Unit 16: The UK tour operating sector (LEVEL 3)

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1 Unit 16: The UK tour operating sector (LEVEL 3) Learning outcomes By completing this unit candidates will develop knowledge and understanding of the role of the UK tour operating sector, its current structure and the external factors that affect it. They will also develop knowledge and understanding of contracts and selling methods used by UK tour operators. Candidates will produce evidence to meet the unit assessment objectives in order to show that they understand: the role and functions of the tour operator the structure and scale of the UK tour operating sector the contracts and terms that apply to suppliers the methods used to sell tour operators products the external factors that affect holidays. Assessment objectives 1 Describe the role and functions of a tour operator 2 Illustrate the structure and scale of the UK tour operating sector Knowledge, understanding and skills Role: producer of the package holiday, ie transport, accommodation and ancillary services wholesaler/middleman provider of domestic, inbound and outbound packages Functions: carry out market research contract suppliers, eg purchase components cost the package market and sell the package take reservations administrate the holiday operate the holiday from the UK and in resort employ overseas staff to ensure the smooth running of the holiday offer post-holiday customer care Structure and scale: relationship with principals, ie transport, accommodation and ancillary services and retail sector, ie travel agents numbers of tour operators; dominance of the sector by a few operators and their market shares impacts of horizontal and vertical integration the structure of the key integrated players, their branded products, principals and retail outlets direct sell operators mass market versus specialised operators trade organisations, eg Federation of Tour Operators, Association of Independent Tour Operators, Association of British Travel Agents OCR Level 3 Nationals in Travel and Tourism 1

2 Assessment objectives 3 Outline the different types of contract and terms that may apply to airlines, accommodation and other suppliers 4 Compare the main methods used by two tour operators to sell their products 5 Identify a range of external factors that could affect tour operator programmes and analyse the impact of one recent event Knowledge, understanding and skills Airlines contracts: time series part series ad hoc Accommodation contracts: commitment allocation ad hoc Types of contracts with other suppliers: car hire services transfer companies ground handlers excursion providers Products: package holidays tailor made holidays ancillary services Methods used: brochures retail travel agents direct sell, eg call centres, internet use of Viewdata, Global Distribution Systems External factors: exchange rates and the Euro interest rates (in tourist generating or receiving country) changes to legislation, eg package holidays directive, and taxes price of oil outbreaks of disease natural disasters eg tsunami, hurricanes, floods, snow, earthquakes terrorist activity war, civil unrest or political change in either generating or receiving country Assessment This unit is centre assessed and externally moderated. In order to achieve this unit candidates must produce a portfolio of evidence showing that they have met all of the assessment objectives. Portfolios of work must be produced independently. They will need to be made available, together with witness statements and any other supporting documentation, to the OCR Visiting Moderator when required. Centres must confirm to OCR that the evidence produced by candidates is authentic. An OCR Centre Authentication Form is provided in the Centre Handbook and includes a declaration for assessors to sign. It is a requirement of the QCA Common Criteria for all Qualifications that proof of authentication is received. 2 OCR Level 3 Nationals in Travel and Tourism

3 Guidance on assessment and evidence requirements This unit will provide candidates with knowledge and understanding of the UK tour operating sector of the travel and tourism industry. This sector has changed fundamentally in the last decade and it is therefore of importance that current material is used for teaching purposes. This unit has links with Unit 1: The travel and tourism industry, Unit 3: Marketing travel and tourism, Unit 5: Current issues in travel and tourism, Unit 13: Working as an overseas resort representative, Unit 14: Retail travel operations, and Unit 17: The UK passenger transport sector. Visits to a tour operator or a guest speaker from a tour operator will enhance the teaching of this unit. A significant amount of case study material is widely available about the market leaders in texts, teacher resource material and on the internet. A visit to, or guest speaker from, a small or specialist tour operator would therefore facilitate comparison. The underpinning knowledge for Assessment Objective 1 will ideally be acquired through an investigation into one tour operator, either through a visit or though a case study. Candidates need to understand the role of the tour operator including the function of each department and how they work together to produce package holidays. However, all tour operators are structured differently and comparison with different types of tour operators (ie differing sizes, products, destinations) may help understanding. Integration has resulted in a handful of small companies dominating this sector (Assessment Objective 2). Candidates should gain a detailed knowledge of these companies, their brands and related companies. However, candidates should also gain a wider perspective on the whole sector, which comprises tour operators, the majority of which are small, independent, specialist companies. Candidates should understand the differences between these organisations and the fully integrated market leaders, how and why their products, sales methods and systems differ. To gain this wider knowledge it is recommended that candidates research different organisations within the sector and share their findings with the group. Ideally, sample contracts will be used when teaching Assessment Objective 3. Candidates should be encouraged to consider why different contracts are used and the advantages of each to the tour operator. Small tour operators should be considered as well as the market leaders. Consideration must also be given to the fact that the market leaders own many of their suppliers. The travel agent remains the main distribution outlet (Assessment Objective 4) when purchasing a tour operator product and consequently the brochure remains the key selling tool. However, direct sell methods are increasingly used. Candidates should consider how tour operators sell their holidays and the increasing use of the internet and call centres. Contrasting tour operators should be selected for the assessment of this assessment objective. It is recommended that one small, independent or specialist operator is selected. External events affect tourism activity (Assessment Objective 5). UK outbound tour operators, operating holidays throughout the world, are affected by events over which they have no control, eg terrorist activity, tsunami, hurricanes in the Caribbean, political instability and economic changes. Candidates could be encouraged to watch news items, read broad sheets and comment on how this will affect UK tour operators. Candidates should be encouraged to select different events to analyse. Candidates may provide portfolio evidence for all of the assessment objectives in this unit using a range of presentation techniques. This may include assessor testimony/witness statements logbooks, diaries, the use of video, audio and presentation software, posters/charts, written work. Where video and/or audio evidence is provided this must be supported by assessor testimony/witness statements. Where candidates demonstrate competence, centres should record skills demonstrated on appropriate recording documentation. OCR Level 3 Nationals in Travel and Tourism 3

4 Signposting to Key Skills The unit contains opportunities for developing the Key Skill, and possibly for generating portfolio evidence, if teaching and learning is focused on that aim. Key Skill Key Skill Key Skill reference reference reference C3.1 N3.1 ICT3.1 C3.2a N3.2a ICT3.2 C3.2b N3.2b ICT3.3 C3.3 N3.2c N3.2d N3.3 Mapping to National Occupational Standards Occupational Standards Unit number Title No relevant standards in Tourist Information Services, Travel Services and Aviation Resources This section provides suggestions of suitable resources. The list is neither prescriptive nor exhaustive, and candidates should be encouraged to gather information from a variety of sources. Some suggested resources are intended for Tutor use. The resources in this section were current at the time of production. Books Burke, J. and Resnick, B. (1999) Marketing and Selling the Travel Product 2nd Ed Delmar Cooper, C. Fletcher, J Wanhill, Tourism Principles and Practice 2nd Ed S. Gilbert, D Shepherd R (1988) Pearson Education Davidson, R. (1998) Holloway, C. (2001) Outhart, T. et al (2000) Sharpley, R. (2002) Youell, R. (2003) Travel and Tourism in Europe Pearson Education The Business of Tourism 6th Ed. Pearson Education Travel and Tourism for Advanced GNVQ HarperCollins The Tourism Business: an introduction Business Education Publishers Complete A-Z Travel and Leisure Handbook Hodder and Stoughton 4 OCR Level 3 Nationals in Travel and Tourism

5 Journals/magazines/newspapers Travel Trade Gazette Travel Weekly Other useful resources include tour operators holiday brochures, travel guides, travel supplements from weekend broadsheets, and transport timetables and guides. Websites British Incoming Tour Operators Association. URL: Cosmos. URL: An example of a tour operator. Falcon. URL: An example of a tour operator. Federation of tour operators. URL: My Travel. URL: An example of a tour operator. The Association of Independent Tour Operators. URL: World Travel Guide. URL: World Travel Guide on line. Includes Country Guides, City Guides, Airport Guides, Attractions Guides, Events Guides, Tour Guides and Cruise Guides. OCR Level 3 Nationals in Travel and Tourism 5

6 Grading Assessment Objective AO1 Describe the role and functions of a tour operator Pass Merit Distinction Candidates provide a basic description of some of the role and functions of a tour operator using correct terminology. Candidates demonstrate limited understanding of how the functions work together. Candidates provide a well developed description of the role and functions of a tour operator using correct terminology. Candidates demonstrate some understanding of how the functions are interdependent. Candidates provide a detailed description of the role and functions of a tour operator using correct terminology. Candidates demonstrate a thorough understanding of how the functions are interdependent. AO2 Illustrate the structure and scale of the UK tour operating sector Candidates provide a basic description of the structure and scale of the UK tour operating sector. Information provided is current, but from easily found sources. Basic information is provided on integrated companies with limited examples of other operators. Candidates provide a well developed description of the structure and scale of the UK tour operating sector. Information provided is current and from appropriate sources. Clear information is provided on integrated companies with a range of appropriate examples of other operators. Candidates provide a detailed description of the structure and scale of the UK tour operating sector. Information provided is current, and from a range of sources. Detailed information is provided on integrated companies with a variety of wellchosen examples of other operators, including some less obvious. AO3 Outline the different types of contract and terms that may apply to airlines, accommodation and other suppliers Candidates outline briefly the different types of contract and terms that may apply to airlines, accommodation and other suppliers. The information provided is simplistic and candidates demonstrate limited understanding. The outline includes correct terminology and is supported with obvious examples. Candidates outline clearly the different types of contract and terms that may apply to airlines, accommodation and other suppliers. The information provided is relevant and candidates demonstrate some understanding. The outline includes correct terminology and is supported with appropriate examples. Candidates outline in full the different types of contract and terms that may apply to airlines, accommodation and other suppliers. The information provided is accurate and relevant and candidates demonstrate a thorough understanding. The outline includes correct terminology and is supported with a variety of well chosen examples. Candidates provide a detailed comparison of the main methods used by two tour operators to sell their products. The information provided shows thorough understanding of the methods and their use. AO4 Compare the main methods used by two tour operators to sell their products Candidates attempt to compare the main methods used by two tour operators to sell their products. The information provided is simplistic and descriptive rather than comparative. Candidates provide a clear comparison of the main methods used by two tour operators to sell their products. The information provided shows some understanding of the methods and their use. 6 OCR Level 3 Nationals in Travel and Tourism

7 Assessment Objective AO5 Identify a range of external factors that could affect tour operator programmes and analyse the impact of one recent event Pass Merit Distinction Candidates identify a limited range of external factors that could affect tour operator programmes. They provide a simple analysis of the impact of one recent event. Candidates identify a range of external factors that could affect tour operator programmes. They provide a clear analysis of the impact of one recent event. Candidates identify a wide range of external factors that could affect tour operator programmes and provide a critical analysis of the impact of one recent event. OCR Level 3 Nationals in Travel and Tourism 7