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

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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

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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.

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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.

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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 “Order Now” Your Tourism Assignment Help and get Up-To 50% OFF on Your first Order.

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 ÂŁ1000.

Total cost

Per students price Twin

Hotel

47.67x8=

booking

381.36

Supplement

7.95x15=

for BB

119.25

Surface

1000

Single room

room

25.424

47.67

7.95

transportation Guide

200

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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 “Order Now” Your Tourism Assignment Help and get Up-To 50% OFF on Your first Order.

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 “Order Now” Your Tourism Assignment Help and get Up-To 50% OFF on Your first Order.

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 ebrochures can be given high quality look. In this respect, Thomas cook ca use concept of ebrochure 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 “Order Now� Your Tourism Assignment Help and get Up-To 50% OFF on Your first Order.

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

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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.

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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.

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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.

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