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EU Holidays
The profit margin for the travel agency industry in Singapore, which mostly offered travel packages to Asia and Europe, was very thin. An up-and-coming travel agency faced the dilemma of offering maximum customer satisfaction while keeping its operating cost (e.g., fees for its tour guides) low. Rather than simply assigning travel guides to tours by trial and error, a director of the travel agency decided to use an optimization template. This case requires the development of an optimization template to advise management on the optimal assignment of tour leaders (within constraints of their availability and required rest periods) and generate maximum satisfaction among the customers. Considerations for tour-guide assignment include tour guides’ customer satisfaction levels, expertise on particular tours, visas for specific countries, and employment plans.