Management Of Tour Operations


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Management of tour operation refers to the set of activities performed by a tourism company in order to serve visitors. Under this tour operators prepares holiday package with information related to tour in order to attract visitors for enhancing their sales turnover. LCB tour   deals in providing services related to travel and tourism. This report elaborates about the management of tour operations. It explains about planning decisions that are taken designing brochure along with the alternatives to traditional brochure for different types of tour operators. Further it describes about different methods of distribution used to sell a holiday package by tour operators. In addition to this it describe about strategic decisions made by tour operates for performing its function. Apart from this it also describes about the comparison between tactic decisions that are taken by tour operators.


AC 1.1 Analyze the effects of current and recent trends and developments on the tour operations industry

Tour operation industry is the fastest growing sector as it contributes in economic development of the country. LCB tours mainly offers tourism services to its client with the help of different type of tour operators. These types of tour operators are described as below:

Types of Tour Operators

  • Inbound Tour Operators:These types of tour operator provides services within the country to the visitors who belong to other nations. In this, tour operators mainly concentrate on local arrangement like pick and drop services.
  • Domestic Tour Operators:In this type, tour operators mainly provide trip services to resident of country within the same nation only.
  • UK Outbound Tour Operators:These kind of tour operators take visitors from their local country in order to make them visit new country or  continent.  
  • Specialist Tour Operators:Special tour operators usually offers their services to special segment of people like individual who belongs to niche market can contact to these operators for visiting particular geographical area.

Current/Recent trends and developments

Tourism sectors are adopting recent trends in their working pattern as it enhances number of opportunity for the whole industry. Major recent trends which can be opted by LCB tours are described as below:

  • Advancements in technology: Updation in technology has made work of tourism industry  more easier as people can choose their package by visiting website and other application of company. It can be said LCB tourism can enhance its profitability by opting some latest technology.
  • The effect of Brexit on Tourism: Recently, after the incident of Brexit growth options for tourism has been enhanced as Europe can now earn its tourism profitability ratio in its own.
  • Increased environmental awareness and Responsible tourism: Tourism industry is not only bounded to the same segment only. But, it is now also focusing on awaring people about environment. It also advises people to do not conduct any activity which might affect environment in negative manner.


AC 2.1 Assess the stages and timescales involved in developing holidays

Tours are  often organized in various packages according to the number of people places, hotel, fooding services, transportation etc. In relation LCB, tour operator of this organization mainly consider various factors in order to serve best tour packages to people. Whole procedure of the holiday package including all of its stages are described as below:

  • Market research :In the first stage of tour packages, tour operator of LCB conducts a market research for whole area in order to identify major risk, interesting visiting places, hotel expenses and other cost related factors which will be covered  in future.
  • Planning and scheduling (determine destinations, hotels, capacity, dates etc.): After conducting an effective market research, it is responsibility of tour operator of LCB plan and schedule overall tour. This stage include planning of dates, finalization of hotel, total number of visitors, final destination which are going to be covered in future. This helps tour operator to evaluating actual costing of whole trip along with their profit margins.
  • Contracting (negotiation with suppliers): Another step of this holiday package is to do negotiation with the parties which going to be connected with the same tourism company for long term. In context to the tour operator of LCB, the individual are now making contract with suppliers. It can be said that these contracts are mainly of 1 to 2 years. As, with the help of contract hotels can now fix their of visitor. And if in case,  number of visitors increases then also the company deal with the same situation as they have contract with hotel. Along with this, rates for hotel rooms are also fix. And with the changing season hotel manager can not change their price.
  • Costing the holiday: Next step of tour package emphasise on the overall calculation of whole holiday. It includes cost of hotel rooms, transportation, destination visit, food expenses, insurance and many more things.
  • Financial Evaluation and Pricing: After finalising the estimation of costing, tour operator of LCB, now focuses on deciding sources from which required finance can be gathered.
  • Creating the brochure: Another stage of holiday package describes on creating brochure for whole tour. The brochure is considered as marketing tool in which company usually describes about its all packages along with their services. It can be said that with the help of brochures, tour operator of LCB can grab attention of customers towards unique services which are offered by the same company.
  • Advertising: In this next stage, tour operator mainly focuses on advertising the prepared brochure. It can be said that the company can adopt latest marketing tactics like social media, online sharing of brochures. Apart from this, another advertising tools like poster, leaflets, flexes, newspapers advertisement etc. can be used to grab attention of maximum number of the visitors.
  • Operation and Execution: After advertisement, it is the responsibility of tour operator of LCB to execute overall planning of holiday package and manage all uncertain activities which might took place in future. The responsibility of tour operator also includes to  ensure all visitors to make their tour enjoyable and safe as it helps them to retain them for future also.
  • Post Tour Management: The last stage of the  holiday package enhance level of responsibility of tour operator towards visitor after completion of tour. It can be said tour operator of LCB should maintain connection with all of its visitors as it will help company attracting same visitors in the next trip. As a result profitability of the company will be enhanced.

AC 2.2 Evaluate the suitability of different methods of contracting for different components of the holiday and different types of tour operator

There are different kind of contract which can be adopted by tour operators on the basis of their requirement and trip. Some of these contracts are described as below:

  • Fixed Contract:This type of contract is generated for specific period of time in order to meet particular purpose. In relation to LCB, the company deals in tourism sector. It can be said that this organisation should take fixed contract for new domestic tour operators as they can adopt this contract for local vendors.   
  • Allocation contract:In this type of contract, tour operator usually enters into a contract which includes contract with the hotels during peak season. It can be said that this kind of contract is helpful for inbound tour operators.
  • Ad-hoc contract:Ad hoc contract is basically plans and arranges cost of various activities like charges of hotel on hourly or daily basis. In context to LCB, special tour operator of the company can adopt ad hoc contract with hotels and airlines.

AC 2.3Calculate the selling price of a holiday from given information

Selling cost is considered as cost which is helpful in persuading buyer to purchase the product from them only.

For an example- Tour operator of LCB prepares holiday package for one friend circle of 21 college student for the tour of London. Its overall budget of 1 day and 1 night is described as below:

Accommodation cost: 96*21=2016

96/1.12= 85.7

85.7*21= 1800(For One night)

Cost of one day for accommodation for 21 students = 9000(For 1 days)


Price(in £)

Accommodation cost


Transportation cost


Charges of tour guide


Total cost


Add: Profit margin @ 33%


Sale price


As per the above specified holiday package, it can be said that tour operator have not involved food expenses and the overall selling cost after calculation is stated as £28122.5.  Further calculation for individual  person is identified as  £1339.18.

Itinerary for London trip

6 am: Arrive in London

6-7 am: Transferred from airport to Hotel

7-9 Am: Tea and Breakfast in Hotel

9:30 Am- 6 Pm : Departure from hotel for London tour through Double Decker in order to enjoy over all tour of London. Overall tour will include houses Westminster Abbey, parliament square, Big Ben, Oxford street, Tower of London, Buckingham Palace, Piccadilly Circus and other attractive places of London. In between visitors will be taken to .. restaurant to for lunch. Tour manager also avails variety of mid snacks during whole trip.

6-8 PM: Party and dinner in hotel for students. Overnight stay in Hotel.

Regulatory bodies:

Association of Independent Tour Operators: It is considered as regulatory body in tourism industry which formulates rules and regulation for tour operators. In this interested members are free to operate their business but by following all of rules only. These board members is liable to decide minimum standards in which tourism companies can perform their business activities with suppliers and customers.


AC 3.1 Evaluate the planning decisions taken for the design of a selected brochure

Brochures are considered as the informative paper which is normally used for advertising. In relation to the LCB tours, it is essential for its tour operators to take effective planning decision related to the design. Some of main  measures on the  basis of which tour usually takes decisions are described as below:

Cost: Cost of the product is usually based on different design, distribution, quality and number of copies of brochure. As costing of brochures depends on design, it can be said that if tour operator chooses 3D designing then it will  increase the cost of brochure. Away with this, if a person chooses high quality of brochure that means thick paper, font size, alphabetical styling, color of print. In context to the LCB tours, it will be beneficial for its tour operator to finalize good quality of brochure which will help to influence interest of customers towards tourism package.

Deciding the format: After finalizing cost of the brochure, another responsibility of marketing team of tour operators will focus on deciding format of brochure. It can be said that if LCB tours wants to convey more detailed message to clients then they should choose three fold type of brochure. Three brochure looks more like a booklet which include more information about holiday packages offered by the company.

Target market and budget: Planning of designing of brochure also includes decision of targeted market too. It is essential for marketing team to firstly discuss with tour operator that they need brochure for which area or market. It can be said if tour operator of LCB is targeting international clients then they should design brochure which reflects their culture. This will contribute in grabbing attention of international clients.

Determining print specifications: In this step of planning of designing of brochure now emphasize on printing media. In relation to specialist tour operator, it is important for them to mainly emphasize on the printing of brochure. It can be said that  this type of tour operator should include pictures of location which they are adopting for travelers. This will help visitor to adopt get an idea of the actual location.

Timescale and stages of production:  

AC 3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour operator

Brochures are the thick paper which is consist of information of different packages which the organization is offering to the clients. In context to LCB, the company was using brochures of paper format, but now according to changing world scenario this company is focusing on adopting latest kind of brochures which are helpful in connecting to the clients in more effective manner. Some of them are describes as below:

  • E-brochure:This type of brochure is used by organisations presented in their websites in order to interact with customers at easily. It can be said that tour operator of LCB, should go with adopts E- brochures as a modern marketing activity. As whenever customers will visit the website they will be  updated with the latest brochure. E-brochure can be adopted by the outbound tour operator as it helps these tour operators so that they can contact to the clients through emails.
  • Social Media:Social sites are considered as the latest updated mode of tourism as it helps tourism company to interact with client in less cost. It can be said that social media brochures are helpful for domestic tour operators as local people can upgrade their knowledge about the same package in fast mode.
  • Press:Tour operators of LCB, can use newspapers and magazines in order to share their brochures with the people who around them. This mode of advertisement is helpful in increasing interest of people towards the tour packages which will directly influence number of visitors in every local trip.


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

Distribution channel helps tour operators to sell out their package to the customers. It is important for tour operators to choose appropriate distribution channel in order to sell maximum number of holidays packages to clients. There are different type of distribution channel which can be adopted by tour operators of LCB tours. Some of them as described as below:

  • Direct Distribution:- It refers to the type of distribution method where tour operators directly sell holiday packages to its customer without involving any mediator or third part. Direct distribution method is most suitable for domestic tour operators as they perform their operation within their own country. It is one of the most effective way as tour operator are directly communicating with their customer which support them to explain detail of package in more appropriate manner  to its users.
  • Online travel agencies:- Under this method tour operators generally involve third party in its operations to communicate with their customers where they maintain an website over internet  which provide a detail information about tour packages. From this websites users can access the information and can communicate with personnel of tour operator over telephone in order to purchase their holiday package. This type of distribution method will be more suitable for specific tour operator as they provide services for specific geographical area.
  • Visitor information centre:-It refer to a type of distribution method in which tour operator manage a centre where tourist can visit to collect the information related to available holiday package. This method is more suitable for inbound tourist as they provide services or holiday packages to people who belong to different country. So this type of distribution method help them in providing services to tourist that belongs to another nation and visited to spend their holidays.


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

LCB tours is planning to adopt new strategies in order to meet actual requirement of the company's growth expectation. For this, its tour operator have gone through some of the latest strategies which are helpful in enhancing profitability of the company. Some of these are described as below:

  • Pricing Strategies:Tour operator of LCB tours can go for discounting strategies as it will attract more number of clients for holidays packages. As discounts are helpful in grabbing attention of local as well as outsiders customers. This strategic decision can be adopted by domestic tour operator in order to increase their number of clients.
  • Positioning and image/branding:In this type of decision, outbound tour operator usually persuade customers according to their budget in order to realise them only they are only one in tour industry who are offering tourism service in their budget only. In context to LCB tours, its tour operator often uses this strategy to attract international tourist at the time of tours.
  • Distribution decisions: In this type of strategic decision, tour operator of LCB is required to fulfill requirement of customers at the time of their visit. It can be said that this kind of decision are taken by inbound tour operators as client who are coming from different continue can ask for any thing anytime.

As per the above mentioned strategic decision, it can be said that tour operators of LCB tours can adopt these decision in order to persuade clients to choose their  holiday packages.

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

Tactical decisions are considered as medium of decision on the basis of which they are taken. It can be said that different type of tour operators are taking tactical decision on different situation which occurs at the time of actual tours. In context to tour operators of LCB tours, they are mainly considering some of the factors which while taking decision at the time of tours. These factors are described as below:

  • Tactical Responses: Specialist tour operators of LCB tours are required to take tactical decision according to response of  its clients in particular situation. It can be said, if clients of specialist of tour operator asks for something belongs to their native country. Then it is the responsibility of Tour operator to be prepared in order to handle same situation.
  • Tactical Pricing: Pricing of tours varies on the basis of destination and season in which visitors are visiting it. It can be said that inbound tour operator can avail discounts to its clients which is helpful in developing interest of the clients in their holiday package. Along with this, pricing of holiday packages also depends on market situation and economical condition of destination country.
  • Tactical Marketing: Tour operator of LCB tours should adopt variety of marketing activities on the basis of holiday packages. For example: domestic tour operators can social media and print media as their marketing activity. As this kind of media is helpful in reaching local clients in less period of time.


As per the above mentioned report it can be said that tourism sector is quite vast in size. Tour operators are usually prepares attractive package for visitors which is economical for travellers as it covers all the expenses of whole trip. On the other hand, it generates huge amount of money for tourism company. It has been observed that for preparing effective holiday package , it is mandatory for tour operator give importance to every stage. It can be said that, modern types of brochures like E- brochure, social media and press are more useful for tour operators as it helps them to influence clients towards their tour packages. It has been analysed that distribution channels are finalized by tourism company on the basis of their different type of tour

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