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Tour Operations Management

Development of Tour Operations Management

Introduction to Tour Operations Management

Tour operators plays a significant role in key activities of travel and tourism sector. In the support of this, it can be said that the tour operators have accountability to arrange and manage diverse services in order to meet the key expectations of travel and tourism sector. These kinds of companies mainly focuses on transportation, accommodation, food and many other services which can enhance the satisfaction level of service users. Other than this, key motive of tour operators is to reduce the cost of tour packages in order to meet the expectations of customers and improve supply chain in context of tourism and travel industry. Moreover, tour operator firms provides number of travel and tourism sector services under one brand name in order to enhance the experience level of service users.

In this report, learning will focus on work culture of Cox and Kings who is looking for business expansion in India, Andaman and Nicobar Islands. It will provide better understanding about key factors which impacts the operations of travel and tourism sector. It will also have spot light on key stages in creation of holiday packages. It will also provide information about methods of distribution which can be used by management of Cox and Kings. Furthermore, it will also focus on strategic and tactical decisions which relates to tour operation firm.

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Task 1

1.1 Analysis of effects of current and recent trends and developments on the tour operation industry

It has been spotted that there are various elements that can impact the operations of travel and tourism firm in diverse manner. Trends of travel and tourism sector has changed in great context with changes in time. Enhanced level of services has impacted the number of visitors in positive manner which is one of great opportunity for UK tour operation industry. Tour operations also have great involvement in UK economy. Citizens of UK are now more attracted towards overseas destinations for holidays and it also influences the economy of UK. In the support of this, it can be said that in year 2012-2013, the 17 % of UK residents has preferred their holiday to abroad destinations and every year this percentage is increasing by 4% in UK. As per this, it can be forecast that the business expansion in oversea market is one of great opportunity for UK tour operator sector.

As per the current statics of forecasting report, in year 2016 the tour operations industry of UK is expecting 2.5% growth in context of outbound tourism and 4.5% growth in respect of inbound tourism. In order to meet these kinds of objectives the UK tourism sector is now more focused towards creation of diverse strategies which can improve their operations. According to tourism report of year 2015 the 40 million international and domestic visitors has been attracted by industry using diverse strategies. Industry is also expecting increases in investment ratio by 31.5 billion euros by the end of year 2020. Number of supportive organizations are also improving their services to render a support to travel and tourism sector such as hotel, transportation, airline, etc. These kinds of developments also plays key role in advancement of UK economy by increase in profit margin ratio of sector. Moreover, the tour packages can be classified as international and domestic packages. The services and price of packages depends on time period of holidays, distance and locations. In domestic tourism the companies offer services within the national boundary and in international packages services are offered in international boundaries. Companies are creating packages as per consideration of various aspects such as sunny beaches, heritage and wildlife attractions in order to meet the needs of sector.

Task 2

2.1 Stages and time scales involved in creating holidays

Planning is one of most essential section in effective development of tour activities as it facilitates in meeting needs and expectations of service users. In this support, it can be said that the development of holiday packages is one of most complex activity and it covers number of stages. It is also necessary for management of Cox and Kings to consider factors like currency, tax and government policies, etc so that holiday package can be designed in appropriate manner. In this respect, the Cox and Kings will design holiday plan for Andaman and Nicobar Islands, India. Classification of stages can be as follows:

Market research

It is essential for management of Cox and Kings to understand the economic condition of India in order to design holiday plan. Moreover, the proper information about competitors and Indian tourism sector is also essential so that proper decisions can be made in context of cost, events and famous places in Andaman and Nicobar Islands.

Planning and scheduling

As per the analysis of market research the planning and scheduling decisions will be taken into account. At this stage, the perception of employees also need to be consider as a critical aspect so that tour plan can be designed in appropriate manner. Other than this, small groups need to be devide in order to manage work properly. Number of activities will be designed such as departure time and total number of days, etc.

Forecasting

It is also necessary for management to forecast the future of tour activities which are designed for Andaman and Nicobar Islands holidays. Cost forecasting and other estimates also need to be calculated in order to take effective decisions.

Contracting and Costing

Number of contracts will be taken into account to meet the key needs of services which are offered in tour package. Negotiation actions also need to be consider to reduce the cost of operations and meet the expectations in economic manner. Decisions regarding allocation of the rooms, availability of flights, destinations visit, restaurants etc will be taken into account to meet expectations.

Creation of brochure and execution

After this, brochure will be created to attract more and more and customers towards services. Brochure must contain detailed information regarding time period, destination, hotel, services, etc so that customers can understand the value of tour package. Number of additional and important information also need to be provided in brochure. At last, the holiday package will be offered in market and advance bookings will be started to meet the objective of tour plan.

Task 3

3.1 Evaluation of planning decision taken for the design of a selected brochure

It has been spotted that the brochure plays a key role in success of tour operator firms as it is one of significant factor that conveys message as well as sale holiday plans through on line and off line methods. It is necessary for management of Cox and Kings to have correct decisions regarding planning and evaluation so that brochure can be designed in proper way. One of key benefit of brochure that it target customers effectively in low cost operations. In order to have effective designing of the brochure it is necessary for management to focus on planning, research, its implementation.

Recognizing planning issues

It is necessary to identify the key issues that management can face in formulation of the brochure and its objectives. It is also necessary to determine the target segment and their needs in order to design brochure.

Formate

In the support of this, it can be said that all factors need to be considered as equally important aspect and decisions regarding brochure are taken into account properly. In this aspect, it is necessary to have improved focus on formation of brochure and few factors. Classification of factors can be as font styles, structure, quality and size.

Target market and budget

Other than this, it is also necessary for management of Cox and Kings to ensure about target customers so that brochure can be designed in appropriate manner. In this context, it is also essential for Cox and Kings to decide the segment for which it wants to offers the tour packages. Moreover, the decisions regarding budget also need to be taken properly.

Launching of brochure

It is final stage, in which management of Cox and Kings will have decisions regarding launching of holiday plan brochure for Andaman and Nicobar Islands. In order to have proper launching the management can focus on customer place, internet, televisions, newspaper, etc.

3.2 Access the suitability of alternatives to a traditional brochure for different types of tour operators

In the support of this, it can be said that the tradition way of distributing brochure is taken into account with an assistance of newspaper, direct handover to the customers, etc. But these kinds of methods cost high which impacts operations in negative manner so there are various alternatives ways which can be adopted in order to have effective distribution of brochure.

Internet

In order to have effective distribution and launch of brochure the management of Cox and Kings can focus on internet. It is most commonly used method which can target large number of customers in less time. Company can promote its tour package via internet in order to attract more and more customers. It will also provide easy access to brochure by using internet.

Videos

In this respect, it can be said that the tour operator firm can promote its brochure by using short duration videos. Company can upload videos on various tour websites and attract customers towards it. It is a method which can be used by outbound and inbound tour operators in order to attract customers towards package.

Television

In the support of this, it can be said that number of tour operators are using television as a key communication tool in order to promote its holiday package. In this support the management of Cox and Kings can focus on preparing short and attractive commercial advertisements. Company can promote its advertisement on television in some intervals. In addition to this, it can be said that the company can use television to display some important information so that more and more customers can be attracted towards tour services.

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

It has been spotted that there are number of distribution channel which can be used by management of Cox and Kings in order to promote the holiday packages. In the support of this, it can be said that distribution channel is combination of diverse mediums which involve in promotion and sales activities of services.

Internet

It is considered as a one of cost and time effective distribution channel. With an assistance of this, management of Cox and Kings can reduce the cost of operations and attract more and more customers in better way. It also assist tour operators in selling of tour plans in better way. It also provides better reach to customers by use of technological aspects. For example, the management of Cox and Kings can have advance booking of tour packages in a single day with the help of internet. Company can also maintain better relationship with its suppliers like airline, hotel, etc.

Travel agents

It is a method which is mostly used by small size tour operators in order to target more and more customers. Small size businesses can easily operate their business with an assistance of travel agent. But it has been spotted that the significance of travel agents is decreasing due to the wide use of internet.

Call centres

Other than this, it can be said that the call centre assistance is also beneficial for effective distribution. It is considered as 3rd party method in which tour operators have direct relation with call centres where customers can books tour plans. Tour operator firms need to provide commission to the call centres in respect of business availability.

Task 4

4.1 Evaluation of strategic decisions made by different types for tour operators

In the support of this, it can be said that the tour operator system needs to focus on various elements for better profits and flexibility in operations. Number of strategic decisions are made by tour operators in order to have better success and promotion of tour plan. In the support of this, it can be said that the management of Cox and Kings needs to make decisions regarding pricing, efficiency, segmentation, making competitive strategies, etc.

Pricing strategy

Pricing is considered as one of most significant aspect in tour operations as it is necessary for business firm to set pricing of tour plan according to the buying behaviour of customers. With an improved focus on fixed price strategy, the business firm can easily offer its services to wide range of consumers. However, the discounting pricing strategy is also beneficial for business firm as it helps in attracting more and more customers towards holiday packages. It also facilitates in gaining better competitive advantage and increase the sales of tour package.

Positioning and branding

It is also necessary for business firm to have correct decision in respect of branding and positioning. In this, respect, it is necessary for management of Cox and Kings to take the review of services from its target customers as it will provide information about the popularity of package among customers. Moreover, the feedback or suggestions process can also be considered as one of critical aspect to understand the effectiveness of tour package.

4.2 Compare the tactical decisions that could be taken for selected tour operator in different situations

It has been spotted that number of decisions are taken into account for better handling of business operations in context of pricing, sales of packages, etc. It is necessary for business firm to ensure regarding diverse functioning. It is essential for management to maintain good relationship with stakeholders during the cancellation the contract. It will facilitate business firm to expand business in effective manner.

In the support of this, it can be said that the tactical decisions which are taking by the tour operators are related to tie up or making the contract with the different service providers. Key motive behind this kind of tactical decision is to increase the sales ratio. For example, Cox and Kings can have contract with airlines so that transportation services can be provided to customers. It will provide long term sustainability to business.

Conclusion

As per above study, it can be concluded that the tour operators plays a key role in success of travel and tourism sector. It has been identified that the travel and tourism sector is playing key role in development of UK economic system. Planning is one of most essential section in effective development of tour activities as it facilitates in meeting needs and expectations of service users. In the support of this, it can be said that number of tour operators are using television as a key communication tool in order to promote its holiday package.

References

  • Aktas, A., 2003. Tourist profile research: Antalya region example 2001. Tourism Review.
  • Buck, M., 2011. Trends and Issues in Global Tourism 2011. Springer Science & Business Media.
  • Damonte, L., 2013. Segmenting tourists by direct tourism expenditures at new festivals. International Journal of Culture.
  • Dezdar, S., 2012. Strategic and tactical factors for successful ERP projects: insights from an Asian country. Management Research Review.
  • Huang, Y., 2008. Toward Semantically Enabled On-line Tour Planning. ProQuest.
 

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