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Tour operators and operations : development, management and responsibility

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Nguyễn Gia Hào

Academic year: 2023

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This book aims to provide an essential foundation for the study and understanding of tour operators and their practice. It was in that period that the basic conditions for the development of tourism, as we know it today, were established.

Two Key Terms

In earlier civilizations, such as the Roman Empire, wealthy members of society traveled for leisure and education, while other members of society traveled for the purposes of trade or spiritual fulfillment (see O'Gorman, 2010). The overall impact on society was significant and laid the foundations and conditions for the working life patterns of today's industrial/post-industrial societies.

Fundamental Conditions

Transportation

In fact, the leisure classes tended to set travel trends and as opportunities developed, the professional and middle classes then imitated the leisure classes, followed by the working class as their disposable income increased and relative costs fell. By the late 1930s, a clear pattern had emerged of tourist travel, mainly to established holiday resorts served by the railways and via an evolving network of bus operators to destinations not served by the train, such as travel to the countryside, but also more urban, cultural destinations.

Rise of Air Travel

This pattern of tourism development is largely manifested in most countries as their economy grows and develops. A significant underpinning to the successful development of this mass market, and tourist travel arrangements more generally, is that of ease of access to the destination.

Ease of Access

Developments and Expansion

The dramatic reworking of the traditional airline business model by these low-cost airlines brought new opportunities to consumers, with their low prices and convenient regional departure points, together with a frequency of service never seen before. In general, increased leisure time, access to credit, the Internet and low-cost airlines have all combined to produce today's 'wherever - whenever' consumer societies.

International Tourist Flows

This dynamic increase in international demand has catalyzed the diversification of the tourism offer, away from the popular traditional "Sun, Sand and Sea" packages of the last quarter of the 20th century, towards offers that are increasingly differentiated, specialized and placed in more and more. remote locations (see Chapter 2, this volume). This is a fundamental change that evidences the change in tourism consumption patterns, as tourists seek new activities and experiences.

Tourist Resorts Come Under Scrutiny

Since 1990, China has developed remarkably rapidly to become the second largest economy in the world, generating 1186 million international trips in 2015 with a total estimated consumption of US$1260 billion (UNWTO, 2016). This led to the emergence of new forms of tourism separate from mass tourism (Mowforth and Munt, 2009).

A Lack of Attention to Tour Operators

These new forms of tourism, with their abundance of terminology and definitions (Frey and George, 2010), can also be seen as a means of target marketing for tour operators to attract new use of 'environmentally and socially conscious' tourists. which seeks an alternative to 'mass'.

Chapter Outline

Attention is drawn significantly, albeit briefly, to the importance of tour operators in tourism development and as key players in the development of tourist destinations and resorts. Finally, Chapter 13 considers the current environment for tour operators and outlines the challenges and issues they will face in the coming years.

Chapter Structure

This leads to the consideration of demand and global developments, which have brought new opportunities and encouraged diversification both in tour operators and in the offer of tailor-made holiday packages. The financial aspects of an organizer are critical to their success and tour operators face many challenges such as fluctuating exchange rates and the need to price products long before they are purchased and consumed.

Key Term

Discussion questions are provided at the end of each chapter that cover the main points raised and can be used to develop class discussion and encourage further exploration. Chapters also include a mini-case study that describes a business situation or example that can be used to illustrate how the chapter content applies to businesses and practice, and a further and more extensive case study, complete with questions that can be used for discussions in class or for student-directed learning.

Recommended Reading

Selected websites have been collected and are presented on the preliminary pages, which provide links to company web pages and also organizations related to chapter content.

Selected websites have been compiled and presented on the preliminary pages, which contain links to company websites and also organizations that relate to chapter content. environment and social sustainability. 2004) Tourism and Transport: Issues and Agenda for the New Millennium.

Learning Objectives

Introduction

Early Developments

This situation has sparked controversy over the view that tour operators are responsible for both the resort's environment and the indigenous population. Tour operators continued to evolve in the early 1950s as the airplane began to play an increasing role in international tourism, which in turn created opportunities for the expansion of tour operators.

The Rise of the Package Holiday

Thus, in the 1960s, the travel sector was well positioned to benefit from the growing demand for vacations and the continued expansion of tourism. Although in mature markets the number of package holidays purchased may have declined, they are still a dominant form of holiday taken by consumers, mainly to short-haul destinations which account for around 50% of the market for package holidays ( Mintel, 2016).

The Convenience of Package Holidays

New destinations emerged in packages for the 'sun, sand and sea' (3S) market, as well as new products targeting specific market segments, many of which are the forerunners of today's highly diversified products presented by a large number of operators. ators. However, these packages presented a significant consumer protection weakness from their early development, primarily in terms of what happened if their tour operator's business collapsed and secondly, in terms of redress if some aspect of their package was not as it should be are .

Customer Protection

In combination, these influential factors largely explain the continued demand for the '3S' holiday package from tourists living in temperate climates, where the appeal of hot resorts is the product type and as such not site specific. Another point regarding bonding is that it is a potential hindrance for an entrepreneur who wants to establish himself as a tour operator as he/she is required to secure the necessary bond funds prior to a tour.

Global Developments

New markets have emerged in the world's major emerging economies, encouraged by international players as well as local companies and entrepreneurs, none bigger than China. This is also evident from the establishment of the tour operator Biewei 55 in the UK, which employs local guides.

Classification of Package Holidays

In the 1970s, US-based Carnival Cruise Lines sought to make cruises more appealing to a wider market, creating a more vibrant approach. However, it was not until the 1990s that cruising gained much popularity and was considered the fastest growing form of tourism in the Caribbean (Duval, 2004).

A Competitive Operating Environment

Furthermore, the more directly a tour operator is involved in the delivery of the various components of the package, the more sensitive it is to sudden changes in demand. Terrorism, the bane of tourism in the 21st century, can also cause major shifts in the demand for destinations.

Types of Tour Operator

In contrast, many developing destinations have domestic tour operators who work with international tour operators and facilitate their tours in the destination on behalf of the overseas tour operator. Specialist tour operators offer products that are generally considered not to be within the mainstream market.

Influence of Tour Operators

Most package holidays are intra-regional and considered short, i.e. up to 4 hours flying time, but some carriers specialize in the long-haul market with flights longer than 7 hours. These market trends were recognized in 2012 by the company TUI, which, after changing its business strategy, announced a strong profit and announced a renewed boom in holiday packages.

Opportunities Continue to Increase

This goes some way to explaining why, despite market developments suggesting otherwise, there is still a growing activity of tour operators (see Cavlek, 2013; Hayhurst, 2016).

Key Role Players

Major Players in New Destination Developments

The Obverse Perspective

Cruise ships have also attracted attention for their impact on destinations for reasons including little economic benefit (see Duval, 2004) arising from short daily passenger visits and overcrowding, as in the case of the Cinque Terre coast. The number of tourists visiting Venice has led to local outcry over environmental damage and rising prices affecting the local community, forcing many residents to move out of the city.

Summary

Over time, a combination of supply and demand has led to a growing diversity in the types of tour operators and their product offerings, in line with the continued success of the package tour. This is reflected in takeovers and mergers, as well as the collapse of some tour operators, both large and small, witnessed since the 1960s, which well illustrate the dynamic nature of the increasingly difficult market in which tour operators operate. .

Discussion Questions

  • When considering the history of tourism, what are the key factors that have enabled
  • Why did 3S tourism products become the dominant product in the marketplace?
  • When reviewing the role of travel agents and tour operators, what are their
  • How have the major European tour  operators remained successful,
  • What roles do national tourism organ- izations have when working with tour
  • Why have specialist tour operators offering niche products grown in im-
  • Are tour operators responsible for the impacts of their products on a

These opportunities have been facilitated, and indeed promoted, through developments in transportation as well as by the expansion of the infrastructure and superstructure at and within destinations. Are tour operators responsible for the impact of their products on the impact of their products on a destination.

Key Terms

However, now the Office for National Statistics (ONS) has revealed that the death of the pack has been greatly exaggerated. For an overview of package tour growth that is both informative and entertaining:.

External Operating Environment

Select a travel operator and conduct a macro environmental scan. What factors

Using a tour operator as an example, apply Porter’s Five Forces to analyse the

Conduct a PESTEL analysis for TUI

Develop a SWOT matrix for an organ- ization of your choice

What are travel and tourism inter- mediaries? What role and function do

Using examples, explain what is meant by integration in the context of mass market

Examine why a significant number of tour operators, both large and small, have

Discuss the circumstances under which disintermediation occurs in the tourism

Is there a future for tour operators?

With reference to a country of your choice, examine the structure, organization

Do you consider that tour operators face a significant threat as a result of

Aurora Zone is an independent tour company based in the North East of England, specializing in holidays to see the Aurora Borealis, also known as the Northern Lights. The Northern Lights are a spectacular natural light show created by the interaction of electrically charged particles in the atmosphere.

Itinerary Development (or Review)

Changes may be the result of customer feedback or the need to diversify to maintain a competitive advantage after reviewing sales and forecast planning or to address seasonality. For the purpose of this chapter, we will illustrate the process using a single prepackaged destination (eg resort), for example a 3S beach holiday.

Planning a Packaged Holiday

For example, mass market operators earn most of their revenue during the peak season (usually summer), which can lead to cash flow problems during the off-season.

Stages in Product Development

Review, research and planning Review company strategy

Recruit staff – this could be for overseas, such as resort representatives, tour managers, drivers etc. Transport The accessibility of the destination will affect the type of holiday that can be offered.

Table 4.1.  Typical timeframe for planning a package holiday. (From Holloway and Humphreys,  2012, p
Table 4.1. Typical timeframe for planning a package holiday. (From Holloway and Humphreys, 2012, p

Second stage of research Once a shortlist of destinations and prod-

Once the tour operator has identified a suitable destination, the analysis of product development opportunities can begin. Further research may be necessary to ensure the attractiveness and viability of the proposed product.

Product planning

Free Child Place Can be 'partially funded' by the supplier (e.g. terms in hotel contract), can be implemented as a tactical price lever. Can be 'part financed' by the supplier (e.g. terms in hotel contract), can be implemented as a tactical price lever.

Table 4.3.  Cost base analysis for a tour package: illustrative examples. (Source: T. Barnett, 2017, unpublished data; T
Table 4.3. Cost base analysis for a tour package: illustrative examples. (Source: T. Barnett, 2017, unpublished data; T

Contracting

A binding contract is when a tour operator commits to buy a predetermined number of beds for a season, regardless of the number they sell, for example 200 nights for a season lasting six months. Since the tour operator is responsible for the full utilization of the aircraft, it is essential that he utilizes the vessel as much as possible during the rental period.

Fig. 4.3.  Series charter.
Fig. 4.3. Series charter.

Brochure production

Vertically integrated companies such as TUI have their own coaches, which are scheduled to efficiently transport passengers from the airport as quickly as possible. If the holiday packages include car rental, such as fly-drive holidays, which are popular with tourists in the US, then they will need to rent a car through a car rental company such as Europcar or Hertz, although making arrangements with local companies will invariably be cheaper.

Finalize sales and marketing plan Finalizing the sales and marketing plan

Operations and administrative staff training

Product launch and subsequent evaluation of sales

One of the most common methods of disposing of excess supply is to use 'allocation on arrival'. Allocation on arrival is often used by operators to increase sales of poorly sold products; for example, the customer buys the package with a known departure date and duration, but the hotel, and even the resort, is assigned upon arrival.

Product review and post tour management, including

Other possibilities include introducing cheaper hotels in popular resorts or, if sales are good and there is capacity at the destination, operators may seek to increase the number of holiday products available. The main difference is the scale of operations involved, so a tour operator can develop from a small office of three or four people to a major player in the market, with a sizeable workforce (see Chapter 13, this volume).

What are the risks involved in devel- oping a product that diversifies from the

What are the risks in withdrawing products from the market due to unex-

Should operators continue to pro- mote products in medium- or high-risk

Identify a selection of countries or re- gions that are rarely included in mass tour

Why are mass tour operators less loyal to destinations?

How relevant is the product life cycle to a tour operator’s products?

What are the risks in using the alloca- tion method to contract accommodation?

In terms of responsibility, should tour operators be required to meet the guide-

A suitable text to further the study of product development in the wider context of marketing:. This chapter examines the role of small and medium-sized tour operators and explores the use of destination-based suppliers, who are particularly important to the operations of smaller tour companies in that they play a key role in the creation/distribution of the tourism product. .

Ground Handling Agents

In this case, GHA could arrange accommodation, transport and activities on behalf of the tour operator. As noted, small tour operators generally target their products to market segments based on specific interests.

Niche Tourism

Externally based tour operators may operate with different supply chain structures in different locations depending on the number and type of tours, the experience of the company operating in that destination and local legislation, which may involve fully subcontracting packages to a GHA. At the other end of the scale, the operator can independently enter into contracts directly with accommodation suppliers, transport agencies and activity providers on an individual basis.

Adventure Tourism Products

Other specialist operators may use the transport method as the focus of the package, e.g. Usually, one of the most expensive costs on tours is the fees for ground transportation, such as a bus.

Fig. 5.2.  Illustration of UK adventure tour supply chain.
Fig. 5.2. Illustration of UK adventure tour supply chain.

Tailor-Made Itineraries

It is for such reasons that operators postpone sales for departures that are not at capacity or have not yet reached maximum profitability and may close tour sales if they do not achieve the best possible figures. However, it is unusual to do this manually because there are many software programs designed specifically for SME operators that allow building a package and costing.

Coach Tours

  • What are the typical problems faced by small to medium-sized tour operators?
  • Tourism and entrepreneurship are in- trinsically linked – without entrepreneurial
  • Examine the problems faced in estab- lishing a tour operator business and the
  • With reference to two notable tourism entrepreneurs, examine the problems
  • Are small tour operators offering low-key, small group tours more in

Therefore, it is not surprising that in the developed economies of the world we can identify the presence of a remarkable number and variety of small and medium-sized tour operators. This is not only because of their size and therefore capacity to operate tours, but also because they predominantly operate in the niche tourism market, away from the macro-niche end of the spectrum in locations more suited to their tours, e.g. e.g.

Table 5.4.  Basic tailor-made tour costing model.
Table 5.4. Basic tailor-made tour costing model.

Customer Service and Satisfaction

Essential factors: These are the minimum requirements expected of a product – the basic features of a service – to prevent a customer from being dissatisfied. One of the main elements that determine customer satisfaction is their perception of service quality.

Managing the Service Encounter

Ideally, the goal of the travel organizer is not only to satisfy the tourist's expectations as a minimum, but to exceed them. A quality experience can only exist if the operator's product and service meet the customer's needs and expectations.

Moments of Truth

Customer service, particularly the role of the resort representative, is the most frequently complained about aspect of a vacation package. There may be a lower level of interaction between the airline and the passenger, with the customer being a passive recipient of the experience.

Measuring Service Quality

The varying degree of interaction intensity between the tourist and the employees all contribute to forming an image of the company, the destination and the holiday. That said, unacceptable experiences on the outbound flight can negatively impact the customer's perception of the entire vacation.

Qualitative Data Collection

As Ryan (2002) argues, while tourists evaluate each individual element of their vacation experience, they base their evaluation of the vacation on their overall experience. Traditionally, complaints focus on the facilities used, specifically the quality of the facilities and services, food and beverages and dissatisfaction with the description of the offer compared to the actual offer.

Quantitative Methods of Data Collection

SERVQUAL is a model that aims to measure the gap between consumer expectations of the service and the perception of the service actually received. The results for each of the five dimensions of customer service can be analyzed using data analysis packages such as IBM SPSS Statistics or Excel to identify areas where customer expectations are not being met.

Fig. 6.2.  Importance performance  analysis matrix. (From Chen et al.,  2012, p. 49.)
Fig. 6.2. Importance performance analysis matrix. (From Chen et al., 2012, p. 49.)

Improving Service Quality

Customer Loyalty

Suspect: this concerns when customers have heard about the holidays from advertisements or from a brochure; they may or may not be interested in the product. Customer: At this point, these customers have developed a degree of trust in the company and like the products offered.

Maintaining Loyalty

Some tour operators, such as Australian adventure holiday company Intrepid, have recognized the value of loyal customers and introduced loyalty schemes to encourage repeat bookings. It is surprising that more, especially the mainstream tour operators, do not currently have such loyalty schemes.

Customer Relationship Management

Loyalty schemes exist not only for tourists, but also for distributors of their holiday products (B2B - Business to Business loyalty schemes). There are many small and medium-sized tour operators (or sub-brands) that offer loyalty schemes to travel agencies to encourage them to promote and sell their packages.

Service Recovery

Cliff Hudson, head of CRM at TUI UK, stated that “effective CRM is less about automating systems and more about integrating customer-centric learning so that you can target your customers with your marketing message in the right way. way. Keep in touch with the customer and involve them in the process by updating them regularly.

Customer Satisfaction and Profitability

  • Why are service encounters so im- portant to tour operators?
  • Devise a customer service question- naire for a tour operator of your choice
  • What is the difference between tourist satisfaction and service quality?
  • How may a tourist’s nationality affect their perception of customer service and
  • Undertake a mystery shopper exercise at a travel agency. What are the limita-
  • Is SERVQUAL a useful tool for tour operators?
  • Devise a loyalty scheme for an identi- fied operator. What challenges do they
  • How would you devise a relationship marketing strategy for an identified tour
  • Is the tour operator responsible for the environmental behaviour of their cus-
  • Dear Smartsun,

I think you should refund me the price of the hotel since I didn't use it. What could the representative of the company based at the resort do to solve the problem at that time.

Fig. 6.5.  The service profit chain. (Adapted from Heskett et al., 1994.)
Fig. 6.5. The service profit chain. (Adapted from Heskett et al., 1994.)

Operating Costs

In addition to the price charged, the package must be attractive to the buyer and must offer benefits that make it more attractive to him than the option of buying individual components separately. Variable holiday costs include tickets for scheduled transport, ad hoc accommodation bookings, temporary and casual staff, corporate events, study tours for agents.

Operational Costs

These costs vary with the number of passengers because they are only payable for the people who actually travel. The higher the operator's costs, the more expensive the prices must be to cover those costs.

Load Factor

Empty Leg

Distribution Costs

The price increases as the departure date comes closer. This is not a strategy that is

Decrease prices closer to departure date. This tactic was used in the 1990s and

Prices are optimized every day based on sales, available capacity and market

Bonds, Insurance and Membership Fees

Operators offering coach holidays can join Bonded Coach Holidays, which requires members to provide a bond from a bank or major insurance company. An ATOL license is required for operators offering cruise holidays including air transport to the port of departure.

Cash Management and Cash Flow

Additional Sources of Income

Car rental or insurance commission Managers may earn a commission for services sold to customers at the resort, e.g. Car rental companies often give a commission to the resort representative and the tour operator.

Currency Considerations

There are a number of ways in which tour operators can try to manage the risks of exchange rate fluctuations, and these include methods such as netting and forward currency purchase. If you execute a limit order and a stop loss order at the same time, the exchange rate is guaranteed to be within a given range, giving the tour operator predictable exchange rates.

Pricing Factors

Company Pricing Strategies

Pricing Tactics

  • Market based pricing. This is based on what the market will pay and then
  • Premium pricing. This is used for niche market products with upmarket images
  • Review the booking conditions of sev- eral tour operators and compare the costs
  • What measures can a tour operator put in place to manage the risks arising
  • Why is cash management critical to the success of the tour operator?
  • Why are mass market package holiday customers price sensitive?
  • What incentives can operators intro- duce to encourage early booking?
  • A tour operator has created a new product for Thailand, designed for the en-

Why cash management is critical to tour operator success. the tour operator's success. -up: The sum added to the cost price of the package to cover general costs and profit.

The Scope of the Package Travel Regulations 1992

The facts of the case were that the defendant booked a holiday through a travel agency in Portugal. Now suppose that the agent has informed the customer that the price of flights will be £ X, the price of.

Upon Whom is Liability Imposed?

In this case - as it seems to me - there would be no doubt that the services are not sold as a pre-agreed combination and at an inclusive price. Generally, the Regulations do not impose such extensive obligations on retailers, but they are subject to the provision of information regime (regulation 5 and possibly also regulations 7 and 8) and are subject to civil liability under regulation 4 for providing a misleading description.

In Whose Favour is Liability Imposed?

The travel agent had not made it clear when purchasing the holiday that she was merely acting as an agent for the tour operator; they had created the impression that they were the clients selling the holiday. Note that while the travel agents could be sued as organizers, they were ultimately not liable because the Court said there was no failure to take reasonable care of the plaintiff.).

Pre-departure Changes

They were told that the alternative offered to them was in the same resort and of similar quality. It was decided that the plaintiffs' holiday had not been completely ruined and they were entitled to a 20% discount on the price for.

Post-departure Changes

Presumably, if there is such a large difference, then the consumer will be put off if the tour operator does not offer enough in compensation. More importantly, however, the judge said the claimants had not been 'properly informed' of their full rights under Regulation 12, including the right to withdraw without penalty, and that in such circumstances tour operators should inform consumers in writing of the options available to them.

Liability under Regulation 15

Therefore, if the consumer can prove that: a significant proportion of services will not be provided or the tour operator learns that they cannot be guaranteed. to arrange the continuation of the vacation as an alternative, or if it is impossible to find alternative solutions, to return the consumer home and. in both cases, reimburse the consumer if necessary. These expenses were claimed under regulation 14, but the claim was rejected because it was found that the Milners had no good reasons for refusing the final cabin offered to them and their disembarkation was treated as consensual rather than violation of regulation 14. b) such defects are attributable to a third party unrelated to the provision of contractual services and are unforeseeable or unavoidable, or (c) such defects are the result of -. i) unusual and unforeseeable circumstances over which the party invoking this exception has no influence and the consequences of which could not have been avoided, even if all due care had been taken; or ii) an event that the other party to the contract or the service provider could not foresee or prevent even with all due diligence.

Liability under Regulation 4

The facts of the case were that Mrs Mawdsley and her husband were going down the stairs which led to the restaurant of the hotel where they were staying. Ms Mawdsley claimed Cosmos had stated in the hotel brochure she and her husband used to book their holiday that the hotel's restaurant was accessible by lift, when in fact it was not, and that the hotel was suitable for parents. with young children when it really wasn't that appropriate.

Damages

The hotel was practically deserted, the skiing was very limited, almost none of the services were provided and the hotel owner spoke no English. Cunard refunded the unused portion of the prize, but the Milners demanded further compensation for the distress and disappointment they had suffered.

Protection against Insolvency

In the case of holidays, one of the easiest ways to mitigate your loss is to complain to the tour operator or their representative, who may then be able to put things right. Alternatively, if the tour operator is a member of an accredited body, such as Advantage Travel Centers or Hays Travel, they can trade under the accredited body's license - as long as they meet the membership criteria.

PTD2 – The Major Changes

Tour operators can also obtain a license by being a member of a franchise such as the Travel Trust Association. The ATOL regulation does not apply to non-air packages, or 'non-licensable business' as it is known.

Asia Pacific Region and Legislation

Travel agents who wish to handle inbound tourists from China must sign a Memorandum of Understanding (MOU) with the National Association of Travel Agents Singapore (NATAS). The TAR notes that travel agencies often use local travel agents (ground handling agents) to provide travel services in destinations and states that the agency must outsource its services to a qualified local agency with the consent of the tourists, i.e.

USA and Canada

Why was it necessary to revise the 1992 PTD?

Do you think that all countries should adopt a similar set of regulations?

Should all tour operators be legally re- quired to identify how their products(s)

The traditional distribution channel for tour operators is that of the travel agent (see Chapter 6, this volume). Over time this distribution chain has been challenged as the role of middlemen has become unclear.

Changes in Traditional Distribution

Traditionally, the distribution system of tour operators can be considered a simple process in which consumers purchase holiday products through travel agencies. These reservation systems, sometimes called automated reservation systems, used by travel agencies and tour operators greatly influenced the distribution of package tours to customers.

Distribution Channels

These travel agencies are usually based in the main thoroughfares and/or central business districts of cities. Most of the high street travel agencies are part of several chains and often vertically integrated with a tour operator, e.g.

Dynamic Packaging

The benefits of dynamic packaging for customers are that it offers more flexibility in terms of routes and duration of journeys, and perhaps offers better value for money. Using new software, for example Multicon, the software scans for dynamic components and enters them into this agent's website, allowing greater flexibility and more choice for customers.

Travel Agency Selection

In some cases, tour operators take direct control of distribution, eliminating the need for travel agents. In addition to the travel agency options, there are some alternative options that tour operators can use that include direct-to-customer sales.

Distribution Resources

  • What are the benefits of disintermedi- ation for the consumer?
  • What are the implications for the growth of online sales for the traditional
  • In the context of responsible tourism, what other benefits arise from tour oper-
  • Why is travel and tourism distribution such an important issue and the selection
  • Compile a list of considerations that should be made when selecting a
  • Consider the impact of IT develop- ments on travel and tourism industry
  • What do you think are the current and future issues in distribution choice in

Web-based distribution (direct selling) The impact of the World Wide Web – the Internet – on the distribution of tourism products cannot be underestimated. However, they are a significant cost factor, often taking up a large portion of the marketing budget.

Fig. 9.2.  Key stages in brochure production.
Fig. 9.2. Key stages in brochure production.

Essential Characteristics of Tour Operators, Products

The tour operator's role is to find the most effective way to promote their product(s) to potential consumers and this is inextricably linked to distribution. Although promotion is the tour operator's responsibility, it is often customers who offer an effective method of supporting the tour operator's promotional activities through word of mouth/.

Hình ảnh

Fig. 2.1.  Types of  tour operator
Table 2.2.  Gross share of tourism by category of tourism enterprise within the EU. (Derived  from Leidner, 2004, p
Table 3.1 presents an outline of a  PESTEL analysis by category and  associ-ated implications.
Fig. 3.1.  Porter’s Five Forces.
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