UNIT 40: TOUR OPERATIONS MANAGEMENT


UNIT 40: TOUR OPERATIONS MANAGEMENT


Tour Operations Management T/601/1753




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


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 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 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 eg discounting, emergence of e-commerce, budget airlines; role of trade bodies including The Travel Association (ABTA), Association of Independent Tour Operators (AITO), Federation of Tour Operators (FTO), UKinbound, the UK Civil Aviation Authority (CAA)


1.1 analyse the effects of current and recent trends and developments on the tour operators industry 


 LO2 Understand stages involved in creating holidays


Understand stages involved in creating holidays Stages: steps eg market research; planning and scheduling; forecasting; contracting eg 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 eg forward buying of currency, interest earning, cash flow); timescales

unit 4 marketing principles

2.1 assess the stages and timescales involved in developing holidays

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


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



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 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

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

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


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



Understand 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; decisions eg fluid pricing, yield management, maximising occupancy of contracted beds, utilisation of coach and aircraft seats, consolidations; tactical marketing eg discounting, late sales

Unit 16 understanding specific need in health and social care

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


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







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