Unit 15 Tour Operations Management Assignment | Operating System Management

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

Unit 15 Tour Operations Management Assignment | Operating System ManagementUnit 15 Tour Operations Management Assignment are involved in developing sightseeing tour for Chinese students from London, UK to Paris, France are mentioned as under,

  • Research – Destination and Market – This is one of the main objective for analysing as well as understanding the major attributes that are related with a specific market for tourists as well as destinations. In general, various tour operators feel that it is quite a challenge for arranging all things for every individual. In this regard, any tour operator before entering the market for tourism will be undertaking the below mentioned steps,
  1. To identify the factors associated with economic, political, social and climatic aspects that affect the future growth associated with package tours.
  2. To make the tour for meeting the precise requirements in respect of the target market.
  3. To identify the major locations as well as to have a comparative analysis of alternative locations.
  4. To approach the suppliers. (Buckley, 2011)
  5. To make the policy decisions.
  • Tour Itinerary Development – After conducting the research study associated with the location as well as the market that has been targeted, the next step of process related to development is being involved to work out on the successful itinerary related with tour. This depends on two aspects which are, for the new tour operators to be researching on the tour destination as well as ingredients for tour and the renowned ones should be reviewing the questionnaires that the earlier participants in tours have completed. Post that, the tour operator will be making  business contract  with every potential vendor in advance for putting together every component.
  • Negotiation with Tourism Suppliers – After finalizing the itinerary, the next step requires negotiation with potential suppliers of tourism. The tour planner will be working with various suppliers of tourism based on the tour size as well as its nature. The significant ones among st them are organisations for lodging, airlines, operators for transport, car rentals, vendors for sightseeing and many more. There is an option for the tour planners for negotiating with the air carriers in a direct manner or with the help of a travel agency. Also, when the organisation is new and generally functions on railroad tours, the organisation will be obtaining an improved margin as well as price, functioning with the help of a travel agency than in a direct manner, the reason being that vendors associated with air carrier normally offers reductions in prices on to their most preferred customers. In addition, it can be said that honest as well as reliable nature of the tourism suppliers is a significant factor that should be taken into consideration by the tour planner. (Buckley, 2011) Hence, to select as well as negotiate with these tourism suppliers, the tour planners should be aware of the anticipated crisis situations that take place when the contracts are getting finalized.
  • Costing of a package tour – The aspect of cost related with package tour is crucial for understanding the implications as well as practices for managing tour to determine the financial worth of a tour package. The components for making up the overall cost of a tour package can be fragmented into different parts such as cost for air travel, cost for accommodation, cost for local arrangement, cost for payroll, cost for research, cost for marketing, and so on. Moreover, the designing of the cost sheet is done for showing the overall cost or structure for cost in addition to the break-up of individual components related with cost. (Buckley, 2011)
  • Financial Evaluation & Pricing – Post the completion of the costing of a package tour, the determination of the rates of exchange are done by the tour planner, after that the future selling prices are estimated and then tour prices gets finalized. The finalization of the price structure should be done by the tour planner some ten months or more prior to a tour departure. So, in addition to the normal risks to determine the price of the tour in advance, the tour operators should definitely be evaluating the monetary risks like foreign exchange, payments to be made in respect of airlines, hotels, as well as various locations based agencies. There exist two kinds of tour pricing viz. cost based tour pricing as well as market based tour pricing. The cost based tour pricing takes into consideration the factors such as mark-up, total cost, product cost and rate of return whereas the market based tour pricing takes into consideration factors such as skimming, going, differential, penetrating and backward.
  • Marketing of a tour package – The tour operators positioning in a strategic manner amongst the different vendors takes into consideration airlines, operators of transport, hotels and so on as well as the capability in combining the different components of the travel industry into comparatively reasonable as well as tour packages that are standardized, have surfaced as the major manipulators of the industry for tourism. It is the marketing of the tour that is applying additional refined strategic aspects of knowing what the tourist requires and to satisfy the requirement of the customers with the help of services provided and satisfying the value of the consumers in relation with the aspect to plan, prepare as well as experience the person’s travel. (Buckley, 2011)
  • Developing a tour marketing plan – The plan associated with tour marketing is focused on the goals of the company. It is significant in having a proper acknowledgement of what the tour operator feels towards actualising with the help of the marketing plan. As a matter of fact, the tour organisation is required in understanding its product as well as its market prior to the development of a marketing plan. (Buckley, 2011) The tour marketing plan is generally a short period plan that will be guiding the tour operator for one to three years. It will be providing a clear direction related with the function of tour marketing that depends on a proper approach towards action as well as planning.
thomas cook     


 Time Scale for sightseeing tour (From London, UK to Paris, France)

 Nature of tour:Sightseeing tour

Tour Location: Paris, France

Date of commencement of tour: 07.08.2018.

Duration of Tour: 5 days

Number of individuals taking the tour: 15

Nature of the tourists:Students

Places to visit:The Eiffel Tower, The Catacombs of Paris, Musee Du Louvre, The Pantheon, Palace of  Versailles, Notre Dame Cathedral, Pere Lachaise Cemetary

Tour cost: £200 (including air-fare, lodging, breakfast, dinner, lunch and sight-seeing)

NB. Any changes in the tour plan will be informed before 15 days of the commencement of the tour.  Cancellation policies regarding the tour will be under the sole discretion of the company management.

Unit 15 Tour Operations Management Assignment | Operating System Management

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

The suitability of different methods of contracting for different components of the holiday are mentioned as under,

  • Transport – Transport plays a pivotal role as an element of the holiday. In the  global business environment, there is absolutely no possibility for tourism to have its existence separately from transport and as a result it can be expressed in clear terms that there exists a strong positive connection among st tourism as well as transport. Transportation is considered to be a significant component of the tourism industry and because of the developments of transportation that there has been an expansion of tourism. The policies associated with transport as well as decisions of the government are able to make on the availability of the destination in respect of the tourists. (Shaw, 2011)
  • Hotels – In the present scenario, it is seen that individuals like spending quality time with family and friends and simultaneously explore different places of tourist attraction around the world. Therefore, a very significant role is played by the hotels and accommodation facilities to popularize the destination for the tourists. There is also the significance of providing comfortable accommodation for individuals belonging to different financial backgrounds. While five star hotels assist in catering to the requirements of wealthy tourists, small and medium priced hotels as well as lodges are available for the middle class travellers. (Thomas, 2011)
  • Attractions – A place of tourist attraction plays an essential part as an element of the holiday.. The attraction for tourists helps in contributing to revenues of the government, providing employment facilities, stimulating the investment related to infrastructure, contributing to local economies as well as providing earnings associated with foreign exchange.

P 2.3 Calculate the selling price of a holiday.

This task will be involving the calculation of the selling prices of a holiday for the sightseeing tour of the Chinese students. In respect of the case scenario that is given, there is a need for designing in respect of the tour operators for a group of Chinese students that consists of 15 individuals who will be travelling to Paris from London in August, 2018 for a period of 5 days.

Total Cost Involved in the Tour Package of Paris in France

Sl. No.Details of the PackagePrice per PersonPrice for 15 Persons
1.Airline Charges€20€300
2.Transportation Charges (Coach, taxi, etc.)€1000€1000
3. Hotel Charges€60€480
4.Miscellaneous Charges€ 200
5.Total Cost in Euros€1080€1980

Total cost price = €1980
Profit % = 10%
Therefore Selling price = €1980 + €198 = € 2178

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