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Learners will investigate the tour operators industry of the travel and tourism sector, including the different types of operators, 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 and tactical decision making in order to

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 tel

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.

Learning Outcomes and assessment criteria:

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

P 1.1 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

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

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 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 Understand strategic and tactical decision making for tour operators

P 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

Unit content:

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

Industry: identification of major tour operators including their origins, ownership, market segments, competition, identification of specific operators within each category; scale e.g. 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 (e.g. mass market tourism to customisation, 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)

LO2 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.

LO3 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, 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.

LO4 Understand the strategic and tactical decision making for tour operators

Strategic: examination of strategic decisions e.g. 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

Scheme of work

Awarding Body:  Pearson BTEC

Course: BTEC HND IN TRAVEL AND TOURISM MANAGEMENT                                   

Unit14: Tour Operations Management

Recommended text and links:

Learners should use the latest edition if available.

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

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

Holloway, J C (2009) the Business of Tourism, 8^th 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, 4^th edition. Butterworth-Heinemann, Oxford.

Further reading

ABTA/AITO Code of Conduct

ABTA Handbook

ABTA Information Bureau Holiday Statistics

International Passenger Survey

Package Travel Regulations

Thomascook.co.uk

Thomas cook prospectuses

Air Tours

Signature from Thomas Cook

Magazines, journals and newspapers

The Financial Times and other daily newspapers which contain a business section and market reports

Travel Trade Gazette

Travel Weekly

The travel supplement – The Guardian newspaper

The travel supplement – The Times

The travel supplement – Daily Mirror

 

 

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.

Academic Misconduct’ Statement

Statement: ‘Academic Misconduct’ is a term used to describe a deliberate attempt by a student to take unfair advantage over other students to undermine the quality, standards and credibility of the programmes and qualifications offer by UKCBC. Academic Misconduct includes: plagiarism; collusion; falsification; replication; cheating; bribery; and impersonation. A student suspected of Academic Misconduct will be investigated by the College and appropriate action will be taken.

 

‘Contract Cheating’ Statement:

‘Contract Cheating’ is defined by the Quality Assurance Agency (QAA) as occurring when, “a third party completes work for a student who then submits it to an education provider as their own, where such input is not permitted.” Such third party companies have become known as ‘essay mills’, and it is the responsibility of students to avoid contact and association with such third party companies throughout their entire period of study. A student suspected of Contract Cheating will be investigated by the College and appropriate action will be taken.

Assessment:

The module will be assessed meeting all the LO as specified by the awarding body, Pearson BTEC.

Please read the instructions carefully while addressing the tasks specified. 

Contribution: 100% of the module

Outline Details: Details enclosed in the assignment brief

ASSIGNMENT BRIEF

 

 

Task 1 (LO1, AC1.1, M1, M2, M3, D1, D2 and D3)
Assuming that you work in the product development department Trailfinders Ltd. Your line manager has asked you to prepare a leaflet to be presented to the product development team to analyse the effects of the current and recent trends and developments on the tour operator’s industry (1.1). Therefore, you need to conduct detailed research by using supportive materials such as tour operator’s prospectuses, textbooks and online resources but above all conduct visits to travel agencies and tour operators on the high street and online.

LO1.  Understand the tour operator’s industry within the travel and tourism sector:

P1.1   Analyse the effects of current and recent trends and developments on the tour operator’s industry.

Current trends:

1. Budget travels are getting popular – this gives travellers advantages for only paying the services or products they require.
2. Package holidays – attracts more travellers, given the perceived good value for money
3. Ecotourism is getting popular – many ecotours have been developed to cater for the demand, such as safaris, whale-watching etc.
4. Independent travellers – single occupant surcharge; tailor made itinerary; activities focused.
5. Family-friendly tours/packages, such as Disney cruise – targeting on more financially well-established couples
6. E-tourism – New form of T&T product advertising and distribution has evolved
7. People curiosity for exoticism – creative packages by tour operators.

 Contact us at Assignmenthelpdesk12@gmail.com

 

Task 2 (LO2, AC2.1, 2.2, 2.3, M1, M2, M3, D1, D2 and D3)

Your second task is to write a report on the stages involved in creating holidays. Please address LO2 and assessment criteria 2.1, 2.2 and 2.3 by using the scenario as specified below.

Your manager at Trailfinders has been impressed by your work so far. Your next assignment is to create a luxury coach and educational tour for adult students (over 18 age group) from London, United Kingdom to Brussels and Brugge, Belgium. You should propose a detailed plan for a student group tour starting from the summer vacation in July 2019. The proposed group size is 42 students per group and the tour is for 5 nights. The detailed proposal should be submitted in a professional written report format.

Your manager at Trailfinders has requested a detailed proposal so you have to assess the stages and timescales involved in developing this holiday (2.1) and also to evaluate the suitability of different methods of contracting for different components of the holiday (2.2)  (e.g. transport, hotels, attractions).

LO2 Understand stages involved in creating holidays

2.1 Assess the stages and timescales involved in developing holidays

1. Market research – it determines the success of tour operator’s business, as it helps the business understand the needs/demands of the target markets accurately.
2. Planning and scheduling (determine destinations, hotels, capacity, dates etc.) – it ensures the tour operators products are produced and distributed efficiently and effectively.
3. Contracting (negotiation with suppliers) – to ensure the financial objectives to be achieved.
4. Costing the holiday – this determines our profitability and customer satisfaction.
5. Financial Evaluation and Pricing – financial objectives and positioning strategy
6. Creating the brochure – it determines the awareness of the target markets for your products and create people’s demands for the tour operator’s products.
7. Advertising – this ensures the potential markets turn into actual customers. AIDA – Awareness, Interest, Desire and Action
8. Operation and Execution – determines the level of customer satisfaction.
9. Post Tour Management – help business retain repeating business.

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

1. Fixed Contract: provide a definition; discuss its significance (cost is fixed, so it can be easily budgeted and controlled) ; suitability (airline tickets, hotel rooms; tickets to the attractions; meals), discuss its limitation – price can be high as you don’t have access to discounts offered on the daily basis by the suppliers)
2. allocation (for hotel rooms/flights) – block booking where a big load of rooms allocated to one specific tour operator. Discuss advantages, (an attractive final selling prices – customer satisfaction and repeating business) and disadvantages (Tour operator bears all costs in the event of no sales);
3. ad-hoc – Tour operators make contracts when beds/ flights are required; No risk/costly administration; Popular tool in case of overbooking – tour operators use it when they need to arrange extra accommodation; Widely popular for specialist/tailor-made/luxury travel companies

 

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

A special rate for your group has been proposed by Grand Casselbergh in Bruges of 96 euros per person for a twin room (2 adults sharing) with breakfast. The price 48-seater luxury coach is £11,200 and that includes two drivers, a tour manager, fuel and all road and ferry taxes. The cost of a local tour guide is £945 for the duration of the tour. Your company adds a mark-up of 33%.  The spot exchange rate is €1.12 per £1. Your task is to calculate the selling price of the tour package and the price per person (2.3).

 

 

 

 

 

 

Task 3 (LO3, AC3.1, 3.2, 3.3, M1, M2, M3, D1, D2 and D3)

Your next assignment is to work with the Marketing Department team at Kuoni where you should review brochures and methods of distribution used to sell luxury holidays. Your task is to evaluate the planning decisions taken for the design of the brochure (3.1), assess the suitability of alternatives to a traditional printed brochure (3.2) and evaluate the suitability of different methods of distribution used to sell a holiday (3.3) for different types of tour operators (mass tour operators and specialised tour operators. Your line manager has asked you to prepare a management report summary with relevant academic sources and industry examples. You should collect luxury holidays brochures from at least two different types of tour operators.

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

1. Cost – design of brochure, distribution, quality of prints, number of copies, wastage.
2. Deciding the format – two-folds, three or more like a booklet.
3. Target market and budget – Target markets determine the design and quality; budget determines the quality and design and volume required.
4. Determining print specifications – nature of the destination; target markets; budgets; style of font; size
5. Timescales and stages of production – deadline of the launch, if it’s a new destination; seasonability; requirements/demands of target markets/travel a

3.2 Assess the suitability of alternatives to a traditional brochure for different types of tour operators and recommend the most appropriate for your tour package.

1. E-brochure – Interactive; easy to amend; cost control
2. IPad/Android Applications – modern/high-tech; more private; obtain the customer information;
3. Outdoor media (billboards, tube, TfL busses) – Mass coverage; Visual effect;
4. Internet – interactive and purchase online is possible; gives freedom to customers when packaging their preferred products – results in better customer satisfaction.
5. Social Media – Massive coverage; interactive; focus on target markets such as building up a forum.
6. Radio/ TV Advertising – Visual appeal; mass coverage; audio appeal.
7. Press (newspapers, magazines) – help to target on the preferred customers, sometimes it is free when using the editorial space.
8. Travel fairs (WTM, ITB) – networking opportunity with traders and traveller – help identify the current issues and future trends.

3.3 Evaluate the suitability of different methods of distribution used to sell a holiday for different types of tour operator and recommend the most appropriate for your tour package.

1. Direct Distribution – directly sell travel and tourism products to the tourists. Best prices guaranteed – results in customer satisfaction; sales personnel and marketing cost.
2. Two level Distribution – through an intermediary, ie. Travel agent – close to the tourists (convenient); face to face communication eliminates possible disputes; instant response to questions; Middleman commission; expensive/higher prices.
3. Through social network website – Mass coverage; group discount available; – subscription fees; online purchase is not possible on social media website.
4. Government website – provides extra credibility to your products; narrow focused group; difficult to be approved.
5. Online travel agencies – Convenient, easy access, less cost – commission, inconvenience when there’s a dispute as the tourists can’t contact the producers directly.
6. Visitor information centre – credibility; lack of ownership interest.
7. Review sites – difficult to control the reviews/remarks made by the previous tourists. Reviews sometimes not representing the reality.
8. Voucher sites – discounts – customer satisfaction; commission paid – extra cost.
9. Concierge services – face to face communication, but control is impossible as the information given out can be subjective and biased.

 

 

Task 4 (LO4, AC4.1, 4.2, M1, M2, M3, D1, D2 and D3)

Your last task is to write a management report summary on strategic and tactical decision making for tour operators. You should evaluate the strategic decisions made by different types of tour operators (4.1) and to compare the tactical decisions that could be taken by a selected tour operator in different situations (4.2).  In order to achieve 4.1 you can evaluate strategic decisions made by a mass market tour operator and niche/specialist market tour operator. In order to achieve 4.2 you must select a specific tour operator and this can be one of the tour operators used in 4.1.

LO4 Understand strategic and tactical decision making for tour operators 

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

1. Pricing Strategies
2. Surcharge policy
3. Positioning and image/branding
4. Choice of product in relation to customer portfolio
5. Distribution decisions

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

1. Tactical Responses – Responses to increased competition; Responses to external factors (e.g. accidents, natural disasters, etc.) Responses to internal factors (e.g. organisational challenges, financial cuts, etc.)

 

2. Tactical Pricing – Short-term pricing strategy aimed at fighting competition or gaining market entry; Related to the strategic pricing

Example: setting room rates in order to seize shorter-term sales opportunities

 

3. Tactical Marketing – Short-term marking plan to tackle a specific issue, eg a sudden decrease in number of tourists/customers.

 

4. Tactical Planning – Planning conducted aiming to achieve short-term or medium term objectives and ensure the operational process to be efficient and effective.

 

 

Assignment Guidelines:

• Use a standard report structure where requested, Word-process the report and use Normal script of a proper font size 12.
• Produce evidence as specified for each task.
• It should be uploaded to Ulearn platform before the deadline. Assignments submitted after the deadline will not be accepted unless mitigating circumstances supported by valid evidence.
• Academic misconduct 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.
• In order to Pass you need to address all the LO
• In order to get a Merit you need to first pass and then address the characteristics of M1, M2,M3
• In order to get a Distinction you need to first pass, address all the merit characteristics and then address the characteristics of D1, D2 and D3.

 

Academic Misconduct’ Statement

Statement: ‘Academic Misconduct’ is a term used to describe a deliberate attempt by a student to take unfair advantage over other students to undermine the quality, standards and credibility of the programmes and qualifications offer by UKCBC. Academic Misconduct includes: plagiarism; collusion; falsification; replication; cheating; bribery; and impersonation. A student suspected of Academic Misconduct will be investigated by the College and appropriate action will be taken.

‘Contract Cheating’ Statement:

‘Contract Cheating’ is defined by the Quality Assurance Agency (QAA) as occurring when, “a third party completes work for a student who then submits it to an education provider as their own, where such input is not permitted.” Such third party companies have become known as ‘essay mills’, and it is the responsibility of students to avoid contact and association with such third party companies throughout their entire period of study. A student suspected of Contract Cheating will be investigated by the College and appropriate action will be taken.

 

 

 

 

 

 

 

Commonly used command words

 

 

Guidance in addition to the Pass criteria’s, this assignment gives you the opportunity to submit evidence in order to achieve the following Merit and Distinction grades.  Assessment Grid indicating merit and distinction:

 

 

 

Achievement Summary

The Following Sections to be completed by the assessor: