1. Tour Operator Assignment
What is the Tour Operators Industry?
Defining the tour operator is a far from easy process because their role, activities and form have
changed dramatically from the early days when Thomas cook first organized a package trip by rail in the
1840’s. One useful approach is to identify what a tour operator does as a means of establishing their
characteristics and form. In simple term a tour operators will organize, package together different
elements of the tourism experience and offer a package, also known as an inclusive tour, it will normally
have to include at least two elements that are offered for sale at the inclusive sale price, and will involve
a stay of move that 24 hours in overnight accommodation.
These elements normally include transport, accommodation,foods, and other tourist services. The type
and range of packages sold by the tourism industry can normally be divided into two types: those using
the traditional charter flight and those using scheduled flight, where it is uneconomic for the tour
operator to purchase charter flights.
The types of packages are often segmented according to:-
Mode of travel, such as ferry or coach holiday (typified in the UK by shearing) it may also be based on
twin transport packages such as fly –drive, which are very popular with inbound tourists in the USA.
Mode of accommodation, where hotel chains become tour operators by packaging their surplus capacity
to offer weekends or short breaks in business –oriented hotels, selling, rail or air transport and visits to
attractions as in all inclusive package.
• Whether they are international or domestic package
• Lengths of holidays
• Distance, where the market in divided into short-haul and long-haul, over 90% of UK outbound
packages are short- haul.
• Destination type
These tours may be organized by small in depend tour operators, who specialize in certain segments (for
example: youth operators, such as PGL in the UK) larger operators such as TUI, which have trans-

2. European; or global operation such as my travel group. in addition, there are over 300 tour operators
who organize the itineraries, activities and 8logistics of inbound visitors to countries such as UK and who
are represented by their trade organization – the British Incoming Tour Operators Association (BITOA).
Tour operators have the ability to purchase services and elements of the tourism experience from other
principals or suppliers at significant discounts by buying in bulk. They fulfill a major role in the tourism
sector. As they allow the different tourism sector to sell their capacity in advance – often a long time in
advance as contracts are drawn up a yrs prior to tourists using accommodation or services.
Tour operators have traditionally been the “builder” of holidays. Quite simply the tour operator buys the
components of a holidays – flights, accommodation and transfer – and puts them together as package
so a typical package holidays, such as tow weeks at Mediterranean resort with full-board and transfer
would consists of a flight, accommodation, meals and airport transfers. Because these components can
be bought in bulk , the tour operators can usually provide the holiday cheaper than if the customers
bought and arranged each component of the holidays separately. The tour operators are often referred
to as a wholesaler of holidays, selling products through retailers, who is the travel agents. The suppliers
of transports, accommodation and other components of the holidays are referred to as principals.
As the UK tourism industry developed through the second half of the twentieth century. Tour operators
become successful in providing an ever-increasing range of package holidays to leisure tourists. They
were able to produce brochure showing destination and accommodation options, with prices for the
holiday’s shown customers would go their high street travel agent to collect brochures from different
operators featuring the holiday’s area they wanted to visit. When a choice had been made the tourists
returned to the travel agent to make a booking. The travel agent would receive payment form the tour
operator, called a commission in return for making the booking and recommending the holidays.
Although this relationship between travel agents and tour operators still exists today, a great deal has
changed in the last ten yrs as more and more tourists are able to contact both the tour operators and
principals directly using the internet. At the same time, the major holiday companions have changed the
way they operate and are able to sell more of their holidays directly to the publics without using travel
agents. Some tour operators have become travel agent as well.
Types of tour operator

3. With in UK, there are some 600 organization working as tour operators. These can be grouped into one
of the following categories.
• Mass –market tour operators
• Specialist tour operators
• Domestic tour operators
• In-bound tour operators
Mass market tour operators
These operators specialize in selling high volumes of holidays, mainly to traditional short-haul coastal
destinations. However, in recent years more package holiday to long- haul destinations have been sold
through mass market operators. These companies include some of the most familiar names in the travel
industry including Thomson (tui), my travel, Thomas cook and First Choice holidays.
These so-called ‘big four’ provided holiday and flights for nearly 12 million people in 2005. However the
companies have been finding it increasingly difficult to sell package holidays as more people find it more
convenient to make the independent arrangements through making use of the internet. In the second
half of 2007 mergers between Thomas cook and My Travel, and Thomson with first choice holiday, took
place. Form now on, the ‘big two’ – TUI UK/ Thomson and Thomas Cook will be better placed to
compete with other travel organizations mass market tour operators may employ “reps” who are based
in larger hotels in popular resorts to provide support to their customers.
Specialist Operators
As their name suggests, specialist tour operators specialize in particular types of holiday, rather than
providing mass-market products. Very often a specialist tour operator will provide holidays to a specific
country or offer adventure tours to a region such as the Amazon or South East Asia. The company will be
able to provide in –depth knowledge about the area in which they operate, unlike the mass-market
operators. These specialist companies are becoming more popular as customers look for a more
individual type of experience rather than a mass market product.
Domestic tour operators
Domestic tour operators provide package holidays which take place within UK. One of the leading
providers is WA Shearing ( a meager between two coach holiday companies , Wallace Arnold and

4. sheerings). This type of holiday is more favored by older holiday maker who enjoy the companion ship of
the coach journey to regions of the UK they may not have visited before.
Inbound Tour Operators
It should be remembered that in global terms, the UK is an important tourism market many people living
in countries throughout the world hope to be able to visit the UK at some point in their life. Each day,
travel agents in different countries sell package tour holidays to the UK.
Independent travelers also book flights and accommodation to allow them to visit this country. A large
no. of these tour are based on the Heritage, Gardens and Castles found throughout the UK while London
remains one of the prime destinations for inbound holiday market from around the world.
Market research
Accommodation and other costs to be met overseas will be the outcome of exchange rates against
sterling, and operators must consider these vis-à-vis other competitive countries’ currency values when
considering how many clients they can anticipate traveling to any one destination. Operators also have
to take into account such qualitative issues as the political stability of the destination, the support given
to developing tourism to the destination, the support given to developing tourism to the destination by
the carriers, or tourist office, of the country, and the relationship between the host and destination
countries. Increasingly, the effect upon the environment of such new development must be considered,
and how this can effectively manage by the operators, the hotels they work with and the local
authorities.
Once the tour operators have narrowed the choice to two or three potential destinations, they must
produce a realistic appraisal of the likely demand to these destinations, based on factors such as the
number of tourists the destinations presently attract, growth rates over recent years, and present
shares held by competing companies. The mass- market operators are unlikely to be looking at a single
years programmed-any commitment to a destination is likely to be for a substantial period of time,
unlike the specialist operators, which may be more flexible in switching destinations according to
changing demand. Mass market operators will be considering long-term contracts with their hoteliers
abroad, or even establishing their own hotels.#
Task 3 : Review the role of brochures and methods of distribution used to sell package Holidays
Traditionally the printed holiday brochure has been the tour operator’s most powerful marketing tool,
since the intangible nature of tourism makes it imperative that the potential customer can read about

5. what they may want to purchase. This has been accompanied by online brochures, websites and virtual
tours of destinations, making the places accessible to potential visitors. It is not uncommon for up to 50
% of tour operator’s marketing budgets to be spent on brochure production although web based
materials have now become a key elements of investment. This has to be viewed in the wider context of
planning, organizing and implementing a tour programmed. The tour operator has to undertake a series
of stages of work including:
• Research planning
• Negotiation with suppliers
• Administration
• Marketing
With the exception of the initial research stage, the holiday brochure is an integral part of the planning
and marketing process.
Front cover Spine Introduction Resort pages Term & conditions Contract forms Rear cover Logo
Key information to attract interest Introduction to company and outline of destination Illustration of
each destination attraction and details of each hotel Illustration of company and other brochures
Branding Quality statement Prices and departure grids Imagery to attract intended clients Images
indicated type of holidays or destination featured.
The printed holidays brochure currently in vogues among tour operators has evolved form its moderns-
day predecessor, introduced in 1953 by Thomas cook, it adopted a similar format to that of women’s
magazines reflecting the important roles has gradually changed to its present one of holiday catalogue.
Holiday brochures distributed through travel agents seek to achieve a number of objectives.
To obtain sales
To provide information to assist in decisions- making by purchasing in relation to the destination,
product offering bringing, prices and ancillary services.

6. To afford cost effective distribution for the tour operators, by having an attraction cover, being
permanently racked in travel agents and generating business among agents.
To provide on effective tool to allow agents to sell holiday with detailed products/ booking codes.
To allow a contract to be agreed between the tour operators and customers, providing information’s
and procedure for changing the booking, complaints , refunds , the details of the products purchased,
the clients detailed and the insurances premium paid.
In the case of direct mail, the brochure seeks to fill some of the objectives about, but places more
emphasis on the customers to decided on the product offering. It also seeks to appeal to the market
segment it is targeted at and needs to be easy to use.
A brochure will typically comprise the elements embodied and involve a complex process of design
including
Identifying the market audience and product
Utilizing an appropriate company brand.
Designing a mock-up, using the computer, with illustration and professional photographs of the hotels,
destination, products offering and services.
Using a desktop publishing system that will help with brochure layout and design
Producing a proof, this is checked so that inaccuracies can be identified and rectified prior to printing.
With increasing consumer regulation is most countries holiday brochures must get potential tourist to
book a holiday advertising dreams or images of their ideal holiday but must also be honest, truthful and
accurate. Above all they must not make false statements that can be prosecuted in many countries
under trade descriptions legislation.
Task -4 :Examine strategic and tactical decision making for tour operators

7. A number of pricing strategies are commonly used by tour operators.
Fluid pricing
Discounting pricing
Seasonal pricing
Completive pricing
Promotional pricing
Fluid pricing
The brochure is issued a long time before the season and is printed with prices. The prices at this stage
may not be a true reflection of the price that the customer will ultimately pay. Operators may prices if
costs increase, or if there is a surge in demand. Also many tour operators may use the same hotel but
arrive at different prices for the package.
Discounting pricing
Prices may be discounted if holidays remain unsold. By fixing contracts and therefore prices a long time
ahead of the season, tour operators purchase their supplies at the cheapest prices. In order to ensure
that holidays are not left unsold and that cash flow is good, tour operators must encourage early
booking. When early booking are high, the tour operators knows whether there will be any excess
capacity in holidays- hopefully none and takes a substantial deposit per person. Tour operators are able
to use or invest this money as they do not need to pay their suppliers until the holidays are taken
Seasonal pricing
Tour operators divide the year into different seasons. First, there is a broad division into winter and
summer season. In summer there are more beach holidays, and in entire ski programmes are running. A
summer brochure will typically cover the period May to November, and a winter one will run from
November to April. Within these periods there are peak seasons, shoulders seasons and off-peak
seasons.
Tour operators vary their capacity during the season but must fill the planes they have contracted. This
can result in discounted prices at shoulder season. At peak season- the school holiday period of July and

8. August in summer, and the Christmas holidays in winter –demand and therefore prices are at their
highest. Tour operators have been heavily criticized for charging their highest prices in school holiday
times, but they to make their profit when they can.
Competitive pricing
Mass market operators are very keen to remain competitive on price; they will often match prices
offered by the competition. Sometimes more up market operators will do this as well as, so it is worth
customers asking them.
Promotional pricing
Tour operators have tried various promotions linked to price over recent years, including a two –for-one
offer. This was not very successful as many customers believed that the original prices had been raised
to cover the offer, early booking promotions with price discounts are more credible.
Distributing
Tour operators must determine how best to distribute their products and services in order to maximize
sales. Traditionally, distribution is via travel agents who stock tour operators’ brochures and sell on their
behalf on commission. Although this method is still common, it is now used in conjunction with internet
distribution where customers can find information and even book via the tour operators’ own websites
or via a travel agent’s website. When products and services are sold via the tour operators’ website or
by telephone, this is known as direct sell. Some tour operators, for example Portland, only use direct
methods. Most tour operators use a combination of distribution methods.
Promotion
Promotion is the work of marketing personnel. The nature of promotion depends on the budget
available, and ranges from television advertising campaigns to press releases about new products and
destinations. Promotions may be aimed at the final consumer or to the trade. Trade promotion can be
just an important as consumer promotion as travel professional can bring preferred products to the
attention of their customers. For examples of trade promotions include educational trips for agents to
resorts, competitions and sales incentives.

9. Late sales
Tour operators do their best avoid late sales and encourage customers to book holidays in advance. This
give the tour operator the benefits of adjusting contracts to meet demand, making a better margin on
sales and enjoying good cash flow. Late sales harm cash flow and are usually discounted so less profit is
made.

10. Introduction
The assignment on tour operations sector is aimed at for investigating and researching on imaginary or
real tour operator. This will enhance learning skills by understanding what is learned in the class and
what is available in the market. The assignments is based on scenario where employment is as tour
operator and development of strategic plan is required for selling holidays in Dubai during summer. The
outline and objectives of tour operator assignment is mentioned below:,
Things activity is intended to explore the tour operator imaginary or real investigation work. You learned
in the understanding of the market in order to increase the efficiency and learning in this class. Strategic
planning for the holidays are based on the tasks that you must show and tour operators services,
summer in Dubai. Are consistent with the goals and an overview of the following tour operators:
• Describing tour operation sector with practical examples.
• Generating imaginary tour operator known as emirates international holidays.
• Determining number of staff, passengers and destinations.
• Providing brief information about suppliers, partners and products.
• Analysing effects of current and recent trends and developments.
• Detailing the channels, yield management, portfolio and travel documents.
• Reaching conclusion after completion of assignment.
What is the Tour Operators Industry?
The Tour Operators industry arranges, assembles and conducts tours in the UK and in other countries
around the world. These tours can be sold directly by the operators or via travel agencies. Tours can
include a combination of transportation, accommodation, food and visits to events or locations.
Industry Products
Pre-paid tours by UK residents to RoWPre-paid tours by UK residents to EuropePre-paid UK tours to
overseas visitorsDay trips and short tours via direct paymentOther tours and tour services

11. Industry Activities
Taking bookingsDevising and assembling tour packagesConducting toursOther customer service
Tour Operators in the UK: Market Research Report
The Tour Operators market research report provides key industry analysis and industry statistics,
measures market size, analyses current and future industry trends and shows market share for the
industry’s largest companies. IBIS World publishes the largest collection of industry reports so you can
see an industry’s supply chain, economic drivers and key buyers and markets.
Industry Analysis & Industry Trends
The past few years have been challenging for the Tour Operators industry, which faced difficulties from
the global financial crisis and falls in international tourist arrivals, UK tourist departures and domestic
consumer confidence. With significant economic uncertainty, fewer UK residents booked tours overseas,
while the number of foreign tourists booking UK tours also fell. A key threat to the industry is the
increasing tendency for people to plan, organise and book their travels using the internet, thereby
bypassing traditional tour operators and denying those sales.
Overall, UK tour operators have experienced a tough five years through 2012-13, as global economic
pressures and increased employment uncertainty contributed to greater industry volatility. Also, the
increasing prevalence of internet usage has allowed more adventurous customers to assemble their own
tour packages independently of large operators, while the financial crisis that engulfed the developed
world removed a lot of organic growth.
Over the past five years, industry revenue is estimated to have fallen by an average of 1.3% per year,
totalling £13 billion in 2012-13.
Emirates International Holidays
Emirates International Holidays (EIH) is a separate and individual entity and it is not linked with any
travel agency or airline. The establishment was in 2007. The tour operators in EIH are responsible for
tour packages and they have target to meet. The target is the number of passengers using EIH’s holiday
packages. The tour destination selected is Dubai due to various trends that are taking place during
summer. The team working will be assigned each emirate / destination but our focus is Dubai. The
management of EIH is in full support of team members by motivating and training them with a huge

12. database of information so the employees will not have to waste time. The process will include deter
mining destination and package type, analysing suppliers and their prices, determining product type,
setting package price with profit margin and targeting right passengers and tourists for the purpose of
selling holiday packages (Zee Gilmore, 2008).Dubai is tourist destination and there are several options
which makes it easier for selling holiday packages. The focus and establishment is Dubai due to success
of many tour operators in Dubai. There are summer packages and suppliers are cooperative for
designing and opposing in the market (Tourism in Dubai, 2008).
2: Description on Tour Operation Sector:
The operation of Emirates International Holidays (EIH) is local and international of the travel and tourism
industry in Dubai / UAE. There are different types of products which is designed and marketed for
passengers and tourists. The holiday packages are not fixed and it is customized according to the taste
and preferences of passengers and tourists in Dubai. EIH will be buying group of components for holiday
packages from different and suitable suppliers in Dubai / international destinations which will include
variety of products and services. This will be for passengers just reached Dubai or tourists already
available in Dubai. The holiday package that is to be sold is Dubai with entertainment and leisure
for “Happy Summer Vacation” (Zee Gilmore, 2008).
Employees, Passengers and Destinations
There are around 20 employments in different departments of Emirates International Holidays (EIH).
Depending upon destination and product package type an employee will be handling it. There will be no
more than one employee in one holiday package but if the client happens to inquire about different
package from same employee then he / she can handle it.
Description on Tour Operation Sector
The operation of Emirates International Holidays (EIH) is local and international of the travel and tourism
industry in Dubai / UAE. There are different types of products which is designed and marketed for
passengers and tourists. The holiday packages are not fixed and it is customized according to the taste
and preferences of passengers and tourists in Dubai. EIH will be buying group of components for holiday
packages from different and suitable suppliers in Dubai / international destinations which will include
variety of products and services. This will be for passengers just reached Dubai or tourists already
available in Dubai. The holiday package that is to be sold is Dubai with entertainment and leisure
for “Happy Summer Vacation” (Zee Gilmore, 2008).
Employees, Passengers and Destinations
There are around 20 employments in different departments of Emirates International Holidays (EIH).
Depending upon destination and product package type an employee will be handling it. There will be no
more than one employee in one holiday package but if the client happens to inquire about different
package from same employee then he / she can handle it.

13. The Emirates International Holidays (EIH) types of products in “Happy Summer Vacation” are
entertainment, leisure, health, sports, culture and heritage and amusement which are aimed to target
family, friends, etc. These are the famous products that the tourists in Dubai are mostly enjoying which
is determined depending upon last year feedback. Due to hot weather beach and sand entertainment
products are not demanded during summer (Zee Gilmore, 2008)
Effects of Current and Recent Trends and Developments
The Emirates International Holidays (EIH) distribution of the current trends is attractive when packed in
holidays and recent trends provide advantages. There are tremendous developments in Dubai due to
many projects that are launched (Tourism in Dubai, 2008). The reason is that Dubai is a tourist
destination. There are also various programs launched by Department of Tourism and Commerce
Marketing periodically (Dubai Department of Tourism and Commerce Marketing, 2008).
Channels, Yield Management, Portfolio and Travel Documents
The distribution channels of Emirates International Holidays (EIH) are through suppliers and reservation
once the passenger and tourists confirms holiday package with payment. The channels are local and
international.
The yield management is implemented at EIH, it is flexible and tour operators do not sell their holiday
packages through brochure prices. Usually, the prices are not listed in brochures. When there is an
enquiry tentative prices are proposed and once the package is finalized and confirmed by passengers
and tourists the prices are also finalized. The reason is that 60-70% passengers and tourists will be
positives taking business as per brochure and proposed prices. There are discounts and flexible prices
are expected which is part of the negotiation process (Larry Dwyer, Peter Forsyth, 2008).The product
portfolio of EIH is increasing and changing to meet the changing environment and holiday packages that
are focused and wanted. There are ranges of products and sometimes they are mixed such as when
entertainment and leisure is included then there might be a mix of education and sports. The process
includes maintaining copy of travel documents which as essential and also during registration and
payment all documents are checked. This is to avoid legal complications and issues due to invalid travel
documents. During the holiday tour, the passengers or tourists are informed to carry their original
documents and these are checked on Cathy are present and ready for the tour. This is part of EIH policy
and procedure (John S warbrooke and Susan Horner, 2006)
Conclusion
The tour operators in any business or organization are expected to sell customized holiday packages and
flexible pricing strategies. This will ensure 100% selling of holiday package designed and marketed. The
tour operations is more like designing, marketing, negotiating and selling which brings positive impacts
in Dubai. The holiday package by Emirates International Holidays known as Happy Summer Vacation is
the major selling in Dubai during summer. The number of passengers and destinations are essential for

14. attracting various types of clients to the business. Furthermore, by having multiple suppliers and
partners will ensure competitive price and package and they are flexible due to various trends in Dubai.