Tour Operator - Business Simulation

Overview of Simulation

In the Tour Operator business simulation, students work in teams to manage their own online travel and tourism company. They're tasked with deciding which destinations to offer to their main target group, what service levels should be required, what allotment deals to procure, and what prices to charge. The overall aim is to improve company performance, increase market share, and outperform the competition by gaining points via the simulation's 'Balanced Scorecard'.

Format of Tour Operator

This business simulation is played in rounds where each round is equivalent to one year of operations.

In each round, the teams conduct an internal and external analysis consisting of indicators such as market shares (in comparison to other student teams), market segments, financial position, news events, local representative results, Balanced Scorecard and more.

Based on their analysis they’ll conduct their company’s strategic focus and start implementing the strategic focus on a tactical level. They will create allotment contracts with hotel chains all over the world, determine selling prices, tasks for their local representatives, service levels and excursions.

Learning Objectives

• Demonstrate an understanding of the complexities of the tourism industry, identifying the numerous stakeholders involved.
• Assess and evaluate the role that each stakeholder plays in the development of tourism destinations.
• Analyse the importance of interrelated relationships between stakeholders.
• Make recommendations and provide solutions for effective tourism development.
  
  

ASSESSMENT ideas and examples

• Ask students to individually keep track of decisions in a logbook (possibly from their own management position’s perspective) about their tourism management strategy and operational decisions.
• Written group report in which the teams write down each round what decisions they have taken and what they think the outcomes will be. They reflect on the decisions made each new round and continue doing this throughout the management simulation.
• 360 Peer assessment in which students have to allocate a hundred points among their fellow team mates based on their contribution.
• Organize a “Dragon’s Den” elevator pitch, a presentation to ‘investors’, played by the other student teams or lectures.
• The stock exchange could become part of the assessment. Their share price or ranking position can be translated into 25% of their final mark.