Operations Management in a Travel Agency free essay sample

Kings Travel has over 10 years of experience in the travel industry and is a member of most important Travel authorities e. g. ABTA, and IATA . Kings travel is also an approved agent for ATOL holders for customer financial protection. At Kings Travel the success factor of the growth is their friendly and highly professional services to maximise the customer satisfaction. Kings Travels’ staff is highly trained, efficient and knowledgeable in all aspects of travel, tour trade and because they are privately owned they offer impartial advice for customer benefits. Kings Travel offer range of different services e. g. travelling for leisure or business, economy or executive class or religious visit e. g. Hajj or Umrah package. They also offer other services such as Hotels Reservation and booking on Behalf of Client, Car Hire, Travel Insurance and tailor made itineraries to suit the individual budget. They are committed to supporting responsible tourism. We will write a custom essay sample on Operations Management in a Travel Agency or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page They send many people to holiday destinations every year, and by managing tourism in sustainable ways, they help protect the environment, traditions and culture of the places their clients visit. Project Objective The main objective of the project is to determine the day to day operations of Kings Travel Agency. It determines the effectiveness and efficiency of the management and the employees and gives an overview of their mission and strategies. It gives the Macro and Micro Analysis, SWOT analysis, Their Current and Future Objectives. It also gives a look into marketing communications, customer services, and cost benefit analysis. At the end, the project also gives suggestions for income generation and improving quality. The Mission Statement and Vision of Kings Travel The formulation of the organisational vision, mission, aims and objectives are crucial for the firm in having a clear strategic direction. Kings Travel is committed in providing their customer base with a complete travel package that is capable of fulfilling every travel need, at an affordable price with pro-active customer service. Kings Travel strives to provide there clients with the answers and tools necessary to meet and exceed their requirements for service and affordability. †¢Kings Travel knows that every account may have a different agenda than their travel agency and they strive to understand Client’s specific needs. Kings Travel guarantees the managements dedication in working with client to provide detailed reporting, consistent response times, and technology that works to improve efficiency and reduce costs. †¢ Kings Travel guarantees that their employees will work diligently to find travellers the lowest fares and provide them with friendly professional service on every call. †¢Kings Travel knows what it takes to find the lowest fares for cars, hotels, and airline tickets. †¢Kings Travels reporting tools provide real time data in an easy to understand and customized format. Kings Travel are constantly researching, beta testing, and implementing tools that can help there clients in best way. The Role of Kings Travel The Primary task of a travel agent is to supply the public with travel services. This they do on behalf of their suppliers or ‘principals’ the letter being a trade term. An agent (Kings Travel) they may also offer travel-related services such as insurance or foreign exchange. For providing these services Kings Travels is rewarded by commission from the Principals (Suppliers). Traditionally commission amounts to 10% of the selling price, this is normally 1% or 2% less for airline tickets, hotel bookings, and rail travel. Sale of travellers’ cheques and currency will yield no more then 2% and insurance yield around 25-30%. However by dealing with specific suppliers and achieving certain target Travels agents (Kings Travels) achieve extra commissions and bonuses of about 2. 5% of the sales. Bookings and Reservation Process in Kings Travel At Kings Travel the process starts with the initial enquiry by customer. It could be Face to face or over the phone, small number of enquiries also comes through email or faxes. The next stage is booking process by contacting related supplier or Principal to check availability. This could be by telephone but nowadays and especially at Kings Travels they use special computer software packages of holiday booking and airline flights the detail then confirmed with the customer and if happy payment is processed By Kings Travel, depending when customer is due to travel this may be full amount or deposit. Kings Travel accepts all sorts of payments (Cash, credit cards, debit cards, cheque payments). The paper work is processed through admin and accounts department and payment is submitted to bank and to principal, which then release the travel documents to Kings Travel to distribute to the customer. Copies of relevant documents are filed for future reference. MICRO ANALYSIS Design and layout of kings travel agency When considering the design and layout of an agency, there are two principal issues to be addressed, namely: †¢External appearance †¢Internal layout Each of these factors will be investigated further in the next two sections. External appearance From the outside, a travel agency should look inviting to the prospective customer, whether it is in a town centre high street location, a city suburb or a small country town. Certain aspects of the travel agency will be fixed, for example the size of the overall shop frontage. Kings travel is positioned well in relation to the adjacent shops and any street furniture, i. e. lamp posts, fire hydrants, litter bins, etc. Parking and public transport links are easy to access as well. It has an effective fascia board which is very important advertising tool for the agent, visible rom a long way away. Window displays are a good way of changing the external appearance of an agency for a short period of time, thereby giving prominence to a particular product or concentrating on different seasons of the year, e. g. city breaks in the autumn and winter, summer sun holidays at the beginning of the main booking season and winter ski scenes. The management at kings travel change their agency wind ow display regularly therefore generating more interest from passing customers, who may be tempted inside to ask for brochures and information. Internal layout A well planned internal layout of a travel agency can do a lot to help achieve the agency’s principal aim of selling holidays and other travel products profitably. It will offer staff an efficient environment within which to perform their selling skills, give them greater job satisfaction and allow them to maximize sales opportunities. From the customer’s point of view, it will encourage them to consult staff, examine brochures and, hopefully, stimulate them to make a purchase. At Kings Travel. The internal layout is well planned. Internal design of Kings Travel consists of areas: †¢Displaying brochures and other promotional materials †¢Conducting sales interviews †¢Storage for files †¢Storage of reference materials †¢Storage of brochure stocks †¢Secure storage of brochure stocks †¢Secure storage for money, traveller’s cheques, foreign currency, tickets, etc. †¢Staff relaxation †¢Manager’s office †¢Computer software and hardware, including VDU’s †¢Administrative functions †¢Toilets and washing facilities Equipments used in Kings travel agency: The equipment requirements of travel agencies can be grouped under four distinct agency functions, namely: †¢Sales Communications †¢Administration †¢Safety and security Sales equipment Most travel staff would agree that the most important piece of sales equipment is their computer keyboard and screen. Variously referred to as a VDU (Visual Display Unit), computer terminal or v iew data system, these items are now commonplace in the vast majority of travel agencies in the UK, including Kings travel agency. In the hands of trained staff, the VDU is a powerful selling tool, giving access to the central reservation systems (CRS) of the major tour operators and airlines. The system allows staff to check availability, confirm prices and ultimately make bookings on behalf of their clients. The computer systems developed by major tour operators allow agents to offer alternative holidays if the customer’s first choice is unavailable. The principal’s central reservation system is accessed through a service provider, such as Fastrak or Istel. Other equipments at Kings Travel, concerned specifically with sales of package holidays and other travel products include: †¢Telephone systems †¢Reference manuals and atlases †¢Calculators Communications equipment Equipment used in Kings Travel for internal and external communication includes: †¢Central reservation system (CRS), Galileo. †¢Fax machines †¢Telex †¢Personal computers with access to electronic mail (e- mail) and the internet †¢View data sets †¢Telephones †¢Telephone answering machines †¢Postal equipments, e. g. scales and franking machines Administration equipment Equipment for carrying out administrative functions at Kings Travel includes personal computers. Typewriters, agency stamps, photocopiers, dictating machines, filing cabinets, etc. The agency uses its word processing, spreadsheets and databases, and a specialist software application concerning payroll or financial accounting. Safety and security equipment To ensure the safety and security of the staff and customers, Kings Travel has taken precautions against theft, fire and injury, including keeping a first aid kit and fire extinguishers on the premises and having smoke alarms fitted. MACRO ANALYSIS Macro analysis is the analysis of the external environment the organisation is operating in. Macro environment related to travel and tourism industry Disposable income of people is high but leisure time is limited and contested by other responsibilities and recreation options. †¢Due to a good economy, travel and tourism is growing. †¢Population segments have different needs and wants. This requires effective target marketing. †¢Internet sales threaten the traditional firm, and technological advances require greater knowledge and sophistication in most industries. †¢International conditions, which are favourable, greatly affect the industry. Political unrest, military action, and other issues determine availability to many foreign destinations. Situation Analysis Situation analysis is a comprehensive study of the environment in which a business operates, going from ‘the big picture’ (macro-environment) to smaller operational details. Market Summary The travel and tourism market is separated into two main categories, business and leisure travel. Each contributes about 45% to total revenues. The remainder of revenues are generated from combined business/leisure trips. The market is further separated into domestic and international travel. Domestic travel accounts for approximately 70% of industry revenues. Business travel can be divided into two categories, the medium to large corporate account, and the small independent businessman. Leisure travellers are classified according to the types of trips they take, income, or age. The four primary leisure travel groups are: †¢Adventure, Special-Interest, RR, Honeymoons Sightseeing Trips. †¢High-Income Travellers. †¢Budget-Conscious Travellers. †¢Families, Students Seniors. Market Trends One notable trend in the travel industry is increased deregulation. Deregulation has increased competition and the need for differentiation. In many cases, the prices of airfare and other travel-related services has dropped. Additional trends include caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins. Tourism principals and suppliers are eager to control costs of distribution, improve their communication function and bypass the use of agencies by developing internet-based interfaces with consumers. †¢Commission capping or termination by a number of international airlines. Development of ‘no-frills’ airlines that perform most of their reservations online. †¢Increased computer literacy and confidence among consumers. †¢Emergence and rapid development of electronic intermediaries †¢Expansion of customer relationship management systems and their gradual integration with loyalty schemes. †¢eTicketing eventually will enable the entire process of making reservations and purchasing tourism processes paperless. †¢Tradi tional, intermediaries re-engineering their processes in order to update their offering improve customer satisfaction and remain competitive. Tourism destinations develop regional systems to enhance their representations, boost their image and attract direct bookings. FIVE FORCES:- Strategy analyzing competitive industry structure Defining an industry An industry is a group of firms that market products which are close substitutes for each other (e. g. the car industry, the travel industry). Some industries are more profitable than others. The answer lies in understanding the dynamics of competitive structure in an industry. The most influential analytical model for assessing the nature of competition in an industry is Michael Porters Five Forces Model, which is described below: In the present scenario:- The bargaining power of suppliers is low, compounded by the independence of the Travel Agent under review. Buyers bargaining power is also relatively low for package holiday buyers, though somewhat stronger for specialists. The risk of new entrants is relatively high, particularly in the specialist market, though some barriers do exist. The threat of substitutes is virtually nil, competitive rivalry is very high and competition for customers is fierce. However, the effects of the Internet need to be taken into account. SWOT Analysis of Kings travel agency Definition: SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment. Once key strategic issues have been identified, they feed into business objectives, particularly marketing objectives. It is also a very popular tool with business and marketing students because it is quick and easy to learn. The Key Distinction Internal and External Issues Strengths and weaknesses are internal factors. For example, strength could be your specialist marketing expertise. A weakness could be the lack of a new product. Opportunities and threats are external factors. For example, an opportunity could be a developing distribution channel such as the Internet, or changing consumer lifestyles that potentially increase demand for a companys products. A threat could be a new competitor in an important existing market or a technological change that makes existing products potentially obsolete. Operations Management in a Travel Agency free essay sample Travel has over 10 years of experience in the travel industry and is a member of most important Travel authorities e. g. ABTA, and IATA . Kings travel is also an approved agent for ATOL holders for customer financial protection. At Kings Travel the success factor of the growth is their friendly and highly professional services to maximise the customer satisfaction. Kings Travels’ staff is highly trained, efficient and knowledgeable in all aspects of travel, tour trade and because they are privately owned they offer impartial advice for customer benefits. Kings Travel offer range of different services e. g. travelling for leisure or business, economy or executive class or religious visit e. g. Hajj or Umrah package. They also offer other services such as Hotels Reservation and booking on Behalf of Client, Car Hire, Travel Insurance and tailor made itineraries to suit the individual budget. They are committed to supporting responsible tourism. They send many people to holiday destinations every year, and by managing tourism in sustainable ways, they help protect the environment, traditions and culture of the places their clients visit. We will write a custom essay sample on Operations Management in a Travel Agency or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Project Objective The main objective of the project is to determine the day to day operations of Kings Travel Agency. It determines the effectiveness and efficiency of the management and the employees and gives an overview of their mission and strategies. It gives the Macro and Micro Analysis, SWOT analysis, Their Current and Future Objectives. It also gives a look into marketing communications, customer services, and cost benefit analysis. At the end, the project also gives suggestions for income generation and improving quality. The Mission Statement and Vision of Kings Travel The formulation of the organisational vision, mission, aims and objectives are crucial for the firm in having a clear strategic direction. Kings Travel is committed in providing their customer base with a complete travel package that is capable of fulfilling every travel need, at an affordable price with pro-active customer service. Kings Travel strives to provide there clients with the answers and tools necessary to meet and exceed their requirements for service and affordability. †¢Kings Travel knows that every account may have a different agenda than their travel agency and they strive to understand Client’s specific needs. Kings Travel guarantees the managements dedication in working with client to provide detailed reporting, consistent response times, and technology that works to improve efficiency and reduce costs. †¢Kings Travel guarantees that their employees will work diligently to find travellers the lowest fares and provide them with friendly professional service on every call. †¢Kings Travel knows what it takes to find the lowest fares for cars, hotels, and airline tickets. †¢Kings Travels reporting tools provide real time data in an easy to understand and customized format. Kings Travel are constantly researching, beta testing, and implementing tools that can help there clients in best way. The Role of Kings Travel The Primary task of a travel agent is to supply the public with travel services. This they do on behalf of their suppliers or ‘principals’ the letter being a trade term. An agent (Kings Travel) they may also offer travel-related services such as insurance or foreign exchange. For providing these services Kings Travels is rewarded by commission from the Principals (Suppliers). Traditionally commission amounts to 10% of the selling price, this is normally 1% or 2% less for airline tickets, hotel bookings, and rail travel. Sale of travellers’ cheques and currency will yield no more then 2% and insurance yield around 25-30%. However by dealing with specific suppliers and achieving certain target Travels agents (Kings Travels) achieve extra commissions and bonuses of about 2. 5% of the sales. Bookings and Reservation Process in Kings Travel At Kings Travel the process starts with the initial enquiry by customer. It could be Face to face or over the phone, small number of enquiries also comes through email or faxes. The next stage is booking process by contacting related supplier or Principal to check availability. This could be by telephone but nowadays and especially at Kings Travels they use special computer software packages of holiday booking and airline flights the detail then confirmed with the customer and if happy payment is processed By Kings Travel, depending when customer is due to travel this may be full amount or deposit. Kings Travel accepts all sorts of payments (Cash, credit cards, debit cards, cheque payments). The paper work is processed through admin and accounts department and payment is submitted to bank and to principal, which then release the travel documents to Kings Travel to distribute to the customer. Copies of relevant documents are filed for future reference. MICRO ANALYSIS Design and layout of kings travel agency When considering the design and layout of an agency, there are two principal issues to be addressed, namely: †¢External appearance †¢Internal layout Each of these factors will be investigated further in the next two sections. External appearance From the outside, a travel agency should look inviting to the prospective customer, whether it is in a town centre high street location, a city suburb or a small country town. Certain aspects of the travel agency will be fixed, for example the size of the overall shop frontage. Kings travel is positioned well in relation to the adjacent shops and any street furniture, i. e. lamp posts, fire hydrants, litter bins, etc. Parking and public transport links are easy to access as well. It has an effective fascia board which is very important advertising tool for the agent, visible rom a long way away. Window displays are a good way of changing the external appearance of an agency for a short period of time, thereby giving prominence to a particular product or concentrating on different seasons of the year, e. g. city breaks in the autumn and winter, summer sun holidays at the beginning of the main booking season and winter ski scenes. The management at kings travel change their agency wind ow display regularly therefore generating more interest from passing customers, who may be tempted inside to ask for brochures and information. Internal layout A well planned internal layout of a travel agency can do a lot to help achieve the agency’s principal aim of selling holidays and other travel products profitably. It will offer staff an efficient environment within which to perform their selling skills, give them greater job satisfaction and allow them to maximize sales opportunities. From the customer’s point of view, it will encourage them to consult staff, examine brochures and, hopefully, stimulate them to make a purchase. At Kings Travel. The internal layout is well planned. Internal design of Kings Travel consists of areas: †¢Displaying brochures and other promotional materials †¢Conducting sales interviews †¢Storage for files †¢Storage of reference materials †¢Storage of brochure stocks †¢Secure storage of brochure stocks †¢Secure storage for money, traveller’s cheques, foreign currency, tickets, etc. †¢Staff relaxation †¢Manager’s office †¢Computer software and hardware, including VDU’s †¢Administrative functions †¢Toilets and washing facilities Equipments used in Kings travel agency: The equipment requirements of travel agencies can be grouped under four distinct agency functions, namely: †¢Sales Communications †¢Administration †¢Safety and security Sales equipment Most travel staff would agree that the most important piece of sales equipment is their computer keyboard and screen. Variously referred to as a VDU (Visual Display Unit), computer terminal or v iew data system, these items are now commonplace in the vast majority of travel agencies in the UK, including Kings travel agency. In the hands of trained staff, the VDU is a powerful selling tool, giving access to the central reservation systems (CRS) of the major tour operators and airlines. The system allows staff to check availability, confirm prices and ultimately make bookings on behalf of their clients. The computer systems developed by major tour operators allow agents to offer alternative holidays if the customer’s first choice is unavailable. The principal’s central reservation system is accessed through a service provider, such as Fastrak or Istel. Other equipments at Kings Travel, concerned specifically with sales of package holidays and other travel products include: †¢Telephone systems †¢Reference manuals and atlases †¢Calculators Communications equipment Equipment used in Kings Travel for internal and external communication includes: †¢Central reservation system (CRS), Galileo. †¢Fax machines †¢Telex †¢Personal computers with access to electronic mail (e- mail) and the internet †¢View data sets †¢Telephones †¢Telephone answering machines †¢Postal equipments, e. g. scales and franking machines Administration equipment Equipment for carrying out administrative functions at Kings Travel includes personal computers. Typewriters, agency stamps, photocopiers, dictating machines, filing cabinets, etc. The agency uses its word processing, spreadsheets and databases, and a specialist software application concerning payroll or financial accounting. Safety and security equipment To ensure the safety and security of the staff and customers, Kings Travel has taken precautions against theft, fire and injury, including keeping a first aid kit and fire extinguishers on the premises and having smoke alarms fitted. MACRO ANALYSIS Macro analysis is the analysis of the external environment the organisation is operating in. Macro environment related to travel and tourism industry Disposable income of people is high but leisure time is limited and contested by other responsibilities and recreation options. †¢Due to a good economy, travel and tourism is growing. †¢Population segments have different needs and wants. This requires effective target marketing. †¢Internet sales threaten the traditional firm, and technological advances require greater knowledge and sophistication in most industries. †¢International conditions, which are favourable, greatly affect the industry. Political unrest, military action, and other issues determine availability to many foreign destinations. Situation Analysis Situation analysis is a comprehensive study of the environment in which a business operates, going from ‘the big picture’ (macro-environment) to smaller operational details. Market Summary The travel and tourism market is separated into two main categories, business and leisure travel. Each contributes about 45% to total revenues. The remainder of revenues are generated from combined business/leisure trips. The market is further separated into domestic and international travel. Domestic travel accounts for approximately 70% of industry revenues.