Understanding different types of tour operator industry

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TABLE OF CONTENTS
INTRODUCTION ...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 The effects of current and recent trends and developments of the tour operator's industry ..3
TASK 2............................................................................................................................................5
2.1 The time-scales involved in developing this holiday.............................................................5
2.2 The suitability of different methods of contracting for different components of holidays....6
2.3 Calculate selling price of the tour ..........................................................................................7
TASK 3............................................................................................................................................8
3.1 The planning decisions taken for the design of a selected brochure (350)............................8
3.2 Suitability of alternatives to a traditional printed brochure ...................................................9
3.3 Suitability of different methods of distribution used to sell their holidays and recommend10
most appropriate for your tour package ...................................................................................10
TASK 4..........................................................................................................................................11
4.1 Strategical decisions made by different types of tour operators .........................................11
4.2 Compare the tactical decisions that could be taken by a selected tour operators in different
situations ...................................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES ..............................................................................................................................14

INTRODUCTION
In order to create different travel and holiday packages for different segment customers
tour operators plays significant role. The forefront of all the travel operators is that they often
look for new destinations so that their customers can travel and enjoy their luxurious time period.
In addition to this, in the current scenario tour operator mainly ensure assessing new travel and
holiday packages to fit the dynamic responsibility of visitant and travelers. Furthermore, the tour
operators incorporate various travel services and activities related within booking of airline,
hotels, food and beverage services, site seeing services etc. the leading company within the travel
and tourism sector is Thomas Cook that basically provide different holiday services as well as
packages to all the segment customers. The establishment function its operations in the
hospitality and tourism industry that is view as the growing service business that contribute the
economy of UK.
The present report focuses on understanding different types of tour operator industry
within the travel and tourism sector. It also measures the effect of trends and development on the
tour operators Industry. The report also stresses in understanding the different stages that are
involved in developing holiday packages as well as different methods of contracting different
components of the holiday that is suppliers and vendors. Lastly, the report also analysand the
strategic and tactical decisions that is being made by the tour operator in the different situation to
gain competitive advantage.
TASK 1
1.1 The effects of current and recent trends and developments of the tour operator's industry
Tour agents are the one that set up the itinerary or the travel guidebook for their
customers those who mainly prefer to visits different destination. The itinerary consists of all the
details and information regarding the travel package that is flight booking, accommodation
information, information related with site seeing etc. there are different types of operators within
the UK that mainly serves the requirement of different visitors and travelers that is specialist
operators, inbound operator, outbound operators etc. Inbound tour operators that the one that
mainly renders services to the visitors and travelers that come from other region within the UK.
On the other hand, outbound tour operators are the one that often render travel services to those

customers those who want to travel other destination from their home country. Thomas Cook is
the primal tour operators in operation in London, UK that provide assorted holiday packages or
travailing plan to their customers.
It has been analyses that there are various trends and improvement within the travel and
tourism aspect that need to be considered by the tour operator so that they can render leisure
services to their customers. The recent trends within the travel and tourism include-
• Emergence of E-commerce: In the technical era, e-commerce plays significant role in
the development of travel and tourism industry as with the help of e-commerce tour
operators can set up their business activities on the online platform. With the help of this,
customers can easily book their travel plan as well as this will also support the customers
in knowing the detail of the travel plan that they have selected. Despite of this, enabling
e-commerce transaction also negatively effect the travel and tourism industry as it may
results in increasing the hacking activity as well as it also results in some security issues.
• Expansion of cruise market: Another rising trends within the travel and tourism industry
is expansion of cruising activities within the travel packages. Now a days customers and
travelers mainly prefer to travel in the cruise as it results in providing wide range of
services to the travelers and visitants. Therefore, it is said that increase of cruise market
will impact the operations of Thomas Cook as they will modify their travel package
accordant with the needs and requirement of travelers.
• Environmental awareness of tour operators: In the present scenario, tour operators are
focusing on creating the travel package that mainly render concern towards increasing the
environmental perspectives. For this, tour operators within the industry must focuses on
Eco-tourism packages so that they can reduce the rate of carbon emission. For example,
the tour operator within the industry must focuses on exploring the natural and
environmental destination that are not explored by the visitors. Thus, the increasing
awareness regarding the environment will impact the Thomas Cook activities as they will
enable green tourism that concentrate on raising the information and experience
regarding the environmental destinations.

TASK 2
2.1 The time-scales involved in developing this holiday
According to the scenario, Thomas Cook is focusing on developing the holiday and sight
seeing package for Chinese student from London, UK to Paris, France. Therefore, tour operator
will focus on devising the travel plan for the summer vacation in August 2018. the proposed size
is 15 student that will go to sight seeing from London, UK to Paris and France. There are
different stages that need to be considered by the Thomas Cook for developing the holiday that
include-
 Market Research: The foremost step in developing the holiday package for Chinese
student is conducting market research related with the destination so that operator can
research regarding the sights that must be visits by the Chinese student during their
summer holiday.
 Planning and scheduling: After researching the market or destination Thomas Cook can
plan and schedule all the activities related with travailing plan that is where student will
travel first, what places they will visits during the five day stay etc. this planning will act
as the blueprint for the student.
 Forecasting the budget: After planning Tour operator will predict or forecast the overall
budget that mainly consist of different services such as flight service, accommodation,
food and beverages, transportation etc. forecasting budget will support them in estimating
the overall budget. If the budget is above their limit than they will change or review the
amount and make affordable budget that will prefer by the student.
 Devising tour packages: After forecasting the budget operator will devise the tour
packages for the student for five days.
 Marketing the holiday package: The last step in developing the holiday package is
marketing or promoting the package with considering all the elements of marketing
mixes so that they can easily serve the Chinese student.

2.2 The suitability of different methods of contracting for different components of holidays
There are different components of the holiday that is flight booking, hotels, attractions,
transportation etc. that need to be in contract with the tour operators. Thus, Thomas Cook use
various methods of contracting to be contact with the various components of holidays that is-
 Contracting with hotels and resorts: For contracting with the different hotels and resorts
in Paris and France for Chinese student so that they may have pleasant and leisure stay.
Thus, Thomas Cook basically focuses on the written communication or communication
via email to get all the necessary information regarding their availability of rooms and the
overall cost of the room for the single night. Contracting via email is consider as the vital
option that will support them in contracting with the hotel and resorts. Through email
they can also book or reserve the hotel rooms for Chinese student. It can be evaluated that
this method is effective because it helps in delivering the most appropriate and required
information. However, it can be argued that the present method sometimes consumes lots
of time and it is one of the major drawbacks.
 Contracting with travel agencies: In order to contract with the travel agencies Thomas
Cook must focus on signing the written deed regarding the conveyance of visitors and
travelers from one place to another. With the help of written contract among the travel
agencies they can conduct their activities in the proper manner so that they can deliver
quality service to Chinese student during their airline journey from one destination to
another. On the other hand, it is also consider as an effective method of contracting with
the component of holiday. It can be critically evaluated that this method is appropriate
because it supports in increasing sales and profits of the business enterprise. However, it
can be asserted that the use of this results can lower down the profit margin of company
because it encourages profit sharing between travel agent and tour operator.
 Contract to suppliers or vendors: Under this Thomas Cook basically select some
provider that will provide necessary and adequate information accompanying to vendors.
They mainly focuses on rendering or providing different information related with the
sight seeing and attractive information regarding the destination. For instance, tour
operators are adjoining one by one so that they can easily provide good quality of
services to visitant at various locations. However, high discount can also be offered to

tourists in some specific occasion. It represent that, tour operators have been in the
contract with the other supplier and vendors so that they can combine their activities in
order to meet the requirement and different expectations of visitors in the proper manner.
For instance, Thomas Cook must contract with the network partner in France so that
Chinese students can easily view the country locations.
2.3 Calculate selling price of the tour
Holiday packet framed by tour operator mainly belong of various aspects such as
conveyance services, hotel booking charges, site seeing charges and several other expenses.
Thus, the tour operators uses different pricing strategies so that they can easily recover their cost
and expenditure and earn required or minimum profit percentage. The pricing strategies mainly
include cost plus leadership, skimming or penetration pricing strategies. All these monetary
strategies are mainly adopted so that they can attain the overall goals and recover the expenses as
well as cost regarding creating the holiday packages. According to the given scenario in France
St Michelle Hotel will cost 60 euro for a twin room that will be divided between the 2 students.
For this aim, they would be require 8 rooms so that all 15 students can be properly adjusted in
the rooms. The total cost for the hotel booking will be around 381.36 pounds. Despite of this,
supplement for BB is also provided for 10 euros per person that will cost around 119.25 pounds.
While, the surface transportation include 20 luxury coach is for the student that cost around for
£1000.
Total cost Per students price
Single room
Twin
room
Hotel
booking
47.67x8=
381.36 25.424 47.67
Supplement
for BB
7.95x15=
119.25 7.95
Surface
transportation
1000
Guide 200

TOTAL 1700.61
Profit @ 10
%
170.61
Selling price 1870 124.666667
Note: Economic value of euro has been regenerate into British pound for calculating the cost in
an effective manner.
 60 euro=47.67 pound
 10 euro=7.95
In addition to this, the company has also concentrate on keeping 10% profit margin that is
consider as effectual for them for recovering the cost that has been incurred while devising the
travel or holiday packages. Furthermore, the holiday package also indicate that St. Michelle
Hotel will charge around 1000pounds for the conveyance this would include 20 seater luxurious
coach that include two drivers, fuel and ferry taxes. Moreover, £200 is also being charged from
the student to pay for the guide that will assists the Chinese student during their stay so that he
can support them in visiting the attractive place and areas within the Paris. Therefore, it has been
stated that calculating the pricing or holiday cost would assist students to know about the prices
that travel operator is charging form them.
TASK 3
3.1 The planning decisions taken for the design of a selected brochure (350)
The tour operators can use varied effective methods and techniques to stimulate
customers to take tour packages from London UK to Paris France. There are contrasting
methods that can be used by entity to market its holiday package. Such as advertisement can be
given on travel magazine, ad in newspapers, social media marketing etc. Further, company can
use the concept of virtual tour to give real example of their proposed services with the help of
audio and video elements. Further, brochure is another effective method that can be adopted by
entity. The brochure is attractive way that help in listing the products and services that will be
provided to customers along with other important information. However, there are various
aspects that must be considered while designing the brochures. Also, the mode of distribution of

brochure must also be determined. Such as, it can be distributed with the help of online portals
or through the agents. Other than this, the important decision that must be taken by entity are as
follows:
• Ascertaining the problems that can affect the planning decisions: There are varied
issues that have direct impact on designing of brochure. They must be ascertained first
such as, details about target consumers, objective of company and intent of conveyed
information etc.
• Format of the brochure: The marketing needs of customers, brand image of company,
strategy of competitors and other factors must be considered while deciding the format of
brochure. The format should be effectively selected so that it properly assemble all the
information regarding entity, time duration of tour, information about holiday destination
etc. in addition to this aspect, entity is required to provide information about prices,
discount, applicable conditions ad features of services etc.
• Budget: The brochure must be designed as per the budget decided by company. Since,
tour is offered to students at budgeted price entity should cut down the expenditure on
brochure. Therefore, too much expense must not be done on designing of brochure.
• Time frame: The time duration must be decided for designing brochure. Such as, it must
not take more than 4 weeks for preparing brochure.
• Distribution: The mode of distribution should be selected in such a way that maximum
number of customers could be attracted in less time. Therefore, Thomas Cook should use
internet as a platform to target maximum number of customers.
3.2 Suitability of alternatives to a traditional printed brochure
The traditional type of brochure was on which was physically distributed by the travel
agent to prospective customers. It further involved high cost of printing and publishing.
However, with the progressive modification and development in technology, there are varied
modern techniques that can be used to design modern brochure. With the progress of internet
technology, entrepreneurs using traditional brochures are replacing it with e-brochure. This will
further help in keeping align with present modern online customers. There are ample number of
advantages of e-brochure such as they are cost effective. They are flexible and can be modified
as per the needs of market. Further, e-brochure are environmentally safe as they reduce the

wastage of paper as it occur in traditional method. They can be easily downloaded by customers
on their personal computers, cellphone etc. Thereafter, with the help of graphics and designing e-
brochures can be given high quality look. In this respect, Thomas cook ca use concept of e-
brochure which will have destination image, information about offered product and services etc.
Further, video brochure can be used by company which will have beautiful pictures of target
destination. With this aspect, customers can be stimulated to personally visit the holiday spot.
The video brochure can be distributed to vast audience by uploading them on social networking
sites , sharing through emails or mobile applications etc. In addition to this aspect, You tube,
Twitter or Facebook can be used as a platform to upload the brochure and attract millions of
customers at a time. Furthermore, video brochure consist of both audio and visual elements and
thus it will be easy to understand by potential customers. With this aspect, company can reduce
the extra cost that was incurred in preparing traditional brochure and improve its margin.
3.3 Suitability of different methods of distribution used to sell their holidays and recommend
most appropriate for your tour package
There are wide range of methods that can be used by cited organization for providing its
holiday packages to maximum number of customers. It is important for corporation to use cost
effective method for providing its product to potential buyers. Further, it has been identified that
brochure are recognized as effective method for offering the tour packages developed by Thomas
Cook. Further, along with methods of designing brochure, the mode of distribution has also
changed. In this respect, not only mode of designing has become technology bound but also
distribution is dependent upon use of viable techniques. Therefore, in present scenario the
offering of holiday package of company can be done through online marketing, direct sales, call
center, m marketing etc. The online marketing will enable marketers to share brochure on their
official website, brand page developed on social networking sites etc. While, direct email can be
used where brochure can be provided to past or new customer via email. The direct sales is
another method which enable travel agents to provide printed brochures to customers visiting
their office. Thereafter, M marketing will enable company to provide brochure through the
mobile application developed by Thomas Cook Lignau, 2013) The customers will be able to
download brochure on their cellphone. Furthermore, services of call centres can be obtained that
will help entity in spreading the information about holiday packages to international as well as

domestic customer. Other than this, company can contact past customers through their contact
number and provide them details about new offerings, discount etc. Hence, from the critical
assessment of aforementioned information, it has been identified that it is beneficial for company
to use both online and direct methods for distributing and promoting its holiday package. It will
help in attracting maximum number of customers and boosting the sales of holiday package.
TASK 4
4.1 Strategical decisions made by different types of tour operators
There are large number of strategical decisions that must be taken by tour operators so as
to achieve the set objectives and goals. They will further provide support for ensuring the overall
success of holiday package. Some of the example of strategic decision are, outlay on varied
activities, choice of suppliers, selection of target market, choice of marketing technique etc. the
determination of selling price, distribution method are also some of the major strategic decision
that a tour operator is required to take. The wrong decision or mistake on the part of tour
operator have direct impact on the sales of holiday package. The future prospect of company will
be dependent upon the efficiency of decisions taken by tour operators. therefore, the major
strategic decision that must be taken by him / her are explained as follows:
• Segmentation, targeting and positioning: It is among the significant strategic decision
that is taken by tour operators which enable them to divide the entire market. The
targeting aspect will help comp any in deciding to whom they want to offer their product.
While the positioning aspect enable company to develop position of their brand in
market. Considering the overall objectives and strategic goals of company the decision
about segmentation, targeting and positioning will be taken by tour operators.
• Competitive pricing strategy: To sustain the present cut throat competition, it is
important for company to adopt competitive pricing strategy. Therefore, rival pricing
strategy must be considered while deciding the price of tour package. This will further
help in keeping an edge over its rival.
• Developing promotional strategy: In order to attract maximum number of customers
and ensure promotion of tour package, it is important for tour operators to develop
effective, impelling and competitive pricing strategy. Further, unique promotional

strategy can be used which will also help in increasing the promotion of tour package and
improve the profitability of business.
4.2 Compare the tactical decisions that could be taken by a selected tour operators in different
situations
In order to manage the routine functions of business there are large number of tactical
decisions that must be taken by tour operators. They will further ensure smooth flow of
operations and proper functioning of company. Some of the tactical decisions that must be taken
by operator are, conciliation with suppliers of varied services, managing transportation and
accommodation facility etc. In addition to this aspect, association with varied stakeholders that
are part of entire value chain of offering services to customers related to travel package as
required by them. The major tactical decision that is taken by tour operators is related with
association with suppliers. It is important for them to select the suppliers that provide quality
offerings in affordable prices. Further, tour operators are required to take decision about the
ways of enhancing customer experience and meeting their expectations. In addition to this they
must determine the methods to solve the complaints of customers. With all these aspect, the
satisfaction level of customers can be enhanced and positive image of company can be developed
in the market. Furthermore, the emerging needs of buyers must be identified so that changes can
be made in the method of providing services, product quality etc. Further, tour operators are
required to make changes in different operational activities in accordance with market needs,
trends and rivals actions.
• Discount pricing: The determination of price is important decision that must be taken by
tour operator. Price determine the future sales of holiday package. Here, tour operators
can use fixed price for their holiday package. It will enable company to provide heavy
discount to buyers. Further, company will be able to attract maximum number of buyers
and gain competitive advantage in market.
• Seasonal aspect: There are varied types of season that determine the sales of tour
package and impact the pricing decision of company. Such as in peak season company
can charge high prices to improve their margin. On the contrast, to maintain consistency
of profit company will charge discounted price in lean season.

Along with this, with the above tactical decisions it has been assessed that discount
pricing of the tourism package would results in attracting the customers towards purchasing their
products and services so that they may effectively meet the leisure and luxurious requirement of
customers. On the contrary to this, with the discount pricing marketing manager of Thomas Cook
must also engage in taking tactical decision related with seasonal pricing of their travel package
so that they can easily meet the requirement of customers.
CONCLUSION
From the above report it is summarizes that activities of tour operator plays vital role in
enhancing their overall performance of travel and tourism industry as it basically outcome in
providing the various services related with the accommodation, flight services etc. that meet the
different leisure and luxurious requirement of the visitors and travelers. Thus, the concluded
report has provide an insight information regarding the recent trends and development within the
tourism industry that impact the activities of tour operators. Thus, with analyzing all the
development and trends it support the operator in amending their services accordant with the
trends so that they can have dominant position in the market. In addition to this, it has also
provide an insight knowledge regarding determining various contracting methods that is used by
tour operator for contracting with the various components of the holiday packages. Moreover, it
has also measured tour operator must focuses on developing different promotional brochure for
promoting and marketing their holiday package among the customers visitors so that they must
come to know about the services and packages that are made available by the tour operator.
Lastly, the report has also summarizes the strategically decisions that are taken by the tour
operator in order to ensure creating successful holiday packages.

REFERENCES
Books and Journals
⚫ Ashworth, G. and Page, S. J., 2011. Urban tourism research: Recent progress and current
paradoxes. Tourism Management. 32(1). pp.1-15.
⚫ Baddeley, J. and Font, X., 2011. Barriers to tour operator sustainable supply chain
management. Tourism recreation research. 36(3). pp.205-214.
⚫ Brent Ritchie, J. R., Wing Sun Tung, V. and JB Ritchie, R., 2011. Tourism experience
management research: Emergence, evolution and future directions. International Journal of
Contemporary Hospitality Management. 23(4). pp.419-438.
⚫ Cheng, C. K. and et.al., 2011. An examination of tourism journal development. Tourism
Management, 32(1). pp.53-61.
⚫ Dolnicar, S. and Ring, A., 2014. Tourism marketing research: Past, present and future.
Annals of Tourism Research, 47. pp.31-47.
A Sample Report on Tour Operations Management
To Buy Complete Assignment:
Contact us:
Phone No.: +971 8000320011
Mail us: help@instantassignmenthelp.ae
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