Tour Operations Management

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Tour Operations Management

• Future Issues

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Issues already covered

• Changing customer expectations and behaviour
• New competitors
• Globalisation of ownership
• Impact of new media

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The changing offer

• Product
• from package to mass customisation?
• Price
• from discounting to added value?
• Place
• from bricks to clicks?
• Promotion
• from commodity to brand?

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Environmental issues

• What are the main issues in the impact of tourism
  on the environment?
• To what extent are the tour operators responsible
  for these problems?

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Corporate Social Responsibility(Tourism Society
May 2002,)

• Companies are under pressure to act because of
• Government policy, regulations, taxation
• Growing influence of pressure groups
• Ethical influences on consumer choice
• Risk management
• Sustainability long term success

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Why have T.O.s ignored enviromental issues?

• Young and rapidly growing
• Fragmented - no collective responsibility
• Low profit margins no spare cash
• Little pressure from consumers
• Complex supply chain fierce competition
• Employees dont understand the concepts
• Not easy to measure results benefits

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Benefits of CSR (First Choice 2002)

• A good environment is the core product
• quality experience repeat bookings
• therefore sustainable development long term
  survival
• CSR enhanced reputation brand image
• ethical policies attract retain good staff

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First Choices environmental strategy

• Involved in Sustainable Tourism Initiative
• UNEP Tour Operators Initiative
• This fits into their positioning strategy

First Choices Transformation Strategy To reduce
the Groups dependence on mass market tourism by
building a portfolio of specialist travel
businesses which will generate up to 50 of the
Groups profits within 3 years
Will other operators feel able to
follow?
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• Some companies, particularly independent tour
  operators, have practiced responsible tourism for
  many years. Their tour programmes are designed to
  work closely with the people and the environment
  of the destination as an integral part of the
  holiday experience. (ABTA website)
• Responsible tour programmes include
• Use of hotels that pursue good environmental
  practices such as conserving water and minimising
  waste
• Use of locally-owned hotels and transport
  companies that provide employment and income for
  the local population
• Hiring of local guides
• Providing customers with key information e.g.
  tips on dress codes, how to say a few words in
  the local language and important customs of the
  destination
• Supporting local community conservation
  projects
• For information about companies that incorporate
  responsible tourism into their programmes, visit
  
• www.responsibletravel.com - ideas for more
  responsible holidays
• www.toinitiative.org - a United Nations
  responsible tourism programme, whose members
  include Thomson, First Choice

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Persuasion or Regulation?

• Balearic Islands ecotax on tourism
• http//www.ecotaxa.org/index.en.html
• 1 per day to pay for Tourist Area Restoration
  projects
• Abandoned for political reasons after one year
• Is this the only way to get TOs to act
  responsibly?
• What is really Green Tourism?
• http//www.greenglobe21.com/index_cp.html

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The report style

• A business report
• Concise using bullet points and short
  paragraphs explaining your decisions
• Use theoretical models to present your proposals
• eg channel/value chain, competitive strategy,
  brand
• But no need to explain the theory
• Reference your sources of data and models

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Assessment criteria

• Knowledge of the target market and the tourism
  resources
• Understanding the process of tour operations
• Ability to analyse the information (using
  theories)
• Creative decision making to create an attractive
  and viable tour product

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Thank you and good luck!