Tour Operations Management Level 5

Task 1

1.1 Effect of current and recent trends and development on tour operators industry 

 Task 2

2.1 Stages and time-scale in developing holidays

There are many stages in developing and managing a tour plan. Many tour operators think that they cannot make and develop the design of tour plans because they do not have skills and knowledge to accomplish market needs (Espino-Rodríguez and Gil-Padilla, 2015.). Stages in developing and planning a tour package are as follows:

• Research
• Development of tour itinerary
• Negotiations with others
• Costing process
• Financial evaluation
• Administrative staff
• Marketing process
• Developing marketing plan
• Area Bound
• Brochures
• Execution
• Post tour management

First step in to developing tour plan is to research and analyse about destination and market. Key elements which are connected to the destination and market place should be evaluated before making strategy (Espino-Rodríguez and Gil-Padilla, 2015.). In first step, there are several aspects which should be concerned such as:

• Identification of economic and social factors.
• Target market
• Making the tour plan
• Identify the key destination
• Approach to suppliers
• Policy making decisions

Second stage is to develop tour itinerary. After deciding target market and destination, the next phrase is to develop effective tour itinerary. Generally it includes two things such as for new operators, research about both factor's destination and market place. Second for established ones, analyse and review the questionnaires. In financial evaluation, it considers two factors such as cost oriented and market oriented (Holland and Leslie, 2018.). Cost oriented includes mark up, product cost and absorption cost. Market oriented includes going, backward, differential and skimming programmes. Tour marketing plan is developed after identify and analyse marketing strategies, advertising plan, sales plan, telemarketing plan and direct mail plan. These all components require being in a manner for effectively implementation of tour plans 

2.2 Suitability of different methods of contracting for different components of the holidays and different types of tour operators

In respect to develop tour plans, there are many methods to be used and they are as follows:

• Transportation
• Accommodation
• Meals
• Tourist Guide

Transportation contracts are fixed contracts made on mutual agreement with local transporter, for travelling to different locations of destination for sightseeing during 4 days and there will be fixed consideration as well with the local transporter in term of payment. It includes all costs such as fuel, driver, toll and parking charges (Holland and Leslie, 2018).

Accommodation is not fixed contract made with local contractor. It is suitable for students’ tour. It is a flexible contract with variable payment system. In this, students will travel to various places and locations Place of stay may not be same during the tour. It can be changed again and again on the basis of tourist places. Transportation method is not applicable on supply of food chain vendors. various food is required at distant locations. Taste and preferences may be changed during the tour of different areas. Thus, it is necessary to contract with different suppliers of food on clashing locations.

The suitable method for contracting the tour plan is fixed cost method. By using this method, a guide will be able to travel on peculiar locations and various sceneries. There are distinct types of methods in contracting the tour plans. Fixed cost method is applicable on different group of tourists and variable cost method is applicable on different group of tourists. Such as variable cost method is suitable for group of students. Somewhere, these both methods are not suitable on meals.

2.3 Calculation of selling price of holidays from the information

In order to set the planning of holidays, there are different activities designs with 7 days of tour package towards Grand Casselbergh in Bruges. In this way, Trailfinders Ltd provide different kinds of luxury facilities to customers so that positive impact could be generated at workplace. In addition to this, package also develops to attain more significant advantages in the enterprise towards different tourists. Therefore, following plan has been developed to make sure that proper developing activities will be implemented at workplace. In this context, following table show total cost towards the company which bears to operate packages:

Task 3

3.1 Planning decisions taken for the design in selected brochure

These decisions include information which should be included into the designing of brochure. That decision should be able to convince and motivate the tourists. These all decisions should be according to the needs and preferences of the consumer. All these requirements should be considered in the holiday package planning process. Information which should be included in the brochures is:

• Name of the tour
• Name of the travel agency
• Modes of transportations
• Details of destination
• Prices
• Duration
• Services
• Facilities
• Booking conditions
• Insurance cover
• Accommodation
• Meals
• Extra charges
• Health and safety hazards
• Risk involved in adventures
• material which should be carried
• details of destination

Apart from these information, some other information which should be included such as : cost of the brochures, designing of the brochures, selection of the vendor, type of brochure and students be considered while making decision or designing the brochures(Medlik, 2016).

3.2 Alternative of tour operators for package

In order to, Alternatives of tour Operators Company used the traditional brochures. Company using direct selling and sales promotion for better visibility and effectiveness. However, now a day, company is using internet and model techniques rather than traditional approach. Online brochures become very important integral part of every organisation. All tour operators are using one of the best techniques to promote their products and services. Online brochures are effective in reducing the cost factor. In know days, there are low budget holiday plans by tourists. Which requires low cost of holiday packages. Audio visual and simulated brochures are an effective medium of promotion. It gives audio and video based details. Simulated brochures provide virtual experience to the viewer. It is effective in promoting the products on social sites. Brochures are commonly used techniques in modern aspects because it is easy to share and read.

3.3 Different methods of distribution used to sell holidays

There are types of distribution method used by tour operators for selling holiday packages by different types of tour operators such as telephonic sales, online marketing, traditional brochure and direct sales. Different methods of distribution for various types of tour operations are as follows:

• Inbound operators
• Outbound operators
• Ground operators
• Domestic tour operators

For inbound operators, the best method of distribution is online marketing. In these operators, foreign tourists are the target client market who seeks for tour across the world by tour operators. For outbound operators, online and modern sales methods are useful with the information and communication technologies. Internet is also useful for these operators for promotion of tour programmes. For domestic tour operators, direct sales method and traditional brochures method are useful for selling holiday packages. They target customers of local markets. Rather than these methods, other methods are also useful and suitable for these types of operators such as online marketing and promotions are also suitable (Medlik, 2016). They help by giving relevant information about the market. For ground operators, they act as agents thus the best and suitable method for these types of operators are modern methods like online marketing and promotion. They can also use internet selling and call centres method because they coordinate with large tour operators and foreign tour operators. Tour companies use promotional techniques to build the brand image and create awareness of tour packages. Such promotional techniques are sales promotion, public relations, personal selling, exhibitions, literature, direct mail, advertising, sponsorship, travel marts, films and videos, telemarketing and familiarization tours. Promotion of packages depends upon the effective communication of various ingredients in product and service.

Task 4

4.1 Strategic decisions made by tour operators

Tour operators must make myriad decisions regarding tour operations and programmes. These strategies include many decisions such as price efficiency, consumer satisfaction, needs and requirements of consumers and market segmentation. There are different types of strategic decisions made by different operators such as:

• Pricing strategy
• Positioning
• Choice of products
• Decisions regarding distributions
• Investment funds
• Mode of transportation

Strategic decision means accord regarding the determination of price of package. Tour operator needs to consider different types of discount to be given. It is very important for decision-making process while making strategy of holiday package. Another necessary decision is to create brand images and positioning of their products. Some tour operators focused on positioning their brand in foreign markets. It is very important factor to create brand image of their product and their company. Next strategic confection is decision regarding to the distribution channels. In this process, tour operator involves selection of distribution channels, analysing process of supply chain and middlemen. Strategic creation are related to the investment fund is an important and complex factor in decision-making process (Reisinger, 2015). These decisions are related to the available fund with the tour operator and fund related to the external factors to expand and develop selling packages and tourism operations. A strategic decision related to the mode of transportation is another important decision in the tour operators. Decisions included about the different types of transportations for the various tour operators like in bounded or out bounded. Domestic tour operators may use rail or road transportation for their packages.

4.2 Tactical decisions taken by selected tour operators

A tactical decision means those decisions which are taken regularly by the tour operators, regarding day-to-day activities or operations for smooth and efficient running of their operations.

Tactical decisions are as follows:

• Competition
• Price war
• Fuel pricing
• Yield management
• Consolidation
• Occupancy
• Optimization
• Tactical marketing

Competition: tactical decisions related to the competition are to overcome the rivalry level or eliminate competitors from the market (Reisinger, 2015.). It can be done by bringing improvement in quality, low prices offer, discounted price offers and attractive offers for customers by providing extra facilities and services.

Price war: tactical decisions regarding price wars include evaluation of factors which can reduce the prices of holidays and tour products. In the tour sector, price war is on their higher level. To cope up with the price wars in the market, tour operators need to evaluate the factors and apply best of among factors.

Fuel pricing: Fuel-pricing decisions are related to solving problems of increasing prices of fuel in the global market. Because, multipyling price of fuel can increase the prices of holiday packages. enlarging fuel prices, which means increase in the fare of transportation. If tour operators are unable to take tactical decisions about fuel pricing, then there will be higher prices for holiday packages.

Yield management: Yield management decisions are related to the management o profit shares along with the reinvestments. Rather than this, these decisions are also useful in identification of factors which may affect the overall profits (Lacej and Kalaj, 2015).

Consolidation: these opinion are related to the identification of facilities like meals, transportation, amusement and accommodation. Which should be included in the package of holiday. These facilities should be considered in a package to meet the needs of consumers. For developing the best holiday package, it is necessary to consolidate the appropriate and proper facilities.

Occupancy: these declaration are usually taken by domestic tour operators. It involves the analysis of hotel rooms and bed capacity before making any contract for accommodation. By these tactical decisions, tour operator can use maximum occupancy of beds.

Utilization: these types of decisions are usually used in adjustment related to the mode of transportations. These choices require for maximum utilization of seats. Proper decisions are required by the domestic

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