Tour and Operation Management


Tour and operation management is one of growing and leading industry in a recent time. Lots of employment opportunities has been risen up in this industry and enables the employment opportunities in the market. The current trends and scenario is really very effective and growth enhancing opportunity. This report will be carried on LCB tours which is the leading tour and tourism organisation which is located in United Kingdom. This report will discussed about the current and future trends in tours operating industry and stages and time scale of developing holidays. This report will focus on different suitability method for contracts and its suitability for an organisation. It will discuss about selection procedure for brochures and ascertaining the selling price of each travellers. This report will also put focus and light on various distribution channels such as suppliers, distributors or outsourcing other entities etc.

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AC 1.1) Effects of current and recent trends and developments on the tour operators industry

Now a days, trends and scenario's are happening in the tour and operation industry. As this industry is growing a lot and targeted towards achieving the maximum market share. The main reason of growth is customer focus and providing most efficient services. Various current trends are now started following which will grow tours and tourism sector furthermore:

Advancement in the technology: Usage of technology has made travelling and its process more easy and convenient. Technology has put both positive and negative impact. In positive, it has led convenience in booking the ticket and reach the customer's in most appropriate timeline and for negative, somewhere it has decreased the employment opportunities.

Low cost carrier: Now a days, airlines and road transportation firms are now providing low cost convenience to the customer and people. It has given positive impact to this industry by adding more and more customer and passengers and also has put negative role for costlier transportation services.

Environment awareness:

Types of tour operators: An explanation of different tour operators in context with LCB tour:

Inbound tour operator: These operator provides travelling services to the non-residents of another country. They are mainly used for international trips and tours.

Domestic tour operator: They provides travelling services to the people who are living in that country. They basically provide travelling services for regional monuments, national parks and other location.

UK Outbound tour operator: These operators takes their United Kingdom's people to another country or continents or location for the travelling purpose. The most popular continents is Europe.

Specialists tour operators: These operators used to provide travelling for the specific location. They mainly focus on their special customers.


AC 2.1) Assess the stages and timescales involved in developing holidays

In context with LCB tour, if a person is going on travelling, there is a need of proper planning and budget to bear the expenditure while on the trip. Holiday plan is the brief analysis of activities and plan during the whole trip. There are different stages and timescale for preparing and developing the holiday plan. The whole plan and procedure are as follows:

Market research: It is used to identify which location is most suitable for planning the trip for the customer. In this, even customer can disclose their own choice of the place. There was a brief research which was conducted in past time about customer perception and choice of places and site seeing. Such research has help in planning the holiday package.

Planning and scheduling: This is the second stage of this whole process. Management of an effective packaging is required to know the value and prices of each and every components of the holiday package. Every part of this holiday package is consists of some definite value and prices. This involves the allocation of amount of money for different elements such as accommodate, flight, local guide, transportation and food facility etc.

Contracting: In this, LCB needs to decide and talk to different suppliers of the country where holiday plan will be planned. It involves signing the contract with customer's taking care of all legal rules and procedure. Such contracting will be take place for some specific period of time such as a week, month, quarter or yearly.

Costing the holidays: This is the fourth stage in which LCB tours needs to fins out the entire cost planning and cost structure of the holidays for their customers. In this stage, organisation needs to ascertain the price of different components of the entire package. While ascertaining costs of various variables, it was found that some of the variables are not equal amount. In this condition, they needs to calculate separately such as charges of the flight ticket, accommodation etc. as varies time by time.

Financial evaluation: In this stage, LCB tours must evaluate the exact and fixed cost of each and every variable of the holiday package such as hotel charge, transportation, local guide charges, food facility etc. An organisation also need to take care of the budget of their customers.

Creating the brochure: Brochure is the kind of format which is generally used to advertise d any products or services around the customers. It should be in the proper and complete format and printed correctly and should be in proper and appropriate size. After making, it should be sent to different suppliers and distributors.

Advertising: The best example and option for advertising is creating an awareness through using the newspaper, pamphlets, poster and websites and portals etc. LCB can use technique of outsourcing other person for such purpose.

AC 2.2) Evaluate the suitability of different methods of contracting for different components of the holidays

In context with LCB tours, there are different methods of the contracts in context with this company. These contracts would help in maintaining an effective relation with the customer s are as follows:

Fixed contract :Fixed term contract in relation to tourism is a contract that expiry after specific period of time. It is beneficial for various organisation that having a suitable contract that will enhance company long term relation with the outsiders. For LCB tours, fixed term contract will increase company's probability and productivity line up along with with good market and customer support. This type of contract generally last for longer period of time say one year or more than it. It sets out the particular price and term for the common obligation. In context with LCB tours, company has advantage and merits for maintaining long term relation with their customers.

Allocation contract:This type of contract is set to allocate different things or any components to the customer in context with tours industry. In context with LCB tours, allocation contract is used to divide the actual cost of the holiday package into the different elements and components such as accommodation cost, transportation facility and food facility to the customer s during the holiday trip and travels. For LCB tour, this kind of contract would result in the cost effectiveness and efficiency making. This will also tells about budget requirement and ascertainment of the customer.

Ad-hoc contract:In this type of contract, generally the work or task is used to complete it by some skilled and professional person. This has been initiated with the purpose to provide the completion of any work or task with the minimum usage of time and resources. For LCB tour, this contract would help to provide effective products and services to the customers. If any skille d labour or worker would prefer to perform this contract, it would beneficial to save time and consists of both customer and company.

AC 2.3) Calculate the selling price of a holidays package

As per given situation, there are 5 person who are planning to going to Paris, France. For calculation, it is required to calculate selling price per person and overall cost of the trips. In context with LCB tours, company needs to take care various factors such as direct and fixed cost in order to ascertain the fixed and specific amount of the trip. Selling price will depends on various factors such as accommodation facility, cab facility, sites seeing and other food convenience. The following structure of ascertaining are as follows:

Table 1:Presenting total cost including in package for Paris (FRANCE)





Hotel charges (Including room service, food facility, entertainment etc.)


Luxury coach


Local tour guide


Transportation facilities (Cab, bus, taxi etc.)




Add profit 25 percent


Total package costs



AC 3.1) Evaluate the planning decisions taken for the design of a selected brochure

In context with LCB tour, effective and well design brochure is required to inform and attract customer to buy and sell holiday package and plans. The brochure should be well-designed and structured. Various elements such as size, colour, content, number of pages etc. is required to be considered. The planning decision can be explained by differentiating it in between Scenic tours and UK holidays are as follows:

Cost: UK holidays use to spend more cost and amount on the physical and paper based brochures. Whereas Scenic tours prefers to spend money on E-brochures, now they believes that people are used to send or share various information to their friends, peer and parents etc. Hence, it will be most suitable to use E-brochures.

Deciding the format: Scenic tour prefers one or two fold format of luxury holiday brochures. Whereas OK holidays gives more emphasize on the two fold format of holidays brochures.

Target market and budget: Scenic tour target customer's through traditional sources such as banners, pamphlets, paper based information etc. Whereas UK holidays prefers to target their customer using the social media. In UK culture, people are very habitual of reading, but also social media has wide range. More emphasizes will given to social media.

Print specification: Scenic tour uses hard and thick paper for print with name of the company and destination for tours on the top of holiday brochures. Whereas, UK holidays uses thin and stylish paper with name of the destination on first page, details about an organisation in next page and rest information on the last page.

Timescales and stage of the production: Scenic tour has planned validity and suitability of their holidays based brochures for time say a quarter or near to it. Whereas, UK holidays used to change their brochures on the social media every month or even a week. Most suitable is for UK holidays.

AC 3.2) Assess the suitability of alternatives to a traditional brochure for different types of tour operator

For promoting brochure, there are various alternative which is made available to advertise the holidays package constructed and developed by LCB tours. Alternatives here means the sources and various modes of communications are required for advertisement of the holidays brochures are as follows:

E-brochures: Generally, Inbound and specialist tour operators uses E-brochures. Because they provide holiday services out of the country and current locations. E-brochures is suitable to provide number of information at one place and have assess to number of people by sharing to peer, parents and friends etc.

Android application: Mainly mobile application is used by UK outbound and domestic tour operator to provide easy access and reach to the customer. Through this, customer's can easily and conveniently book their holiday plans and package. Mobile application have defined the new age scenario of customer satisfaction and experience.

Outdoor media: Both Domestic and UK outbound tour operators prefers to use outdoor media. Because outdoor media uses information and knowledge to promote their countries places and monuments. Such operator can issue banner and poster outside the malls and shopping places to capture the customer attentions.

Internet: Generally, outbound tour operators use this mode of communication to target number of users to sell holiday package and plan to the customer. This can be done using digital marketing department to post ads and proposal on the internet.

Social media: Now a days, everyone is engaged on the social media to chit and chat. As the customer is large. It will be beneficial for every type of tour operators to attract and target the customer using Facebook and Instagram etc. It will be beneficial for inbound tour operator mostly, because social media user post their pics and photo on social media about their trips and tours.

Radio/TV advertisement: Generally, Inbound tour operator uses Radio/TV advertisement to attract customer and enhance their motivation level to buy and purchase holiday package. Radio is used by number of people and listener. Hence, they believe more in that.

AC 3.3) Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator

Methods for distribution of brochures and packages involves channel person or the middlemen for helps to distributing the same. It was noticed that it is difficult to advertised the company at the around the globe. It is the channel of distribution which is used by LCB tours which will help this organisation to targets and attractive their customer all over the globe. For effective distribution, LCB tours should hire or outsource other travel agencies or who operates online to attract maximum number of customers. Now a days, it is noticed that review sites are most impactful source for motivating the customer, as they use to prefer to see reviews for better knowledge and acknowledgement.

Social networking can also facilitate maximum customer through posting Ads and online brochures on Facebook, Instagram, Twitter etc. This was also noticed that people are now start believing in social media more than others. LCB tour can adopt this distribution strategy to enhance the distribution services. When customer buy something, voucher and coupons use to provide to them. Hence, Voucher could also be the option for selling the holiday packages.


AC 4.1) Evaluate the strategic decisions made by different types of tour operator

The strategic decision is occurs when particular strategy is decided to convert into an action. For implementation of effective decision process in tour and operation management, there will be a comparison of LCB tours and Thomas Cook on the basis of various factors and points. The further explanation regarding such comparison are as follows:

Strategic decision

LCB tours

Thomas Cook

Pricing decision

LCB is using standard and aggressive price strategies, as this is because of new entrants in the market a year ago. Recently established company cannot implement premium pricing in tourism operation industry, because this sectors is vary wide and large. Hence, it would be loss making process for LCB tours.

They uses premium pricing technique, because they are already an established brand with the customer base of 6.5 million in their portfolio. Thomas cook belongs to both tourism and aviation industry. Their product are of high service quality and customer satisfaction. So what they charge for services is really effective and chargeable.

Positioning and image/brand

In context with LCB tours, branding of company profile is their identification in the market. Generally, the brand image is associated with the style, name and design related to the company. Brand name should be short and easy to pronounce and associate. LCB name is somewhere typical to pronounce and related to our needs and wants.

Thomas Cook name is enough to do positioning and companies branding. Its brand loyalty is so accurate and positive that, Suppose if any person wants to buy tour package, they always comes up with Thomas Cook. The pronunciation is simple and also name is unique and identified. This brand has major advantage of its own policies and marketing strategies.

Choice of product

Product choice and selection is limited and selective in context with LCB tours. This is so because, company is currently engaged only in tourism and selling simple holiday package. Still, company needs to build their brand, so that further expansion and adding new product will work.

Thomas Cook is the leading and renowned name in the tourism industry. They also have their business in an aviation industry. Thomas Cook offers domestic as well as international tour facilities along with facility of accommodation and food facility to their customer on an affordable prices.

Distribution decision

Distribution strategies of the LCB tours lies with suppliers and middlemen. They use to charge their commission over on selling the companies holiday package and plans.

They have their own distribution strategies which involves various firms and other local entities for selling customer various holiday package and plans. Out of the total sales, company is used to give 10 percent out of the total they have made.

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From the above report, it is concluded that tour and operation management is the growing industry now a days. It has several components such as holidays, site seeing and other travelling etc. Travelling includes both domestic and international and it depends on the choice of the customers. Trends are now impacting this industry in both positive and negative manner. Currents trends have evolved tour sector for becoming the customer centric and focus towards providing more effective services and products. Brochures related format has led effective communication to the customer and there is a need of efficient distribution system. Lastly, it is concluded that tour and operation industry has le an initiation for delivering effective and productive services to the customer.

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