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Tour Operation Management -TrailFinders

University: Ukcbc College London

  • Unit No: 4
  • Level: High school
  • Pages: 18
  • Words: 4500
  • Paper Type: Assignment
  • Course Code:

    A/601/1740

  • Country: UK
  • Downloads: 0
Question :

An explantation is drawn to understand the various concepts of the tourism sector. 

  • Understanding of the tourism industry.
  • Understanding stages for holiday generation.
  • Analysis of methods used for selling holidays within the brochure.
  • Understanding of tactical decision making within tourism.
Answer :
Organization Selected : TrailFinders

INTRODUCTION

Tour and travel industries are growing at rapid manner in today's era. Development of these industries are playing an important role in growth of a country's economy. Due to implementation of new strategies and innovative services, travel sectors has gained success in earning higher revenue which enhance profitability of business. This assignment is going to reveal a detailed analysis of tour industries as well as its impact on economy. Analysis are done on a travel company of UK i.e. Trailfinders which has 29 branches in different locations. This association is specialises in tailormade in various countries. A discussion on identification of various methods for making brochures along with trends of expansion, types of contracts and more has been made in this report also. In addition to this, present firm seeks to create a luxury coach as well as educational tours for students. Therefore, a detailed plan is also given.

TASK 1

1.1 The effects of current and recent trends as well as development on the tour operators industry

The tour operators help in executing the holidays by including tour and travel industry. Business of these industries is growing at rapid rate due to increase in demand of products or services. In retail sectors, products included of these companies are packages and services of tours in which travel agents used to sell commodities at marketplace. Due to emergence of such associations in travel sector GDP of a country has increased in higher order. As per present scenario, in order to get maximum number of tourists, travel associations have made several plans for influencing people. Trailfinders is a travel agency which has become the first flight consolidator in UK in 1972 and till now it has developed business as so far. The reasons for making improvement and developing trends of business in tour sectors are discussed below:-

Technology Development: Trailfinders has used latest technologies like travel and tourism for advertising its products or services. In today's modern world, people of all regions are used internet to get information of destinations where they want to go. From this application, they can search tour packages of various agencies as well as compare prices also. Along with this, for booking tickets and complete procedure of journey, visitors use online services mostly. Therefore, these trends assist this company and other travel organisations to offer their services on website and social sites in impressing way.

Increased Speeding Process: Due to standardisation and increasing purchasing power, people concern more on getting high and qualitative services during their journey. For this process, they spend huge amount of money in travelling. Henceforth, this factor has been considered as one of important reason in development of tour and travel business.

Holidays Package: Tourists are focused more on how their journey will going on. They always look out on holiday packages which consists interesting destination, number of days to visit, food services as well as various type of accommodation and transportation on reasonable rates. Such packages are used to make a journey exotic and more enjoyable. Therefore, Trailfinders and other tourists companies are providing various flexible packages in order to attract minds of tourists in a large manner. Along with this, in order to gain high number of travellers, these organisations offer their products or services at low rates and on various discounts.

Tourism Marketing: This concept also holds its importance in development of travel business. Marketing techniques help every organisation in promoting and advertising its products in a desired way.

Various kinds of Tour Operator

Domestic Operators: These operators involve citizens of a country therefore, companies under travel sectors used to offer places within the nation. It includes destination like national parks, heritages, different culture of people of a particular place and more which lie under territories. Therefore, these companies are also called resident operators.

Inbound Tour Operators: These tour operators offer services to non-resident travellers. Therefore, associations under this provide services to those visitors who come within their regions. Therefore, inbound operators are also known as Receptive Tour. Along with this, these services are commonly used for international trips in which different languages of travellers is main issue. Henceforth, companies make proper arrangements like guide who can communicate with travellers in their languages, proper accommodation, airport pickup etc.

Outbound Tour Operators: In this type of tour operators, associations are used to take travellers of one country to visit in another.

TASK 2

2.1 Stages and timescales involved in developing holidays

Travellers are always expected to get best experience form their journey. Therefore, tour operators need to plan holidays of them as per their expectation so that they can enjoy every part of journey in a joyful manner. In context with this, Trailfinders used to make continuous improvement in its services. As per situation, currently it needs to make a proper plan of tour packages for some students London who are going to spend summer vacations in UK to Brussels and Brugge of Belgium. There are 40 students in a group who have planned to go on an educational tour for 5 nights. Therefore, to prepare a holiday plan as per requirement, this association needs to undertake some certain stages as given below:

  • Destination or Market Research: It is an initial step in developing procedure of an holiday plan in which marketers are needed to analyse and gather different information about destination. Management should finalised the plan as per demand and requirement of adult students. For acquiring information, they can use PESTLE analyse of Brugge, and Brussels of Belgium. It will take near about 2-3 months for analysing the market situation.
  • Planning or Itinerary Development: It is the second step of development, in which planning and package management is going to be done and finalised by superiors. It summarises the brief of such plan of a specific place which includes important details of project like airport pickup, types of accommodation, transportation, how much area of routes will be visited by trains and bus, famous destination at Brussels and Brugge of Belgium. This complete process is done in a systematic procedure which takes approximate 20 to 30 days.
  • Negotiation: Management of Trailfinders in this stage are required to deal with various services provider and vendors present at local area of marketplace in order to manage cost of services for specific destination. The procedure will undertake more than 5 months.
  • Cost Determination: This is another phases of development in which management can determine cost required for complete procedure which takes near about 3 months of holiday date. It is a very complicated process which control the cost of project.
  • Marketing: It is one of the most essential procedure among various stages, in which marketing management used to promote and advertise the products or services of their plan. This will help in enhancing performance of sales in a profitable way. This procedure undertakes several activities like hoarding, brochure, ads and more. So, it will also take more than 2 -3 months.
  • Tour Execution: This is the final stage of development of holiday in which managers execute the plan. For this process, Trailfinders need to control and monitor the activities of students for their safety and proper satisfaction so that better outcomes will occur.

2.2 Suitability of different methods of contracting of various components of holiday

There are various techniques and methods by which a contract can be made by an organisation as per different activities. This process acts as healing aid for travellers through this they can cut down prices of some unnecessary products or services. Therefore, by utilising procedure of appropriate method, Trailfinders can add values in their plan which is made for students of London who will go on an educational tour to Brussels and Brugge of Belgium. Improvement in plan will help this firm in increasing sales and profitability. This travel company offers its tour packages on reasonable rates including various discounts. Along with this, in order to provide high satisfaction in customers as well as gain their loyalty and retention for long term goals, this firm has focused more on giving best quality services. Its management uses two types of methods in order to get maximum benefits as:-

Fixed Agreement: This agreement is a qualitative approach which is used for increasing sales and profitability even in off season also. This method proves beneficial in managing and controlling all such risk factors which impacts on cost effectiveness for business of a company. Consequently, it leads to increase sales and profitability by giving higher discounts to customers in order to get their attention.

Sale only Agreement: It is a contractual method which helps in determining higher cost as per demands and number of customers, during period of on-season. It includes less liability as well as risk of failure also goes on low level. In addition to this, there is no scope of discount in this method and as compared with normal cost of offering services during on-season is much higher. This will help in reducing risk also.

Allocation Contract: In this contract method, every agreement shows a sample of goods which are supplied further. Along with this, managers can determine which person will handle the contract through this type of contract. Some conditions required in this process are- demand of each agreement should be met, goods supplier must not exceed from available stock, cost of delivery need to be minimal and more.

Ad Hoc Contract: This type of agreement is used for urgent purpose therefore, actions are taken for a particular reason. It helps the system administrator in meeting the needs of people .

After analysing the concept of various methods as given above, Trailfinders can be able to generate high revenues and earn more profit as well. As observed by management, agreement of cost include various type of discounts and risk of failure while on the other hand, concept of sales only contract includes less risk but cost will be higher. Managers of travel industries are required to determine types of trade also. These trading agencies operate various functions of tour operators in the industry of tourism. In context with, some regulatory bodies deals in such sectors are mentioned as below:

An Association of British Travel Agents: In UK, this association provided some type of help to disappointed tourists as per their reasons. Under this section, it includes special code of conduct and strict rules which provides remedies for them related with losses. These regulatory bodies consists approximate 6000 operators of tour along with 2300 travel agency.

An Association of Independent Tour Operators: This travel industry of UK has contained more than 120 experts. These experts operate business in 170 countries worldwide.

Federation of tour Operators: This regulatory bodies are considered as used by most of the company for ensuring maximum benefits for longer terms. It was established in 1967 by FTP members.

UK Civil Aviation Authority (CAA): This division handle and monitor the procedure of control in UK. Apart from this, these bodies lookout on all aspects for safety purpose of country.

2.3 Calculate the selling price of holiday

As per present situation, Trailfinders seeks to plan a trip for adults students of London, UK to Brussels and Brugge, Belgium. These students are planning for an educational tour, therefore, this firm creates a luxury coach form them. It has proposed a budget plan which is made for two persons sharing a twin room. In this holiday package, this firm has booked Grand Casselbergh in Brugge. This hotel has charged 90 Euros (per room 2 person) per twin room including breakfast. This tour will be going on summer vacations in August 2019 which consist 40 students per group and the tour is for 5 nights only.

The cost of luxury coach of 45 seater is £7,400 as well as includes two drivers, a tour manager, fuel and ferry taxes. Along with this, cost of local guide is taking € 920 and spot-exchanges rates is €1.15 per £1. Trailfinders also add up a markup of 30%. Henceforth, the calculations of selling price of complete package is given.

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