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Introduction to Tour Operations
Tour operations play a significant part in travel and tourism sector. Nowadays, people travel to different places in order to explore nature. However, at present tourism sector is considered as the most important essential industry in terms of generating good income for the country (Butler, 2000). With changing market trends and environment it is also essential for business operating tour and travel sector to enhance their business operations so that they can satisfy needs and wants of customers by providing attractive packages.
Therefore, it has become necessity for the firms in order to sustain in target market and even they have to offer services by keeping in mind taste and preferences of customers. The main aim of researcher behind conducting this study is to enhance knowledge and skills regarding tour and travel industry services and packages offered by the firms to satisfy needs and wants of customers (Giaoutzi and Nijkamp, 2013). For the present study, Brazil has been selected as the destination for which tour package will be designed in order to attract and influence people to visit such beautiful country.
Assignment1: Itinerary Planning And Developing A Holiday Package
1.1 Recent trends and developments in the tour operations sector
Tourism industry is such as sector which is highly affected by change in various aspects of the market such as trends, environment, taste and preferences of customers and economic conditions. In regards to this, it is important for the government of each country to majorly focus on reducing the impact of such factors by providing travel sector a better environment to work so that companies can satisfy needs and wants of customers (Mak, 2011). In UK, it is one of the major parts through which country increases its national income. Recently with various changes and modification has affected the entire course of cited industry.
Looking at the present economic system, earning power of people has increased due to which spending power also increased which majorly influence them to explore new places. However, this has made positive impact on this industry as people are spending high money on tour packages and helping this industry to grow. After evaluating this opportunity, tour operators are making valiant efforts in understanding and evaluating taste and preferences of customers so that they can make attractive tour packages and draw people to buy them. Everyone in present time is facing various issues and obstacles in spite of earning high money (Vivanco, 2001). Therefore, in order to remove such situation people tends to travel to new places and explore them so that they can enjoy and relax for its routine life.
Apart from this, another factor that has positively impacted on the tour and travel industry is economic development around the globe. In recent past, several countries were suffering from the effect of recession but now they are having better economic condition within country. However, this influence tour operators to develop packages of such countries so that people go there and enjoy. In addition to that, taste and preferences of customers are constantly changing in spite of that tour operators are making valiant efforts in attracting people by offering them quality of services at affordable packages. According to the present case, Brazil has been selected as the tour destination and there are various places in the country for which better tour package can be developed such as Jericoacoara, Ouro Preto, Fernando de Noronha, Historic Center of Olinda, Beaches of Salvador, Rio Carnival and Heart throttling Amazon River (Sobral, Peci and Souza, 2007).
2.1 & 2.2 Itinerary for heritage sites, wildlife and beach holidays in Brazil
After the completion of FIFA World Cup, government of Brazil majorly focused on improving the nearby and popular places in the firm so that people can be attracted and country can generate revenue. By the means of this initiative, tour operators helped the most as they can easily frame attractive tour package for the people and generate better income. In spite of that, it is the responsibility of tour operator to select the most appropriate places so that people get attracted towards it and agree to spend high money for better services.
The main rationale behind selecting Brazil for travel destination in present research report is that it is the fifth largest country in terms of geographical and population. This statement indicates that, there are mammoth places to explore in the country and it will be easy for tour operator to develop best possible package for travelers so that they can have better time in Brazil (Knowles, Teixeira and Egan, 2003). However, cited country is majorly bifurcated in different perspectives of the tourist such as some of the people like natural places, others like heritage places and moreover wildlife parks and sanctuary to attract people towards it. Other than this, there are better convenience facilities available such as airports in popular destinations like Guarulhos International Airport and Congonhas Airport etc.
While developing the overall travel and tourism sector, government is also focusing incorporating services like eco tourism in order to reduce the environmental impact as well as maintain the natural places for years to come. The main advantage for companies operating in tourism sector is that there are different places available in Brazil which can be considered as an attractive point for people as well as act as a developing tool for Brazil’s whole economy. There are number of popular places within country like Manaus, Canoes and Amazon eco forest which is considered as the sign of saving environment from pollution and other factors.
In addition to that, there are different waterfalls available in the country but the most attracting one is Iguacu fall which is situated near Brazil and Argentina Border. However, it consists of around 270 falls as well as Iguazu River (Jesus, 2010). Apart from this, heritage place like Statue of Redeemer is defined as the most holy place in Brazil which is situated in Reo de Janeiro. On the other hand, there are various attractive national parks present in the country in which tourist can find different kind of species which are very rare in the world. However, this is all due to which Brazil is considered as the most popular place around the globe in the world.
In terms of beaches, Salvador and Arpoador are considered as the most visited place by the tourist. Both these beaches are famous for high tides where people can surf and get new experience. Other than this, there are several other beaches in the country such as Leblon and Ipanema situated in Reo de Janeiro and west of the coastline respectively (Travel and Tourism in Brazil, 2012). Therefore, from the above study it can be stated that, tour operator can develop attractive package for the people so that they can enjoy and have good experience in Brazil.
Day 1 – 2 Salvador beach, Bahia – It is one of the most attractive colonial town in Brazil. There are several activities which take place in the beaches of Bahia such as surfing, parceling, scooter riding and other water sports which attracts people. However, it is considered as the most visited place in Brazil.
Day 3 – 4 Teatro Amazonas, Brazil – It is an Opera house which is situated in Manaus in the heart of Amazon Rainforest. In order to build this house raw material were brought from different parts of the world such as marble from Italy and furniture form Paris and steel from England etc. However, the first performance was given on January 7, 1897. It is one most populated place to visit (Ruschmann and Sagi, 2010).
Day 5 – 6 Rio Carnival, Rio de Janeiro – It is just not the carnival it is festival for the people of Brazil. Rio Carnival is celebrated in most attractive and energetic manner. This site is what people visit to Brazil. Furthermore, analyst stated that more than 2 million people are attracted by the carnival on routine basis.
Day 7 Christ the Redeemer, Rio de Janeiro – This statue is situated in heart of Brazil and considered as the most holy place because it is the statue of Jesus Christ. Furthermore, this place is located 700 meters above sea level on Corcovado Mountain (Giaoutzi and Nijkamp, 2013). This place is also known for bungee jumping which provides life time experience for the people who try it.
Day 8 – 9 Amazon River Valley, Brazil – This place is considered as the most exotic wildlife places around the globe. However, Amazon River is located in overall area of 6400 km and still it is shorter than Nile River. Furthermore, there are more than 3000 recognized species present in the river.
Day 10 Abrolhos Marine national park, Bahia – This park is defined as the most beautiful park in Brazil due to its natural resources. However, taking this place under the package will provide good experience for tourist.
2.3 Cost of components and package and determining the selling price
Cost in tour packages is conspired as the most significant element. However, it is the duty of tour operator to undertake each and every aspect regarding destinations and on that basis decides the cost or expenditure. Along with this, commissions of guide and profit margin as well as extra benefits enhances the customer experience and are considered as the major aspect to analyze before setting the selling price of tour package (Junior and et. al, 2014).
In addition to that, another factor that may impact on selling price is customer’s budget. In context to that, tour operator has to consult with clients regarding their taste and preferences and on that basis overall tour package is designed. After evaluating the budget, it is the duty of tour operator to showcase different tour packages under the desired financial budget so that customers can select best possible tour outlets and satisfy need and wants.
Other than this, there are several other essential aspects which need to be undertaken by tour operator such as food, accommodation and travelling etc. According to the present given scenario, tour to Brazil for 10 days starts from £4000 per person, however fluctuation can be seen in the packages as per the needs and wants of clients (Black and Crabtree, 2007). There are several factors which a package consist of such as traveling internal and external flights, food and beverages, accommodations at different places and guide etc for better experience. On the average it can be stated that, for 10 days in Brazil per night cost for each individual at each place will be around £100. Furthermore, under this package return tickets facility is available for which person has to incur mere £450 more along with the overall package. In addition to that, ticket charges at different locations like national park, wildlife century and water and sky sports are considered under this package.
3.1 Non traditional methods of distribution for selling holiday packages
In general terms, distribution approaches are considered as the most important aspect in travel and tourism sector because it directly helps tour operator to attract large audience in short span of time. Just preparing effective and attractive tour package is not enough; operator also has to use appropriate means of promoting and marketing the services so that large audience can be attracted (Hall, Timothy and Duval, 2012).
Furthermore, in past traditional methods were used by various entrepreneurs such as brochures distributing or pamphlet in which detailed and accurate information were given so that people can understand each and every aspect of package. However, these days’ brochures were considered as the most effective technique or tool in terms of marketing services and to attract audience. These types of brochures consist of various detailed information regarding places to visit, price, categories of hotel and many more. By the means of this, tour operator’s aims is to satisfy customer’s needs and wants (Swarbrooke and Horner, 2007).
Nowadays, with changing trends and environment, marketing has also changed by the means of customers can easily served or treated. However, advancement in technology has made easier for tour operator to connect with target audience. Using online means and digital media for promoting packages and services has helped business enterprise to earn high demand and generate high revenues to attain sustainability. Furthermore, with the help of this, tour brochures can be easily promoted and marketed as well as latest technology enhances the chances of attracting and encouraging people to buy the package (Becken and Hay, 2007). Along with that, companies should use direct mail facilities in order to acquire customer’s feedback and responses so that further improvement can be made.
ASSIGNMENT 2: TOUR OPERATIONS STRATEGY
Emerging trends in UK tour operations industry and response of tour operators (Competitors)
At present with increase in income level of people, spending power is also increased. However, this is the major reason behind enhancement in UK travel and tourism sector. Now it supports overall economy of UK by contributing an effective part of it. Constantly changing trends and environmental aspect has created various issues and obstacles for the firms operating in this sector. But increasing demand has helped the companies and in this regard UK regulatory authority is making valiant efforts for developing new destinations so that customer’s experience can be enhanced (Swarbrooke and Horner, 2012). Below illustrated various trends that have helped in development of UK tour operations industry:
Building new emerging destinations – Increasing competition has forced companies to decline its prices of packages which has lighten up the interest of tourist in traveling to UK. In context to this, firms have started offering variety of quality services on newly developed destinations so that each aspect of customers can be satisfied. However, this proved to be an opportunities for several small sized tour operator enterprise as they started earning good revenues to run their business operations.
Better possibility for adventurous and eco tourism – Constant improvement in services and accommodations has helped companies in UK to attract large audience around the globe. In other words, increase in water sports, sky sports and wildlife, national park and creative amusement parks have created major demand for traveling in UK.
Price factor – In spite of increase in income level people of UK are still concern about the price structure of tour packages. Still people wanted to acquire quality of services at lower prices (Mintzberg, Ahlstrand and Lampel, 2005). In context to this, it is essential for tour operator to provide high quality at low prices so that they can attract large audience and attain competitive edge in the market.
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Difference between tactical and strategic decisions
Strategic decisions can be defined as more of a long term judgment regarding future operations in travel and tourism business enterprise (Fleischer, 2009). Along with that, strategic decisions can be related to long term product development such as introducing new destination. However, in order to make strategic decision appropriately tour operators need to undertake below illustrated five elements:
- Forecasting demand
- Finding approaches to minimize costs
- Focusing on building corporate product
- Maintaining better relations for good brand image
- Strategic linkage between various destinations around the world
Tactical decisions are more focused towards short term aspects of business operations. However, under tactical decisions several aspects on which tour operators take such as prices, type of packages, offering, services etc (Buckley, 2004). There are several major factors that tour operators need to undertake at the time of making tactical decisions such as:
- Vehicle technology
- Regulatory framework
- Price of fuel
- Environmental issues
- Exchange rate fluctuations
Therefore, it is very crucial for tour operator to effectively and efficiently make decisions regarding both short and long terms aspects of business enterprise.
The main aim of researcher behind conducting this study is to enhance knowledge and skills regarding tour and travel industry services and packages offered by the firms to satisfy needs and wants of customers. The main rationale behind selecting Brazil for travel destination in present research report is that it is the fifth largest country in terms of geographical and population. This statement indicates that, there are mammoth places to explore in the country and it will be easy for tour operator to develop best possible package for travelers so that they can have better time in Brazil. Thereafter, several aspects and elements on tour operations have been evaluated which helped researcher in enhancing knowledge regarding Brazil travel industry.
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