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2295 Downloads 15 Pages 3779 Words
Tour operations industry has been identified as most significant sector that has an integrated approach towards travel and tourism. It involves management of various operations that includes development of holiday packages, monitoring current trends and strategic decisions that need to be taken by tour operators (Gibson, 2012). Present report is based on analysis of effects of current and recent trends and development on tour operations industry. As a product development manager at Trailfinders Ltd, which is travel company in the UK and Ireland, there are different stages involved in development of holiday’s packages are also discussed along with the suitability of different methods of contracting for various components of holidays. In addition to this, selling prices for tour package is determined in the report. Moreover, planning decisions are taken for selected brochure by different tour operators are also discussed. Suitability of alternatives to traditional brochure for various kinds of tour operations. Further, different methods used for selling of holiday packages are also evaluated. At last, strategic decision made by various kinds of tour operator are analysed along with the tactical decision that needs to be taken Trailfinders Ltd.
Planning is has analysed very important aspect in tour operations industry. It is required for tourism service providers to plan activities in sequential basis for development of holiday’s packages which will attract the tourists.
There are various stages involved in development of holiday’s packages which needs to be followed by Trailfinders Ltd. These important steps are mentioned below
In law terms, contracts are analysed as agreements that needs to be signed by two parties when they agree on the terms and condition of contract. In terms of tourism industry, contract relationship exists between tour operators, tourists and service providers which is essential to resolve disputes. There are various kinds of contracts that needs to signed by associated parties to protect themselves from nay kinds of legal issue related to travel and tourism.
Fixed contracts: In these kinds of contract, organisation focus upon the collective as well as quantitative approach for selling tour packages (Kerzner and Kerzner, 2017). Tour operators increase their capacity through maximizing sales volume. This kinds contract is done to take benefits to season in which they have fewer demands. In this, Trailfinders will create fixed contract with the customers and service providers to increase cost effectiveness and getting more discount. Further, it is less effective because trailfinders also needs to pay amount in case of non utilization of services. For example: When the Trailfinders have booked 50 seats for their clients but only 45 seats were occupied then company also needs to pay the amount of extra seats.
Sale only contract: These are analysed as seasonal contracts which are made by considering the demands of holidays packages among customers (Witt, Brooke and Buckley, 2013). In sale only contracts, Trailfinders needs to pay the price for only those services which are used by their customers. It is essential at the time of over booking and company will get support in purchasing additional services. There is no scope of discounts in these kinds of contracts.
Ad-hoc contracts: This type of contracts also deals with overbooking and company is required to make extra booking of seats or accommodation (B. DiPietro, Cao and Partlow, 2013). These kinds of contracts are mainly signed by specialised tour operators.
There are various kinds tour operators that exists in tour operations industry and responsible towards development of holiday packages.
Inbound: These are the organisation that provide travel and tourism service for people in home countries and these are considered as in bound tour operators. For example: organisation like Thomas cook and England tours are analysed as In bound tour operators.
Outbound: Travel companies having business operations in different nations developes tour packages for different people living in different nations. These tour operators generally have their business operations at international level (Grant, Wong and Trautrims, 2017). Trailfinders limit is also outbound travel company which has 29 branches in different countries.
Domestic: it mainly involves those tour operators which are responsible for formulation of tour packages for the clients of home countries (Naji-Azimi and et.al., 2012). They also have different branches in different city of home country. For example: Thomas cook and TUI group are two major domestic tour operators which has their various branches in UK.
Specialist: These organisations are specialised for creation for the development of some specific and unique kinds of holiday package. For instance : tour package which are developed by Trailfinders for their customers different parts of world. For example: HF holidays and Trail finders are specialist tour operators.
Cost (in Pound)
Cost of Hotel
Cost of accommodation
Cost of Luxury Coach
Cost of local tour guide
30 percent profit margin
1.15 Euro=1 Pound
60 Euros= 1 Pound
Cost of room (2 adults sharing) 60* 1= 60 Euros
Number of rooms required 40/2 = 20
Cost of hotel =20 rooms for one night = 60*20= 120 pounds
Cost of 5 nights= 120*5 = 600 Pounds
BB for 1 = 10*1 = 10
Cost 40 people on 5 nights = 40*5* 10= 2000
Cost of 45-seater luxury coach is £7,400 including road, ferry and taxes
Cost of a local tour guide is €920
Total cost for package: 10440+3132= 13572
Cost for an individual: 13572 /40 =339
There are various important planning decision that needs to be taken by Trailfinders Ltd in planning and demonstration of effective business decisions. Brochure is analysed as documents that contains all the information about the tour packages which are developed by organisation. These activities are clearly classified in tour packages of operators. This is also analysed as method of techniques for the market that involves the low cost. Company will also distribute their brochures from both online and offline methods (Hoffman, Padberg and Rinaldi, 2013). Digitalization methods and improved technologies also provide support to organisation in increasing the reach of brochure.
Design: It is the most important decision that needs to taken by managers of Trailfinders to attract customers. Moreover, selection of appropriate design is important to attract clients. Large scale companies hire advertisement agencies for development of brochure. Organisation also needs to take decisions about things that needs to be included in brochure.
Cost: The major aspect that needs to be consider is the cost of operators. Decision related to budget of developing brochures needs to be taken by managers. Cost of development involve printing charges, designing charge, paper charge and distribute expenses etc.
Format: It implies to decision related to font, size, shape and colour that needs to be taken by organisation while planning for development of brochure (Sigala, 2014). Appropriate design and colour needs to be selected so that it may attract people and attractive picture of tourist destination must be used in brochure which clearly provide information about different locations.
Target Market Decision related to target market also needs top be taken by management while creation of Broshure. In this, trail finders have target local and medium class customers who desire to buy these tour packages.
With the advancement of technology, there are various kinds of brochure have been used by organization to provide information and attracting customers. Many new methods of advertisements and communication have been used by introduced to replace the brochures. Some of them are mentioned above:
However, the most suitable media for Trailfinder Ltd. It is analysed as E brochures because it is easily available online and it can be transferred to people through direct mails and companies websites etc. It contains less cost and efforts as compared to print media.
Company operating in tourism industry needs to adopt effective ways for distribution of information and products. Distribution is identified as important ways of movemenet of products from seller to buyer which can be direct or indirect (Pohl, 2014). Moreover, direct distribution method allow the organisation to make direct contact with their customers while indirect method include mediators who are connected with company and sell their product in market. In this context, both direct and indirect method of distribution is use by Trail Finders Lt.d which are mentioned Above:
Direct channels: It implies to direct selling of product without any intervention of intermediaries. This is effective for trail finders and provide support in making influence on customers to purchase products and services (Gibson, 2012).
Indirect channels: it involves intermediaries who have relationship with organisation and responsible for selling of their products and service to customers. It is costly method because organisation also needs to bear the cost intermediaries.
Methods of distribution used by different tour operators which are as follows:
Tour operators industry are very much focused on development of tours packages through which they can attract more people towards their organisation. Continuous changing scenario of tour operators industry has also provided influence tour operators to make strategic decision through which they will be able to attract more customers and sustain their business operators in competitive business environment (Guo and He, 2012). In this context, there are various important strategic decision which are taken by different tour operators in country which are mentioned below:
Tactical decision are helpful for the business unit in smooth functioning of the business unit. It allows the firm in managing operations well and avoiding errors. Correct decision are helpful for the business unit in order to raise profit and enhancing satisfaction level of consumers (Sotiriadis, 2015). There are many external factors that impact on the business unit to great extent. For example if government makes changes in the regulations then it would be difficult for the business unit to carry out the operations in smooth manner. In such condition it has to modify its practices so that it can run its firm legally. In such condition Trailfinders has to develop healthy relationship with employees.
This will support in making changes in operations. Trailfinders is the international operator, it provides travel facilities to travellers globally. But due to fluctuation in currency exchange rate entity has to face many difficulties (Redjem and Marcon, 2016). In such situation cited firm has to make tactical decision so that fluctuation do not affect revenues of the firm. Company has to conduct market research and have to clearly communicate information with consumers regarding the fluctuation in the currency rates. So that if price gets changed then they do not cancel their trip. Furthermore, if there is inflation then people will not plan for travelling to other nation. In such condition entity has to make tactical decision of implementing effective pricing strategy (Camilleri, 2014.). If Trailfinders provides facility to the consumers at fair prices then consumers will take interest and they will buy its services. Most of the people cancel their plan to travel because of high prices. But if entity adopt effective pricing strategy then it would beneficial for the organization in attracting more buyers and dealing with complicated situation well. By this way organization can success in the market and can sustain for longer duration.
In this report, it is been concluded that there are various important trends and development have been occurred which has provided both positive and negative impact on tour operations industry. Implementation of information and communication technology by tour operators in identified as important for success of Trailfinders Ltd. Tour operations industry has also achieved growth with increase in demand and supply of product or services. Analysis of strategic decision provides clear understanding that company needs to adopt competitive pricing policies to raise its customers. Planning of brochure involves decision related to design, format and cost needs to be taken by management for promotion of products and services.
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