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Unit 18 - Tour Operation Management - Regent College - Level 5

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Introduction

Tourism industry is one of the major sector whom directly contribute in economic growth by delivering quality service to their customers. In this number of tour operator provide as well as deliver unique services to their visitors as per their demand. Basically, the tour operator are those people whom have best qualities and abilities to make as well as create attractive holiday package in front of customers to invite them towards the products. With the help of this, company enhance their profitability level. Present report is based on Trail-finders, is famous tourism service provider in UK. They also create as well as design effective holiday package to their clients in order to provide them better services. This report discussed about various tour operator whom offer better services to its customers. Along with this, various stages are also discussed in this project which may helps in creating attractive holiday package.

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TASK 1

1.1 Assess the stages and timescale involved in developing holidays

This is fundamental for tour operator to identify and manage package in an appropriate manner. They will conduct market research as this helps to find out requirements of people. There are various steps as well as phases which will comprise into this which aids to deal with customers properly (Robinson and et. al., 2016). In recent time, it is required for Trailfinders to develop education and luxurious tours for students. This trip will begin from London to Brussels and Brugge, Belgium. Almost 42 students are there in group and they stay for approximately 5 nights for summer vacation in July 2018. there are some requisite things which need to be follow by company and these are described as beneath:

Market research: This is considered as foremost step as manager has to identify market. It is fundamental for customers and tour operator as well. Through this, company will be able to accomplish needs and wants of people as per their requirements. Hence, they will be able to fulfil desires of users effectually. It assists them to maintain their reputation at marketplace properly (Hoyos, Morales and Akhavan-Tabatabaei, 2015).

Planning and scheduling: It is must for an organisation to plan each things appropriately as this works as a guidelines for staff members. Through this, each employee will much familiar about their roles and responsibilities. By scheduling, each things will maintain in a significant manner.

Forecasting: Tour operator needs to forecast unwanted elements which will provide impact to overall business. There will be some condition which are present at place and their recovery is required. Hence, It is must to forecast things appropriate because things will get alter in upcoming period of time. This will assist to manage overall business in a proficient way (Redjem and Marcon, 2016).

Negotiation: If package price is high then company will organise significant negotiation for bulk individual package. For instance: if any hotel is charging high prices from operator then they will negotiate for every items and services in an effective manner.

Henceforth, it is required for Trailfinders to manage entire things in a proper manner; thus, they will be able to render significant services to students. It is must for them to formulate 5 days package for students in a proficient way (Espino-Rodríguez and Gil-Padilla, 2015).

1.2 Different methods of contracting for different components of the holiday and tour operator

Each visitor has unmistakable wish for their tourism which need to better comprehend by visit administrators appropriately. There are different sorts of visit administrators get assessed which need to comprehend their customers needs and requests legitimately with the goal that fitting and powerful administrations get render. In this way, client more often than not give contract to visit administrators so as to convey quality based administrations.

Understudies gathering of a school needs to visit a few spots of Europe for which they give contract to Trail-discoverers whom are inbound visit administrator (Medlik, 2016). They are giving administrations inside a nation. Albeit, every such place are a piece of Europe which effectively get configuration by organization.

Gathering give contract based on quality administrations convey by administrator to every one of their clients. This agreement provides for Trail-discoverers by such gathering in which organization focus on their clients that they will increase better and viable quality administrations. Their motivation is indicated in which they have an outing reason and invested some energy with companions. The time length for every one of these spots is of 5 evenings barring time spent on voyaging (Allahyari, Salari and Vigo, 2015). There are different sorts of agreement get assessed which need to comprehend by supplier and administration client expressed as take after:

  • Fixed Contracts: This term expressed that all the time same and same affiliation picking up contract for visit. Despite the fact that, they depend on settled appraisal and in this manner odds of progress are less in nature. A large number of the time, clients settled their specialist co-op whom plan each voyaging bundle for customers. Trail-discoverers need to give quality based administrations to such gathering with the goal that they get contract from them on normal premise (Byrnes and et. al., 2016).
  • Sale only Contract: These suppliers more often than not charge high costs and their cost of volume is additionally high in nature. Accordingly, deal just contract is those whom begins with extreme timings and also begin with offering of administrations. Trail-discoverers don't have to end up deal just contract supplier as they need to augment benefit and convey best quality administrations at fitting rate keeping in mind the end goal to draw in huge scope of customers (Vongsaroj, 2018).

1.3 Calculate the selling price of a holiday from given information

Each visit administrator has diverse cost for bundles which more often than not gave by them. It is critical for an organization to decide the cost of bundle legitimately and give it on best rate to their definitive client. Offering cost of a bundle get decide through investigating per head cost and in addition add up to consumption on all assents. Along these lines, it is imperative to decide the offering cost of an occasion bundle by Trail-discoverers (Grant, Wong and Trautrims, 2017). A legitimate gauge for this assent is Grand Casselbergh in Bruges of 96 euros for every individual for a twin room (2 grown-ups sharing) with breakfast. The cost 48-seater extravagance mentor is £11,200 and that incorporates two drivers, a visit chief, fuel and all street and ship charges. The cost of a neighbourhood visit direct is £945. In every one of these things, directors include an increase of 33% with swapping scale of €1.12 per £1. Based on this data, reasonable estimation of offering value need to show signs of improvement production of bundle and convey it to best rate to extreme customers.

Table 1: Presenting total cost including in package

PARTICUALRS

TOTAL COST IN POUNDS

Room cost

7825

Luxury coach

7400

Local tour guide

800

Total costs

16025

Profits@30%

6867

Total tour package cost

22892

Local Cost

PARTICUAR

COST PER PERSON

Room cost

195

Luxury Coach

185

Local tour guide

20

TOTAL COST

400

add: Profits @30%

171

TOTAL PACKAGE COST

571

This is an offering cost for every individual of a visit which gave by an organization to their customer. This empowers them to increase best offers and extraordinary administrations to clients. Alongside this, markdown related systems bolster business to pick up and pull in more number of clients with the goal that administration client gets improve. In this valuing idea, a few factors or cost which consider by an organization expressed as:

Fixed and variable cost: There are for the most part two sorts of cost out of which one if settled cost which don't get changed and cause on each task without its beginning too. Alongside this, another if variable cost which get vacillate and change with a course of time (Sahin and Matta, 2015).

Profits margin: Along with estimation of cost, administration need to decide net revenue also. It is essential to comprehend net revenue of a venture appropriately which prompt incorporate into offering value.

Every one of these things need to incorporate by administration of an organization in their bundle plan for an occasion. This empowers them with a specific end goal to increase better outcomes and in addition bolster in improve client base viably (Anderson and Marcus, 2015).

TASK 2

2.1 Evaluate the planning decisions taken for the design of a selected brochure

Brochure of an organization require reasonable arranging choice which need to consider by an affiliation appropriately based on these assents:

Planning issue: Initially affiliation need to decide the issue which is related with an organization appropriately (Felicen, Ylagan and Buted, 2014). This issue likewise worries with configuration, style and substance. Based on gave segment, it unmistakably gets confirm that real issue for an organization related with leaflet is to give fitting data related extravagance occasion bundle to their clients. Along these lines, it is fundamental to give related substance this warmth with the goal that better and reasonable pick up get determine. Alongside these variables, size and quality likewise assume a crucial part. Business supervisors need to decide the measure of leaflet so important substance get included into it.

Target market: Issue distinguishing proof isn't a restricted degree however conveyance of such data to target advertise is likewise essential. Without focusing on showcase business handout planning not give worth. Extravagance occasion bundle data need to give just high discretionary cash flow amass individuals just with the goal that Kuoni wind up celebrated in such individual and increase extreme client base (Wu, 2016). Showcasing group need to decide the market which they need to focus for a particular reason. In handout, organization likewise need to incorporate detail related with spending plan or cost of a bundle.

Attractive brief: Content ought to must be pertinent in nature and also should be particular in residency too. Appealing brief with determined area to visit with alluring pictures and hues make it fascinating and numerous clients begin imagining to visit such area. Hence, it is a general work of an organization in which they begin finish longs for some individuals who wish to have an extravagance occasion.

All these are basic which need to consider by Kuoni in their working for picking up and select best come about by planning alluring leaflet with the goal that an ever increasing number of clients begin drawing in to an organization keeping in mind the end goal to increase better outcomes (Jabbour and de Sousa Jabbour, 2016).

Furthermore, there is some points which helps in making an effective planning decision for brochure design as it helps in inviting larger number of customers towards its tour packages. These can be understood by following steps are as follows:

  • Determine the brochure's place in purchasing process
  • Evaluate the design of brochure's
  • Understand target customers
  • Set selling points in marketplace
  • Make accurate thoughts towards the brochure's design
  • Set it stand out

All these step can be taken by tour operator at the time of preparing an effective planning for brochure's design. This will aid in enhancing the customer base and profitability level as well.

2.2 Suitability of alternatives to a traditional brochure for different types of tour operator

Brochure is an effective source which helps in delivering information to the target customers with the aim of capturing customers attention towards the company products and services. In this, the traditional brochure is define in a proper formate which show the relevant data towards the company services but at the same time, it is much expensive. So that, it is vital for tour operator to determine as well as evaluate brochure in effective way to transfer their holiday package in front of customers. As per the change, number of business use modern methods for providing better information to the clients which may leads in attaining positive outcomes. In this, there are some alternatives which used by the firm are as follows:

  • Video: It is one of the important way of modern brochure in which company provide their information and brochure on YouTube and another sites which helps in attain better results by outbound and inbound tour operator (Medlik, 2016). Basically this type of method is costly so that it is important for manager to effectively understand in order to attain positive outcomes.
  • Internet: It is also an important method which used by the firm for delivering as well as transferring information (Espino-Rodríguez and Gil-Padilla, 2015). As per today's time number of people use internet, so that company easily provide their information to their customers by using internet services. By using this method firm enhance their profitability level at market place.

Thus, by using those methods company easily deliver quality information of holiday package to their customers. This will aid in attaining appropriate results in most effective manner.

2.3 Suitability of different methods of distribution used to sell a holiday for different types of tour operator

It is important for business organization to use effective methods for distribute their brochure to their customers which may leads in attaining better results and also established their positive image in front of customers. Along with this appropriate use of methods and tools helps in inviting as well as attracting larger number of customers towards the company packages and services also. In this context there are some distribution methods which used by the firm at the time of selling their holiday packages to its customers. All these are as follows:

  • Direct sell: It is one of the important method which help at he time of selling the broacher to their customers. Basically the main advantage of using this method is to make as well as create better relationship with their customers by providing them quality services. This will aid in attaining positive outcomes.
  • Call centres: It is also an important method for delivering information in which firm provide contract to various call centre with the purpose of promoting their package services in front of customers. By using this techniques firm also reduce the chances of arising any king of issues and problems in customers mind. Along with this, for encouraging customers, firm provide discount and and various aspects which may leads in increasing the profitability level of the company at market place.
  • Internet: It is one of the important method in which company use various sources such as emails, social media and many more to increase customers awareness by creating attractive brochures. By this they deliver appropriate data and information to their customers towards the holiday packages in order to enhance their profitability level (Redjem and Marcon, 2016).

Hence, all these methods are used by the company to attain set target and also provide quality services to their target customers with the purpose of attaining better success at market place.

TASK 3

3.1 Evaluate the strategic decisions made by different types of tour operator

Strategies are the important element for every business organization to attain positive outcomes. Basically it is prepare by the top level management in order to an appropriate decision which may leads in increasing the profitability level (Hoyos, Morales and Akhavan-Tabatabaei, 2015). Along with this, strategic decision is long term judgement in which manager effectively manage as well as understand all the activities. By this senior management easily take right decision in order to improve the performance level of the company at market place. This type of decision are important for business and its operations which contribute in enhancing the chances of attaining better success at market. In this context there are various tour operator who operate their business in across the world as they also perform their activities at local and domestic level of the nation. In this they take effective and appropriate strategic decision which is enable for longer period of time and also promote their activities in effective manner.

Inbound tour operator: These type of tour operator serve their services in same country in which they have scope to attain appropriate growth level at market place. In this they also tries to take effective decision by determine customers needs and wants effectively. Along with this, demand forecasting is easy in which tour operator improve their service quality. In this they also frame an effective and suitable price strategy which is used at national level. For attaining better success, it is also important for tour operator to provide various offers and discount to their customers who belong to same nation. With the help of this company attain long term sustainability for longer period of time.

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Outbound tour operator: These are those operator who provide quality services to their customers to visit another countries. In this they promote as well as support tour services which leads in developing the economic growth by increasing the number of visitors. This will aid in enhancing economic growth of the nation is mots effective manner. Along with this outbound tour operator serve high quality of services to their customers as compare to inbound operators. In addition of this, they operate their activities at vast level in which management should determine as well as understand customers needs and wants. In this demand forecasting is not a easy task for tour operator as they should effectively evaluate which helps in taking suitable and right decision (Robinson and et. al., 2016). This will aid in promoting as well as delivering quality products and services to their visitors. If they take wrong judgement then it negatively impact on the overall performance of the company at market place.

Along with this, tour operator also evaluate the strategic decision as per using various pricing strategies within their activities. As tour operator use pricing at premium, Market penetration, Bundle Pricing. All these will help company to increase their productivity level at market place by grabbing customers attention. In addition of this, surcharge policy is also used by them as per season basis. For example, if visitors demand is high then tour operator change extra on their packages as it helps in increasing profitability level of the company at market place. All these can be used by tour operators with the purpose of evaluating strategic decision and at the same time also make strong customers base. It directly contribute in establishing positive and competitive image of the company as compare to its rivals.

3.2 Compare the tactical decisions that could be taken by a selected tour operator in different situation

Every business organization follow hierarchy for working their activities in effective manner. It include top level, middle level and operational level. In this top management of the company easily take right strategic decision and on the other side middle level manager also take tactical decision which is not much easy. In context of travel and tourism sector, middle level manager determine the customers needs and wants to take right decision which may leads in providing them better satisfaction.

In addition of this, middle level manager also formulate appropriate policies and procedures in order to perform their activities in most effective manner. Along with this for improving the performance level, tour operator also take decision by evaluating as well as assessing entire situation to reduce he chances of arising any kind of issues and risk factors. On the other side, determination of external factors is also important for manager in which they easily control all the activities by understand towards the new and innovative technologies (Wang and et. al., 2016). Apart from this, manager also responsible for following all the laws and legislation to enhance their ethical performance which directly contribute in attaining batter success.

Along with this there are some tactical decision which take by the company are as follows:

  • Discounting: It is one of the important tactical decision which take by the firm at the time of delivering quality products and services to its visitors. In context of Trail-finders, they also use various offer with discount to invite larger number of customers. This will helps in increasing profitability level of the company at market place as compare to its rivals.
  • External factors: Number of external factors are directly affect the business activities in positive and negative manner. As it is important for travel company to make policies with the purpose of reducing negative impact and at the same time also increase the productivity level.
  • Government: Legal authorities of country play important role in developing as well as implementing various rules and regulation with the purpose of enhancing economic growth. This will increase employment which directly contribute in improving living standard of people. Along with this, legal bodies also set policies for travel with the purpose of improving their performance level at market place.
  • Tactical marketing: It is important aspect through which manager of the company implement strategies to attain set goals and objectives in appropriate time frame. This will helps in enhancing the sales and revenue as well by delivering quality products and services at appropriate cost.

Conclusion

From the above mentioned report, it can be concluded that tour operation management play vital role in developing the tour sector which directly contribute in enhancing the economic growth of the nation. Along with this, tour operator to effective design best package for their workers as per their needs and wants. With the help of this firm enhance their profitability level. In addition of this, firm use various tools and techniques for attracting number of customers in relation of services. Apart from this, there are packages also design by the company to family and individual tour as well. This will aid in increasing the profitability level of the company at market place. It directly contribute in capturing larger market share.

References

  • Allahyari, S., Salari, M. and Vigo, D., 2015. A hybrid metaheuristic algorithm for the multi-depot covering tour vehicle routing problem.European Journal of Operational Research.242(3). pp.756-768.
  • Anderson, C. K. and Marcus, B., 2015. Tour operator revenue management–Competitive supply chain contracting.Journal of Revenue and Pricing Management. 14(4). pp.245-261.
  • Byrnes, T. and et. al., 2016. Environmental management of boating related impacts by commercial fishing, sailing and diving tour boat operators in Australia.Journal of Cleaner Production. 111. pp.383-398.
  • Espino-Rodríguez, T. F. and Gil-Padilla, A. M., 2015. The structural and infrastructural decisions of operations management in the hotel sector and their impact on organizational performance.Tourism and Hospitality Research. 15(1). pp.3-18.
  • Felicen, S. S., Ylagan, A. P. and Buted, D. R., 2014. A Correlation Study between Student Performance on Travel and Tour Operations Course with CRS and Internship Performance on Travel Agency.International Journal of Academic Research in Progressive Education and Development.3(2). pp.74-86.
  • Grant, D. B., Wong, C. Y. and Trautrims, A., 2017.Sustainable logistics and supply chain management: principles and practices for sustainable operations and management. Kogan Page Publishers.
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