months duration.
- Development of tour: Through the fixing of the service providers, the tour development is taken into consideration, the tour design that includes different facilities that are provided are being taken into consideration as well as making the tourists aware of the benefits regarding the tour packages. (McDaniel, 2011) The various activities of promotion are considered by uploading the entire tour package on the online portals or with the assistance of advertisements, pamphlet distribution or through big banners.
- Financial assessment as well as pricing: For the financial assessment of the tours, it is required to do the checking of the currency prices as well as entire expenses before the commencement of the tour, the reason being that prices can be set in accord to the estimation of the profit. (McCalman, 2015) In this respect, there occur two kinds of pricing such as tour pricing that depends on the cost as well as tour pricing that is depends o the market.
- Administrative staffs: Because seasonality is involved, there is the need for having human resource at specific situations in appropriate numbers. Towards the management of the staffs, there is the need for recruiting as well as there is the requirement for the management of the process of selection so that there should not be the surplus or dearth of employees.
- Marketing tour package: The tour package is marketed with the assistance of online as well as offline methods so that increasing number of customers are having the awareness regarding the various aspects related with the tour package. With the support of specific media for advertisement, marketing of the tour package occurs that depends upon the target segment. (McCalman, 2015)
- Brochure of the tour operator: An essential tool for marketing in respect of the tour is the brochures and the development of the brochures should be containing overall information regarding the organizational name, covering of the various locations as well as various sites that are visited and so on.
- Post tour management: After the completion of the tour, it is essential in carrying out a survey in respect of the customers as this would assist in knowing the customer satisfaction index with the assistance of the entire travel experience that the tour service has created.
P2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator.
There is the presence of two contracting methods that the various tour operators are adopting towards the designing of the tour packages viz. Fixed Contract Method as well as Sale only contract method. In the given context, two different tour operators will be taken into considerations which are Flightcentre as well as Airtour in respect of the different services that they are providing. The two contracting methods regarding the tour operators mentioned earlier are as follows,
- Fixed contract method: In this method of contracting, for maximizing the revenue, the service providers are charging in respect of the capacity that is based on volume by taking into cover the deficiency in respect of the off season sale. Therefore, the booking of the entire capacity is done by the tour operator irrespective of what is used in actuality. There has been an entry of the tour operator, Airtour in a fixed contract method for summer tour packages that contains a continuous threat of capacity that is not being used since the operator is required paying the entire amount in relation to the contract. There occurs the offering of high discounts regarding such contracts since the strength of individuals who avail these tour packages is considered to be high. (Lind, 2014)There has been the selection of the tour package by the tour operator, Airtour depending on this contract since it is presuming that there will be the coming of huge number of individuals who will be interested in availing the benefits associated with the discounted tour package.
- Sale only contract method: In this method of contracting, based on the current scenario, the Sale only contract method is being chosen by the tour operator, Flightcentre for the designing of their tour packages. In lean seasons, these kinds of contracts are prepared and therefore, are relatively incurring a high cost. Taking into consideration the requirements of the potential customers that are being targeted, these contracts are being prepared. The tour operator Flightcentre will only be making payment regarding the capacity that the client will use. The unused capacity should not be concerned about. These contracts are providing particular attention in respect of the probable customers and are indulging in different amenities having increased costs. (Lind, 2014)The association of risk factor in respect of these contracts is the threat associated with weak response in respect of a specific tour package whose designing is made in respect of a specific segment.
Therefore, in conclusion it can be said that both the contracting methods are having their individual advantages as well as disadvantages. While on one hand, Fixed contract method is offering high discounts, profits that are decided earlier, advance facilities of booking and so on, on the other, Sale only contract method does the reduction of fund wastage through the non-payment of capacity that is unused as well as focuses on the customers that are being targeted.
P2.3 Calculate the selling price of a holiday from given information.
Selling price calculation of a holiday (educational tour of TTM students) to Europe
Price for 15 Persons
Total cost price = ?5250
Profit % = 10%
Hence, Selling price = ?(5250 + 525) = ?5775
P3.1 Evaluate the planning decisions taken for the design of a selected brochure.
The brochures are being used by the travel and tourism industry as a medium for offering information in respect of the tour package as well as communicating the information that is essential in respect of the clients. Relating to the case study, the phase of planning is being studied that relates to the brochure designing as well as implementing it in regard of Thomas Cook. With the goal of providing information, the brochures are being distributed in respect of the availability of the tour packages in respect of optimum quantity of individuals at a much reduced cost. (Lind, 2014)Therefore, there is a need to plan, organize as well as implement different activities very carefully towards the designing of an appropriate brochure that is satisfying the need. Certain planning decisions that are taken in this respect are mentioned as under,
- Identification of the issues that influences the planning decisions: There are certain essential factors whose identification needs to be made prior to the formation of an appropriate brochure such as target segments, format, goal of the conveyed information, availability of the time limit for the generation of the brochure and so on. (Lind, 2014) All such issues are influencing the decisions in respect of the designing of brochures for the tour and travel agencies.
- Brochure format: There should be the development of the brochure format taking into consideration the organization’s target consumer segment as well as information whose sharing takes place with the customers. The information’s that the brochures will be containing are the tour company’s name, tour duration, destination details, ground operator’s service, mode of transport, price, additional charges that are indicated clearly, conditions for complete booking, issues associate with health risk and so on.
- Consideration of the budget & Target Market: There should occur the selection of the target market and in respect of the current scenario regarding Thomas Cook, the target market should be including the niche segments. An essential part is being played by budget as well that is defining the habits of spending in respect of the customers that are being targeted.(Lind, 2014)
- Stages & time limit: There should be the completion of the brochure design in the time frame that has been provided. There should be the accomplishment of stages related with overall planning, organizing as well as implementing aspects within the time limit that has been allocated regarding every stage.
P3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour operators and recommend the most appropriate for your tour package.
There are different alternatives to the traditional brochures for attracting huge quantity of customers throughout the world. Technological development has necessitated the evolution of the new alternatives in comparison to the traditional methods regarding brochures. Communication has been made easy and fast through the support of the e-brochure system in respect of the consumers that are located throughout the world. Customer will be keener in knowing what the tour operators are offering when they get attracted by the brochure design. (Hughes, 2013)Therefore, these new options as an alternative to the traditional methods will attract increased number of customers as well as higher profits.
Online designing process will assist in the generation of increasing number of attractive brochures that will be reaching towards a growing number of individuals through the adoption of different activities related with promotion. In the current scenario, there should be the utilization of e-brochures for covering wide network having reduced cost. (Hughes, 2013)The e-brochures are coming in reduced cost and can be accessed faster in comparison to the traditional system of brochure. In addition to this, increased clarity as well as striking feature is offered through the visual medium since the conveying of messages with the support of images are having increased influence as well as clarity in understanding. Therefore, there should be the adoption of the visual medium by the tour operators for their brochure designing.
Clear messages are conveyed by the visual brochures through the depiction of the images of the destination that is being taken into consideration. Moreover, there occurs easier promotion of the visual brochures with the support of online social media sites such as Facebook, Google+ and so on. Other than this, there can also occur the integration of the video brochures with the tools for internet marketing in respect of their promotion. (Hughes, 2013)There is the inclusion of different attractive features such as sound and nice pictures of the concerned destination in the video brochures as well as the characteristics that are related to it. Such brochures are uploaded in You Tube without any hassle and there is very less cost involved in this respect and there also occurs fastest promotion throughout the world with the help of You Tube. Therefore, rationally speaking the tour operators should be having juxtaposition of the different types of brochures whose mentioning is being done earlier. There should be the development of an assimilated brochure that will be including the beneficial aspects of the video brochure, visual brochure as well as the e-brochure.
P3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator and recommend the most appropriate for your tour package.
There is the availability of different methods of distribution that is used by different types of tour operation for selling a holiday. These methods take in to consideration direct sale, online trading, selling done via telephone, promotion as well as selling made via call centers and so on. With the assistance of online media, there is the involvement of the direct selling of holiday packages to the customers directly. Thomas Cook might use this distribution method since it will be resulting in targeting increased number of customers at a much reduced cost. (Hamilton, 2013)Detailed information in respect of the concerned destination is offered with the help of online media in addition to the brochure that has been selected. Additional information is offered to the customers regarding the different tour packages that are provided by the various tour operators.
In addition to that, Thomas Cook should be using the tools for email marketing in respect of holiday package’s distribution. With the help of an e-mail, detailed information and Knowledge is being forwarded to the customer segment that is being targeted in respect of the tour package that is available. At times, there occurs the hiring of the external agencies in respect of promotional activities for the enhancement of the selling associated with the tour packages. (Hamilton, 2013)With the support of a call centre, the staff of the company is conveying the information as well as trying to persuade the customers with the support of telephonic calls towards availing the tour packages’ beneficial aspects. Therefore, taking into consideration the different beneficial aspects related with every kind of method of distribution, Thomas Cook will be adopting an amalgamation of each of these processes. In conclusion, it can be stated that, Thomas Cook will be using direct distribution or online distribution for reaching the customer segment that is being targeted for selling their tour packages that are available.
P4.1 Evaluate the strategic decisions made by different types of tour operator.
The strategic decision that are evaluated by the various types of the tour operators are evaluated as under,
- Segmenting, targeting, positioning: There occurs the identification of the target customers with the help of the tour operators such that there occurs the development of the tour packages taking into consideration the positioned customer’s demand. For e.g., in Thomas Cook, the decision is being taken post evaluation of the current circumstances regarding surroundings that are considered competitive as well as the offering of the services to the customer segments that is being targeted for meeting their probabilities with the help of the budget that is previously defined. (Hamilton, 2013)
- Discount pricing strategy: These are prepared for seeking the increased number of customers for availing the tour packages. It is considered to be a significant decision in which the discount amount is calculated through the fixing of price regarding a specific tour package in association with the method of fixed price contract. For e.g., in Thomas Cook, regarding different seasonal packages, the customers are provided high discounts. There occurs the development of an attractive strategy associated with pricing in respect of the capacity to earn as well as the habits to spend regarding the target customers.
- Seasonal aspects: There is the consideration of the seasonal aspects prior to the improvement of different tour packages. The lean season as well as the peak season will be influencing the tour packages’ demand in respect of the tourism industry. For e.g., in Thomas Cook, there is the offering of high discounts in the peak season in respect of the tour packages and therefore, different seasons are influencing the generation of total profit in respect of the business. (Hamilton, 2013) So, seasonal aspects are influencing the structure of pricing as well as selecting the destination.
- Competitive pricing strategy: These strategic aspects take into consideration the aspect of price evaluation that the competitors are charging in respect of similar trip and setting the price for the tour package for attracting growing number of customers towards purchasing the tour operator’s holiday package. For e.g., in Thomas Cook, there is the creation of loyalty for the customers even when the market is considered to be very much competitive.
P4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations.
For the daily business functioning, different tactical decisions are taken into consideration. These decisions will be including the negotiation made with the providers of the services, arranging accommodation, facilities for food, associating with the stakeholders to become part of the entire value chain. There are different providers of services in respect of various activities regarding transportation, accommodation, food as well as other associated activities. After that, there is the designing of the proposals and these are forwarded to the service providers in regard of the invitation of quotations. Then, there occurs the selection of the quotation that is considered most appropriate as well as efficient that depends on the budget that has been mentioned earlier. (Buckley, 2011)Towards the goal of minimizing the cost as well as providing better services to the customers, there occurs the aspect of selecting the required quotation. In this regard, two UK based tour operators are being considered for developing the holiday’s viz. Explore and Regal Dive that are providing facilities associated with scuba diving. There has occurred the slashing of prices due to the war on prices amongst both the tour operators.
Evaluation of the experience of the customer is considered to be one more process of making tactical decisions where there occurs the evaluation of the customer’s experience as well as there are formation of efforts towards finding solution to the crisis situation that the customers might be encountering. (Buckley, 2011)Therefore, the retention of the customer will only occur when the counteractive measures are taken for overcoming the earlier problems that have occurred and they might as a result, also ready to take another tour package that the tour operator is providing.
This assignment has provided an elaborate discussion on the different aspects of travel and tourism businesses. There is a significant contribution to the GDP of the country from the travel and tourism sector and as a result, this sector also receives the assistance of the country’s government. The assignment has delved with the understanding of the current scenario associate with the tourism sector and also with the development of the tour packages taking into consideration the requirements of the consumer segment that has been targeted. Along with that, there has also been discussion made the aspect of brochure designing and finally different decisions associated with the strategic aspects as well as the tactical aspects are discussed in regard to the tour operators.
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