Unit 14 Tourism Operation Management Assignment
Diploma in Travel and Tourism
Unit Number and Title
Unit 14 Tourism Operation Management Assignment
Tour operation management is the combination of tour and travel component to create a holiday or business package. It refers to all the activity involved in managing the tour from analysing the market to planning, execution, controlling and monitoring the activities to meet the objectives of the organisation. Tour operation management provides the greater level of satisfaction to the customer which also increases their efficiency in providing the best services to their client. The report will evaluate the trends and development in travel and tourism industry of UK to make an attractive plan for visitors. In next task it will involve the stages and timescale in developing holidays along with suitability of different method required for sightseeing locations for Chinese students considering the location of London, Paris and France for 5 days. Further report will analyse the planning decision in design of the brochure and development of the brochure for adventure tour holiday for TUI organisation. It will conclude about the different distribution channels to sell the product in the market. At the end report will analyse the strategic decision made by different tour operator and compare the tactical decision in different situation for selected tour operator.
1.1 Study of current trends and development in tourism industry in UK
The organisation is well known for tour operating industry named as TUI travels. Organisation performs all necessary works related to transportation business. It is working in more than 181 countries, with more than 31million customers. Total turnover of TUI is £16,051million.This organization is situated in London, United Kingdom.
Following are key recent trends and development of tourist industries like TUI.
- Attractive offers: Modern customers easily get engrossed towards attractive offers that are made by tourist industries. These offers may be of discount or additional benefits to customers in relation to their tour packages. TUI can use this trend to attract more customers and also retain them for longer period of time. TUI should select those destinations that customers have reviewed most, so that they can make eye-catching offers for those destinations and maintain the sales. Regular customers should be given more concern as compared to new customers so that they can stay with organization for longer period of time.
- Online marketing: This is one of the cheapest and quickest modes of advertising. There are various ways through that organization can do online marketing, like creating mobile application, making website etc. Online marketing is one of the fastest growing method of advertising in modern market, which is been used by many industries so that TUI could easily reach towards customer and create more customers for them (). Reviews of customers are important, according to that only organization changes its style and method of working. Online marketing is the best source through that organization can generate finest possible information. It is the best way, through that customers can easily know that what offers are been made by organization. Online marketing fills the gap between the organization and customers. TUI can offer appropriate facts to their customers about new services that are offered by the organization.
- Up gradation in technology: It is because of up gradation in technology organization TUI is getting growth. Through up gradation customers can easily book their tickets and check their booking status too that was not possible before.
- Maintaining relationship: Organization like TUI should maintain healthy relations with their customers. Suggestions given by customer should be implemented if it is relevant for the organization. Proper guidance and assistance must be given to customers.
- Power of spending has rapidly increased: The level of income of customers has increased at a great rate. They are now ready to spend more if they get good deal related to tour packages.TUI should use this opportunity to attract customers.TUI should modify their tour packages according to needs of customers. For example, if a customer would be able to spend more on services offered by TUI, then it should develop packages according to them, so that it becomes convenient for that particular customer. Organization should try that no customer should leave from their hands.
2.1 Stages and timescale involve in developing holidays
Travel and tourism organisation of the UK is looking for the opportunity to plan the holidays for the Chinese student at places like London, France and Paris for sightseeing. The objective of the organisation in the current scenario is to expand their business in the target market by providing new product to their customers. The organisation is planning the tour in summer vacation in August 2018 with 45 student’s target. The stages involved in the development of planning the package:
- Market research: In order to develop the attractive and successful plan, organisations need to spend money on the market research at the locations where the operator is planning the tour like in given case London, Paris etc. Research work involves knowing about the environmental condition, cultural activities and accommodation facilities and other issues which are necessary. While researching the organisation need to evaluate the cost for operating the tour and whether it is economic for them to pan for the same. As the program includes sightseeing package the entry fees of the different location plus journey cost should also be considered. Along with the economic, social and market conditions of the country should be seen.
- Planning and Scheduling: In this stage, the organisation will plan the complete tour from beginning till the end of the activity. The TUI management will involve the decision like reaching time at the destination, suitable time for sightseeing and travelling and accommodation facilities according to the need of the students. Although the management is involved for many years in the same business then too planning is required due to change in market condition or environmental condition, preferences of the students etc. With planning scheduling task is also important for the timing activity.
- Contracting: The TUI organisation has to contract with the different organisation for the facilities they are providing to the students. The tour operator has to contract with the hotel for accommodation facility, with transportation organisation for the visitors i.e. airlines, bus etc. Organisation makes assurance about the contract with hotel and airlines. And this would help organisation to fix the rates for the tour (Swarbrooke and Page, 2012).
2.2 Different methods of contracting for different components and different types of tour operator
The organisation has to enter into the prior contract with other organisation for the facilities that are required in the tour packaging. Since the TUI is planning in the month of August 2018, the management has to enter in contract around 1 year before for receiving the quality services of the respective organisation. The terms and conditions are to be considered while entering into the contract. Important contracting terms used in developing the plan:
- Commitment: this is the important term used in contracting. Even the organisation which are involved in travel and tourism their work is based on the commitments. Tour operator provides the surety about the accommodation facilities and transportation to different journey for sightseeing. Therefore the contracts are carried a year before due to competition in the same business (Shaw and Williams, 2009).
- Ad hoc: It is the effective arrangement that provides flexibility to the tour and travel organisation for booking of the services. Organisations used this method when there in non permanency in any contracts for bookings. The bookings are generally done through the mails, telephone etc. And the charges are based on day to day activities or on the basis of hours.
Types of tour operators:
- Inbound tour operators: The TUI organisation when go for inbound tour uses direct promotional activity. Inbound tour includes all facilities like accommodation, transportation, sightseeing, entertainment, currency etc. And offer arrival and departure facilities to the inbound foreign tourist visiting the country.
- Outbound tour operators: This type of tour operator plans the tour for outbound countries by using the facility of inbound tour operator of that country. Moreover this tour operator provides leisure tour facilities to the visitors. Like Thomas cook is using outbound tour facilities (Li et.al. 2011)
- Domestic tour operators: The tour operator in countries like UK, USA and India are performing well by offering low cost services of tour packages. In the current scenario, the TUE can use the domestic tour services for the growth of the organisation. This type of operator provides services from their own stores as well as from travel agent.
- Ground operators: This type of operator provides the services to hotels, transport, entertainment etc. The major work of this tour operator is to coordinate and supervise the work and payments of the large tour organisation.
2.3 Selling price of the holidays for Chinese students
The tour will be for 45 Chinese students and the duration of the tour will be of 45 days. The students would be occupying the rooms on twin sharing basis and hence the number of rooms required will be
45/2 = 22.5 = 23 rooms
The cost of package would be computed in pounds and the cost in euro would be converted using the following conversion factor
1 Euro =0.90 Pounds
Cost of 1 room = 54 *0.90 = 48.6 Pound
23 rooms for 5 days will cost = 48.6 * 23 *5 = £ 5589
Cost of BB per day is 12 Euro = £ 10.8
BB for 45 students for 5 days = 108 * 45* 5 = £ 2430
50-Seater luxury = £ 5400
Local tour guide= £ 900
Table below shows the expense for the tour
Expense for Coach
Cost for local Tour guide
Targeted profit is 20% and hence the price for package per person would be
17183 / 45 = £ 381.84
3.1 Planning decisions taken for design of brochure
The planning stage for adventure tourism holiday has been developed and now the organisation is looking forward for the creative brochure that offers information about the adventure tour holiday. The organisation can sell the tour package through online and traditional method. Now the organisation will prepare the brochure for providing the information about the adventure tour by offering attractive prices and comfortable accommodation because the objectives is to sell more and more packages (Rozier-Rich and Santos, 2011).
The following decision taken for the brochure by the organisation:
- Format: Brochure format makes an important impact on the reader. The format of the brochure should be attractive so that the client would be curious to know about the details of the package. The format should include the following points like accommodation, transportation, time scale and contact numbers of the customer care executives. It should also include the images of the location and information about the key destination.
- Quality printing: While designing the brochure the quality of the brochure should also be considered along with the images and information. Printing quality should be such that it can retain at least for the minimum period. Die cut printing can be used for the proposed plan.
- Colour: Selection of colour for the brochure also plays a critical role. In the given plan colour should be according to the summer season. Use of bright colour would make it more attractive in designing the brochure.
- Content: The content of the brochure should provide the complete information about the adventure tour holiday. The content should include information about websites, contact number, time schedule and cost of the package. The language used should be easy and specific that fulfils the objectives of the operator i.e. to engage the reader (Huertas?Garcia et.al. 2014).
- Timescale and stages: the stages involved in the brochure graphics, images, content i.e. information as per the plan of the tour package. This should be carefully analysed while planning in designing the brochure.
- Paper quality: Along with quality printing, quality of the paper should also be considered. The paper should be durable so that it could be retain for longer time.
3.2 Suitability of alternative of traditional brochure for different types of tour operators
The organisation has to design different brochure for different types of tour depending upon the needs of the tour packages. For adventure tour holiday TUI has to design the new brochure offering the specific information. For the achievement of the plan the organisation needs the brochure to attract the reader to opt for the package. For advertising and promotion organisation can use the following alternative:
- Direct mail brochure: This type of brochure are very useful for the inbound tour operator because they target is on particular audience. They can send direct mail to the list of target people along with that the organisation can send the other promotional offers such as discounts and key information about the destination which engages the reader. From this the TUI travel and tour can be benefited in terms of cost and time as printing the paper brochure cost would be saved and overall cost in designing the paper would also be less as compare to traditional brochure (Crooks et.al. 2011). Moreover the visual approach has much impact as compare to physical brochure as use of online access is increasing by every age group and especially organisations engaged in tours and travels should use this medium to engage the target people to their tours packages. For that the cost incurred would be on technology i.e. the website should be as attractive as possible. TUI should first offer the information through mails.
- Promotional brochure: This type of brochure is used for promoting the services the organisation is offering. The main fundamental of all the type of brochure is to provide the information so that they can attract towards the tour package. This type of brochure are useful for inbound tour operator and ground operator because they can use different method for promoting the within their country by direct promoting technique. But this brochure didn’t fulfils the need of the TUI because TUI package is for international tour and the quality of the brochure is also not effective as compare to online mail brochure. Moreover there would be increase in cost and time burden (Molina et.al. 2010).
3.3 Methods of distribution used to sell holiday
In the current case of adventure tour holiday, TUE can use different method of distribution for the market of sell package. Travel and tourism organisation using the different methods:
- Direct sell: As the name suggest, the organisation uses the most common method to attract the customer for their product. This method is cost effective for distribution of information about the adventure tour holiday of the TUI organisation. It is oldest form of marketing for one to one communication between the seller and buyer and has a direct influence on the buyer (Munar and Jacobsen, 2013). From this the operator would also know about the intention of the buyer for their interest in their product offering. But according to current scenario, this is not much effective method as people don’t have time to seat and hear the information they would rather read on mails because mailing is a page which is most commonly operated in a day once.
- Internet: Internet has a wide acceptance in current scenario. TUI organisation can use this tool in effective manner through advertising on social websites, own official website and application to target the larger group of people. It is a useful distribution channel for collecting the customer and to know their desires. Internet has eliminated the gap between tour operator and customer. Now they can directly reach to the tour operator without intervention of travel agent. Internet is great platform for promotional activities because organisation can use the advance technology like 3D photographs, 3D space, drawing, sound and media interaction can be used marketing (Xiang and Gretzel, 2010). It’s a channel that connects the two people who achieve their desires. In modern tourism it plays important role and it has a demand in current scenario. With this TUI can create a unique identity, increasing efficiency and developing value added services.
4.1 Strategic decision that are made by different tour operators
To increase overall performance of an organization there are different types of strategic decision that are taken by organization. It is very important for an organization to make strategic decision because through marketing strategy decisions an organization can sustain in market and development can take place. Management and functional activities are aspects of strategic decision making. Inbound operators, outbound operators, domestic operators, ground operators are types of operators found in UK (Frey and George, 2010). Following are the strategic decisions for pricing that are made by these tour operators:
- Outbound tour operators: Pricing plays a key role for outbound operators. Generally customers of outbound operators are upper class section in their society. They can afford international packages of services. So, outbound tour operators should make high rate of pricing strategy against these customers. They should be aware of providing best quality of luxury services to their international customers.
- Inbound tour operators: These types of tour operator gets domestic customers who wants to take tour inside UK only. Inbound tour operators should make attractive price strategies because both upper class and lower class section of society customers reach towards them, to take their services. So inbound tour operators should make tour packages that are affordable by each and every customers residing in UK. Pricing strategy of inbound tour operators should be according taste and preferences of UK people (). It is very important for inbound operators to make attractive pricing strategies because they get more customers as compared to other tour operators.
- Domestic tour operators: These tour operators generally give services to the customers who are near tour operator location. Pricing budget as compared to inbound and outbound tour operators is generally low. In domestic marketing customers do not uses services for longer time, say day or half, keeping this in mind operates have to prepare their pricing strategy.
- Ground operators: These operators keep their pricing low as much as possible because their customers take services for hours only. Generally low income class people refer ground operators who prefer sightseeing or travelling short distance. Cheap price services should be provided by ground operators so that each and every common man can reach them.
4.2 Tactical decision taken that could be taken by a selected tour operator in different situation
Tactical decisions are important for smooth functioning of an organization in normal market. It is the decision which is made by internal management of an organization. These decisions are simple as compared to strategic decision, but it need to be resolve first. It depends on organization to organization that how they solve their tactical approach (Tsiotsou and Ratten, 2010). Following are the tactical decision that is to taken by two different tour operators in UK; these are Thomson that is mass tour operator and Cox is one specialized tour operator:
- Tie up with other providers: Organization like Thomson works in a global market that requires bonding between services provides. To provide best quality of services mass tour operators requires to tie-up with the local region market; so there cannot be any hurdle in services provided by them. For example Thomson should tie-up with other organization to provide basic facilities to their customers like food, transportation etc. International organization like Thomson needs to maintain their relation with other organization to sustain in this competitive world.
Organization like Cox which is specialized tour operators that make tour holidays according to preferences of customers like tracking trips, cycling trips. These types of organization ties up with specific service providing organization that can fulfil the specific needs of customers (Buhalis and Jun, 2011).
- Measurement of customer experience: Tour operators like Thomson needs to evaluate their service performance through customer experience, on services offered by them. Communication is one of the best ways through which Thomson can review customer satisfaction on their services. Deep analysis should be performed by the organization on reviews.
In case of specialized tour operator organization should review on pricing on their services plus quality of services. In modern era customers wants best quality experience on services that are been offered by organization like Cox. Plan and strategies can be building according to experience by the customers.
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The report has concluded about the impact of various trends like marketing, technology and environment on travel and tourism industry. It has also explains about the research required for planning of tour packages in TUI and types of tour operator that are required for different customer. Further report discuss about the design of brochure in planning decision for adventure holiday and brief notes on distribution method for sell of packages. At the end, the report talks about Thomas Cook who maintains the growth for achievement of objectives by making tactical decisions.
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