This is a solution of Unit 14 Tour operator management in which we discuss Developing business
This unit enables learners to gain understanding of the tour operators industry, the stages involved in creating holidays, brochures and methods of distribution used to sell holidays, strategic and tactical decision making.
Key Objectives of Unit 14 Tour operator management
LO 1. To understand the tour operators industry within the travel and tourism sector
LO 2. To understand stages involved in creating holidays
LO 3. To be able to review brochures and methods of distribution used to sell holidays
LO 4 . To understand strategic and tactical decision making for tour operators.
Learning Outcomes and assessment criteria:
LO1 Understand the tour operators industry within the travel and tourism sector
P1.1 – Analyse the effects of current and recent trends and products developments on the tour operators industry.
LO2. Understand stages involved in creating holidays:
P.2.1 Assess the stages and timescales involved in developing holidays
P.2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator
LO3. Be able to review brochures and methods of distribution used to sell holidays
P.3.1- Evaluate the planning decisions taken for the design concept of a selected brochure
P.3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour operator
P.3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator
LO4. P4. Understand strategic and tactical decision making for tour operators
P.4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations
LO 1 Understand the tour operators industry within the travel and tourism sector
Tour operators: as defined by EU Package Travel Directive; different types of tour operators including outbound operators, domestic operators, incoming operators, specialist operators, direct sell operators. Read more about : Unit 1 Business Environment Lecture Note Three
Industry: identification of major tour operators including their origins, ownership, market segments, competition, identification of specific operators within each category; scale eg number of passengers carried, market share, turnover; products and services to meet different markets; vertical and horizontal integration in leading operators; impact of integration; European and global links; trends to include changing trends in holidays (eg mass market tourism to custom is action, product range, all-inclusive holidays), expansion of the cruise market; environmental awareness of tour operators, responsible tourism; effect of economy and other external factors e.g. discounting, emergence of e-commerce, budget airlines;
The role of trade bodies including The Travel Association (ABTA), Association of Independent Tour Operators (AITO), Federation of Tour Operators (FTO), UK inbound, the UK Civil Aviation Authority (CAA)
LO 2 Understand stages involved in creating holidays
Stages: steps e.g. market research; planning and scheduling; forecasting; contracting e.g. allocation, commitment, ad hoc, time series charters, split charters, ad hoc chartering, scheduled services, using air brokers; costing the holiday (fixed and variable costs, direct and indirect costs, load factors, mark-up, profit margins, seasonal flexing, competitive pricing,
skimming, special offers, discounting strategies, currency exchange e.g. forward buying of currency, interest earning, cash flow); timescales.
LO 3 Be able to review brochures and methods of distribution used to sell holidays
Brochures: recognition of the planning issues including deciding the format (content, structure, style, paper quality, size), based on product, target market and budget, determining print specifications, print run, multiple editions; timescales and stages of production including creative brief, copywriting, proofing, colour proof, printing; brochure launch; recognition of legal implications; other formats e.g. CD, video, internet marketing, intranet , television; examination of distribution channels e.g. direct mail, specialist carriers, haulier, consolidated delivery companies, travel agencies, intensive/selective distribution systems; racking agreements
Methods of distribution: methods e.g. direct sell, agencies, call centres, internet, teletext, telephone.
LO 4 Understand the strategic and tactical decision making for tour operators
Strategic: examination of strategic decisions making eg volume, pricing strategies, surcharge policy, positioning and image/branding, choice of product in relation to customer portfolio, distribution decisions; investment funded by capitalisation e.g. cruise ships and aircraft
Tactical: responses e.g. triggered by competition, price wars, external factors; decisions e.g. fluid pricing, yield management, maximising occupancy of contracted beds, utilisation of coach and aircraft seats, consolidations; tactical marketing e.g. discounting, late sales
TASK 1 of Unit 14 Tour operator management
After finishing your BTEC HND in Travel and tourism management course you have found a job within a medium-size independent tour operator in LONDON, specialising in Eastern Europe and worldwide destinations. They have a keen interest in developing the weddings niche of market.
You have been asked to research the tourism and travel industry in terms of the current and recent trends in the tour operation’s industry and to analyse its impacts in the development on the tour operator’s industry.
Research by using supportive materials such as tour operators prospectuses, textbooks and online resources but above all conduct some field trips , visits to travel agencies and tour operators, and provide feedback on the findings relate it to the case study above, and for the purpose answer the following questions:
P1.1- Analyse the effects of current and recent trends and developments on the tour operators industry.
. TASK 2
You work for the operations and planning department for Thomas Cook in the ‘’Signature’’ packages/products department. Your manager has offered you the position of Team Leader and has made you responsible for accessing, evaluating and researching the stages involved in creating two new package tours as follows:
For the purpose write your report answering the following questions:
P2. Understand stages involved in creating holidays
P2.1 Assess the stages and timescales involved in developing holidays
P2.2 For this task you need to evaluate and compare two different tour operators (e.g. Airtours – all inclusive summer 2014 prospectuses and Flightcentre – South America prospectuses.), and for the purpose answer the question below:
P2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator
P2.3 Calculate the selling price of a holiday from given information below.
This case study is based on Air Tours part of the Thomas Cook group , mass market tour operator based in UK. The company operates a time-series charter travel to Rhodes, Greece and specializes in seven days and fourteen days all inclusive tours to Rhodes. This is a short haul journey of approximately three hours from London Gatwick. The company will charter Thomas cook airlines a Boeing 737-800 with seating capacity of 180 seats.
You are going to use the services of a local agent Rhodes and he has been able to offer contract rates for 3 and 4 star hotels in different resorts. You must choose one hotel and resort for your programme and decide on the board basis and method of contract
Task 3 of Unit 14 Tour operator management
You work for Thomas Cook group and recently you have been appointed to work for the Marketing principle Department of the company where your main job is to work in a team where you will evaluate the planning decisions taken for the design of a selected brochure of Thomas Cook group. You will work in a group of maximum of four students and will provide an oral presentation (you need to discuss the dates and times with your Lecturer/ tutor). You will also need to submit a written work for task 3 which covers all the pass criteria’s mentioned below as follows:
P3.1 Evaluate the planning decisions taken for the design of a selected brochure
P3.2 Assess the suitability of alternatives to a traditional brochure for the following tour operators of the THOMAS COOK group: Air Tours , Summer 2014 THOMAS Cook Cruises Summer 2014.
P3.3 Unit 14 Tour operator management is Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator within the THOMAS COOK group.
You are required to carry out a research by using supportive materials like books, websites, etc and to evaluate the strategic decisions made by different types of tour operator, compare the tactical decisions that could be taken by a selected tour operator in different situations. In your report, please answer P4.1 and P4.2. Please give a feedback of the findings on P4.1, P4.2. The answers need to be reflected to the travel and tourism sector. Answers without relevant examples will be marked as a fail.
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