Unit 13 Tour Operations Explain the tour operations

Unit 13 – Tour Operations Explain the tour operations environment and the challenges it faces

Connector Define package holiday. . . What does the term ‘Tour Operator’ mean to you? Discuss with the person next to you. Extension: What tour operators can you think of?

Big Picture You will be finding out what tour operators do and how they link with other organisations in the travel and tourism industry.

Outcomes ALL will be able to complete P 1 MOST will be able to complete M 1 SOME will be able to complete D 1

Overview Every year millions of people turn to tour operators to provide them with holidays to all corners of the world. Tour operators are at the forefront of the travel and tourism industry, constantly seeking out new destinations and holiday experiences to satisfy the ever-demanding and everchanging needs of today’s holidaymakers.

Links with other component industries Travel agents Transport providers Accommodation providers Providers of ancillary products and services, e. g. insurance, car hire Horizontal and vertical integration Key terms: Charter Flight Scheduled Flight

Links with trade and regulatory bodies ABTA Federation of Tour Operators Association of Independent Tour Operators UKInbound Civil Aviation Authority

Legal framework EU Package Travel Regulations Consumer protection, e. g. Trade Descriptions Act, Consumer Protection Act, Disability Discrimination Act Contract law Licensing, e. g. Air Transport Operators Licence (ATOL)

External Influences Environmental, e. g. hurricanes, floods Political, e. g. terrorism, strikes Economic, e. g. currency fluctuations, price of oil Social, e. g. UK demographics, exploitation in host country Technological, e. g. internet, computerised reservation systems

Challenges Dynamic packaging Distribution channels Integration Budget airlines Maintaining market share Trend towards independent travel Responsible tourism

M 1 Discuss the impact of challenges facing tour operators

Connector What factors can you think of that have an affect on tour operations?

Big picture You will be looking at news articles to look at the factors currently affecting the Tour Operations environment

Outcomes ALL will be able to complete M 1 SOME will be able to complete D 1

Maintaining market share http: //www. bbc. co. uk/news/business-16173578 Thomas Cook has said it will close 200 UK branches over the next two years as part of its UK business turnaround plan - 125 more than previously announced. News of the closures came as the travel firm reported a £ 398 m ($616 m) loss for the year to the end of September. Thomas Cook has blamed the unrest in Egypt and Tunisia and floods in Thailand, all key holiday destinations for the company, for hitting sales.

Responsible tourism Also called SUSTAINABLE tourism http: //www. thomsonworldwide. com/responsible. Touri sm Also called SUSTAINABLE tourism

Dynamic packaging & Independent Travel http: //www. thomascookgroup. com/group-strategy

Articles http: //www. bloomberg. com/news/2010 -11 -09/global-tourism-set-to-slow-in-2011 -as-consumers-cut -back-euromonitor-says. html http: //www. breakingtravelnews. com/news/article/londons-oldest-tour-operator-goes-bust/ http: //news. bbc. co. uk/1/hi/business/4417793. stm http: //news. directline-holidays. co. uk/Kuoni-Reports-Decline-In-UK-Bookings-Kuoni-Holidays-594 https: //travelnewstoday. wordpress. com/2010/05/28/14 -day-holidays-decline-in-popularity http: //www. europealacarte. co. uk/blog/2007/11/07/are-package-holidays-really-in-terminal-decline/ http: //www. guardian. co. uk/money/2009/apr/16/recession-butlins-holiday-camps /

Activity In pairs you are to read through the article you have been given. Using flip chart paper feedback to the rest of the class the main points made in the article.

D 1 Evaluate the effectiveness of tour operators in responding to challenges facing the sector

Articles http: //www. bloomberg. com/news/2010 -11 -08/thomas-cook-chief-says-high-street-travel-agentsregaining-market-share. html http: //www. bbc. co. uk/news/business-11499020 http: //blog. euromonitor. com/2010/10/further-decline-for-the-travel-retail-market-in-europe. html http: //www. dominica-weekly. com/cruise-visits-decline-in-dominica /