This is a solution of  Unit 14–Tour Operations Management that describes about Developing business

Unit 14–Tour Operations Management

INTRODUCTION

Learners will investigate the tour operators industry of the travel and tourism sector, including the different types of operator, their products and services, the scale of the industry and how it has been affected by trends and developments. Management issues will be covered by examining strategic planning and tactical decision making in order to develop learners’ decision-making skills.

Learners will explore the stages involved in creating a holiday and develop skills associated with determining a selling price for a holiday from given information.

The role of the brochure will be reviewed against the introduction of new methods of promoting holidays. Learners will also review distribution methods used by tour operators to sell holidays, including the traditional use of travel agencies and the emergence of methods such as the internet and television.

Aim of the unit

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:

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:

LO1Understand the tour operators industry within the travel and tourism sector

P1.1 – Analyse the effects of current and recent trends and 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

  1. 2.3 Calculate the selling price of a holiday from given information.

LO3Be able to review brochures and methods of distribution used to sell holidays

P.3.1- Evaluate the planning decisions taken for the design 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

LO4Understand strategic and tactical decision making for tour operators

  1. 4.1 Evaluate the strategic decisions made by different types of tour operator

P.4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations

Indicative content guideline of the module and for the completion of the Assignment:

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 operatorsincluding outbound operators, domestic operators, incoming operators, specialist operators,direct sell operators

Industry: identification of major tour operators including their origins, ownership, marketsegments, competition, identification of specific operators within each category; scale egnumber of passengers carried, market share, turnover; products and services to meetdifferent markets; vertical and horizontal integration in leading operators; impact ofintegration; European and global links; trends to include changing trends in holidays (eg massmarket tourism to customisation, product range, all-inclusive holidays), expansion of thecruise market; environmental awareness of tour operators, responsible tourism; effect ofeconomy and other external factors eg discounting, emergence of e-commerce, budget,airlines;

The role of trade bodies including The Travel Association (ABTA), Association ofIndependent Tour Operators (AITO), Federation of Tour Operators (FTO), UKinbound, the UKCivil Aviation Authority (CAA)

LO 2 Understand stages involved in creating holidays

Stages: steps eg market research; planning and scheduling; forecasting; contracting 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 andindirect costs, load factors, mark-up, profit margins, seasonal flexing, competitive pricing, skimming, special offers, discounting strategies, currency exchange eg forward buying ofcurrency, 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, copy writing, proofing, colour proof, printing; brochure launch; recognition of legal implications; other formats eg CD, video, internet, intranet, television; examination of distribution channels eg direct mail, specialist carriers, haulier, consolidated delivery companies, travel agencies, intensive/selective distribution systems; racking agreements

Methods of distribution: methods eg 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 eg volume, pricing strategies, surcharge policy,positioning and image/branding, choice of product in relation to customer portfolio,distribution decisions; investment funded by capitalisation eg cruise ships and aircraft

Tactical: responses eg triggered by competition, price wars, external factors; decisionseg fluid pricing, yield management, maximising occupancy of contracted beds, utilisation ofcoach and aircraft seats, consolidations; tactical marketing eg discounting, late sales

Recommended text and links:

Learners should use the latest edition if available.

Cooper et al (2008)Tourism Principles and Practice, 4th edition, Pearson Education: Essex

Galle, D. (2010) BTEC Travel and tourism, book 2 , London: Pearson

Holloway, J C (2009) The Business of Tourism,8th Edition, Longman,

Laws E (1997) Managing Packaged Tourism: Relationships, responsibilities and service quality in the inclusive holiday industry, International Thomson Business Press.

Middleton, Victor T C and Clarke J,(2009)Marketing in Travel and Tourism, 4th edition. Butterworth-Heinemann, Oxford.

Yale P (1995) The Business of Tour Operations Longman, Essex.

Contact details:

Teaching and Learning Activities

The module tutor(s) will aim to combine lectures with tutorial activities. This environment will provide opportunities for the student to understand the course material through case study and text and to apply it in a practical way. The intent is to facilitate interactive class activities, and discussion about the significant role of research in a global and local business environment.

2.3       Teaching Ethos

The college’s approach towards teaching and learning is simple and effective. The main aim of UKCBC  is to assist learners in maximising their potential by ensuring that they are taught clearly and effectively. This will enable students to engage in the learning environment and promote success in both their academic studies and subsequent career.

2.3.1 Methods of Delivery:

LECTURES:

These will be developed around the key concepts as mentioned in the indicative course content and will use a range of live examples and cases from business practice to demonstrate the application of theoretical concepts. This method is primarily used to identify and explain key aspects of the subject so that learners can utilise their private study time more effectively.

SEMINARS:

These are in addition to the lectures. The seminars are designed to give learners the opportunity to test their understanding of the material covered in the lectures and private study with the help of reference books. This methodology usually carries a set of questions identified in advance. Seminars are interactive sessions led by the learners. This method of study gives the learner an excellent opportunity to clarify any points of difficulty with the tutor and simultaneously develop their oral communication skills.

CASE STUDIES:

An important learning methodology is the extensive use of case studies. They enable learners to apply the concepts that they learn in their subjects. The learners have to study the case, analyse the facts presented and arrive at conclusions and recommendations. This assists in the assessment of the learner’s ability to apply to the real world the tools and techniques of analysis which they have learnt. The case study serves as a supplement to the theoretical knowledge imparted through the course work.

Plagiarism:

Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and scope of plagiarism are presented below:

Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student and submitting it as your own work.Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

Please note that the assessors signature below denotes conformation that he/she has in no way influenced the outcome of the assessment: Read more about : Scenario Assignment Help

Unit 14 Tour Operations Management

Outcomes

Student feedback:

Student signature:

I assure that this is my work. Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and scope of plagiarism are presented below:

Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

ASSIGNMENT BRIEF

TASK 1

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. Your first task is to write a short article.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 operator’s prospectuses, textbooks and online resources but above all conduct some field trips and visits to travel agencies and tour operators.

LO1.  Understand the tour operators industry within the travel and tourism sector:

P1.1   Analyse the effects of current and recent trends and developments on the tour operators industry.

TASK 2

Your second task is toaccess, evaluate and research the stages involved in creating a tour package. For the purpose of this, you need to understand and assess the stages and timescales involved in developing holidays, evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator and also to be able to calculate the selling price of a holiday.

P2.1 Assess the stages and timescales involved in developing holidays

Here you analyse different stages involved in developing holidays. These may be related to the planning, developing, pricing and production of the holiday package. You may use one of the following examples for your reference:

  • A wedding package tour of 7 seven days in Las Vegas , USA where the wedding ceremony takes place in a helicopter sightseeing tour (see Thomascook.co.uk)
  • Walking tours in the VIA ALGARVIANA, Algarve, Portugal (green tourism) for a 7 days. See the following :

P2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator

For this part you need to evaluate and compare two different tour operators (eg. Airtours – all inclusive summer 2014 prospectuses and Flight Centre – South America prospectuses.). Explain how these tour operators work with other companies (e.g. Thomas Cook use Easy Jet for their short-breaks packages) and evaluate the suitability of different methods of contracting (e.g. tour operators book block-seats on certain airlines, book and pay in advance for a certain number of hotel rooms or simply pay a commission based on the sales of additional services).

P2.3 Calculate the selling price of a holiday from given information below.

After learning more about the stages of creating holidays and different methods of contracting, it is time to calculate a package. For this purpose, you are given certain details of a proposed package holiday to Rhodes, Greece. The information is based on Air Tours, part of the Thomas Cook group, mass market tour operator based in the UK. The company operates a time-series charter travel to Rhodes and specialises in seven days and fourteen days all inclusive tours to this lovely island. This is a short haul journey of approximately three hours from London Gatwick. The company will charter 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.

B&B rate per person inclusive of taxes on Avra Beach Hotel, Rhodes-twin room (2 adults sharing) fixed guaranteed contract = 30 euros.

B&B rate per person inclusive of taxes on Rhodes |Princess Hotel Kiotari, -twin room (2 adults sharing) fixed allocation contract = 38 euros.

Supplement for half board for both hotels 15 euros.

Assume that the passengers will travel by air with Thomas Airways from Gatwick each Saturday and stay for 7 nights. You have a fixed contract for 80 seats. The agreed rate is £130 per person return, including all taxes. You will have to pay in advance for 80 seats on each flight even if you have no bookings made, which means that you calculate your price on the basis of 100% bookings made.

The agent has quoted a rate of 10 euros per person for the return transfer by coach between Rhodes airport and any of the hotel resort chosen by you, or 35 euros return trip by taxi. He will also charge a flat sum of 100 euros for each group to cover the cost of a local representative making a daily visit to the hotel. You also need to calculate that 10% of the final cost of the package price will go to your local agent. Your profit margin is decided by you, but you should be able to justify it. For example, you may have different profit margins for packages sold during off-peak season and on-peak season.

TASK 3

Your next task is to work with the Marketing 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 for a proposed holiday. You need to submit a written report which evaluates the planning decisions taken for the design of a selected brochure, assess the suitability of alternatives to a traditional brochure and evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator.

P3.1 Evaluate the planning decisions taken for the design of a selected brochure

Consider all aspects of planning: suitability of text, images, any advertisement, layout, colours, etc.

P3.2 Assess the suitability of alternatives to a traditional brochure for the following tour operators of the Thomas Cook group:

Here you need to look at Air Tours,Club 18-30 and Thomas Cook Cruises Summer 2014 brochures. Think about alternatives to these brochures. Is there any other way to market these products? And, what are advantages and disadvantages of using travel brochures?

P3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator within the Thomas Cook group.

Here you need to consider the suitability of different methods of distribution. Increasingly, new methods of distribution have been used such as newsletters, social media, etc. Is the travel brochure the best option to make your products more popular? What are the benefits and costs of using travel brochure and other sources of advertising?

TASK 4

Your last task is 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.  The answers need to reflect the travel and tourism sector and supported with relevant examples. Answers without suitable examples will not be considered for a grade.

P4.1 Evaluate the strategic decisions made by different types of tour operator

Here you need to explain the strategic decisions made by different types of tour operators. These may be related to any mergers or acquisitions with other companies on the market, developing a new niche market or changing the main direction of the business. Remember that you need to discuss those decision taken by the senior Business management.

 P4.2 Compare the tactical decisions that could be taken by a selected tour operator in different situations

Here you need to explain the tactical decisions made by a selected tour operator in different situations. These decisions primarily concern the operations and intra-management of a company and largely relate to some structural and operational changes. Here you need to discuss those decisions related to middle management operations: reducing prices, adding new features to already existing products, reducing the number of staff, etc.

Assignment Guidelines:

  • Use a standard report structure, Word-process the report and use Times New Roman script of a proper font size 12.
  • Produce an academic report, detailing the above issues with a word limit as instructed.
  • Complete the title page and sign the statement of authenticity.
  • The Assignment sheet should be attached in the front.
  • Submit the document in a folder in the form of a file as well as a soft copy on the submission date.
  • It should be uploaded on E-Learning platform before the deadline
  • Assignments submitted after the deadline will not be accepted unless mitigating and may be entitled for a late fee.
  • Collusion and Plagiarism must be avoided.
  • Start each answer on a new page and pages should be numbered. Highlight each question clearly.
  • Include a Bibliography at the end of the assignment and use the Harvard referencing system.
  • All work should be comprehensively referenced and all sources must be fully acknowledged, such as books and journals, websites (include the date of visit), etc.
  • Try to give the page numbers, publishers’ details and the year of publication
  • In order to pass you need to address all the LO
  • In order to get a merit you need to achieve a pass and address the characteristics of M1, M2,M3
  • In order to get a Distinction you need to achieve a merit and successfully address the characteristics of D1, D2 and D3.

Use a common format for the questions, for example:

  • Introduction (analyze the question.)
  • Underpinning Knowledge (write about the relevant theory/points)
  • Applied knowledge(Data Analysis)
  • Conclusions and Recommendations (summarizing the whole scenario keeping in view pass, merit, distinction criteria.)

Student feedback form with the Assessment Grid indicating their pass, merit and distinction:

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