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Unit 13 - Tour Operations

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Michael Owusu-Dartey

on 23 April 2017

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Transcript of Unit 13 - Tour Operations

Unit 13 - Tour Operations
Links with other travel and tourism component industries
Review how Tour operators work with the following:

1. Travel agents

2. Transport providers

3. Hotels and other accommodation providers

4. Ancillary service providers

Horizontal integration is when a company owns or has control over a number of companies at the same level in the distribution chain or the same industry sector

For example, many tour operating businesses that are now part of the ‘big two’ were originally independent companies, e.g. Neilson and Club 18-30 (now part of the Thomas Cook Group),
First Choice now part of Tui Group
Review how integration
(vertical or horizontal) helps a Tour Operator

Using real examples to illustrate your answer.
1. Name five different tour operating companies in the UK

2. Come up with a definition of a ‘

3. Review what a new tour operator would need to do to create a package holiday.
Learning Outcomes
1. Review
the links amongst Travel and Tourism component organisations.

2. Evaluate
the roles of Trade Associations and Regulatory bodies in Tour operations

Travel agents – using agents as a sales outlet for the tour operator’s holidays and agreeing commission payments and booking procedures

Transport providers – negotiating and agreeing contracts with airlines (charter and scheduled), rail operators, coach companies, taxi operators, etc. to supply transport services for holidaymakers

Hotels and other accommodation providers – negotiating allocations of bed spaces that form the accommodation element of the package holiday

Ancillary service providers – contracting with companies to supply representative services, transfers, ‘meet and greet’ arrangements, insurance, car hire, activities, excursions, etc.

Vertical integration in the travel and tourism sector is when a company has control over other companies that are at different levels in the chain of distribution or in different industry sectors, for example:

TUI Travel UK owns the following;
Thomson and First Choice tour operating businesses (Tour Operators)
Thomson travel agency chain (Travel agents)
Thomson Airways (Airline)
Thomson holidays (accommodation)

Now choose another Tour Operator vertically integrated and write down the component industries
Activity 13.1
Investigates the links between tour operators and other travel and tourism component industries

Write a reflection on how THOMAS COOK made this boy's journey a memorable one

Include the examples of the components
Working in pairs, carry out some research into either Thomas Cook or TUI Thomson UK and design a chart that shows all the different companies it owns across the following:
Tour operations
Travel agencies
Transport operations
These are examples of Trade Associations:
The Travel Association (ABTA); Federation of Tour Operators (FTO); Association of Independent Tour Operators (AITO); UKInbound;
Trade bodies and associations are established to represent the interests of companies in a particular industry sector. The following are important trade bodies in tour operations:

ABTA – The Travel Association
AITO (the Association of Independent Tour Operators)
The European Tour Operators’ Association (ETOA)
The International Federation of Tour Operators (IFTO)
Federation of Tour Operators (FTO)

In your own words write down who are regulatory bodies.

Write down 2 examples of regulatory bodies you know of in travel and tourism.
Regulatory bodies exist to make sure that tour operating companies operate in a fair, honest, efficient, safe and secure manner, for the good of the companies, their customers, suppliers and society at large . The following are important regulatory bodies in tour operations:

Civil Aviation Authority (CAA)
Health and Safety Executive (HSE)
Trading Standards Officers
Foreign and Commonwealth Office (FCO)

These are some of the Legal framework Tour operators work with
EU Package Travel Regulations
Consumer protection (eg Trades Description Act, Consumer Protection Act, Disability Discrimination Act)
Contract law
Licensing (eg Air Transport Operators Licence (ATOL)
In pairs explain how tour operators uses each of the legal framework above
External influences on Tour Operators
Full transcript