Delivery in day(s): 5
Unit 14 Tours and Travel Industry Assignment
Diploma in Travel and Tourism
Unit Number and Title
Unit 14 Tours and Travel Industry
Tours and travel industry is a very important part in today’s growing environment where several complex set of activities are performed. This industry has been grown very drastically with a view to provide an integrated approach to tours and travel industry. Most of the population resides at several places are very enthusiastic to manage their time accordingly in their visits and various tours all over the world. Tours and travel industry are the key component that makes efforts to make clients visit perfect and satisfactory as per their expectation. Throughout the time we have been seeing the consistent ramification in activities of tours and travel industry. This business is not only limited with tours and travel services but with the growing demand or in context with expectation of clients form tours and travel industry it has managed to undertake other ancillary services such as accommodation services, spa services.
LO1. Understand the tours and travel industry
P1.1 Analyse the effects of current and recent trends and developments on the tour operators industry.
In order to analyse the current and recent trends of the tours and travel industry there is need to make bifurcation of different tours operators who are making consistent efforts in developing tours operator’s services. The tours operating sectors is very imperative in tourism industry. In the past era tours travel industry were limited to only providing travel services but due to emergence of drastic demand of clients and sophistication in the technology this business has covered several services and products. This has increased continued role and influence of tours and travel industry on the clients’ increasing demand. There are several tours operators who have emerged with the increasing demands of client from tours and travel industry (Anonymous, 2011).
- Inbound operators- These are the operators who are from the countries and set up their business in particular countries with the view to satisfy foreign clients demand and need to capture potential market demand. These types of operators have high competition with the international players and make their policies and frameworks as per the global requirement. There is 45% of market share is captured by this sort of operators.
- Outbound operators- Operators run their business strategy on the basis of the client from the generating countries in which they have set up their business. These operators capture only local people to increase their business. These operators run their business at small level and find difficulties in giving competitions to big rivals in the same industry. However, all outbound operators capture 30 % of market share.
- Domestic operators- this sort of tourism is concerned with the clients who want to visit their own countries with a view to explore new ways and culture at different set of places. This are related with capturing domestic clients and results into gathering 35 % of local market shares.
- Current and recent trends of the tours and travel industry:It has become very cumbersome task to define the area of tours and travel industry as this industry with a view to satisfy clients increasing demand and needs has captured not only tours and travels related services but also accommodation, transportation, technology related services and further more. It is quite oblivious with the data collected from everywhere that tours and travel industry has grown very drastically and several international players haveindulged in capturing this market. Recent trends and current demand of tours and travel industry could be seen with this following description (Porém, et. Al., 2015).
- Increase in the GDP of the country: In U.K. there is finding that in the current scenario torus and travel industry has made US$ 7.6 trillion contribution to the current GDP of the country. This has provided that countries 10 % amount of GDP come from merely tours and travel industries.
- Technology changes: Tours and travel operators in this today’s environment is consisted with international players who indulge all the current technologies in order to make clients expectation better and sophisticated.
- Increment in foreign direct investment: FDI from all over the world in Tours and travel business has resulted into high foreign reserve to U.K. In addition to this it is also observed that Tours and travel business is overtaken by global player at large with capturing of 40 % market share (Buffa, 2015).
- Customization in the products: Tours and travel operators are making consistent changes in their offering and services rendered to clients in context with their particular choice of actions. In the earlier time standard packages were offered by Tours and travel operators. But in recent trends tours packages and other required schedule are prepared as per the client’s choice of actions at large by Tours and travel operators.
- Customer’s satisfaction: There has been made complete changes in the offering of package of Tours and travel operators in this current market. In order to increase client’s satisfaction Tours and travel operators are making collaboration with other ventures so that all the ancillary facilities could be made available to clients at one shot.
- Pestle factors: These are consisted with all the external factors which are required to be taken into consideration such as political, social, environmental, technology, legal and all other factors which could influence Tours and travel industry. In context with PESTLE factors there has been seen positive growth in the demand of the Tours and travel packages either at domestic level or at international level at large.
- Rivals in market: With the view to increasing demand of the Tours and travel business there are various local and international player has made investment in this industry with a view to expand their business or make diversification in growing industry. 40 % market share of Tours and travel industry is captured by international players and 30 % market share is grabbing by other local players.
Understand the stages involved in creating holidays
P2.1 Assess the stages and timescales involved in developing holidays?
- Packaging holidays- It is simply concerned with generating a holiday package which satisfyclients needs and demand includes e.g.- transportation services, tours operators services, management of parties and event as per the clients demand and needs. Therefore tours holiday packages are related with exploring new areas or new countries providing summer sun destination to clients. Now a day several holiday packages are developed by tours and travel operators through the online portals as changes in technology has very much helped industries to capture clients.
There are several stages involved while creating a holiday’s package for the clients as per their choice of action.
- Research analysis upon the potential destinations: This requires utmost care and due delegacy to make right amount of choices of the destination which could be as per the client’s needs and demand. This is made as per the likes and dislikes of those clients who are going to avail the services offered by the organization. Tours and travel operators come up with this effective plans by making proper PESTLE analysis of the given situation and environmental factors.
- Development of tours packages: This is related with identifying core of clients needs and their choice of action. In addition to this Tours and travel operators also consider their budget and time they want to invest on complete tours. Tours and travel operators make systematic procedure to prepare a holiday plan without any complexity.
- Attractive deals: Tours and travel operators in order to bring down the cost of tours packages offers several deals and other coupon code so that more people could get attracted (Ge, et. Al., 2014)
- Price determination: This is concerned with the deciding a basket after availing orders from several clients. In this procedure Tours and travel operators make cost and budget plan of complete tour and make quotation to clients subject to their choices in context with the services they avail.
- Execution: This stage is the ending stage in which Tours and travel operators execute their plans. In which developed tours packages are implemented and clients are given the services for which they booked their tour plans. In this stage assessment is made to encounter problems arise due to the difference between clients needs, demand against Tours and travel operators’ offering.
P2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator.
Tours and travel operators has been increasing their working style and providing best course of actions in order to satisfy different clients needs and demand in this fast moving clients origins market. There are different types of Tours and travel operators such as airline booking centres, vendors and suppliers, tours agents, inbound operators, outbound operators and further more. It is a clear fact that in order to satisfy the clients’ increasing needs and demand Tours and travel operators has to enter into several contracts with many vendors and hotels (Ge, et. Al., 2014).
Fixed contracts: These are the contracts in which various fixed contract are taken into consideration by the tours and travel operators with certain vendors and hotel. This type of contract is done with a view to provide a certain benefits to clients as per their choices. In addition to this contract is undertaken by the tours and travel operators so that at any time clients could be provided the services they ask for.
Characteristics of this type of contract
- Fixed contract provides certain cost benefits to the tours and travel operators
- It is less time consuming process
- Less cumbersome process
Sale only contract: In this type of contract there is various seasonal contracts are made with vendors as per the demand of the situation and clients demands. In addition to this there is understood that these contracts are the random contracts which are made spontaneously with a view to increase clients joy experiences.
Both contracts are the equally important to the tours and travel operators. In order to make consistent approach with vendors and hotels operators makes fixed contract and offer high level of discounts. On the other hand sale only contract is related with specific requirement of the clients and the tours and travel operators enters into sale only contract with other suppliers so that client’s experiences and their satisfaction could be increased(WIZSPK, et. Al., 2013)
P2.3 Calculate the selling price of a holiday from given information below?
In the given scenario Chinese student desire to make computation of the cost involved in their tours packages. Travel and tours operator St. Michelle hotel has come up with an effective holiday packagesthat one room at cost 60 euro that could be shared by two persons and supplement for BB is10 Euros per person/per night (Valeri, 2015).
Computation of cost
Two persons in one room = 60 euro
If number increases then 10 euro extra will be charged for each individual
So 20 Student could books 10 rooms at 54 euro for 5 days = 2700
Rest 5 student will pay 12 euro each for five days = 300
Transportation cost for the coach £ 5400
Additional vehicle required in Paris to roam around £ 900.
Total cost of the rooms
Transportation cost = 1000 euro
3000Euro equal to 3600(3000*1.20)
Vehicle hire in Paris cost
Add 20 % profit margin
Total price of holiday packages
Individual cost of holiday packages would be
P3.1 Evaluate the planning decisions taken for the design of a selected brochure.
Tours and travel industry has been coupled with ramification of several activities and provides utmost care and due diligence in handling clients needs and demand throughout the time. In order to make compete level of disclosures to clients about the tours and related activities Tours and travel operators come up with design brochures.
Brochures- It is a document containing all the related information which is required to be observed by clients while undertaking tours plans. Ideally this is used by Tours and travel operators for increasing.This technique is used by several business men in order to make their marketing mix effective. Brochures are the document which can be distributed offline and online as well to clients so that they could have the real advantage of all the planning of the tour packages. Now a day’s there are several methods such as digitalised brochures and other key document are offered in order to grab the attention of more clients (Huang, et. Al., 2015).
There are several steps involved in developing an effective brochure.
- Identification of brochure needs in context with the clients demand and need: This is concerned with the market segmentation and needs of the clients from the given product in the market by tours and travel operators. In this stage there will be collection of data regard with the time involved in tours packages, client’s monetary aspects, preferred destination and other required details.
- Brochure structure: This is related with how brochure will be constructed and what details needs to be involved while divulging a complete brochure. Brochure is divided in several parts such as dipping destination countries, monitory value involved, name of the tours and travel operators, and other attractive deals. In addition to this a brochure should cover following details such as- name of tours and travel operators, destination countries, mode of transportation, accommodation, meal and other facilities offered, disclosure regarding the legal requirement of the package and further more (Ritchie & Crouch, 2010).
- Budgeting of the tours packages: In this segment tours and travel operators will be making a standard budget program so that it could be presented in front of clients at large. Budgets depicts the at least cost that would be involved in completing the tours to desired destination (Wasding, 2013).
- Time management: This is very much required intent of brochure as it divulges the imperative time which would be involved in managing the complete tour package. There is needed to make a proper time management by tours and travel operators to in each and defined stages in preparing brochure. Therefore for the effectiveness of the working system of tours and travel operators there has to be completion of brochures in timely manner.
P3.2 assesses the suitability of alternatives to a traditional brochure for different types of tour operators and recommends the most appropriate for your tour package.
Throughout the time we have been observing the consistent changes in the working style of tours and travel operators. This level of changes could be described with the changes occurred in preparation of brochures. In the past era or in the last recent time there was seen that many tours and travel operators use to prepare their brochures in traditional styles. Tradition printed brochures are the classical approach for making effective communication with clients in the market. This printed brochure contains all the required information which is needed by the clients before electing any tours packages. Printed brochures are the traditional brochure forms which are not effective in context with today’s global demand. The new technologies and developed upgraded brochures have taken new paths to satisfy clients demand regard with the needed information. Several tours and travel operators are making changes in their research and development department by coming up with effective brochures such as
- E- Brochures
- Audio brochures
- Direct sell
- Agents linked brochure
- Visual brochures
- Online packages
- Social media pages
- Google image sections ("FORCE MOTORS PLANS A LUXURY MPV IN, 2015)
Now a day tours and travel operators are coming up with exiting E- brochures designed in attracting styles so that more clients could be attracted towards the packages offered. These types of brochures are less costly and can be easily distributed with less time consuming process. In addition to this several tours and travel operators use this method for preparing and issuing brochures to potential clients all over the world. It is also observed that tours and travel operators running their business globally are coming with agents linked brochures and online packages so that not only local clients but also other global clients at large. With the increasing complexity of working channels of tours and travel operators there is also seen emergence of agents and other intermediaries who come up with attractive offers on the behalf of organization before clients and make effective communication regard with the complete level of information of the tour packages. Therefore it could be said that traditional approach of prep rearing brochures on paper and distribute to each and every clients is very cumbersome and expensive process. On the other hand there are several options such as e- brochures, Agents, coupons, online packages offering and further more. The best suitable options which could be used in place of traditional costly brochures are E- brochures. If torus and travel operators use these e- brochures then they will be able to grab more market share and increase the demand.
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.
Holiday packages- These are the packages which are prepared for the different clients for their different visits in context with their budget, choice of action and their desire to visit different set of palaces.
Methods- Many times with torus and travel operators in order to make effective strategiessales plans of their holiday packages come up with different methods of selling their prepared holiday packages’ e.g. e- brochures, social media, social pages, audio visual and furthermore(Zhang, et. Al., 2015).
With the growing economics it is observed that people all over the world wants to works as well desire to live a peaceful visiting and exploring new places. Developing of holiday’s packages as per the desired course of action of clients is on the most effective strategy to increase the demand in the market. In order to establish an effective equilibrium between demand and supply torus and travel operators has to come up with the different and effective methods to sell holiday’s packages to clients in the given tours and travel market segment. Preparing brochures as per the traditional approach such as paper based brochure or manual invitation card are past techniques to make clients vigilant about the current offers. But with the ramification of changes and newly developed technology has provided torus and travel operators to use sources like call centres, travel agents helps, developing an effective web page, advertising company in the Google image section and using other social media channel to divulge lucrative offers to potential clients. These tools are not only cost effective but as well it reduces the time to capture clients at large. Therefore in order to increase the demand of the potential client’s torus and travel operators has to use developed technology in its marketing mix and also develop sales team who can make clients convinced with the holiday packages.
The most appropriate method in the given case study will be hard to find as in this case study we have been asked to create effective methods to promote adventure holiday package. Therefore the most effective way to promote the adventure holiday would be made through several ways given as below.
- E- Brochures
- Audio visual advertisemen0074
- Social media pages
- Using Google image section to promote Brochures
- Using travel agents and other intermediaries help
With the help of beyond methods torus and travel operators could easily increase the demands for the adventures holidays packages of the tours operators (Visschedijk, et. Al., 2013).
P4.1 Evaluate the strategic decisions made by different types of tour operator.
Strategic decisions- These are the decision which are related with the long terms growth and sustainability of the organization. Normally these decisions are taken by the top management of the organization. Strategic decision making is the pivotal point in developing of business effectively. this decisions are comprised of set of activities such as identification of factors associated with, collection of data, analysing the facts and factors, determination of objective implementation and then end up with the follow up program for better understanding of situations. Tours and travel operators come up with this type of decision when they want to make strategic alliance with other vendors and supplier or want to make changes in existing policies and frameworks. Tours and travel operators have to considers the following steps which are required for the effectiveness of strategic planning (Valeri, 2015).
- Evaluating given market segment: Before coming up any imperative decision Tours and travel operators needs to analysis given market segment such as product offering by the competitors, demand of clients and their choice of action, rivals strategies and their developed plans.
- Anticipating demands of the clients: Tours and travel operators need to develop an effective mechanism in order to indentify the future demands of the clients. In this process Tours and travel operators will consider its existing planning and procedure as per the future demand and make required changes at large.
- Marketing mix: This is related with considering price, palace, promotion and people concerned with holiday packages. Travel operators’ needs to evaluate all this four pillars before preparing strategic plan.
- Technology changes: Technology are the utmost variable factors and Tours and travel operators have to take into account all the upcoming technology in its holiday packages so that best services could be rendered to clients.
- Risk management: Strategic planning is comprised of high amount of risk. As Tours and travel operators has to make its holiday packages as per the instruction of clients. This is the risk which arises if the given products are held unsold in the bucket list of Tours and travel operators.
If tours operators are having effective brand image in the tours and travel industry then there will be high demand of the holiday packages offered by the organization. In addition to this Tours and travel operators has to make effective situational analysis to understand the given market segment. Consideration of Political, Social, Economical, Technological, and environment are the most effective factors in the strategic decision making.
P4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations.
Tactical decisions are those decisions which are of recurring in nature and used in order to implement organizational structure effective ,Tactical decision are taken by the line mangers in different operational plans. Tours and travel operators have to make different decisions at different points of time for the smooth functions of business. Tactical decisions of Tours and travel operators are related with handling clients required product create holiday plans, and making arrangement of services to be offered to clients. In other words tactical decisions are related with day to day activities which eventually end up with accomplishment of ultimate goals and objectives.
Factors that could be taken into consideration while taking tactical decisions by tours and travel operators
- Regularityframeworks and laws
- Economical growth and environmental factors
- Global interface
- Organizational working structure
Tactical decision that could be taken by selected tours operators in different situation are described below.
The Ultimate travel Company
It focus on maintain employees and as per the supply of holiday packages required in given market segment.
It focuses on taking initiative in using technologies to increase the efficiency of tours packages.
Decision taking authority
Employees take their own decision as per their own experience.
Only line managers take tactical decisions then orders will be passed to employees.
All the tactical decisions in this organization are of recurring in nature and rare changes are made by top management in its operational activities.
Tactical decisions are changed as per the change in the demand of the clients.
With the consistent growth and increasing demand of the clients has made tours and travel business a growing industry in terms of earning either high amount of profit or providing set of services as per the demand of the clients in the given market. Now it could be said that tours and travel operators have to make consistent effective holiday packages in order to grab more market share.
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