definition tour operator

Tour Operators

Tour operator is an organization, firm, or company who buys individual travel components, separately from their suppliers and combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen, is called a Tour Operator .

More precise tour operators are primarily responsible for delivering and performing the services specified in a given package tour. They can provide these services themselves as some have their own cars and coaches, hotels, and other travel-related services or can obtain these from the other suppliers. That is why they are called manufacturers of tourism products .

Tour operators are sometimes called wholesalers but this is partially true because a wholesaler buys goods and services in bulk at his own account to prepare a tour package and then retails it through the travel agencies or directly to clients. However, a tour operator who has his own one or more tourists products components, (SOTC, TCI, Thomas Cook, Indo Asia KUONI formulates a new tourist product for example ‘ inclusive tours .’

Tour operators generally offer a variety of package tours to cater to the needs of different kinds of travelers.

Definitions of Tour Operator

Poyther (1993) defines, “tour operator is  one who has the responsibility of putting the tour ingredients together, marketing it, making reservations and handling actual operation.”

Holloway (1992) stated that tour operations undertake a distinct function in the tourism industry, they purchase separate elements of tourism products/services and combine them into a package tour which they sell directly or indirectly to the tourists.

Today, tour operators have become highly competitive. They endeavor to achieve a high volume of turnover, and maximum International and domestic market share by effectively operating. Moreover, the success of many developed and developing nations as tourists destinations depend heavily on a tour operator’s ability to attract tourists, development and promotion of tourism plant, diversification of tourism product and their social responsibilities to develop a remote and backward area.

Types of Tour Operators

Tour operators are basically categorized into four types . These are categories on the basis of their nature of the business and its operations.

Inbound Tour Operators

Outbound tour operators, domestic tour operators.

• Ground Operators

These are also known as incoming tour operators . Technically, the operators who receive guests, clients/tourists, and handle arrangements in the host country are c alled inbound tour operators . For example, a group of American Tourists is coming through TCI Ltd. to India and the company makes arrangements and handles the group in India then TCI is called an inbound tour operator.

Incidentally, the inbound traffic to the country for the last two decades has been decreasing. Essentially the tour operators need to adopt innovative marketing strategies and should introduce a special interest tour to cater the special needs of Japanese, Americans, French and British people.

Tour operator who promote tours for foreign destinations, maybe business tour or leisure tour is called outbound tour operators . For example a group of American tourists going to a trip of India and Thomas Cook handle arrangement in America like as ticket reservation, hotel booking etc. then Thomas Cook is called Outbound Tour operators in the context of America.

Domestic tour operators are those who assemble, combine tourist components into inclusive tours and sell it to the domestic travelers. In general, these tour operators provide travel services within the tourist’s native country.

The domestic tour operators operate within the boundary of the home country and offer package tour to the travelers viz. Domestic inclusive tours or independent tours.

Ground Operators/Destination Management Companies

These are commonly known as handling agencies and their main function is to organize tour arrangements for incoming tourists on the behalf of overseas operators. Let us take the case of India as a destination that – has a varied culture.

When a tour operator himself promotes beach holidays, wildlife holidays, adventure tours, heritage tours at the different places, the difficulty arises. It is the ground operator then who by handling the incoming travelers in the same season but at different places ensures that the entire operation is according to the package tours or agreements.

Sometime when a handling agency is at a prominent tourist place i.e., Delhi and it has to make arrangements to Goa, then it contracts (If it has no office of its own) with a local operator (known as excursion agent) to handle the arrangement on his behalf.

Why Ground Operators?

Obviously, the tour operation companies do not have close contact with suppliers, governments, destinations and so on. It leaves no choice with the companies but to appoint handling agencies at the destinations.  The main reasons are:

• Introduction of new products or plant to promote an exotic destination.
• Lack of Government regulations.
• Lack of personal contract.
• Language problem.
• The company cannot establish its own branch.

Recognizing the very fact that the reputation, performance, and profitability of tour company in its own market largely depends on the efficiency and effectiveness of ground operators, it has because necessary for the company to consider various factors before the selection of a handling agency, they are:

• Size of business
• Professional staff
• Length of business
• Area of operation/Product line
• Market share

Functions of Ground Tour Operators

Over the years of functions and activities of the destination, companies have changed drastically to cope with the changing environment of the tourism industry. In fact, today’s destination companies have become more professional and are bound to provide personalized travel services to the tourists. The following functions are performed by ground tours operators:

• Land arrangement
• Contract and Negotiate with other vendors
• Handling of Arrival and departure procedure
• Planning and organizing local package tour
• Escorting the tourists
• Providing market information
• Costing and pricing package tour

Practically, if we see the working of the travel agencies and tour operators in the industry we find that most of the organizations are performing different types of activities like the retail travel agency , wholesale travel agency, and tour operators.

The travel agency business is no longer an amateurism. Over the last two decades, the pattern and structure of travel agencies have changed to meet tough challenges in the international market. Today, small-scale agencies are finding the travel industry increasingly complex.

Thus, the small and medium scale travel agencies are disappearing or merging or falling instead of rising. On the other hand, a new concept has also emerged i.e. tour operation business . The tour operation business is new but a maturing business at the global level.

Functions of Tour Operator

A tour operator is an organization, firm, or person who is responsible for the actual arrangement of transport and accommodation facilities on any tour or vacations. They are also responsible for operating and providing vacation through contracting, booking, and packaging together of the various components of the tour such as hotel, transportation, meals, guides, optional tours, and sometimes flights.

A tour operator is like a service provider, providing the most convenient option for tourists to stay, visit, as well as leave from the city. A tour operator owns a high volume of travel services across carriers, services, and accommodation. Some most important functions of the tour operators are following as:

Planning a Tour

The most important functions of the tour operators are planning a tour. Tour operators plan a tour and make tour itinerary which contains the identification of the origin, destination and all the stopping point in a traveler’s tours. A prospective tour operator also gives advice to intending tourists in various types of tour programmes, which they may choose for their leisure or commercial travel.

Making Tour Package

Tour operator buys individual travel components, separately from there suppliers and combines them into a package tour. Tour operators make tour package by assembling various travel components into a final product that is called tour package which is sold to tourist with own price tag. Making tour packages is also an important function of Tour Operator.

Arranging a Tour

Tour operators make tour package and also arrange a tour according to tourist demands. Tour operators arrange the tour package and various tourists activities to provide the best experience to tourists/traveler.

Travel Information

Whatever the size of tour operators, it has provided necessary travel information to the tourists. This task is utterly difficult and very complicated. A tour operator must give up-to-date, accurate and timely information regarding destinations, modes of travel, accommodation, sightseeing, immigration, health and security rules about various permits required to travel in a particular area etc.

Reservation

It is a very important function of all type tour operators and travel agencies. Tour operator makes all the reservation by making linkages with accommodation sector, transport sector and other entertainment organizations to reserve rooms, and seats in cultural programmes and transportation.

Travel Management

Tour operators manage tour from beginning to the end of the tour. A tour operator has the responsibility to look after the finer details of a vacation or tour such as hotel, accommodation, meals, conveyance etc. Tour operators provide travel guide, escorting services and arrange all travel related needs and wants.

Evaluate the Option Available

Tour operators evaluate all available options to provide a unique or unforgettable travel experience to tourists during their journey. Tour operators evaluate the various options available for a tour package and provide best of them to tourists.

Tour Operators makes tour packages and promote them into various tourists markets at domestic as well international level. Tour operators promote a travel destination to attract a large group of tourists at domestic as well as international level. In the promotion of tourist destination, tour operators play a key role. Travel agencies or tour operators are called as image builder of a country.

Sales and Marketing

Tour operators do sales and marketing of tourist products. Tour operators buy individual travel components, separately and combine them into a tour package, which is sold with their own price tag to the public directly. Tour operators do marketing of tourist destinations and tourism product to attracts the attention of the tourists/travelers.

Taking Care of Glitch

Tours operators are also called handling agencies which handles tour package and take care of all the glitches and problems arises during a tour package. Tour operators fix the glitches and provide the best available alternative to tourists during their journey.

Importance of Tour Operators

Tours operators play a key role in the tourism sector. Tour operators create tourist products, promote them a finally sold them to tourists.

Tour operators provide the best and competitive price to the tourist. Tour operators negotiate with suppliers of tourism products such as hotels, airlines and provide the best possible price to the tourist. Tour operators buy tourist products in bulk and get huge discounts from suppliers. So that they provide tourist products at a cheap price.

Tour operators organized a tour in the best way. They personalize and make sure each and every component of the tour is well-taken care. Tour operators provide the best travel experience during a tour. Tour operators save tourists time and money.

Tour operators provide immediate support systems at the host country as well as a foreign land. When tourists travel to a foreign land and things get uncertain, maybe its a health or loss of documents and need to return back or change of travel plan. A qualified tour operator takes care of all these unseen events with efficiency.

Tour operator caters to the needs of tourists on the based on their taste of travel. Tour operator provides all the best available option according to tourist needs and demands

Difference between Travel Agent and Tour Operator

There is a lot of confusion about the difference between tour operators and travel agents what exactly makes them different. The main difference between a Travel agent and Tour operator are following as:

• A travel agent is a person who has full knowledge of tourist product – destinations, modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of the product providers/principals and in return get a commission.
• Tour operator is an organization, firm, or company that buys individual travel components, separately from their suppliers and combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen.
• Tour operators are like wholesalers and travel agents are the retailers.
• A tour operator makes the package holidays up and the travel agents sell them on.
• Tour operator taking up the bulk of the responsibilities and his fee is obviously much greater than a travel agent.
• A tour operator has the responsibility to look after the finer details of a vacation or tour such as hotel, accommodation, meals, conveyance, etc.

The wholesale travel agencies may offer or operate the package tours or may specialize in developing tours for inbound as well as outbound travelers. They are often referred to as tour operators, but there is a difference between Wholesale Travel Agencies and Tour operators .

What is a tour operator and how does it work?

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The tour operator is an integral component of tourism , yet many people are unclear about what a tour operator actually is or what they do.

In this article I will explain what a tour operator is and why tour operators are important. I will also talk about what the difference between a tour operator and a travel agent is, as well as the different types of tour operators.

What is a tour operator?

Definitions of tour operator, importance of tour operators, the difference between a tour operator and a travel agent, what does a tour operator do, products and services sold by tour operators, inbound tour operators, outbound tour operators, domestic tour operators, ground tour operators, the association of independent tour operators, the tour operator: to conclude.

Tour operators are inextricably linked to the package holiday model. The tour operator is the person or organisation who creates the package. A travel agency is then used to sell the package holiday.

In the chain of distribution , the tour operator is represented by the term ‘wholesaler’. This is because the tour operator is responsible for purchasing products of services in bulk and then redistributing them as a packaged product to consumers.

To put it simply, a tour operator is the person or organisation who takes the individual elements of a holiday (e.g. transfer, hotel, transport) and packages these together.

The types of package vary. Most commonly, tour operators are associated with mass tourism and the traditional package holiday market. However, tour operators do also play an important role in the production of niche tourism products and services too.

If you’re looking for a formal definition of a tour operator with a reputable source, you may want to reference Polyther, who in 1993, defined the tour operator as;

‘[an organisation or person] who has the responsibility of putting the tour ingredients together, marketing it, making reservations and handling actual operation’.

Similarly, Holloway (1992) states that;

tour operations undertake a distinct function in the tourism industry, they purchase separate e lements of tourism products/services and combine them into a package tour which they sell directly or indirectly to the tourists .

The Organisation for Economic and Cultural Development (OECD) define a tour operator as follows;

‘Tour operators are businesses that combine two or more travel services (e.g., transport, accommodation, meals, entertainment, sightseeing) and sell them through travel agencies or directly to final consumers as a single product (called a package tour) for a global price. The components of a package tour might be pre-established or can result from an “a la carte” procedure, in which the visitor decides the combination of services he/she wishes to acquire.’

Tour operators are an important part of the tourism industry .

Tour operators make the logistics of organising a holiday much easier for the consumer. This makes people more likely to travel, more often.

Tour operators have a lot of power. If they choose to sell holidays in a particular location, for example, then that location will receive many of the associated positive and negative economic impacts of tourism .

Tour operators are often vertically or horizontally integrated with other organisations, such as travel agents and airlines. This allows for easier management and distribution of products.

Tour operators typically build holidays en masse. This means that economies of scale play a key role in driving down prices- the more you produce the cheaper the product becomes! This is obviously beneficial to the consumer and helps travel agents to have a competitive advantage when selling holidays.

Many people are not aware that a travel agent and a tour operator are actually two totally different organisations and they are not aware of the difference between a tour operator and a travel agent.

In fact, it is quite easy to understand this difference!

A tour operator is the organisation which puts the different elements of a holiday together. And the travel agent is the organisation who sells it to the consumer.

Whilst this differentiation is pretty easy to comprehend, it is easy to understand why people get tour operators and travel agents confused. This is largely because many organisations will operate under the same company. For example, TUI has a tour operator and a travel agent (and an airline too). As a result, many people do not realise that in actual fact, there are two separate organisations doing two separate jobs.

Ultimately, a tour operator is responsible for putting the different elements of a holiday together into a commodified package.

To do this, there are a number of different roles and responsibilities that tour operator staff will have. This includes:

• Data analysis- which destinations will sell best, how many holidays should they sell etc
• Assessing suitability of accommodation, transfer and transport options
• Liaising with stakeholders e.g. coach operators, airlines, hoteliers and resort representatives
• Negotiating contracts
• Confirming reservations with airlines/hotels
• Managing and responding to customer feedback
• Undertaking market research
• Production of marketing material
• Providing pricing information
• Handling bookings, invoicing and issuing of tickets
• Working with travel consultants from different travel agencies to put holiday packages together

Tour operators have a number of products and services that they sell, depending on their specific business model, business intentions and target market. A tour operator will typically package together two of more elements to form a packaged product, which is then sold at an inclusive price.

Examples include:

• Package holidays
• Accommodation
• Information on destinations
• Representative service in resorts

Types of tour operator

Tour operators come in all shapes and sizes. Some are large, multinational organisations and other are small, independent business.

Different types of tour operators develop products for different types of tourism . This can include the mass market, niche tourism market, special interest tourism, the luxury market, tailor-made products and dynamic packages .

There are four different types of tour operators, which I will explain below.

• Inbound Tour Operators
• Outbound Tour Operators
• Domestic Tour Operators
• Ground Operators

An inbound tour operator is one who facilitates inbound tourism .

The aim of an inbound tour operator is to bring tourists in to a particular country or countries.

Inbound tour operators will often collaborate with local travel agencies and transport operators to facilitate travel arrangements for their customers.

Inbound tour operator example: A group of German tourists conduct a tour of China, encompassing a visit to Shanghai , Hangzhou and the Yellow Mountains . The tour operator who organises their travel is Chinese-based company China Highlights . This company is based locally in China and they offer local, Chinese tours.

An outbound tour operator is one who facilitates outbound tourism .

The aim of an outbound tour operator is to send tourists out of a particular country or countries.

Outbound tour operators will often collaborate with foreign travel agencies and transport operators to facilitate travel arrangements for their customers.

Outbound tour operator example : A family of four from Liverpool, UK want to book an all-inclusive summer sun holiday in Alicante. They book through TUI , the largest tour operator in Britain, who specialises in outbound travel. They are based in the UK, but they work with foreign partners to facilitate holidays overseas.

A domestic tour operator is one who facilitates domestic tourism .

The aim of a domestic tour operator is to organise travel within a particular country or countries.

Domestic tour operators will often collaborate with domestic travel agencies and transport operators to facilitate travel arrangements for their customers. Domestic tour operators will often also serve the inbound tourism market.

Domestic tour operator example : A group of twenty-something boys from Chicago want to travel to Florida for the spring break holiday. They want to do a tour of the local attractions in the area and have some time to relax on the beach . They organise their travel through the tour company, Trek America . Staff at this company are experts in domestic travel within the USA.

A ground tour operator is an organisation who dopes the ground work as grass roots level.

Many tour operators do not have connections in all places around the world, therefore they build a network of connections to help them run their business.

Essentially, some of the work is passed on to a third party, known as a ground operator. This work may include negotiating local contracts, liaising with local suppliers and providing market data, amongst other things.

This is especially common for small tour operators.

You may also hear ground tour operators referred to as handling operators or handling agents.

Ground tour operator example : A backpacker wants to ‘give something back’ and book a volunteer tourism holiday in Kerala. She wanted to use a known and trusted tour operator to book her trip so she booked it with Intrepid Travel . Intrepid Travel create and sell adventure holidays all over the world, and it is impossible for them to have contacts and every staff in every corner of the globe. Therefore they work with local ground operators, who do the work on the ground. In this instance, the ground organisation is Iris Travel – a tour operator based in Kerela, India.

The Association of Independent Tour Operators , abbreviated as AITO, is a travel industry trade group (like  ABTA  or ATOL) based in Britain. They launched in 1976.

The AITO represents around 120 independent  tour operators  across 200 countries.

These tour operators provide access to a huge range of activities including city breaks, safaris, luxury holidays and much more. The AITO is based in Twickenham, south-west London.

The AITO does a variety of things. Most importantly, you can be reassured that your holiday is well-protected thanks to the Association of Independent Tour Operators.

They assess every member financially as well as by their own business practice code before granting membership; this means that you are guaranteed clear and accurate descriptions of holidays as well as tour standards that are consistently monitored.

Tour operators are an important part of the tourism industry, and with AITO, you have added security when booking your travels through a tour operator. Hopefully after reading this article you are now confident with what a tour operator is, how these organisations work and the different types of tour operators operating the market.

If you liked this article, why not take a look at these too?

• Types of travel agents | Understanding tourism
• What is e-tourism and how is it changing travel?
• 10 jobs in travel and tourism that will be BIG in 2022 and beyond
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What is a Tour Operator: A Travel Definition

What is a tour operator.

When looking to work in the travel industry the big decision is between whether you want to be a tour operator or a travel agent. So, what is a tour operator?

Definition of a Tour Operator

A tour operator controls, books and devises the whole trip. They create a package holiday by combining all elements such as hotel, airport transfers, activities, restaurants, tours and such like. A tour may not include all of these elements, the list is purely an example.

The Difference between a tour operator and a travel agent is that a tour operator makes the package and can sell direct to consumer. A travel agent sells the packages created to the consumer.

In essence, the different roles do what they say on the label-

A tour operator – operates the tour

A travel agent – is purely an agent for holidays selling tours that are provided.

Creating a Package Holiday

Tour operators create a package holiday. The Definition of a Package Holiday means the arranged combination of at least two of the following components:

• Accommodation
• Other tourist services that account for a significant proportion of the package.

The most common package holidays that the consumer sees are accommodation and flights, accommodation and airport transfer or entire bespoke tours. A tour operator does not always sell flights, they can also be purely ground-based.

Cycling holidays, yoga retreats, wellness holidays, detox retreats, skiing holidays, hiking breaks, theatre breaks, cookery escapes are all examples. This list is far from exhaustive.

All package holidays are subject to Package Travel Regulations .

Niche Tour Operators

The reason tour operating began was to offer packages to untouched parts of the world. The layman didn’t have access to make arrangements in less well-known areas of the world. In today’s world we have the internet and so the world has become very small and incredibly accessible. However, there is a bigger demand for niche tour operators today than ever before.

The travel industry is one of the fastest-growing industries in the world and travel is now seen as a necessity in people’s lives, especially millennials. Niche tour operators offer some fabulously unusual trips such as seeing orangutans in Borneo to driving holidays in Albania to photography tours in the North Pole – every corner of the world can be discovered. It is an incredibly exciting time for the travel industry. The question may not simply be what a tour operator is, but what they can offer.

Starting As A Tour Operator

If you are looking to start as a tour op. there are a plethora of options to enable you to develop and expand your business – more so than ever before. The fundamental point of running your business successfully is to appreciate that consumer protection is the key in travel.

If you’d like to discuss this further, please get in contact with one of Protected Trust Services’ (PTS) lovely staff members by calling 0207 190 9988 . Or, you can visit our member support and travel trust account pages to learn more about how we protect you.

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What Does a Tour Operator Do?

Find out what a Tour Operator does, how to get this job, salary information, and what it takes to succeed as a Tour Operator.

The Tour Operator plays an essential role in the travel and tourism industry by designing, organizing, and conducting tours and travel packages for individuals or groups. They ensure that the travel experience is seamless, enjoyable, and enriching, taking care of logistics such as transportation, accommodation, and itinerary planning. By maintaining strong relationships with various stakeholders including hotels, guides, and transport services, they are able to curate experiences that meet the diverse needs and preferences of travelers. Their expertise in understanding destinations, cultural nuances, and local attractions enables them to create packages that offer more than just a visit, but a deep dive into the essence of the place. Through meticulous planning and coordination, the Tour Operator ensures that each journey is memorable, safe, and aligned with the expectations of their clients.

Tour Operator Job Duties

• Design and develop diverse tour packages to meet the interests and requirements of different groups of tourists, including itinerary planning, accommodation selection, and transportation arrangements.
• Negotiate contracts with service providers such as hotels, transportation companies, and activity providers to secure the best rates and services for tours.
• Market and promote tour packages through various channels, including online platforms, travel expos, and partnerships with travel agencies, to attract potential customers.
• Provide detailed pre-tour information to clients, including travel tips, itinerary details, and necessary preparations, to ensure they are well-prepared for the trip.
• Lead and manage tours, ensuring all aspects of the tour run smoothly, from coordinating transportation to managing schedules and addressing any issues that arise.
• Offer insightful and engaging commentary on the cultural, historical, and natural significance of tour destinations to enhance the client’s experience.
• Handle financial transactions related to the tour, including collecting payments from clients, managing budget allocations for different aspects of the tour, and settling accounts with service providers.
• Collect feedback from clients post-tour to assess the quality of the experience and identify areas for improvement in future tour offerings.

Tour Operator Salary & Outlook

Tour Operator salaries vary based on experience, niche market expertise (e.g., adventure, luxury, cultural tours), language skills, and the complexity of tours managed. Additionally, the size and reputation of the employing company, along with the individual’s negotiation skills and client satisfaction rates, significantly influence earnings.

• Median Annual Salary: $51,975 ($24.99/hour)
• Top 10% Annual Salary: $80,500 ($38.7/hour)

The employment of tour operators is expected to grow faster than average over the next decade.

This growth is driven by increasing global travel demand, a rising interest in unique, personalized travel experiences, and the expansion of the middle class in emerging markets. Tour operators, adept at crafting tailored itineraries and navigating complex travel logistics, are essential in meeting these evolving consumer preferences.

Tour Operator Job Requirements

Education: A Tour Operator typically has diverse educational backgrounds, with many having completed some college courses, often in tourism, hospitality, or business management. High school diploma holders also qualify, ideally with subjects focused on geography, history, and languages. Those with Bachelor’s or Associate’s degrees usually major in travel, tourism management, or related fields, enhancing their understanding of global cultures, travel regulations, and customer service essentials. Education in marketing and communication is also beneficial for this role.

Experience: Tour operators often come from diverse backgrounds, with many entering the field with minimal to moderate experience. A significant portion starts with less than a year’s experience, indicating on-the-job training is common and crucial. This training encompasses customer service, itinerary planning, and safety protocols. Some individuals transition into the role with no prior experience, learning entirely through structured training programs offered by employers. Experience in travel planning, group management, and cultural knowledge is beneficial, highlighting the importance of adaptability and a keen interest in travel and culture. Continuous learning and skill development are key components of succeeding as a tour operator.

Certifications & Licenses: Certifications and licenses for Tour Operators may vary by location but generally include a business license and, in some cases, a tour operator license. Specialized certifications such as the Certified Tour Professional (CTP) offered by the National Tour Association can enhance credibility but are not universally required. No specific certifications or licenses are universally mandated across all regions or types of tour operations.

Tour Operator Skills

Itinerary Planning: Selecting destinations and activities that align with clients’ preferences and comfort levels is crucial for tour operators. They must have a comprehensive understanding of local attractions, cultural nuances, and logistical considerations to craft journeys that are both leisurely and adventurous, ensuring a seamless and enriching travel experience.

Risk Management: Tour operators are tasked with identifying potential hazards and taking preventative actions to safeguard their clients’ safety and satisfaction. A meticulous attention to detail and the ability to foresee and address risks, ranging from natural disasters to health emergencies, are imperative for ensuring secure travel experiences.

Supplier Negotiation: Achieving favorable terms with hotels, transportation providers, and local attractions is critical for the profitability and competitiveness of tour packages. Effective negotiation skills, informed by an understanding of market trends and strong relationships, are necessary to secure deals that benefit both the company and its clients.

Customer Service Excellence: Handling inquiries, complaints, and special requests with patience and positivity is essential. Tour operators must efficiently resolve issues and proactively enhance the customer’s experience, transforming potential challenges into opportunities for outstanding service.

Destination Knowledge: Deep familiarity with the destinations offered is required, encompassing local customs, language nuances, and lesser-known attractions. This enables the creation of tours that are engaging, culturally enriching, and provide travelers with a memorable and authentic experience.

Multilingual Communication: The ability to communicate fluently in multiple languages facilitates effective interaction with a diverse clientele. It ensures that all participants fully comprehend the itinerary, safety instructions, and cultural nuances, allowing for more personalized and engaging experiences that foster a deeper connection between tourists and their destinations.

Tour Operator Work Environment

Tour operators often find themselves in a dynamic work environment, where the office can range from a traditional desk setting to the great outdoors, depending on the day’s needs. The workspace is equipped with standard office tools and specialized software for planning and booking tours, requiring a good grasp of technology.

Work hours can be irregular, with peak seasons dictating longer days and the possibility of work on weekends and holidays. The dress code tends to be casual but may require formal attire for meetings with partners or clients.

The role is inherently social, involving constant interaction with clients, vendors, and team members, making a collaborative and adaptable culture crucial. Travel is a significant component, offering opportunities to explore new destinations but also demanding flexibility and resilience.

Health and safety are paramount, especially when conducting tours, necessitating knowledge of first aid and emergency procedures. The pace can be fast, balancing multiple tours and clients, requiring excellent organizational skills and a calm demeanor.

Professional development is encouraged, with many companies offering training in new destinations, languages, or tour management software, supporting career growth within the industry.

Advancement Prospects

Tour operators can advance their careers by specializing in niche markets, such as eco-tourism or adventure travel, to cater to specific client interests and stand out in the industry. Developing a deep understanding of a particular region or type of travel can lead to becoming a sought-after expert, potentially opening opportunities for higher-level positions within larger travel companies or the foundation for a successful independent business.

Progression can also come from embracing technology, utilizing digital marketing, and social media to enhance customer engagement and expand market reach. This digital proficiency can lead to roles in digital strategy or marketing within the travel sector.

Leadership roles are another advancement path. With experience, a tour operator can transition into managerial positions, overseeing teams, or entire operations. This might involve strategic planning, financial management, and business development responsibilities, contributing to the broader success of a travel organization.

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Understanding the Role of a Tour Operator in the Travel Industry

A tour operator plays a crucial role in the travel industry by organizing and arranging travel packages for individuals or groups. They act as an intermediary between travelers and various travel service providers, ensuring that all aspects of a trip are well-coordinated and executed seamlessly. In this comprehensive glossary article, we will delve into the intricacies of what a tour operator is, the services they provide, and the key responsibilities they undertake to offer travelers a memorable and hassle-free experience.

Definition of a Tour Operator

A tour operator is a company or individual that designs, organizes, and sells travel packages to various destinations. These packages often include a combination of transportation, accommodation, meals, activities, and other services tailored to meet the needs and preferences of different types of travelers. Tour operators work closely with travel agents, hotels, airlines, and other service providers to create comprehensive and well-planned itineraries for their clients.

Services Provided by Tour Operators

Tour operators offer a wide range of services to cater to the diverse needs of travelers. Some of the key services provided by tour operators include:

• Creating customized travel packages based on the preferences and budget of clients.
• Booking transportation, including flights, trains, buses, and rental cars.
• Arranging accommodation at hotels, resorts, lodges, or other types of lodging.
• Organizing guided tours, excursions, and activities at various destinations.
• Providing assistance with visa applications, travel insurance, and other travel-related documentation.
• Offering 24/7 customer support and emergency assistance during the trip.

Key Responsibilities of a Tour Operator

Tour operators are responsible for managing all aspects of a traveler's journey, from the initial planning stages to the completion of the trip. Some of the key responsibilities of a tour operator include:

• Researching and selecting destinations, attractions, and accommodations for travel packages.
• Negotiating contracts with airlines, hotels, and other service providers to secure the best rates for clients.
• Creating detailed itineraries that outline the day-to-day activities and logistics of the trip.
• Coordinating transportation, accommodation, meals, and activities to ensure a seamless travel experience.
• Providing travelers with all necessary information, including travel documents, packing lists, and safety tips.
• Monitoring the progress of the trip and addressing any issues or concerns that may arise during the journey.
• Collecting feedback from clients to improve future travel packages and services.

Types of Tour Operators

There are several types of tour operators that cater to different segments of the travel market. Some of the most common types of tour operators include:

• Inbound Tour Operators: These operators specialize in organizing travel packages for foreign tourists visiting a specific destination or country.
• Outbound Tour Operators: These operators cater to local travelers looking to explore international destinations.
• Domestic Tour Operators: These operators focus on arranging travel packages for travelers exploring their own country.
• Adventure Tour Operators: These operators specialize in organizing adventurous and outdoor activities, such as hiking, trekking, and camping.
• Luxury Tour Operators: These operators offer high-end travel packages with luxury accommodations, private transportation, and exclusive experiences.

Benefits of Using a Tour Operator

There are several benefits to using a tour operator when planning a trip. Some of the key advantages include:

• Expertise and Knowledge: Tour operators have in-depth knowledge of destinations, attractions, and travel logistics, ensuring a well-planned and memorable trip.
• Convenience: Tour operators handle all aspects of trip planning, from booking flights to arranging activities, saving travelers time and effort.
• Cost Savings: Tour operators often have access to discounted rates and special deals from service providers, helping travelers save money on their trip.
• Peace of Mind: Tour operators provide 24/7 support and assistance during the trip, giving travelers peace of mind and security.
• Customization: Tour operators can tailor travel packages to meet the specific needs and preferences of individual travelers, ensuring a personalized and unique experience.

In conclusion, a tour operator plays a vital role in the travel industry by offering travelers a convenient, well-planned, and memorable travel experience. From creating customized travel packages to coordinating transportation and activities, tour operators handle all aspects of trip planning to ensure a hassle-free journey for their clients. By understanding the services provided, key responsibilities undertaken, and benefits offered by tour operators, travelers can make informed decisions when planning their next adventure.

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What is a Tour Operator?

Embarking on a journey to a new destination is an exciting adventure that brings with it the promise of discovery, cultural immersion, and unforgettable experiences. While the allure of wanderlust beckons, the complexities of planning a seamless trip can sometimes be daunting. This is where tour operators step in to create a bridge between your travel dreams and reality. In this blog, we’ll delve into the world of tour operators, highlighting their benefits and comparing them to traditional travel agencies.

A tour operator is a travel professional or company that designs, organizes, and sells comprehensive travel packages that include various elements such as transportation, accommodation, activities, meals, and more. These packages are carefully curated to offer travelers a hassle-free and well-structured experience. Tour operators work closely with local suppliers, hotels, transportation providers, and guides to ensure that every aspect of your journey is thoughtfully planned and executed.

The Benefits of Choosing a Tour Operator

Expertise and Local Insight: Tour operators possess in-depth knowledge of the destinations they offer. They have the ability to craft itineraries that showcase the must-see attractions as well as hidden gems that might go unnoticed by the average traveler.

Saves Time and Effort: Planning a trip can be time-consuming and overwhelming. Tour operators take the burden off your shoulders by handling all the logistics, from booking accommodations and arranging transportation to organizing activities.

Tailored Experiences: While group tours are popular, tour operators also offer customized itineraries for travelers who prefer a more personal touch. They consider your preferences, interests, and travel style to create a journey that suits you perfectly.

Seamless Transitions: Moving from one location to another can sometimes be tricky, especially in unfamiliar places. Tour operators ensure smooth transitions between destinations, taking care of transportation and minimizing any potential stress.

Access to Exclusive Experiences: Tour operators often have established relationships with local guides and suppliers, granting you access to unique experiences that might not be available to independent travelers.

Safety and Support: Traveling to a foreign country can present unexpected challenges. Tour operators provide a safety net, offering assistance and support in case of emergencies or unforeseen circumstances.

Tour Operators vs. Travel Agencies

While both tour operators and travel agencies play pivotal roles in the travel industry, they differ in their approach and scope:

Tour Operators: As discussed, tour operators focus on crafting comprehensive travel packages that encompass various aspects of a journey. They specialize in creating cohesive experiences, handling everything from accommodations to activities.

Travel Agencies: Travel agencies primarily assist with booking individual components of a trip, such as flights, accommodations, and car rentals. They offer flexibility but often require travelers to assemble these components into a coherent itinerary themselves.

Why Choose a Tour Operator?

Holistic Experience: Tour operators offer a complete, well-rounded experience that takes the stress out of planning.

Local Insights: Their expertise ensures that you gain insights into the culture, history, and lifestyle of your destination.

Time and Effort Savings: With all the logistics managed for you, you can fully immerse yourself in the journey without worrying about details.

Peace of Mind: The support and assistance of a tour operator provide a safety net, enhancing your sense of security while traveling.

Exclusive Access: Tour operators often provide access to unique experiences that are carefully curated to enhance your journey.

In the realm of travel, tour operators emerge as true architects of unforgettable experiences. With their dedication to crafting seamless journeys, local insights, and personalized touch, they stand out as ideal partners for turning your travel dreams into reality. When considering your next adventure, think beyond the conventional travel agency and embrace the benefits of choosing a tour operator. Your voyage awaits – let Juniper guide you on a path to remarkable discoveries.

Thanks for checking out Juniper Tours’ Travel blog! We hope you enjoyed your read and if you’re looking for more content please check out our other blog posts ! If you’re looking for help planning your next travel adventure then book a FREE travel consultation with one of our Travel Specialists today!​

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Tour Operators: Types, Functions, Importance, Difference

• Post last modified: 19 January 2023
• Reading time: 18 mins read
• Post category: Uncategorized

What is Tour Operator?

Tour operators are sometimes called wholesalers but this is partially true because a wholesaler buys goods or services in bulk at his own account to prepare a tour package and then retails it through the travel agencies or directly to the clients.

Table of Content

• 1 What is Tour Operator?
• 2.1 Inbound Tour Operators
• 2.2 Outbound Tour Operators
• 2.3 Domestic Tour Operators
• 2.4 Destination Management Companies
• 3.1 Planning a Tour
• 3.2 Making Tour Package
• 3.3 Arranging a Tour
• 3.4 Travel Information
• 3.5 Reservation
• 3.6 Travel Management
• 3.7 Evaluate the Option Available
• 3.8 Promotion
• 3.9 Sales and Marketing
• 3.10 Taking Care of Glitch
• 4 Importance of Tour Operators
• 5.1 Tour Packages Creation
• 5.2 Make Travel Arrangements in Advance
• 5.3 Tour Operations Budgeting
• 5.4 Providing a Relaxed and Safe Tour
• 6 Difference between Travel Agent and Tour Operator

However, a tour operator who has his own one or more tourist product components formulates a new tourist product for example ‘inclusive tours’. Tour Operators generally offer a variety of package tours to cater to the needs of different kinds of travellers.

An organization, firm or company which buys individual travel components, separately from their suppliers and combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen is called a tour operator.

More precisely, tour operators are mainly responsible for delivering and performing the services specified in a given package tour. They can provide these services themselves as some have their own cars and coaches, hotels and other travel-related services or can obtain these from other suppliers. That is why they are called manufacturers of tourism products.

Types of Tour Operators

Following are the types of tour operators explained briefly:

Inbound Tour Operators

Outbound tour operators, domestic tour operators, destination management companies.

These are also known as incoming tour operators. Technically, the operators who receive guests, clients/tourists, and handle arrangements in the host country are called inbound tour operators.

For example, a group of American tourists coming through TCI to India and the company makes arrangements and handles the group in India, then TCI is called an inbound tour operator. Incidentally, the inbound traffic to the country for the last two decades has been decreasing.

Essentially, tour operators need to adopt innovative marketing strategies and should introduce special interest tours to cater to the special needs of foreign tourists.

Tour operators, who promote tours to foreign destinations, maybe business tours or leisure tours are called outbound tour operators. Indian outbound tourist traffic is growing at a rate of 10 percent annually and this makes India the second-largest country in the world with regard to the travelling population.

However, India’s outbound tourism is not only holiday-oriented but it is business-oriented too. There are many travel companies that offer outbound packages such as SITA, TCI, Thomas Cook etc.

Domestic tour operators are those who assemble and combine tourist components into inclusive tours and sell them to domestic travellers. In general, these tour operators provide travel services within the boundary of the home country and offer package tours to travellers viz. domestic inclusive tours or independent tours.

These are commonly known as handling agencies and their main function is to organize tour arrangements for incoming tourists on behalf of overseas operators. When a tour operator himself promotes beach holidays, wildlife holidays, wildlife tours, heritage tours, cultural tours at different places, difficulty arises.

It is the ground operator who handles the incoming travellers in the same season but at different places and ensures that the entire operation is according to the package tours or agreements.

Sometimes when a handling agency is at a prominent tourist place, for example, Delhi and it has to make arrangements to Goa, then it contracts (if it has no office of its own) with a local operator (known as an excursion agent) to handle the arrangements on his behalf.

Functions of Tour Operator

A tour operator is like a service provider, providing the most convenient option for tourists to stay, visit, as well as leave the city. A tour operator owns a high volume of travel services across carriers, services, and accommodation. Some most important functions of the tour operators are following:

Planning a Tour

Making tour package, arranging a tour, travel information, reservation, travel management, evaluate the option available, sales and marketing, taking care of glitch.

The most important function of the tour operators is planning a tour. Tour operators plan a tour and make a tour itinerary that contains the identification of the origin, destination and all the stopping point in a traveller’s tour.

A prospective tour operator also gives advice to intending tourists in various types of tour programmes, which they may choose for their leisure or commercial travel.

Tour operator buys individual travel components, separately from their suppliers and combine them into a package tour. Tour operators make tour package by assembling various travel components into a final product that is called a tour package which is sold to tourists with their own price tag. Making tour packages is also an important function of the tour Operator.

Tour operators make tour package and also arrange a tour according to tourist demands. Tour operators arrange the tour package and various tourists activities to provide the best experience to tourists/travellers.

Whatever the size of tour operators, it has provided necessary travel information to the tourists. This task is utterly difficult and very complicated. A tour operator must give up-to-date, accurate and timely information regarding destinations, modes of travel, accommodation, sightseeing, immigration, health and security rules about various permits required to travel in a particular area etc.

It is a very important function of all types of tour operators and travel agencies. Tour operators make all the reservations by making linkages with the accommodation sector, transport sector and other entertainment organizations to reserve rooms, and seats in cultural programmes and transportation.

Tour operators manage tours from the beginning to the end of the tour. A tour operator has the responsibility to look after the finer details of a vacation or tour such as hotel, accommodation, meals, conveyance etc. Tour operators provide travel guides, and escorting services and arrange all travel-related needs and wants.

Tour operators evaluate all available options to provide a unique or unforgettable travel experience to tourists during their journey. Tour operators evaluate the various options available for a tour package and provide the best of them to tourists.

Tour Operators makes tour packages and promote them into various tourists markets at domestic as well international level. Tour operators promote a travel destination to attract a large group of tourists at the domestic as well as international level.

In the promotion of tourist destinations, tour operators play a key role. Travel agencies or tour operators are called image builders of a country.

Tour operators do sales and marketing of tourist products. Tour operators buy individual travel components, separately and combine them into a tour package, which is sold with their own price tag to the public directly. Tour operators do the marketing of tourist destinations and tourism products to attract the attention of tourists/travellers.

Tours operators are also called handling agencies that handle tour package and take care of all the glitches and problems that arise during a tour package. Tour operators fix the glitches and provide the best available alternative to tourists during their journey.

Importance of Tour Operators

• Tours operators play a key role in the tourism sector. Tour operators create tourist product, promote them and finally sold them to tourist.
• Tour operators provide the best and competitive price to the tourist. Tour operators negotiate with suppliers of tourism product such as hotels, airlines and provide the best possible price to the tourist.
• Tour operators buy tourist product in bulk and get huge discounts from suppliers. So that they can provide tourist’s products at cheap price.
• Tour operators organized a tour in the best way. They personalize and make sure each and every component of the tour is well-taken care. Tour operators provide best travel experience during a tour. Tour operators save tourist’s times and money.
• Tour operators provide immediate support system at host country as well as foreign land. When tourists travel to a foreign land and things get uncertain, maybe it’s a health or loss of documents and need to return back or change of travel plan. A qualified tour operator takes care of all these unseen events with efficiency.
• Tour operator caters to the needs of tourists on the based on their taste of travel. Tour operator provides all the best available option according to tourist needs and demands.

Role of Tour Operators in Tourism Business

Tour packages creation.

The tour operator is in charge of developing and maintaining guests’ tour packages. The preparation of activities that appeal to the specific visitors embarking on the trip is part of tour package management. When and how to adjust a tour package to best adhere to the group or individual’s goals should be covered by the tour operator.

Make Travel Arrangements in Advance

In most circumstances, tour operators are responsible for making travel arrangements for the touring group. This covers transportation from one location to another, as well as ensuring that all members of the group arrive at their next destination. Tour operators frequently assist with flight tickets and collaborate closely with hotels to recommend lodging reservations, sightseeing alternatives, and other activities to group members.

Tour Operations Budgeting

Tour operators work hard to build tour packages that provide users with great service at a lower cost than if they booked each commodity separately, while still running a profitable business. Tourists purposefully seek out the assistance of a travel agent or tour operator in order to get more value for their money. Before finalising a tour package, tour operators should take the time to evaluate pricing.

Providing a Relaxed and Safe Tour

A tour should fulfil all of a traveller’s expectations and beyond. A tour operator should be skilled at putting together an experience that will leave guests with lifelong memories.

It’s just as crucial to providing a meaningful, good experience as it is to keep your passengers safe throughout the journey. Some tour activities may represent a possible risk to travellers, putting the tour organisation at risk. As a tour operator, you should encourage your visitors to purchase travel insurance. Insurance will give you and the tourists peace of mind as they go on once–in–a–lifetime experiences. Travel Agency & Tour Operators Roles & Responsibilities

Difference between Travel Agent and Tour Operator

There is a lot of confusion about the difference between tour operators and travel agents what exactly makes them different. The main difference between a Travel agent and a Tour operator are following as:

• A travel agent is a person who has a full knowledge of tourist product – destinations, modes oftravel, climate, accommodation and other areas of the service sector. He acts on the behalf ofthe product providers/principals and in return get a commission.
• Tour operator is an organization, firm or company who buys individual travel components,separately from their suppliers and combines them into a package tour, which is sold withtheir own price tag to the public directly or through middlemen.
• Tour operators are like wholesalers and travel agents are the retailers.
• A tour operator makes the package holidays up and the travel agents sell them on.
• Tour operator taking up the bulk of the responsibilities and his fee is obviously much greaterthan a travel agent.
• A tour operator has the responsibilities to look after the finer details of a vacation or tour suchas hotel, accommodation, meals, conveyance etc.

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How do Tour Operators Work?

To unlock the tourism industry's business and leisure travel potential, you must understand how tour operators work.

From package holidays to bespoke tours, tour operators make memorable holidays. Whether you're a domestic operator focusing on your country's destinations or an outbound operator designing trips abroad, this guide is for you.

The Role of Tour and Activity Providers

At the heart of the travel industry, tour operators like you, whether inbound or outbound, design travel packages that simplify things for tourists. This involves meticulous planning of land arrangements, accommodation, tours, and transport.

As a tour company, you may specialize in specific types of trips, such as leisure travel or business trips, creating packages that cater to your target market's preferences.

What are the different types of tour operators?

• Domestic Tour Operators : Focusing on the domestic tourism market, these operators provide travel packages within their home country.
• Outbound Tour Operators : These companies design holiday packages for travelers visiting other countries, often incorporating international destinations into their itineraries.
• Inbound Tour Operators : Inbound operators cater to tourists coming into their host country, providing local insights and experiences.
• Ground Tour Operators : Often known as ground operators, these firms handle local arrangements in the destination country, often working in collaboration with other tour operators.

How do tour operators work with accommodation and transport providers?

Tour operators play a pivotal role in crafting the perfect travel experience, and a big part of this involves working closely with accommodation and transport providers. Here's a glimpse at how this collaboration typically works:

Building Relationships with Accommodation Providers

• Negotiating Rates : Tour operators negotiate contracts with hotels and resorts to secure competitive rates. This often involves bulk booking or agreeing on fixed rates for a certain period.
• Customizing Guest Experiences : They work with these providers to tailor lodging experiences that align with the overall theme of the tour, whether it's luxury, adventure, or cultural immersion.
• Ensuring Quality and Standards : Regular inspections and feedback mechanisms are put in place to ensure that the accommodation meets the expectations and standards required for their clients.

Partnering with Transport Providers

• Seamless Logistics : Tour operators coordinate with various transport providers, including airlines, bus companies, and car rental services, to manage the logistics of getting travelers from one point to another.
• Group Deals and Scheduling : They often negotiate deals for group travel and ensure that transportation schedules align seamlessly with the overall tour itinerary.
• Quality and Safety Checks : Ensuring travelers' comfort and safety is paramount, so tour operators regularly check the quality of vehicles and the reliability of transport services.

Creating Cohesive Travel Packages

By integrating accommodation and transport seamlessly, tour operators create cohesive and hassle-free travel packages. This integration is crucial in providing a smooth and enjoyable experience for travelers, where every aspect of their journey is well-coordinated and managed.

Adapting to Client Needs

Tour operators remain flexible and responsive to their clients' needs, often customizing aspects of accommodation and transport to cater to specific preferences or requirements.

To summarize, negotiating strategically, ensuring quality, and meticulous planning are crucial to the relationship between tour operators, accommodation providers, and transport providers. In order to deliver great travel experiences that aren't just fun, they must be safe, comfortable, and just right to match discerning travelers' expectations.  

How do tour operators work with travel agents and OTAs?

Tour operators team up with travel agents and OTAs? It's like having the best of both worlds in the travel industry.

Here's the lowdown: travel agents are like sales gurus. They've got the skills to match your cool tour packages with travelers looking for their next adventure. It's all about personal touches and making travelers feel special.

Now, let's talk about OTAs – think big names like Expedia and Booking.com . These guys are your ticket to the global stage. They're not just about showing off your tours; they're about connecting you with travelers from all over, 24/7. Plus, with their smart marketing tools and the power of customer reviews (which, let's face it, are gold in our world), you're setting yourself up for some serious visibility and street cred.

Combining travel agents' personal selling charm with OTAs' global reach is how tour packages stand out in this competitive market.  

Talking about creating packages, how can you work with accommodation and transportation providers?

How to create inclusive tour packages?

As a tour provider, crafting appealing and inclusive tour packages, also known as package holidays or package tours, is key to attracting travelers.

These packages bundle services like flights, accommodations, and transportation for a hassle-free experience. Here’s how you can create comprehensive offers:

• Understand Your Travelers : Know who you’re designing for. Are they families, solo travelers, or adventure seekers? Tailoring your packages to fit their preferences is crucial.
• Forge Strong Relationships with Suppliers : Collaborate closely with accommodation and transportation providers. Strong partnerships can lead to better rates and unique offerings, making your packages more attractive.
• Quality Over Quantity : When choosing hotels and transportation options, prioritize quality. A well-selected hotel or comfortable transport experience can elevate your entire package.
• Flexibility is Key : Offer flexibility in your packages. Options for room upgrades, transport preferences, or even alternative activities can make your package more appealing to a diverse range of travelers.
• Highlight Unique Experiences : Include special experiences travelers can’t find elsewhere. Unique local tours or exclusive access to attractions can make your package stand out.
• Transparent Pricing : Ensure transparency in pricing. Hidden costs discourage travelers. Clear, upfront pricing builds trust and satisfaction.
• Feedback Loop : Regularly gather feedback from your customers and adjust your packages accordingly. Continuous improvement based on customer insights can significantly enhance your offerings.

By focusing on these areas, you can create inclusive tour packages that meet but exceed the expectations of your travelers, ensuring memorable and hassle-free trips.

How do tour operators pay suppliers?

For tour operators, establishing and maintaining a solid financial relationship with suppliers — including accommodation and transportation providers — is crucial for a smooth and successful business and tour operation itself. Here's a look at how these payments are typically managed:

Advance Payments and Deposits

Tour operators often make advance payments or deposits to secure services well ahead of tour dates. This is especially common with hotels and special activities that require early booking.

Credit Facilities and Post-Payment Agreements

In some cases, tour operators may have credit arrangements with suppliers, allowing them to pay after the service is delivered. This requires a high level of trust and a proven track record of reliable payments.

Bulk Payment Contracts

For regular or frequent services, operators might negotiate bulk payment contracts. Under these agreements, they pay a lump sum for a specified number of services or bookings over a period, often at a discounted rate.

Net Rate Agreements

Suppliers may offer net rates to tour operators, which are discounted prices exclusive of commissions. The domestic tour operators then mark up these rates when selling to customers, and the difference forms their profit margin.

Direct Billing for Services

In some collaborations, suppliers might directly bill the tour operator for services rendered, usually after completion.

Electronic Payments and Wire Transfers

With the digitalization of financial transactions, most payments are now made electronically. This ensures quick, secure, and traceable transactions.

Managing Currencies and Exchange Rates

For international tours, operators must adeptly manage payments in different currencies, considering exchange rates and transaction fees.

Contingency Funds for Unforeseen Expenses

Operators often set aside contingency funds to cover unexpected costs or last-minute bookings, ensuring that the tour runs smoothly without financial hiccups.

Why is the booking process so important for selling tours?

The booking process is crucial in the tour industry for several key reasons:

• First Impression Matters : This initial interaction sets the tone for customer experience and expectations.
• Ease Equals Sales : A simple, user-friendly booking system encourages more purchases.
• Trust Building : A smooth process builds trust, showing customers that they’re dealing with a professional operator.
• Upselling Opportunities : During the booking, there’s a chance to offer additional services or upgrades, enhancing the experience and increasing revenue.
• Data for Personalization : The information collected can be used to tailor future offerings and improve service.
• Effective Communication : This stage is vital for conveying key tour information and ensuring customer understanding.
• Reputation Impact : A positive experience can lead to recommendations and positive reviews, while a negative one can harm the operator's reputation.
• Resource Management : Understanding booking trends helps manage tours and resources.

In short, the booking process isn't just about securing sales; it's about shaping the entire customer journey, from first impressions to post-tour feedback.

Tips for Operators

Invest in a good, easy-to-use, and cost-effective booking software solution. Granted, it may incur some fees on your part, but think of the heavy lifting it does for you.

It does more than take reservations and bookings. It saves you tons of time with manual tracking, guest follow-up, and ticket management. It also eases the customer journey from point one to post-tour feedback.

Booking software solutions like TicketingHub save you stress and ease your guests. It charges 3% only for successful bookings.

Trusted by Egypt Sound and Light Shows, The Immersive Gamebox, Secret Food Tours, Sipsmith Distillery , and a hundred folds more - this software solution is jam-packed with time-saving features in an easy-interfaced navigation.

Whatever software solution you pick, aim for the solution that saves you time from needless complexities in design and usability - all while helping you stay profitable and leaving your guests satisfied right from the booking page.

Conclusion: Making Great Tours Happen

In wrapping up, it's clear that being a tour operator is about connecting the dots to create amazing travel experiences. Whether you're showing off the best spots in your own country or taking people on adventures abroad, the key is in the details – from picking great hotels to organizing smooth rides.

Your partnerships with local travel agencies, agents and OTAs are super important too. They help you reach more people and make sure your tours stand out. And when making tour packages, remember to listen to what travelers want and keep things flexible and interesting.

Don't forget, managing your money well, especially when paying for services, keeps everything running smoothly. And the booking process? That's your chance to make a great first impression and keep things hassle-free for your customers.

So, there you have it – mix in a bit of planning, a dash of good relationships, and a sprinkle of creativity, and you're on your way to creating trips that travelers will love. Happy touring!

FAQ Section

How important are tour operators.

Tour operators play a pivotal role in the tourism industry. They create and organize tour packages, catering to both business and leisure travelers. These packages simplify travel arrangements, offering hassle-free travel.

Tour operators are the key architects of memorable trips, ensuring travelers can explore various destinations easily.

What is the life of a tour operator?

Tour operators plan meticulously and collaborate with various stakeholders. They work closely with outbound and inbound tour operators, accommodation and transport providers, and even travel agents and online travel agencies (OTAs).

Their goal is to create appealing package holidays, manage travel arrangements, and provide tourism products that meet their target market's preferences.

What are the strengths of tour operators?

Tour operators have several strengths, including the ability to create inclusive tour packages that simplify travel for tourists. They can specialize in various categories, such as business or leisure travel. They can also collaborate with distribution partners like travel agents and OTAs to reach a wider audience.

Tour operators leverage market data to sell directly to their target market, offering tourism products that cater to different preferences.

What's the difference between a tour operator and a travel agent?

Tour operators and travel agents serve different roles in the travel industry. Tour operators design and create tour packages, manage travel logistics, and provide tourism products.

Travel agents, on the other hand, act as intermediaries between travelers and tour operators or suppliers. They assist customers in choosing and booking the right travel options, including tours created by tour operators, but they don't create the tours themselves.

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tour operator

• a person or company that provides package holidays

Tour Operators and Travel Agents

Tour Operators are persons or organisation which organised and sells travel like air, railway ticket, transport and accommodation to a tourist. Moreover, a travel agent is a form of business that sells travel related products and services, particularly package tour to the tourists on behalf of travel suppliers such as airline, hotels, tour operator, cruise liners and other travel vendors.

Several travel agencies are specialized in commercial and business travelers while some agencies have setup separate departments dedicated to a separate sector. Several travel agencies serve as general sales agent for larger and foreign travel agencies or companies. A travel agent plays a significant role which converts a countries attractions, accessibility, amenities into saleable goods commodities and promotes, markets, and convince to buyers. Thus, the place of a travel agent is very prominent among the other types of intermediary operations involved in the provisioning and selling of travel products and travel services.

Travel agent:  

Travel agents is defined as   an individual, a firm or company who makes arrangements on behalf of tourists in respect of travel tickets, travel documents-VISA, transportation, accommodation , entertainment, insurance, foreign currency and other travel services from the principal suppliers and sells to the prospective tourists. Thus, the definition clearly identifies that a travel agent/ travel agency is a business may be small or big that sells travel related products and services to end-user customers on behalf of third party travel suppliers/ vendors, such as airlines, hotels and cruise lines. Generally, the clients of travel agencies include tourists and business travellers.

Tour Operator :  

The term tour operator is used to define the large scale operation in the travel intermediary’s process. Thus, ‘tour operators’ can be wholesaler, and or retailer depending upon market size and organizational structure. Thomas Cook, Thomson, American Express, Cox & Kings, Kuoni, Thomas Bennett are good examples of a dual travel organization.  In the Indian tour operation market most tour operators are the outgrowth of successful retail travel agencies in their own travel markets. A Tour operator is defined as an organization/ firm/ company who package the travel to and from a destination along with complete ground services like accommodation , local sightseeing, local cultural fairs / festivals etc. Interestingly, they provide these services themselves as some of the ingredients of tour package they their own or they arrange these ingredients from different destination operators.       

 Generally, the industry practices indicates that a tour operator is a firm /company which specializes in the developing, planning and actual operation of pre-paid, pre-planned holidays and makes these available for tourists either directly or through the  middlemen. In most of the advertisements in the newspapers, magazines and others we have seen regarding five days/four nights along with tour itinerary and price per PAX.   For example, one week in Kerala  5000 Rs. (500 Rs. worth healthcare coupons free or ten days in Goa—heavy off season discounts, beaches, music and other services for Rs. 40000 inclusive meals per PAX etc.  There are numerous offers like this in the newspapers and magazines. Generally, these offers of package tours are available for both individuals as well as groups.  Now the question is that we have ever paid any attention to these offers that who have packages such tours and why? Or how they are packaged   and marketed these products/ services to general public?  Some people arrange these products/ services by their own and some approach the professional organizers to arrangement on their behalf.  When we arrange travel services/ product by own definitely this is a time consuming process. On the other hand there are many people who don’t want to bother themselves about arranging, planning and organizing their own journeys rather they want this to done by someone professional expertise.  It is the tour operator who packages all attractions of a destination into one composite product and retails it through the travel agents or directly to the tourists. He creates the demand, travel, market and image of the destination. Today, many tourists buy these package tours as per their interests, priorities and budget at a price that is pre-determined. The complete holiday package tour includes travels (air/surface), accommodation , sightseeing, insurance, currency, escort/ guide and so on. The person who puts together all these aspects into a package is known as the Tour Operator.

 Practically, a tour operator is a firm/ company who provides travel information, plans, organises and coordinates travel related services/ products with various ground operators to create a tour package. At the same time tour operator also ensures smooth conduct and operation of the package tour due to this professional work a tour operator is also called a Tour/Travel consultant or Tour Coordinator. The tour Operator may or may not necessarily have any product of his own but act as an intermediary for different travel vendors to tailor a package to meet the varied needs of a traveller. In fact, a tour operator plays a pivotal role in organizing, explorations, research expeditions, planning and operation a tour package. We must appreciate here that tour operations originated ever since people wanted to explore new areas/ destinations, go on pilgrimage / religious or trade expeditions, individually or in groups. 

 Definition of a travel agent and Tour operator 

•  The American Society of Travel Agents ( ASTA ) defines the travel agent as follows: “An agent is a person who undertakes a job for another person, who is the ‘principal’. The principal in such a relationship not only sets the goals of the job, such as selling tickets, but also may control the means and manner in which the job is done”.

•  According to Airlines Reporting Corporation (1987), “a retail travel agent is defined as a business that performs the basic functions : quoting fares and rates, makes reservations, arranges travel tickets, books rooms, arranges travel documents, and acts on the behalf of tourism vendors.”

•  Joel M. Abels, (1985) “A travel agent is an individual who, based on recognized industry standards of expertise and experience, is deemed qualified by travel agent peers and by travel principals to offer and sell travel arrangements and services to the general public”.

• Aryear Gregory (1985), “The tour operator is the architect/manufacturer who assembles the tour ingredients and creates travel, creates a market, creates lead and creates an annuity by having satisfied clients who return year after year”. 

•  James M. Poynter (1993) defines, “tour operator is one who has the responsibility of putting the tour ingredients together, marketing it, making reservations, handling all financial and accounting aspects, and selecting as well as managing tour managers”.

•   Mohinder Chand (2006). “ a tour operator is an organization which conceives idea of tourism product and converts this idea into realities by repeating tourists again and again”.

Difference between Travel Agent and Tour Operator

     Historically, the tour operator has mostly emerged from retail travel agency. However, today a clear distinction must be made between a travel agency and a tour operator.

Essentially a travel agent is a retailer and tour operator is a wholesaler. The travel agent is a retailer because he sells the travel services to the final consumers i.e. the tourists directly.

But unlike the travel agency, the tour operator is a manufacturer of the tourism product . He plans, organises, sells and conducts the tours. He acts as a wholesaler also sometimes because he has to engage travel agents as middleman to sell his package tours in different territories. The Figure 1.1 makes amply clear the flow of travel services from suppliers to the tourists. Moreover, the role of travel agent and tour operator in the tourism market is well defined. In fact, due to strategic alliances and world integration this distinction is meaningless as both are performing similar functions. 

The main difference as: 

•       Travel agents usually sell to end-users   on behalf of travel vendors.   

•       Tour operators plan almost each and everything related with tour package.  

•       Tour operators are specialized in dealing with specially one country/ one destination at a time. But there’s no specialization in the case of a travel agent.

•       Most of the cases some travel agents work directly with tour operators and provide the tour operators with the information of clients.

•       Travel agent gets permit to work from the respective tour operator either private or public while tour operator acquires license from the Ministry of Tourism.

•       Becoming a travel agent doesn’t require so much time/ money as compared to the tour operator.  

•       Tour operator is directly responsible to the regulatory authorities while travel agent is first responsible to the clients and then to the tour operator.

•       The main source of income of travel agent is commission and other reserves while a tour operator earned profit by providing services/ products to the clients and he also earned commission from the different travel vendors like hoteliers, transporters, airlines , cruise companies and destination companies etc.

IMPORTANCE AND FUTURE OF TRAVEL AGENT AND TOUR OPERATOR  

    Over the years, the role and contribution of travel agents and tour operators have been changed. In the beginning travel agent were ‘mom and pop’ organisations but today they are more professional and operating a large scale.  Inbound travel has been dramatically hit by introduction of VISA on Arrival and different promotional measures adopted by the Indian government like Incredible India   In fact; all forecasts are that travel between countries will continue to enjoy substantial growth through the 21st century. Thus, tourism between different countries has shown tremendous growth during 2016-2017 and India is no exception in this context.   Recent figures from the Ministry of  Tourism , Government of India have shown that whereas the overall number of domestic holidays increased by 20% between 2000 and 2016,   the domestic market will grow by 20% in the five years to 2017 and this  is  good news for the  tour operation industry. Outbound travel has, of course, enjoyed continuous growth since the advent of overseas package holidays in the 1990s. Whilst the outbound package market has in recent years increased at approximately 10 million holidays each year, independent holidays taken abroad are still growing strongly, and ensure that the overall outbound market continues to grow each year( Ministry of Tourism , GOI, 2016).  

     The following points are clearly described the role and contribution of travel agent and tour operation business in India:   

·  Travel Inf ormation:    

   Travel information is first and foremost activity of a tour operator. Today, most of the tour operators have developed an internet presence by posting a website, with detailed travel information. Moreover, use of technology has become vital for all travel companies. Most of the travel companies hired specially technology firms to maintain their website and upload latest travel information. Moreover, these companies use travel service distribution companies who operate Global Distribution Systems (GDS), such as  Sabre Holdings , Amadeus , Galileo  and World span to provide up to and minute detailed information on tens of thousands of flight, hotel,  transporters, car rental and others related with tourism services including package tours .

•  Tourist Publicity Material: 

    Tour operators produce huge tourism related material to attract and motive the tourists.     Moreover, travel agents and tour operators brought out a range of publicity material including shell folders on adventure, wildlife, tourist resources of South India Rajasthan and other states including tourist map and trekking maps of Himalayas. It also produced a general India brochure and those on various states and tourist destination in India. Thus, they are exploring India at global level. 

•  Promotion of Tourism:  

       Many tour operators and travel agents in collaboration with central or states governments have launched major campaign on “Tourism Environment / Awareness”. These campaigns are being released in all leading magazines across the country in Hindi, English and other Indian languages. The themes of the campaigns are “We can and we will keep India beautiful”. Besides, the department also launches advertising campaigns to promote lesser known bill resorts called “Holiday Campaign”; to promote Orissa and a campaign to promote Andaman and Nicobar and Lakshadweep Islands.

•  Tourism development   Planning :  

       Since tour operators play a pivotal role in tourism industry. They are actively involved and participate in tourism developmental processes and tourism policy formulation in the respective areas.  Every state in India has recognized that tourism has a vast potential for development in the country. Appreciating this potential Government has accorded the status of an industry to tourism.  Government has also extended various financial and non-financial incentives to tourism industry to motivate the tourism players.  Private sector investment has encouraged in developing tourism and public sector investment should be focused only on development of support infrastructure. Thus, travel agent and tour operators are  focusing on the following states so that tourism may developed  in a planned and systematic manners  such as states of Uttaranchal, Himachal Pradesh, Uttar Pradesh, Haryana, Meghalaya, Andhra Pradesh, Kerala, Arunachal Pradesh, Tamil Nadu, Bihar, Tripura, Manipur, Assam, Karnataka and Union Territories of Andaman arid Nicobar and Lakshadweep etc.

•  Promotion of Wildlife Tourism: 

      To  promote wildlife tourism, facilities are provided in the form of Forest Lodges and transport within the sanctuaries / national parks: Forest Lodges at Enjal (Gujarat), Manas (Assam), Dhangari (UP) and Parambikulam (Kerala) is in progress. The work of Forest Lodges Betla (Bihar) Simlipal (Orissa), Desert National Park, Ranthambhor, Ranakpur (Rajasthan). The tour operators are adding these destinations in their itineraries so that special interest tourism may be promoted. 

•  Tourist arrivals and Foreign exchange earnings: 

     As per Government reports,  the year 2016 has been a highly successful year so far as tourism in India is concerned. For the third successive year, India witnessed a positive growth in foreign tourist arrivals. Today, tour operator have been recognised as a vital component of travel and tourism industry and have become an integral part of this industry at global. They Account for more than 90% of international and 75% of domestic tourist traffic. Further, more than 70% of all travel agency revenues are derived from the business travel. Most travel agencies sell both commercial and leisure travel but there is many travel agencies which only specialize in one sector or the other. It is also appreciated that more than 50% tourists are coming through the travel agency and contributing huge foreign exchange to the country.

•  Development of New Products:   

      Various strategies have been formulated and implemented for tourism to meet the diverse needs of the tourists. Such as cultural  tourism,   wildlife tourism, sports tourism, social tourism, mountains and beach tourism, promotion of fairs and festivals,  and  leisure tourism and development of travel circuits.

•  Employment generation Promotional:   

       Travel agent and tour operators are the major players in the tourism industry. In fact, most of the tourism management students are employed in this vital sector of tourism industry.  More the 25 million people  are  working directly or indirectly in this sector. Event many tourism management students are establishing their own ventures. This is also helps the students to enter into their own business enterprises. 

•  Analysis of potential Tourism markets:   

     Most of the tour operators conduct market analysis and accordingly develop product. In fact, tour operators / travel agencies analysed tourism market potentials’ produce modified products based on the existing products and use technologies and skills. They identify potential of both domestic and foreign customer groups with description relevant characteristics like age, income, preferences and influencing factors on future demand. They also identify the unique selling point along with description of wanted characteristics product by the tourists.

      Thus, by 2020, the government of India expects travel and tourism to contribute Rs8, 500 billion to GDP, almost four times the value in 2010. With successive governments committed to reform, a strong manufacturing sector and a private sector that already has a critical mass that is needed to drive growth, it is unlikely that the strong growth in GDP is likely to be reversed ( Ministry of Tourism , GOI, 2017).  

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Travel agencies and tour operators both are necessary for the travel industry. But sometimes the question arises re their actual definition.

How are they different?

If you’re often confused by the difference between a travel agency and a tour operator, we’re going to discuss these two roles, and outline the significant differences between them.

They’re often connected, but are not the same.

The Difference Between a Travel Agency and a Tour Operator

Travel agency.

A travel agency is a company who plans, arranges, books, and makes the necessary arrangements for travellers. They sell flights, accommodation and tours, and package them together for travels who don’t wish to book themselves.

Worth noting that there are now many independent travel agents, who take on this role without being connected to an agency, and this can be  a great travel industry job  for people who want to work remotely.

There are several types of travel agents. Some put together itineraries from scratch for their clients while others work for specific travel companies, and some are mere resellers of pre-packaged tours on behalf of Host Agencies.

However most will help you plan your trip, and make suggestions based on your interests, your budget , and your travel requirements, the benefit here being that they’re experts in booking travel, and know the best tricks for planning and booking a holiday.

Pro tip:  An MLM scheme can usually be identified when there is a set-up cost involved in working for the company as an agent.  You shouldn’t have to pay to work for someone.

Travel agents are professionals – in many countries agencies need a travel agency license , meaning they are qualified and licensed to book trips on behalf of other people.

The way they make money is through access to industry discounts from companies they work with, which allows them to add a markup / commission to make money without charging more to the traveler.

Tour Operators

A tour operator is someone who organizes, prepares and runs a holiday tour. If you book a tour which includes accommodation, transport, breakfast, tour guides, and sightseeing etc, this is organized by the operator.

Essentially, they sell a product that they themselves create. They work with suppliers to create a packaged tour which they put their own price tag on, and can be booked by travel agents for their clients, or by the traveler directly.

They do not sell anybody else’s packages (which travel agents do), they only organize and sell their own tours.

Just as there are many different types of agents, there also are many different types of tour operators , including  inbound tour operators, outbound tour operators, domestic tour operators, and ground tour operators.

Though even inbound and outbound tour operators, who bring tourists to a country and handle all the arrangements in that country, will hire local travel agents to book in things like airport transfers, and maybe even hire ground tour operators for the tour itself.

With advances in technology, many travelers now book their packages directly with the tour operators rather than going to a travel agent, where-as in the past travel agencies were often the only option for connecting with a tour.

Key Differences Between Travel Agencies and Tour Operators

➤ Travel agents sell the holiday package purchased from different tour operators. Tour operators take care of the clients according to the package description like airport pick up, meal facilities, sightseeing, offering other travel destinations, etc.

➤ Tour operators are often specialized in one, or very few countries. But travel agents can deal with most destinations.

➤ A travel agent earns less profit, usually a small mark up or commission based on the travel they’re booking. Tour operators have the potential to earn a huge profit, as they set their own price tag.

➤ Travel agents can’t work without the help of tour operators. But tour operators can work without a travel agency being that people are now more likely to contact tour operators directly for a holiday package.

➤ There are different kinds of training programs available to start a travel agency. In comparison, the tour operator requires proper business management skills.

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Megan is an Australian Journalist and award-winning travel writer who has been blogging since 2007. Her husband Mike is the American naturalist and wildlife photographer behind  Waking Up Wild ; an online magazine dedicated to opening your eyes to the wonders of the wild & natural world.

Having visited 100+ countries across all seven continents, Megan’s travels focus on cultural immersion, authentic discovery and incredible journeys. She has a strong passion for ecotourism, and aims to promote responsible travel experiences.

Great information on Travel Agency and Tour Agent.

Glad the post was helpful for you Bella, thanks for reading :)

Thanks so much.it was helpful

You’re welcome! Thanks for reading :)

Thank you Megan,

We are a small family tour operator here in Tasmania. Specializing in small private experiences, with great guest focus, attention to interests and needs. Delivering balance of Tassie wild, depth in past and present with a side order of creative local produce.

We small and passioante operators need to support each other.

Great to connect with you Ben! Weve recently moved from Tasmania to Cairns, but Tassie will always be home :)

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The Difference Between Tour Operators & Travel Agents

28 Sep 2023 Quite a common question for anyone not working in the travel industry is about the difference between a tour operator and a travel agent. Both terms are, in effect, industry jargon and we expect the consumer to work out what the difference is. So let's clear that up. What Is a Tour Operator?   A tour operator is a person or company that thinks up ideas for holidays, researches the ideas, designs the holiday itinerary and content, contracts the services needed for the holiday, accommodation, transport, guides, tour leaders or resort reps and then markets the resultant package. They sell the package either directly to the consumer or use the services of a travel agent to do so. A tour operator sells the product that they themselves create. They do not sell anybody else's packages, they sell only their own creations. A tour operator is what in law is referred to as a "principal", meaning they take responsibility for the package that they create and cover that liability with (usually) an ATOL licence and / or some form of bonding to ensure that the consumer gets their money back if the tour operator fails, or is flown home if they are abroad when a tour operator fails.   It's worth mentioning that, with regard to bonding for financial protection, the law asks that certain items or services must be bonded; AITO demands that all its tour operators bond anything they sell to the consumer; this is in excess of what the law demands, to the benefit of the consumer. Who does a Travel Agent Differ?    On the other hand, a travel agent offers the consumer a range of holiday packages that have been put together by a tour operator. They do not, in theory, put together any of their own packages; they sell lots of different holidays put together by lots of different tour operators. They do not usually design or create the holidays they sell, and they do not act as a Principal. The tour operator whose product they sell takes the responsibility for the holiday; the travel agent does not. Therefore the agent usually does not have an ATOL licence or any bonding in place, but relies on the tour operator to cover this.   Nowadays it is fair to say, the difference between tour operator and travel agent is blurred. Some travel agents do create some packages, and therefore do act as a Principal and have the required licences, but they will also sell other product put together by tour operators.   A good analogy goes like this: if you want to buy a dining room table and chairs, you have two choices. You can go directly to the factory where one particular company makes the table and chairs and buy from the creator of the product. But you will only, at that factory, see furniture made by that one manufacturer. If you go to a high street store and browse their furniture department, you can choose from a range of furniture made by several different furniture makers, but none of the furniture has been made by the high street retail store.   In travel, the manufacturer, the factory, is the tour operator. The high street retail store is the travel agent. It's up to you whether you prefer to (a) talk to the creator or the product, or (b) have a wide range of product from different manufacturers to choose from.  Why Book With a Tour Operator or Travel Agent?   Another common question is why a potential traveller should book their holiday arrangements with a tour operator rather than doing it themselves. The answer to this question covers tour operators and travel agents - both are offering commercially assembled holidays.   It is possible to spend hours researching a possible destination, pondering over the best itinerary, checking for the best hotels and so on. Or you can book with a tour operator who has done all that research and chosen wisely based on their experience and knowledge. If you design your own itinerary it can be fun, but if something goes wrong then you are on your own. A tour operator has a legal responsibility to look after you if things go awry. Strikes, natural disasters, personal illness and several other disasters can befall the traveller, better to have someone to take care of things at such critical times. If your overseas hotel ceases trading when you are there, or on your way there, you are on your own; whereas a tour operator will make alternative arrangements. When the Tsunami struck in Thailand some years ago, all the clients who had booked with a tour operator were helped by their tour operator; they were moved to alternative accommodation or flown home. Travellers who had booked their own arrangements were left to fend for themselves. "It's always the individual travellers who we can't locate and help", said someone at the Foreign Office Travel Unit, "since they don't tell us where they are going".   If you want to assemble that dining room table and chairs yourself it's perfectly possible to buy some wood or other, practice a bit with a saw and then start creating your furniture masterpiece (have some bandages and some glue handy just in case). Or you can go to a furniture factory or retail shop and buy a carefully crafted piece of furniture. Most people do the latter when it comes to furniture - why be any less careful when it comes to making travel arrangements? Make it yourself or buy from a professional - it's your choice. What is the Role of AITO?    A third question is why look at AITO for holiday ideas and help? Imagine if you could get over 100 tour operators all in one place, each with their own special holidays. Imagine if each operator had specialist knowledge about one particular destination or style of holiday. And imagine if each of the tour operators was independently owned. That is, each was run by the people who own it and who are passionate about what they sell. If you actually want all that, visit aito.com and it's all here in one place. 

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Discover 5 Types of Tour Operators

Mar 15, 2023

Starting a tour operating business can be an exciting and rewarding experience. However, with so many different types of tour operators out there, it can be challenging to decide which market to pursue. In this blog, we will provide guidance on the different types of tour operators available and help you choose the right market for your tour operating business.

Inbound Tour Operators

Definition of Inbound Tour Operators; An inbound tour operator is a company that specializes in organizing tours and activities within their country, working with travel agents to create packages for international visitors. They are responsible for organizing itineraries, accommodations, transportation, and activities for incoming tourists.

Their role in managing domestic tours and activities; they welcome international travelers and assist them with planning their travel to suit their needs using their country-specific knowledge.

Advantages of working with an inbound tour operator; They use their local knowledge to create a seamless, stress-free travel itinerary for their customers.  

Outbound Tour Operators

Definition of Outbound Tour Operators; An outbound tour operator is a company that works with clients who are traveling outside of their home country. They offer packages that include flights, accommodations, and activities. For example, if a US resident is planning a trip to Asia, an outbound US tour operator will take care of all the details.

Their role in managing international tours and activities; They work with local travel partners in different countries to provide travelers with a complete travel experience.

Advantages of working with an outbound tour operator; They allow customers to work with someone from their home country to plan and book international travel itineraries.

Domestic Tour Operators

Definition of Domestic Tour Operators; A domestic tour operator specializes in organizing tours and activities within a specific country. They cater to locals who want to explore their own country.

Their role in managing tours and activities within a particular country; They cater to locals who want to explore their own country and have specialized knowledge on trips and activities that locals don’t often experience.

Advantages of working with a domestic tour operator; Domestic tour operators often cater to native travelers who want to experience new areas within their home country. They typically have a collection of specific holiday and weekend trips that are ideal for travelers looking to book around their work and family schedules.

Specialist Tour Operators

Definition of Specialist Tour Operators; A specialist tour operator is a company that focuses on a specific niche or interest. They create packages that cater to travelers with specific interests or needs. Some examples include adventure, luxury, cultural, or wildlife travel.

Their role in managing niche travel experiences; They specialize in creating tour packages that match travelers with experiences that they are particularly interested in or wanting to learn more about. They work with local partners to create these unique offerings.

Advantages of working with a specialist tour operator; They offer tour packages specifically crafted for different interests and often allow the traveler to learn more about their destination than other options.

Ground Operators

Definition of Ground Operator; Similar to domestic operators, ground operators work on travel itineraries within their home country. The difference is that they specialize in providing local services on behalf of other travel agencies and operators to the clients throughout their trip.

Their role in managing tours and activities; They work with travel agents to create customized travel itineraries for groups and individual travelers. Their services may include directly taking care of a client’s transportation, accommodations, meals, and activities during their trip.

Advantages of working with a ground operator; They provide a high level of support and assistance throughout the trip, ensuring that everything runs smoothly and according to plan.

Conclusion:

In conclusion, choosing the right market for your tour operating business depends on your interests, expertise, and resources. Whether you choose to specialize in inbound or outbound tours, domestic or international travel, or a particular niche, there are endless opportunities to create unique and memorable travel experiences for your customers. With the guidance and support of TripMatrix, you can start your tour operating business and pursue the market that best suits your vision and goals as well as connect with other operators. Discover how TripMatrix tour operator software is helping true operators aound the world to manage their travel business more efficient.

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Different types of tour operators that you should know about.

Tour operators are an integral part of the travel industry. They play a crucial role in creating and selling travel packages to different destinations worldwide. A tour operator is a company that puts together travel packages, which usually include transportation, accommodation, and activities, and sells them to consumers. This blog will discuss the different types of tour operators and their roles in the travel industry. Knowing the types will help one to choose the better fit. 

Types of tour operators

As per the requirement, there are different types of tour operators in the travel industry. Some of these include inbound tour operators, outbound tour operators, domestic, specialist among others. Let us explore them one by one. 

1. Inbound Tour Operators

Inbound tour operators organize and sell travel packages for visitors coming into the country. They are responsible for creating itineraries and ensuring that visitors have a memorable experience during their stay. They typically work with local suppliers, such as hotels, transportation companies, and tour guides, to assemble their packages.

2. Outbound Tour Operators

Outbound tour operators are companies that organize and sell travel packages for consumers who are traveling out of their home country. They are responsible for creating itineraries and ensuring that travelers have everything they need for their trip. They work with local suppliers in the destination country to ensure everything is in place when their clients arrive.

3. Domestic Tour Operators

Domestic tour operators organize and sell travel packages within their home country. They specialize in creating tours that showcase the best that their country has to offer. They work with local suppliers, such as hotels, transportation companies, and attractions, to create their packages.

4. Specialist Tour Operators

Specialist tour operators focus on specific niches within the travel industry. They may specialize in adventure, education, luxury, or any other type of travel that appeals to a particular group of travelers. They typically have a deep knowledge of their niche and can create unique and memorable client experiences.

5. Travel Agency and Tour Operators

Travel agencies and tour operators are often used interchangeably, but there is a noticeable difference between the two. Travel agencies typically sell flights, hotels, and transportation, while tour operators create and sell complete travel packages that include activities and accommodation.

6. Luxury Tour Operators

Luxury tour operators create and sell high-end travel packages to discerning travelers. They typically offer personalized service, exclusive access to attractions and activities, and top-of-the-line accommodations. Luxury tour operators cater to travelers who are looking for a one-of-a-kind experience.

7. International Tour Operators

International tour operators are companies that create and sell travel packages to destinations around the world. They work with local suppliers in each destination to develop itineraries that showcase the best of what the goal has to offer.

8. Coach Tour Operators

Coach tour operators are companies that organize and sell tours that are conducted on a coach or bus. These tours typically cover a large area or several countries. They offer a convenient and affordable way to see multiple destinations in one trip.

9. Receptive Tour Operators

Receptive tour operators work with other tour operators to create travel packages for a specific destination. They are responsible for coordinating the local suppliers and ensuring that everything runs smoothly during the trip.

10. Adventure Tour Operators

Adventure tour operators specialize in creating and selling travel packages that offer outdoor activities and adventures. These tours may include hiking, rafting, or wildlife safaris and are designed for travelers looking for an adrenaline rush.

11. Educational Tour Operators

Educational tour operators create and sell travel packages that focus on educational experiences. These tours may include visits to historical sites, museums, or cultural events and are designed to give travelers a deeper understanding of the destination.

Why tour operators are crucial?

Tour operators play a vital role in the travel industry as they create and sell travel packages that offer unique and memorable experiences for travelers. By understanding the different types of tour operators, travelers can choose the right tour operator for their specific needs and preferences.

It's also worth noting that many travel agencies also offer tour operator services, so it's important to do your research and choose a reputable company with experience in the destinations and types of travel that interest you.

Whether planning a domestic trip or an international adventure, working with a tour operator can save time and hassle while providing unique and memorable travel experiences. In addition, many tour operators are now offering more sustainable travel options, such as eco-tourism and responsible travel. These tours aim to minimize the impact of tourism on the environment and local communities while providing travelers with unique and authentic travel experiences.

Another trend in the tour operator industry is using technology to enhance the travel experience. For example, some tour operators now use virtual reality to provide travelers with a preview of their destination or to offer immersive experiences during the trip. Tour operators will likely continue to adapt and innovate as the travel industry continues to evolve to meet travelers' changing needs and preferences. Suggested Read:  How to Become a Travel Agent

In summary, tour operators play a vital role in the travel industry, offering travelers a wide range of options and experiences. By understanding the different types of tour operators and their functions, travelers can make more informed choices when planning their trips. With the increasing focus on sustainability, responsible travel, and technological innovation, the tour operator industry is poised to continue growing and evolving in the years to come.

Frequently Asked Questions

Q1. what are the criteria for classifying tour operators, q2. who do tour operators collaborate with, q3. what industry does a tour operator work in, q4. what is the role of an inbound tour operator, q5. what sets luxury tour operators apart.

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The differences between outbound and inbound tour operator agents

By Blake Ng — 25 Mar 2018

distribution   inbound tour operator   inbound travel   outbound tour operator   outbound travel

Updated January 2023 – Are you a tour operator trying to find which option is best for you? Or alternatively, are you a tourism professional trying to set up your distribution system? Trying to make your mark and stand out in a highly competitive industry? Let’s start at the beginning to help you understand the types of travel agents available to partner with. 

The role of a tour operator is to brainstorm ideas and conduct research to design holiday packages for travelers. In essence, they curate and compile various travel elements into a package that people will find appealing — creating a tailored and individual experience based on the interests and needs of various travelers. Holiday packages usually combine accommodation, cuisine, sightseeing, and transport. 

Inbound vs. outbound travel

An inbound tourist is someone who visits a country but is not a resident of it. In outbound tourism, residents of a country visit another country. Does this sound like two sides of the same coin? That’s because it is.

Let’s look at an example:

Kevin, an Australian citizen, is traveling to Argentina for a holiday.

Kevin is an inbound tourist to Argentina. In contrast, Kevin is an outbound tourist from Australia. 

Depending on where Kevin chooses to organize his holiday packages will depend on if he makes use of inbound tourism or outbound tourism.

An inbound tour operator will sell to people soon to be arriving in their countries, whereas an outbound tour operator will sell to people before they arrive at their destination.

Inbound tour operator agents

An inbound tour operator, also known as a destination management company, is a locally-based business or individual that provides holiday planning. This includes itinerary planning and arrangement of payment for their overseas clients. 

Inbound tour operators deal with both individuals and groups of international travelers. They make arrangements that are specifically catered to international guests, ensuring their clients have a comfortable and enjoyable stay. 

An inbound operator can work with the convenience of being able to operate at the same location in which they are organizing the holiday packages. Compared to outbound tour operators, an inbound operator would better understand the local area and its culture. This is especially true when receiving any inquiries or questions about tour information from a potential client. Additionally, an inbound tour operator is usually encouraged to develop strategic partnerships with other local companies and tour and activity operators . Building these relationships is a lot easier due to geographical location. 

Inbound tour operators are locally based

The purpose of inbound tour operators is to promote the entire destination to potential visitors from their local viewpoint. The operational advantage of being locally based is having easy access to work with other companies to promote the location as a whole to interested overseas travelers. Additionally, inbound tour operators can offer a more personalized service to their customers by having direct contact with them in their chosen destinations.

Inbound tour operators often work with other travel agents and distribution partners

Tour packages are often created and promoted by inbound tour operators in partnership with other travel agent s and travel distribution channels . Inbound tour operators work under the assumption that travelers are often motivated by package deals and promotions, and take advantage of this when marketing their destination. This means it’s beneficial for inbound tour operators to create packages that include local tourism businesses such as hotels, transportation, and tours and activities. Following that, these same packages are promoted to segments of the target market that are most likely to visit the region in the near future.

Choose an inbound tour operator if:

Working with an inbound tour operator is a good idea if you want to increase your visibility in a chosen destination. This will be increasingly beneficial if your target market shows interest in package deals. 

Outbound tour operator agents

A typical outbound tour operator works with international tourists. In contrast to inbound tour operators, outbound tour operators take travelers overseas from their home country. They offer a variety of tour packages that enable tourists across borders to travel abroad easily.

Outbound tour operators contribute significantly to the destination country’s economic growth. The majority of outbound tour operators choose to focus on a specific destination. This may be a destination that is currently popular or a destination in which they have special expertise and distribution partners. 

Most outbound tour operators cater to international travelers. 

Outbound tour operators offer travelers the convenience of visiting another country of their choice through tour packages. When travelers book a tour with an outbound tour operator, they can get everything they need under one roof — simplifying the travel experience. 

A particular region of the world is often their specialty

Outbound tour operators have the benefit of being experts in the destinations they serve. European destinations are a very popular choice with outbound tour operators; however other destinations, such as Southeast Asia and the Middle East, are growing in popularity. A successful outbound tour operator will often be very tuned-in to trends, one step ahead of the crowds, so they know which destinations to specialize in next. 

Choose an outbound tour operator if:

If your business strategy includes targeting international travelers, partnering with an outbound tour operator is likely to be a good fit. Additionally, an outbound tour operator will be a good fit if you understand overseas offerings and have the ability to promote them to domestic customers.

Advantages and Disadvantages

Just like running any form of travel company, there will always be some advantages and disadvantages. before working with either an inbound or outbound tour operator, here are a few pros and cons you should consider.

Inbound tour operators

As an inbound tour operator, you’ll have the advantage of convenience. This is due to being able to operate in the same location or home country as the tours you offer. This is extremely beneficial when receiving any inquiries or questions about the tours as you’d have a greater understanding of the local area and its culture compared to outbound tour operators. Furthermore, as an inbound tour operator, developing strategic partnerships and forming great relationships with other local companies and tour and activity operators will be a lot easier and is usually encouraged.

Another major advantage an inbound tour operator has is that most of the interactions with their customers will be direct. Meaning, it will allow them to offer a more personalized experience based on their customer’s needs.

Outbound tour operators

Just like the inbound operators, outbound tour operators deal with customers from their own countries. This makes designing and creating tour packages a whole lot simpler as they can customize the tours based on the customer’s interests. However, a disadvantage outbound tour operators have is not being based on the travel destination itself. This could create problems and can be more difficult to resolve any issues that may arise.

Fortunately, outbound tour operators have the flexibility to update their products and packages based on the latest travel trends and demands. As we all know, the travel industry is highly competitive and constantly evolving. Offering outbound tours gives you the freedom to adapt to changes in the travel and tourism market swiftly.

Which one should you choose?

The key difference between inbound and outbound tour operators comes down to whether they provide tours in their home country or abroad. You should consider both types of tour operator agents when developing your distribution strategy. Partnering with these two agents will maximize your reach to both international and domestic travelers.

Now, it’s time to think about ways to make your distribution and marketing channels more effective. You can identify your key partners via your research or by connecting with a tour wholesaler . By establishing partnerships with a large tour operator network , you can advance your business — both inbound and outbound. Read our previous blog if you are looking for tips and tricks for partnering with travel agencies or download our online distribution  ebook today.

In general, both types of tour operator agents play an important role in the overall success of your distribution strategy. By partnering with both of these agents, you’ll be able to maximize your reach to both international and domestic travelers.

When bookings start to come through, you’d want to ensure that you’re providing your customers with a simple booking journey. By utilizing an online booking software , you’re not only simplifying the customer’s booking journey, you’re streamlining your processes as well. This is due to advanced features that automate your processes that allow your customers to make a booking on the spot. These features include a real-time availability viewer, that allows your customers to book based on your exact availabilities. Payment gateway integrations that provide your customers with the convenience of secure online payments. And Automatic communication, which sends your customers confirmation and updates regarding their bookings.

To top this all off, you can easily manage your partnership with both outbound and inbound tour operators via an online tour operator marketplace like Rezdy Channel Manager . Rezdy’s marketplace broadens your reach to over 25,000 active resellers in the industry.

Using Rezdy Channel Manager is as simple as:

• Naming your price
• Setting your rates
• Letting resellers sell and promote your products

On top of that, you don’t have to worry about collecting payments and paying commissions as Rezdy automatically organizes payments for both parties. This reduces the need to chase your agents for payments.

Ready to capture more inbound and outbound bookings with Rezdy? Start a FREE 21-day trial or book a free demo today.

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Which Type of Tour Operator are You?

Let’s be honest – the tour operator business is highly competitive as companies try to get a large share of the international and domestic markets they operate in. In order to better navigate the landscape, you need to understand where you stand in that market.

We all know that a tour operator is one who packages key components (or all) of a trip, markets it, sells it to a traveler or tourist, and handles the entire tour operation.

But do you know exactly which type of tour operator you are?

Having clarity on this question will help you identify key partners to work with (like DMOs or hotels) and make better business decisions overall. As a result, you’ll be able to curate better tour packages and run your entire tour operation smoothly, efficiently and successfully.

This is why we’ll cover the different types of tour operators below (plus – we’ve attached a handy infographic at the end for your reference).

So, let’s get to it – which type of tour operator are you?

Types of Tour Operators

There are five main categories of tour operators that you could fall into: inbound tour operators, outbound tour operators, domestic tour operators, receptive tour operators, and ground tour operators. Let’s find out which one of these five you fall into.

Of course any tour operator cannot be fully successful without a booking system that will automate all reservation processes and allow them to generate more revenues. If you still haven’t got a booking system, try Regiondo , the most popular booking system in Europe designed to streamline your booking process. Book a demo with Regiondo experts to learn how your business can leverage booking system.

Inbound Tour Operators (AKA Incoming Tour Operators)

Inbound tour operators bring tourists into a country as a group or via individual tour packages. They handle all arrangements in the host country; and the types of tours they curate are specifically for non-residents touring the country.

Let’s look at an example.

If a group of Italian tourists want to explore Germany, then the tour operator in Germany who handles all the arrangements for the tour is known as an inbound tour operator. So, inbound tour operators are locally based and offer tours that cover their own country.

Most inbound tour operators hire local travel agencies for things like airport pick-up and drop-off; form partnerships with local hotels and businesses; and have key partnerships with other types of tour operators (who help them run tours on the ground).

Outbound Tour Operators

Unlike inbound tour operators, outbound tour operators work within their countries to take travelers to other countries. They are tour operators who market their tours for international destinations, either for business or leisure travel.

Let’s say, for example, that a group of Canadian tourists are planning a trip to Italy. Then the tour company in Canada that handles all the ticket reservations and hotel bookings is the outbound tour operator.

To further simplify things, outbound tour operators design and package tours for tourists in their home country to visit an international destination.

Now, most outbound tour operators choose to specialize in specific destinations: either a destination that is “trending” or one in which they have particular expertise and distribution partners. They often work with other tour and activity providers in the destination when designing their travel packages.

Domestic Tour Operators

Domestic tour operators are those that put together inclusive tour packages and sell them to domestic travelers. In other words, they are tour operators who provide travel packages and tours within a tourist’s native country.

Domestic tours usually involve residents of a specific country traveling within that country. They can visit national parks, scenic areas, hospitality tours, city tours , train tours, etc. Since there are many options that tourists can choose from, domestic tour operators often combine several tourist components into an inclusive package that they can sell to travelers within the boundary of the country.

Domestic tour operators form key partnerships with other tour and activity providers in order to attain a larger share of the domestic tourism market.

Receptive Tour Operators (RTOs)

Receptive Tour Operators (RTOs) provide tourism products to tour operators in other markets (as a business-to-business relationship).

Specifically, RTOs sell tourism products, whether they are sold in a tour package or alone, to tour operators and/or travel agents . They are essentially wholesalers and they don’t sell directly to the public.

So how do they make money?

They add a percentage rate (or fee) to the final price that the tour operator is selling the product or service for. When a travel agent buys the tour product, they incur the RTO’s fee in the final price. In that sense, RTOs do not charge commission. They simply market the tourism product and add their fee to the final product price.

Another key characteristic of RTOs is that they are experts in the region they operate in; and know much more than just the hotels and types of tourism activities that are offered in the region. As such, RTOs to help other tour operators identify things like hotels, services and design itineraries in regions they are not familiar with.

Ground Tour Operators

Ground tour operators operate domestically. They are however different from domestic tour operators in that they organize tours for incoming tourists on behalf of an inbound tour operator (and sometimes, outbound tour operators).

Let’s look at an example to better understand the role they play.

Italy will be the destination in this example. So, here’s how it works:

An inbound tour operator designs and promotes beach holidays, adventure, and heritage tours in different parts of Italy. Problem: the inbound tour operator doesn’t have offices across Italy. The inbound tour operator also doesn’t have close contacts or partnerships with suppliers and key agents in certain parts of the country. So, they consult with ground tour operators.

It is the ground operator that will handle the incoming tourists at those various destinations around Italy. They oversee land arrangements; negotiate with and contract local vendors; coordinate arrivals and departures; plan and put together local tour packages; escort tourists; provide market data; and cost and price tour packages. Overall, it is their duty to ensure that the entire trip goes smoothly based on the package tours and agreements.

You may know ground tour operators as “handling agencies” because they organize tours for incoming tourists on behalf of overseas tour operators.

Wrapping Up

Back to the question we asked at the very beginning: which type of tour operator are you? Now that you’re better informed to answer that question, you can also start thinking about ways to improve your distribution and marketing channels based on that answer.

The next step is to figure out who your key partners are and strike up deals to propel your business forward.

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GSTC for Tour Operators

Adhere to the GSTC Industry Criteria

They were created in an effort to come to a common understanding of sustainable tourism, and are the minimum that a Tour Operator (a provider, operator, and/or seller of travel products) business should aspire to reach. The Tour Operator Criteria are organized around four main themes: (A) effective sustainability planning; (B) maximizing social and economic benefits for the local community; (C) enhancing cultural heritage; and (D) reducing negative impacts to the environment.

Join a Training on the GSTC Criteria

Staff training on the GSTC Criteria is available from the GSTC with frequent online classes and by special arrangement for on-site training sessions.

The GSTC Sustainable Tourism Training Program (STTP) teaches the breadth of sustainable travel and tourism components and offers practical insights and effective steps to help you improve your sustainability practices. All sessions are led by expert GSTC Trainer(s).

Become a Certified Tour Operator

Becoming certified as a sustainable tour operator means that your travel or tourism product or service complies with the highest social and environmental standards on the market.

Increasingly, luxury travelers as well as regular travelers , and your fellow travel provider clients are seeking confirmation that sustainability practices are in place. Also increasingly, travel companies are looking for a product that is not only certified sustainable, but certified sustainable by a certification program that is GSTC Accredited. For example, Royal Caribbean Cruises Ltd. announced that by being certified by a Certification Body that carries a GSTC mark , operators of shore excursions will gain preferential buying treatment, when feasible). Other travel providers also give preferential buying treatment to suppliers that are certified sustainable.

Certification by an Accredited Certification Body (CB) provides you a credible solution to complex environmental and social issues, while informing your stakeholders — from customers to ownership and to your supply chain — that your business is operated with sound management that looks to the future and not merely at today.

Influence Your Supply Chain to be More Sustainable

Make your supply chain more sustainable in a verified way by giving preference in contracting to hotels that are certified by a GSTC Accredited Certification Body (CB).

Tour Operators can more easily verify and promote their supply chain as sustainable by showing preference to hotels and transport-vehicle providers that are certified sustainable.

Join GSTC as a Member

Join GSTC as a member organization to stay informed of key developments, and to learn from others in our network. Being a GSTC member means actively participating in our global community who represent a wide range of tourism stakeholders – from non-profit organizations to leading international tour operators, to government organizations and national tourism boards, and to local and international hospitality brands.