BTEC Higher National Diploma in Travel and Tourism
Unit Number and Title
Unit 14 Tour Operations Management
Unit 14 Assignment on Tour Operations Management is based on the tour and travel industry and its information. The report discusses the detail description of the travelling industry and discusses the tour operators and their work or activities. The report also explains about the contribution of the tour operators in the tourism industry. In tour operations management assignment report the explanation is based on the scenario provided in which a tour is organized of 45 students of the Chinese culture for visiting London to Paris covering 5 days of the vacation. The tour operator is provided with the following information and asked to prepare a proposal for the tour to manage the resources in the efficient manner and to make the trip in time and effective.
This report is divided in 4 different tasks including the different methods contracting with the components of the holiday, decisions to be taken while designing a brochure, alternative of the traditional way of promoting the tourism and the various methods of distribution and selling the holiday. It also includes the evaluation of the selling price in which the company can earn 20% of profit.
1.1 Analyse the effects of current and recent trends and developments on the tour operators industry.
2.1 Assess the timescales involved in developing this holiday.
For the effective planning of the tour it is important to develop the timescale of the holiday to provide the effective planning and better utilization of the holidays. The development of timescale provides the better management of the time duration in the holiday. By timescale the given minimum time of the holiday can be effectively utilized.( Mann, et.al, 2002) Some of the major timescales involved in developing the holidays are discussed below:
- Analysing the destination-The important activity in the timescale involves the examination of the destination place for better understanding the culture, weather, and various places of the particular destination to visit.
- Research-The research activity includes the investigation of the various features that can be offered to the visitors of the selected place. By the research various other aspects can be investigated and examined for providing better tour.
- Negotiation-The negotiation with the service providers is important to include as the activity in planning the holiday.
- Financial evaluation and pricing-The evaluation of the financial resources needed to be done in the planning activity of the holiday. The determination of the pricing is also needed to be done during planning.
- Tour operator’s brochure-The brochure for the tour is to be considered while planning the holiday.( Barr, et.al, 2010)
2.2 Evaluate the suitability of different methods of contracting for different components of the holiday.
The contracting refers to the dealing and enters into the agreement. It is the deal done for the agreed value for the product or service. For planning the holiday different contracts are to be made to make the holiday success and plan facilities.
Components of holiday are the included places and various features of the holiday. The hotels, transportation, sightseeing places and the different things included in the holiday package are the components of the holiday.
There are different methods of contracting adopted by the tour manager. These methods are:
- Fixed contract-The fixed contracting refers to the dealing done on the high consumption basis. Fixed contracting has the fixed package provided by the provider in which the same offerings are provided on the fixed prices to everyone. The fixed contracting is effective in the bulk consumption or the high level of consumption done by the large number of people. The fixed contracting involves the higher discounts offers as the large group is assumed to consume the product or service. In this contract the service providers fix the rates of the bookings on the basis of volume or the number of people takes the facility. The fixed contracting is beneficial for the larger number of booking so as to get the maximum discounts and class facilities at the low prices.
- Sale only contract-Sale only contract are the contracts which are comparatively high in prices and costly. The Sale only contracts are generally done in the peak season of tours where the need of getting the facilities are prior and the service providers take the benefit of such prior needs. The cost of the services is marked as high to generate extra profit and create the maximum benefit. The service provider offers the high cost to the potential consumers and earns the maximum benefit. These contracts basically focus on the prospective customers and provide the facilities on the way higher prices. But these contracts bear the risk of less response as they are the costly and focus only on the particular segment.(Popp, R.K. 2012)
These are the two methods of contracting with the components of the holiday. These methods are adopted by the service providers during the tours. The more suitable method of contracting is the fixed contracting method. This method is much reliable and less costly. This is done for the bulk or the large number of tourists.
Tour operator is the person guiding the tour and managing the tours and the provided services. Tour operator is the assistant to the people visited for the holiday. Different types of tour operators are:
- Inbound tour operators- The inbound tour operators are those who are directly bounded with the tourists and provide them the facilities and services from their arrival till their departure.
- Outbound tour operators- The outbound tour operators offer the services to the group or individual of the same country as well as another country.
- Domestic tour operator- The domestic tour operator is the person who provides the services domestically to the home country of the operator. The domestic tour operators guide the people who visit in the domestic country of the operator.
- Ground operators- The ground operator is the particular agency and the service providers who book the destinations and hotels etc. from their particular place. Ground operators provide the facility of bookings ready at the destination places.(Marinov. et.al, 2010)
2.3 Calculate the selling price of a holiday from given information below.
As per the present scenario the hotel St. Michelle providing the special rate to our group that is the room as big as shared by 2 adults is offered at 54 euros. The transportation company providing whole cost of transportation in £5,400 in which the 50- seater luxury coach is included plus the two drivers and fuel and taxes included. The local guide will be needed for visiting the destined places is to be provided for the £900 for five days. The company is expecting or demanding 20%of profit margin for the tour conducted. The calculation of selling price is shown below:
Calculation of selling price of tour:
cost of rooms
cost of BB
Total variable cost
variable cost in pounds
cost of bus
cost of guide
total cost of tour
profit margin 20%
total sales price of tour
number of students is 45
price per student will be 3212£
3.1 Evaluate the planning decisions taken for the design of a selected brochure.
The tourism sector uses the various brochures and pamphlets to attract the visitors and determine the travelling features. The traveling and tourism industry provides the detail information of the travelling and its expenses by providing the brochures and enhance maximum attraction of the visitors by making the brochure or the pamphlet attractive. (Baur,A.,et.al, 2014)
For making the brochure attractive the design of the pamphlet or the brochure should be effective as well as attractive. The various planning decisions for the design of the selected brochure are:
- Identification of the factors affecting planning decisions:The major factors that should be considered while planning the design of the selected brochure is that target of preparing the brochure, its format, its aim to provide the information, and the time to prepare the brochure.
- Brochure format:The brochure format should be considered while planning the brochure. To make the format of the brochure things that should be taken into consideration are name of the tour company, time of the tour, destination explanation, transportation, cost involved and other important issues.
- Determining budget and target market:The planning decision of designing the brochure is also affected by the budget and target market. The budget and target audience should be considered to determine the actual cost that could be incurred and the target audience which need to be focused for selling the tour.
- Stage and the time limit-The determined time limit to complete the designing of the brochure should be considered in planning the activities of the designing the brochure and the stages which should be accomplished within the time limit should be remembered.( Capsule, et.al, 2011)
3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour operators and recommend the most appropriate for your tour package.
In the particular task the two different tour operators are taken these are Air tours summer and Thomas cook cruises summer. The present task will be describing the alternatives to the traditional way of promoting and selling tour through brochures. The two tour operators have been chosen for analysing the alternatives.
Due to the online system and the new technologies various techniques and the methods have changed. The tour operators are now generally providing all the information on their websites regarding the tour. The traditional way of selling and promoting can only be existed by the modern ways. The online technology has changed the methods of promoting the business. To attract the large amount customers all over the world the tour operators has the alternative available of e-brochure. By the use of e-brochure the tour operators can improve the communication as it provides fast and effective communication. These new availability of alternatives provides the tour operators a big opportunity of attracting the customers and the visitors and attracts the higher profits.
The online technology has given the opportunity of e-brochures to access the maximum public all over the world which helps in promoting as well as getting business in a huge amount. In case of Air tours summer and the Thomas cook summer it has been seen that the customers are the attracted by the strategy of e-brochures to their websites and earning greater revenues with the lowest cost. The online technology which enables the e-brochures has provided the facility of accessing the greater public within the low cost of promotion and attracting them by offering them the offer prices of the services. These e-brochures must contain the attractive visual effect which grabs the attention of the people or the visitors of the site. These effective visuals provide the benefit of clear understanding of the package or services and impact highly on the customers through attractive images.
Visual e-brochures involve the benefit of promoting them on the other social or public sites which grabs the attention of the public. There are various types of video brochures which can be easily uploaded on the different sites such as Youtube. The visual effect clears the picture of the destination in the mind of the customer and helps in taking the various decisions related to tour. The visual e-brochures include the prices as well as the explanation of the destinations.
The appropriate alternative for our tour package is the online e-brochures. For enhancing the productivity and providing the effective promotion and selling of the tour our tour needs to adopt the e-brochure facility. The company needs to adopt the visual and video of e-brochures to promote and expand the business all over the world. For increasing the productivity of the touring company it is important to adopt the e-brochures and online technology methods.( Leon, et.al, 2013)
3.3 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 are different methods of selling the tour or the holiday for different types of tour operators. These methods are the direct selling, online selling, telephonic selling, promotions and selling via call centres. These are the methods help in the attracting the customers easily as this information are provided at their door step to increase the effectiveness and providing ease to the companies. Email marketing is the popular method for the companies to promote and get sales through emails. These emails provide the complete information of the tour with the prices. The different packages of the company and different schemes are completely described in the brochures and the email.
For our tour the appropriate method of distributing and selling the holiday will be the online and telephonic selling. For promoting the tour it is important to grab the attention of the mass public all over the world. Taking business online is the most important aspect for the business to get the maximum benefit and to create the maximum existence of the business all over the world. The email method is the popular and effective method of promoting the business. For our tour it is the appropriate method to adopt.(Popp, R.K. 2012)
4.1 Evaluate the strategic decisions made by different type of tour operator. 4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations
Strategic and tactic decision are important for the purpose of travel and tourism . So both of them should be formulated and implemented in an effective and efficient manner in the organization. Running of the business of tour operator requires certain types of decision to be taken into consideration for the purpose of enhancing the growth of the business as well its prosperity. Thomson holidays are one of the famous tour operators working in UK and subsidiary of TUI group. This operator has many clubs and cruise line enables its success.
So these decisions with their evaluation are mentioned below-
Pricing strategies-The first concern of tourist is always in relation to the expenditure they may incur in the traveling. So for this purpose it is important that tour operator make certain decision in relation to deciding of the price of the tour. Pricing may be either disguised or the visible one. Disguised pricing is that in which overall pricing is mentioned irrespective of mentioning each and every price separately. Another pricing is visible pricing in which each and every price of every element is mentioned separately. Tour operator must decide the price method as per the cost associated with it Many offers can also be given in this context such as discount to their loyal customers.( Chand, et.al, 2012;2011)
Surcharge policy-Surcharge is the additional amount added to the fees charged by the tour operator. It is important that surcharge added must be added in such a way that tourist or customer may not feel any objection with it. Policy of surcharge may create issues for the customers as they would feel it is an extra fee. So by using proper guidelines and techniques this problem is sorted.
Positioning and image branding-Brand is the intangible asset that helps the business to earn profit. It is important that brand be made and then maintained in a proper manner. Branding may be enhanced by promotion through various mediums like by Social Medias, YouTube channels, advertisement. Even customer satisfaction plays a key role in the development of brand. But excessive promotion may cause problem as customers may has high expectations with it.(Chand, M. 2011)
Choice of product as per customer portfolio-A customer is attracted to product when there is proper advertising. Product must be presented as per the interest of the customer. Decisions such as locations landscape are presented in an effective and presentable manner. Photographs be presented to customers as per there taste and interest. But this decision must be taken in precaution manner as customers choices may differ from person to person.
Distribution decision-These are medium through which services are rendered to the customers and the way in which payment be made by customers. There are various channels like government agencies, OTA’s Vic’s etc. these channels be used with great caution as wrong channel may lead to large damage to the business. As through government websites there are certain additional formalities that required extra consideration. So each distribution channel must be correctly taken into account.Tactical decision is the decision taken in respect to the final result required by the business. Business end result or the desired result is always the long term running of business, profitability and growth of the company. It is important that decisions taken must fulfil the desire of getting appropriate result. So for this purpose tour operator made tactical decisions in different situations. Business is dynamic so decision taken in this respect is also different. So decision must be taken in precautious manner.(Safko, L. 2012) They are-
Competitions- There is excessive competition present in the market that may hamper the growth of the business. So decision in this regard be taken carefully and appropriately. Competition problem may be overcome by better advertising approaches and techniques. Advertising can be done through mediums like social media, YouTube and many others as well. So operator can manage a good advertising policy to create a brand value that may help it for better growth.
Price wars- Due to excessive competition, competitors are not able to create a great margin for the profit. This result in the business going into loss even after the availability of client so it is important that this problem solved in an effective manner. This can be done by maintaining strategies that can enhance its performance. Such as- economies of scale can be helpful in accomplishing the targets of price issues. These wars problem can be overcome by effective management.With proper strategies and effective evaluation Thomson Tourism operator can solve the issues of competitions and all the external factors that may hamper the growth of this UK based company
Tour operating business is used to manage the trips and travelling of the tourist. This business has very significant importance in the economy as this helps tour and travel is the important sector through which country’s income is generated. There are different methods through which tours are organized. For each type of tour there is the existence of different type of tour operator. It is imperative to select the best available option for better utilization of resources. It is also necessary that best option be used to select best time of holiday by the operator so that there would be increase in customer satisfaction. If there is level in increase in customer satisfaction then there are chances in increase in the goodwill of the business that would be helpful in long term productivity and growth of the business. Strategically and tactical decisions also plays an important role in the success of the business. Strategies and tactical decisions be selected which is best for the business as if there is any negligence in the selection process that it may create negative effect on the business. So it can be concluded that with proper decisions ad techniques tourism and traveling be enhanced in an effective manner.
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