• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Like any tour operator I need to make a profit, and in order to increase the profit of my planned package holiday to La Charente in France I need to keep the contract with my suppliers flexible so that low booking numbers will not affect my overall revenu

Extracts from this document...


Tour Operations M3 Criteria M3: Explain ways of maximising the profitability of the planned package holiday. For M3, learners must explain, with specific examples, ways in which profitability could be maximized. Aspects such as methods of contracting, consolidations, currency exchange, cancellation charge and commission must now be applied specifically to the planned tour, with explanations to show how they could contribute to its profitability. Methods of contracting- Like any tour operator I need to make a profit, and in order to increase the profit of my planned package holiday to La Charente in France I need to keep the contract with my suppliers flexible so that low booking numbers will not affect my overall revenue. In the contrary if I have a fixed contract then I would still have to pay for plane seats and hotel rooms even if they haven't been booked, this would result in me being out of pocket and could end up bankrupt like what happens to many small independent operators. Methods and Benefits of selling- When a tour operator sells a package successfully they receive many benefits, a tour operators uses many methods in order to sell the package. ...read more.


from them, however like many tour operators a trustworthy forecast of demand should be in place and so I would be able to avoid late sales. Commission- Commission is to do with benefits gained from selling packages. Travel agencies and sales people receive commission when they sell a tour operator's holiday. Commission is usually paid from a percentage of the tour operator's profits therefore the more sold the more commission that is gained. Sales people are employed by the tour operator to sell packages directly from the tour operator to the customer. Commission is used to motivate sales staff and is a benefit of selling package holidays; it is how travel agencies make their money. Working on a commission based rate of pay can sometimes be difficult, i.e. no customers= no commission. Yet in order receive extra profit, selling third party products and services such as holiday insurance/ car hire help as we buy them at a base rate and then can increase the price to our customers. ...read more.


Providing a currency exchange is not a great source of profit yet it is an ancillary service to a tour operators customers. Cancellation charges- Like many tour operators I would cover cancellation fees in my term and conditions part of the contract between buyer and seller. In order to maximise the profit cancellation charges are a good way to do so; if flight seats are fully booked and a couple need to cancel their holiday this is the ideal cancelation. If they cancel before 72hours of the day of departure then they would receive up to 50% of the cost of their holiday, this means that I am left with two empty seats cost 50% of the total price (�100pp) however what I would do is advertise the places at 75% of the original cost and if they sold I would have regained the total cost for the trip and also an added extra 25% which is pure profit! I could maximise that profit further if the cancelation was within 24hrs of departure, then I would gain a 50% profit however it can be harder to find a buyer at such short notice. ?? ?? ?? ?? Joanne Watson Tour Operations Merit Criteria M3 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. The importance of having a business plan and the factors that can affect it.

    Determine what adjustments, if any, need to be made. 4. Can also identify if there are any expenses that can be avoided. Reasons for constructing a business plan To Map the Future A business plan is not just necessary to secure funding at the start-up stage, but is a vital aid to help manage a business more effectively.

  2. Mcdonalds. For this unit I will need to produce a portfolio of work investigating ...

    do not increase then McDonalds will also not be able to meet needs of customers and other stakeholders especially the suppliers. The suppliers expect to be paid on time; this will not be possible if McDonald's sales decrease. This will follow on to customers needs not being fulfilled and so

  1. Applied Business Studies

    (chav,goth), I would have to think about what item they would want. As I would have conducted my market research, I would know what product they would want, and what type of product they would like to purchase. The reason why I want to cater for everyone is because if

  2. Consumer Decision Making Process for Purchasing Property in Spain

    1.4 Hypothesis The most fundamental debate amongst consumer behaviour theorists is about whether typologies can be applied to consumers and their behaviour. In prior research, it has been documented that: ".... females, of a retiring age generally participate more than males, in active searches for information and seek advice relating to items they are purchasing.

  1. Price Discrimination (using the example of a coach operator)

    This sort of 3rd degree price discrimination is mainly possible due to the different price elasticity of demand in the different markets (as illustrated below). The desirability of price discrimination in a market depends on the effects of price discrimination on consumers, firms, the government, and finally the economy as a whole.

  2. SunCity - developing marketing strategy for problem

    Market research- market research is the research a company will carry out to their customers and potential customers, they will find out what they want, and what they think is important, this will help Sun City to prioritise their tasks and alter their own objectives and goals.

  1. Marketing of Brookfield hotel

    It is very nice to come back to the hotel over and over again and to see familiar faces, to speak to them like old friends. A very important thing is that the staff knows the names of the regular clients, which for a small family hotel like Brookfield is very important.

  2. Are the sales of Season Ticket's sufficient to keep Charlton Athletic FC profitable, and ...

    At the end of the day all the aims and to a certain extent the success of the club is directly dependant upon how much money the club has. Another aim at Charlton may be to maximise profits by making the total revenue increase and the total costs to decrease and still be as efficient as they previously were.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work