Transcript Unit 12 – Tour Operations

Unit 13 – Tour Operations
Explain the tour operations environment and the
challenges it faces
Connector
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Define package holiday.....
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What does the term ‘Tour Operator’ mean to you?
Discuss with the person next to you.
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Extension:
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What tour operators can you think of?
Big Picture
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You will be finding out what tour operators do and how
they link with other organisations in the travel and
tourism industry.
Outcomes
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ALL will be able to complete P1
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MOST will be able to complete M1
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SOME will be able to complete D1
Overview
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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 ever-changing needs
of today’s holidaymakers.
Links with other component industries
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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
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Links with trade and regulatory bodies
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ABTA
Federation of Tour Operators
Association of Independent Tour Operators
UKInbound
Civil Aviation Authority
Legal framework
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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
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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
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Dynamic packaging
Distribution channels
Integration
Budget airlines
Maintaining market share
Trend towards independent travel
Responsible tourism
M1
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Discuss the impact of challenges facing tour operators
Connector
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What factors can you think of that have an affect on tour
operations?
Big picture
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You will be looking at news articles to look at the factors
currently affecting the Tour Operations environment
Outcomes
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ALL will be able to complete M1
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SOME will be able to complete D1
Maintaining market share
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http://www.bbc.co.uk/news/business-16173578
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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
£398m ($616m) 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.
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Responsible tourism
Also called SUSTAINABLE tourism
 http://www.thomsonworldwide.com/responsibleTourism
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Also called SUSTAINABLE tourism
Dynamic packaging & Independent
Travel
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http://www.thomascookgroup.com/group-strategy
Articles
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http://www.bloomberg.com/news/2010-11-09/global-tourism-set-to-slow-in-2011-as-consumers-cut-backeuromonitor-says.html
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http://www.breakingtravelnews.com/news/article/londons-oldest-tour-operator-goes-bust/
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http://news.bbc.co.uk/1/hi/business/4417793.stm
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http://news.directline-holidays.co.uk/Kuoni-Reports-Decline-In-UK-Bookings-Kuoni-Holidays-594
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https://travelnewstoday.wordpress.com/2010/05/28/14-day-holidays-decline-in-popularity
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http://www.europealacarte.co.uk/blog/2007/11/07/are-package-holidays-really-in-terminal-decline/
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http://www.guardian.co.uk/money/2009/apr/16/recession-butlins-holiday-camps
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Activity
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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.
D1
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Evaluate the effectiveness of tour operators in
responding to challenges facing the sector
Articles
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http://www.bloomberg.com/news/2010-11-08/thomas-cook-chief-says-high-street-travel-agents-regainingmarket-share.html
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http://www.bbc.co.uk/news/business-11499020
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http://blog.euromonitor.com/2010/10/further-decline-for-the-travel-retail-market-in-europe.html
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http://www.dominica-weekly.com/cruise-visits-decline-in-dominica
/