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What is a Tour Wholesaler? Exploring the Benefits and Types of Tours

By Happy Sharer

Introduction

Planning a tour can be an overwhelming task. From transportation to accommodation, there are many details that need to be taken care of in order for the tour to be successful. Working with a tour wholesaler can help make this process easier and more cost-effective.

A tour wholesaler is a company that specializes in providing travel services to tour operators. They act as a middleman between the tour operator and the service providers, such as hotels, airlines, and ground transportation companies. Tour wholesalers provide tour operators with access to discounted rates on travel services, allowing them to offer more competitive prices to their customers.

An Overview of Tour Wholesalers: What They Are and What They Do

So, what exactly is a tour wholesaler? A tour wholesaler is a company that specializes in providing travel services to tour operators. They act as a middleman between the tour operator and the service providers, such as hotels, airlines, and ground transportation companies. Tour wholesalers provide tour operators with access to discounted rates on travel services, allowing them to offer more competitive prices to their customers.

Tour wholesalers are responsible for arranging all aspects of a tour, from transportation to accommodation. They also provide support services such as itinerary planning, ticketing, and visa processing. In addition, some tour wholesalers even offer specialized services such as cultural excursions and activities.

Exploring the Benefits of Working with Tour Wholesalers

Working with a tour wholesaler can offer many advantages to tour operators. Here are a few of the most notable benefits:

Cost Savings

One of the main advantages of working with a tour wholesaler is the potential for cost savings. Tour wholesalers have access to discounted rates on travel services which they can then pass on to tour operators. This means that tour operators can offer more competitive prices to their customers while still making a profit.

Increased Efficiency

Another benefit of working with a tour wholesaler is increased efficiency. Tour wholesalers are experts in the field and can handle all aspects of the tour planning process quickly and efficiently. This leaves tour operators free to focus on other aspects of their business.

Higher Quality Tours

Finally, working with a tour wholesaler can result in higher quality tours. Tour wholesalers are experienced and knowledgeable about the destinations they work in and can ensure that tour operators get the best possible value for their money.

How to Choose the Right Tour Wholesaler for Your Business

Choosing the right tour wholesaler for your business can be a daunting task. Here are a few things to consider when selecting a tour wholesaler:

Researching Different Tour Wholesalers

The first step in choosing a tour wholesaler is to do your research. Take the time to compare different tour wholesalers and their offerings. Read reviews and speak to past customers to get a better understanding of their services and reputation.

Understanding the Different Types of Tours Offered

It is also important to understand the different types of tours offered by tour wholesalers. Some specialize in certain types of tours, such as adventure or educational tours, while others may offer a more general selection of tours. Make sure to select a tour wholesaler that offers the type of tours you are looking for.

Assessing Tour Wholesaler Reputations

Finally, it is important to assess the reputation of the tour wholesaler. Look for customer reviews and feedback to get an idea of their level of service. Also, make sure to inquire about any additional fees or charges that may be associated with working with the tour wholesaler.

A Look at the Different Types of Tours Offered by Tour Wholesalers

Tour wholesalers offer a range of different types of tours, each with its own unique set of features and benefits. Here are a few of the most popular types of tours offered by tour wholesalers:

Adventure Tours

Adventure tours are great for those who want to explore new places and challenge themselves. Adventure tours typically involve activities such as hiking, rafting, and mountain biking, and often include overnight camping trips. Adventure tours are a great way to experience nature and push yourself to your limits.

Educational Tours

Educational tours are ideal for those looking to learn more about a particular destination. Educational tours typically include visits to museums, monuments, and historical sites. These tours are a great way to gain a deeper understanding of the culture and history of a place.

Luxury Tours

Luxury tours are perfect for those who want to travel in style. Luxury tours typically include stays in five-star hotels, gourmet meals, and private transport. These tours are ideal for those who want to experience the finer things in life.

Tips for Working Effectively with Tour Wholesalers

Working with a tour wholesaler can be a rewarding experience, but it is important to keep a few tips in mind in order to ensure a successful partnership:

Establishing Clear Expectations

It is important to establish clear expectations when working with a tour wholesaler. Make sure that both parties understand what is expected in terms of pricing, payment terms, and deadlines for delivering services. This will help ensure that the tour runs smoothly.

Making Sure You Get What You Pay For

Make sure that you get what you pay for when working with a tour wholesaler. Ask questions about the services being provided and read the fine print of any contracts before signing. This will ensure that there are no hidden costs or unexpected surprises.

Utilizing Technology for More Efficient Communication

Finally, take advantage of technology to communicate more efficiently with the tour wholesaler. Many tour wholesalers offer online booking systems, which can make the process of booking tours much faster and easier. Additionally, many tour wholesalers offer mobile apps that allow you to keep track of your bookings on the go.

Working with a tour wholesaler can be a great way to save money, increase efficiency, and offer higher quality tours to customers. However, it is important to do your research and select the right tour wholesaler for your business. Additionally, make sure to establish clear expectations, get what you pay for, and use technology to communicate more efficiently with the tour wholesaler. By following these tips, you can ensure a successful and rewarding partnership.

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Hi, I'm Happy Sharer and I love sharing interesting and useful knowledge with others. I have a passion for learning and enjoy explaining complex concepts in a simple way.

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How do travel and tourism distribution channels work?

By Kevin Tjoe — 29 Nov 2021

tourism distribution channels

Updated January 2023 – A tourism distribution channel refers to the stakeholders and methods involved in taking a tourism product from the supplier to the consumer. Typically, the chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. However, more components are involved across the entire distribution chain, including suppliers, wholesalers, resellers, and consumers.

By aligning your business with existing distribution channels, you connect with important stakeholders in the industry. This creates more efficiency in your marketing efforts and ultimately grows your tourism and activity business.

What is a distribution channel?

Tourism distribution channels are the avenues tourism products and services are made accessible to consumers. Typically, tourism products are sold directly by the primary provider or through a series of intermediaries. If brokers or travel wholesalers are involved, this is called indirect distribution. Consumers can access these products via various mediums, including traditional channels such as travel agents, government bodies such as information centers, and even other tour and activity operators .

How it works

While direct bookings may still account for a large part of business, branching out through additional distribution channels can help you to maximize your brand exposure, reduce risk and ultimately boost your bookings. Many distribution channels will have access to much larger marketing spend or broader customer bases. This can provide you with access to more exposure and quality bookings.

Typically speaking you’ll provide your availabilities to them, and they’ll, in turn, bring in bookings at a pre-agreed commission rate.

The chain of distribution

The chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. This process begins with the primary tour and activity provider all the way to the end consumers experiencing it.

Generally, there are four steps to the distribution chain:

1. Suppliers/principals

2. Wholesales

3. Resellers

4. End consumers

The distribution chain for a particular product can go through all of the steps depending on its distribution channel. For example, direct distribution won’t require wholesalers or resellers, as suppliers sell their products directly to consumers, whereas indirect distribution requires intermediaries.

Suppliers or principals include the primary providers across accommodation, transportation and car hire companies, attractions, and experiences. Examples include hotels, Airbnb hosts, airlines, and the attractions such as the Empire State Building.  

Wholesalers

Wholesalers develop packages of travel products for retailers to sell on, though in some cases they may actually sell directly to the consumer. These packages or itineraries might include tours, activities, accommodation, transport, and/or travel insurance.

Wholesalers can include: 

• Destination Management Organisations (DMOs) or inbound tour operators, such as government tourism boards or tourism authorities
• Global Distribution Systems (GDSs), are used by retailers such as OTAs to easily see an inventory of availability from tourism operators.

Resellers purchase and bundle experiences to be sold directly to the consumer. A common example includes traditional travel agents, which create personalized travel packages. However, online travel agents (OTAs) such as Expedia and Tripadvisor are more commonly used these days. They provide accessibility to a range of tourism products such as airline tickets, hotel bookings, tours and activities, and more.

Consumers are the most critical component of the distribution chain. That is because they are the end user of the product. The choices and decisions consumers make have a huge impact on the rest of the distribution chain. Trends in consumer behavior, or individual decisions all influence how tourism products are marketed and sold.

Advantages of tourism distribution channels

Broadening your distribution channels involve heaps of advantages. Here are the top five:

Connectivity

By aligning your tour and activity business with the broader industry, you can connect with important stakeholders across every step of the tourism distribution chain. Forming strategic partnerships with resellers and tourism platforms enables you to access a broader customer base. This provides you with a greater opportunity to increase your sales. 

Generating 100% of your revenue via direct marketing requires a great deal of investment in time and money. Existing distribution channels generally have larger marketing budgets that they can spend to attract more customers.

Typically, as the supplier, you’d only pay a fee when a booking has been made via their channel – making your marketing and sales costs predictable. This means you gain additional resources to expend on other areas of your business, such as improving your customer experience.

Flexibility

Given the wide array of potential partners, you have the freedom and flexibility to test and experiment with different methods of promoting your business. Plus, it’s more convenient for your customers to book your services through an array of trusted partners. This helps to increase customer loyalty and satisfaction.

Transparency

Utilizing existing distribution channels can make the entire booking process more transparent for both you and the end consumer. On the tour operator side, it provides you with a clearer understanding of your customer behavior and adjusts your marketing strategies for better outcomes. And on the customer side, information such as reviews displayed on your profile allows them to create informed decisions before choosing to book your services.

Accessibility

Promoting your tourism products via numerous distribution channels means that your customers can book your services where they like; when they like. Furthermore, your products and services will be found across multiple avenues – enabling a wider array of customers to book with you. In fact, operators are using an average of 14 distribution channels according to Arival’s Operator Insights 2021-2022 report.

What are the main types of tourism distribution channels?

There are many ways to get in front of customers, even more so since the rise of digital channels. From travel agents to mobile apps, tourism suppliers have never had more choices regarding promoting their products and services. There are four main distribution channel types. These include:

Traditional channels

Traditional distribution channels often refer to real-world marketing channels separate from online and mobile experiences. Indirect traditional distribution channels can include travel distribution services such as travel agents, tourism information centers, flyers and print/ digital brochures , promotional marketing services, and tour operators . Depending on your products and services, wholesalers can also make up part of your business’ traditional distribution channel. 

Online channels

In recent years, online travel agencies (OTAs) have dominated the tourism industry. These online experiences allow users to plan, book, and pay for personalized travel plans through an easy-to-use centralized platform. Often flights, hotel bookings, car hire , and local experiences can be bundled and purchased through a single site, making the process convenient and intuitive. These platforms can also be cheaper due to the relatively low cost of maintaining a website over a brick-and-mortar travel agency. 

Mobile channels

Like online channels, mobile distribution channels rely on digital platforms, such as apps, to promote and sell tourism products. Many popular mobile apps which centralize the tourism buying experience have cropped up in recent years. In addition, airlines, hotels, and other major suppliers have begun developing apps to improve customer loyalty and engagement. Other forms of mobile marketing can include SMS marketing, mobile advertising, and cold calling.

Direct channels

Direct marketing and sales channels include anything your business has direct control over and does not involve an intermediary. This type of marketing can occur through traditional, online, and mobile mediums. For example, direct online channels can include your website, direct bookings via a booking system, online chat assistance, and your social media accounts.

While direct marketing efforts via mobile can consist of sending promotional text messages to previous customers, cold calling potential customers, and sending personalized email marketing messages . More traditional measures may include brochures and flyers, a storefront, and salespeople.

Choosing the right tourism distribution channels

As a tour company, it’s essential to understand which distribution channels will achieve the most significant results for your business. While trial and error can bring results over the long run, understanding what makes a channel right for your business can accelerate your path to success. 

Identify target market

To understand whether online or offline marketing, direct or indirect distribution, or mobile versus online platforms are best for your business, you need to understand your customers.

Demographics such as age, country of origin, the number of travelers in a party, and the number of children arriving can greatly impact how you communicate and effectively sell your services. For example, an older demographic may be more likely to use traditional channels such as a travel agent, while a young family might be found via online and social media . First, check over your previous customers and try to pull out any obvious trends amongst your clientele, then research which channels best suit your audience.

Research channels

It’s important to research which channels are available to promote your services. But also, it’s essential to understand the reputation of your potential strategic partners. When engaging in indirect marketing, you are aligning your brand with your distributors, so choosing platforms and businesses which align with your values is important. It’s also essential to understand the costs and benefits of each channel and make informed decisions based on what will work for your business. 

Evaluate costs and benefits

Each platform and distribution channel will have different pricing models. Some may charge a flat fee for promotional services, others may purchase and resell your services, while others may charge a fee when you receive a booking. It’s essential to understand what level of return you can expect. If you are starting out, finding performance-based pricing options will allow you to pay as you go. Alternatively, flat fee services can sometimes provide a higher return as your budget can go directly to marketing spend.

Track performance

Once you choose one or more channels to distribute your services, ensure you track the performance versus how much it costs to attain them. By understanding the performance of your partnership, it enables you to eliminate ineffective channels and double down on your marketing efforts, thus, cutting you costs.

How can you manage all distribution channels easily?

It can take a lot of time to form and manage strategic partnerships with multiple resellers. Luckily, technology is here to help. A channel manager such as Rezdy Channel Manager can be accessed regardless of your booking system or size of business, and makes it simple to negotiate agreements, manage inventory, rates and manage commissions with a vast range of resellers, from local visitor centers to the big-name OTAs. Live availability of your tours, activities or attractions are visible from one dashboard, dropping the risk of pesky double bookings as well.

You can access the broadest reach of resellers in the industry, connect with desired resellers and easily distribute rates and availability in real-time. Rezdy is integrated with a number of alternative reservation systems and is continuously adding more, providing suppliers access to channel management tools, directly from their existing system. Suppliers with a custom built booking system can connect with Rezdy Channel Manager as well. For Rezdy booking software customers, channel management is included. 

Find out more about how Rezdy’s channel management platform can support your business .

Ready to  join the thousands of Rezdy customers that managed to grow their bookings by over 25% in 2022? Book a free channel manager demo with a product specialist to see how our products can fit the needs of your tour business. If you are interested in Rezdy’s booking software that includes channel management, you can start a free 21-day trail trial.

If you enjoyed this article, be sure to sign up to receive the  Rezdy newsletter , a valuable resource for those who want to stay up-to-date on the latest industry happenings.

Want to know more about reseller commission rates? Read our guide to industry standard commission rates

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Tour Wholesaler

A person who contracts with hotels, sightseeing, and other ground components to provide ground packages for sale to individuals through travel agents and direct carriers normally to be used in conjunction with scheduled air transportation. However, these ground packages may be used independently such as a tour package at a destination that may include hotel, specialty attractions, and meals.

How to Become a Travel Wholesaler in 3 Steps

What Is a Travel Wholesaler?

Start by looking at the offers, becoming a travel agent, from travel agent to travel wholesaler, franchising will help a lot.

Starting your travel agency or business is easier said than done. There are all kinds of different travel businesses you can try, so you first have to figure out exactly where you see yourself. Do you want to run a travel agency that makes arrangements for people, or are you looking for something more challenging, like working as a travel guide?

If you want to enter the big leagues, the best option is to become a travel wholesaler . Doing so will keep your everyday activities interesting and challenging, and you’ll also be able to make some serious money while you’re at it. Keep reading and learn more about what it takes to become a travel wholesaler.

Many people mistake travel agents for travel wholesalers, but the two are not the same. Travel agents work in travel companies directly with travelers. Their job is to help travelers find a destination they like, help them organize the best hotel, and point them to the area’s best activities while they are there.

On the other hand, travel wholesalers don’t work directly with travelers . They are the people that offer travel-related products and services to travel agencies that sell those services to customers. In other words, travel wholesalers provide all details that go into organizing a trip.

That includes a place to stay, a list of activities and tours, and find the best offers on the market. In return, they earn commissions directly from the agency that they helped sell an arrangement. Think of them as travel agent freelancers whose job is to find the best offer from all available travel agencies.

The good news is that the travel market keeps growing steadily every year. According to this website , the global travel accommodation market was valued at $632.8 billion in 2018. That number is expected to reach $893 billion by 2026 . There is plenty of room on the market for new travel wholesalers, so now might be the perfect time for a career change.

Let’s assume that you want to open and run a small local travel agency. As a travel wholesaler, your job is to browse through thousands of travel arrangements, offers, activities, and everything else that has anything to do with traveling.

Facebook and Instagram are a good starting point as that’s where 58% of new clients come from . Once you find the best offers, you have to plan an entire trip. That includes booking hotels, making sure that the travelers you work with get the best prices, organizing their activities while they are on the trip, and pretty much making sure that all of their wishes are fulfilled.

With that said, you don’t work directly with travelers. You have to find the best options and negotiate prices with all hotels, cruises, tour guides, and other travel products. Those prices are usually lower than retail prices as you buy them in bulk. Then, when you sum everything up in one big, juicy offer, you sell that offer to travel agencies that then resell them to travelers at higher prices.

Tourism is a massive worldwide business that covers many different areas. If you want to become an exclusive distributor and build your franchise from the ground up, you will first have to get the legal part in order. First of all, you will need an IATA certificate even to get started.

IATA stands for the International Association of Travel Agents, and it’s the most important document you need to get started .

As a travel wholesaler, you can’t work for another agency using their license, but you need a few years of experience to get an IATA.

What that means is that you can’t become a travel wholesaler overnight. You first must understand how the entire industry works, make the right connections, show that you have the skill needed to handle so much information, and earn a reputation.

Even if you have all that, you will need referral letters from agencies where you worked and as many suppliers as possible. For example, if you ever worked in the Marriott resort hotel, a letter from them would give you a good head start.

Apart from recommendation letters, you will also have to pay fees and bonds that are not cheap. That’s why it’s critical that you establish yourself in the travel industry as a trusted tour operator for another company. Once you meet the right people and have years of experience behind you, you will have the needed tools to become a travel agent.

Once you’ve built a strong foundation for your business, you can start working as a travel wholesaler. That will require a detailed business plan with an emphasis on finance, and you will have to keep an eye on your competition at all times. Check what your competition is doing before starting a business. See if there is room on the market for your agency. If the competition is too strong, you won’t have a chance, no matter what you try.

If you think that you can make it, you will still need a mentor to guide you through the process . That mentor has to be a non-competitive travel agent working for another company. These agents will be happy to give you a hand and help you understand the entire process better.

You will probably have to call dozens of businesses until you find one that’s willing to help you out. You can reach out to Expedia and Traverus Global and ask them for some advice.

Starting from nothing will put you against huge companies that will close all doors before you can get in. That’s why you should consider buying a franchise. Doing so will give you access to a working system and help you avoid common entrepreneurial mistakes . Your job will be to improve the franchise you get with better offers and more travel locations.

Since you will already have some regular customers, you will get some valuable feedback you can then use to improve your offer further. Remember to take one step at a time, and you might find yourself neck and neck with the most prominent travel wholesalers in the country.

Good Luck – You’ll Need It

The travel industry is an unforgiving place. You will find yourself in a small pool filled with sharks, as no one wants to give their piece of the cake away to someone else. However, some careful planning and a few useful contacts can help you build a strong travel wholesale business, but only if you time your moves right.

The current COVID-19 situation has put the industry under more pressure than it has ever seen. It will make your job harder, but on the other hand, the prices are lower, allowing you to close better deals quickly. We wish you good luck on your future travel business!

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Senior Director of Business Development APAC at Hotelmize, fourteen years experience in the travel industry in the APAC region, including eight years expertise in the travel technology industry, with a track record of proven success in the sales of travel technology solutions.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Define Tour Wholesaler

tour wholesaler. See tour operator .

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Tour Operator Vs Wholesaler

The differences between tour operators and wholesalers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 1-2 years to become a tour operator, becoming a wholesaler takes usually requires 6-8 years. Additionally, a wholesaler has an average salary of $59,529, which is higher than the $47,294 average annual salary of a tour operator.

The top three skills for a tour operator include reservations, customer service and customer feedback. The most important skills for a wholesaler are business plan, annuities, and territory sales.

Tour operator vs wholesaler overview

Tour operator vs wholesaler salary.

Tour operators and wholesalers have different pay scales, as shown below.

Differences between tour operator and wholesaler education

There are a few differences between a tour operator and a wholesaler in terms of educational background:

Tour operator vs wholesaler demographics

Here are the differences between tour operators' and wholesalers' demographics:

Differences between tour operator and wholesaler duties and responsibilities

Tour operator example responsibilities..

• Plan itineraries, make reservations, lead tours, obtain licenses for foreign pilots, manage a fleet of light aircraft.
• Manage VIP guest calendar to ensure these guests are given quality service from staff.
• Process and issue airlines, transfers, hotels, and city tours reservations for groups.
• Train customers in operating Segway personal transport devices and hold entertaining tours.
• Film all selection tour events and act as intermediary between AAG and hundreds of Midwestern media outlets.

Wholesaler Example Responsibilities.

• Team with external wholesaler to develop sales and servicing strategy in order to manage assign sales region effectively.
• Work closely with bank management to help market annuities through the retail branches.
• Prepare and schedule meetings, seminars and conference calls with brokers to increase awareness, understanding and usage of MassMutual annuities.
• Recognize by management for confidence and develop knowledge of the healthcare industry with uncanny ability to expertly penetrate large accounts.
• Work in partnership with RVP, covering the top-producing R.I.A.
• Develop individual account base through telemarketing, cold-calling & prospecting.

Tour operator vs wholesaler skills

• Reservations, 32%
• Customer Service, 22%
• Customer Feedback, 4%
• Travel Arrangements, 3%
• Tour Guides, 3%
• Reservation System, 3%
• Business Plan, 18%
• Annuities, 8%
• Territory Sales, 6%
• Excellent Presentation, 6%
• Sales Process, 4%
• Leverage, 4%

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The role of tour operators wholesalers and travel agents

2.4 the travel sector, 2.4.1 the role of tour operators wholesalers and travel agents.

Travel agents, tour operators and wholesalers are distinct sectors of tourism (King and Hyde, 1989, p. 41). The terms “tour operator” and “wholesaler” are often used interchangeably. However, Howard and Harris (2001) argue that in tourism industry jargon, the two denote different types of businesses.

Tour wholesalers

A tour wholesaler is defined as a firm that purchases travel and tourism services in bulk and combines two or more of these services into a ‘package of travel’, often called a tour for sale through travel agencies or direct to consumers (King & Hyde, 1989; Howard & Harris, 2001). These services include airline seats, car rental, hotel rooms, sight seeing tours etc.

Tour wholesalers play a prominent role in the tourism industry by developing package tours, which normally include viable destinations and combinations of attractions, accommodation and transport (Dickman 1989, p. 144). They have a responsibility of ‘selecting’ and

‘combining’ services in a manner that would appeal to a target market. Packages provided by these tour wholesalers therefore vary considerably depending on the number and nature of ingredients included. Howard and Harris (2001, p. 359) argue that by providing ‘ready made’ travel and tourism packages “tour wholesalers make it easier for individuals, or groups, to travel to and experience other areas or countries.” They also secure substantial price discounts by buying in bulk from different service providers and then design a brochure to promote the package and distribute it for sale either through travel agencies or to consumers.

Tour wholesalers do not usually own the services they package. However, evidence exists to the effect that some companies employ their own tour escorts or managers rather than purchasing these services from specialist companies or individuals (Howard & Harris, 2001). Through forward integration, some airlines, particularly QANTAS, Jetstar and the now defunct Ansett operated wholesaling and travel agents divisions as a way of increasing the sales of their seats (King & Hyde, 1989; Howard & Harris, 2001). For example,

QANTAS runs its wholesaling division QANTAS Holidays while Ansett used to own Traveland, one of Australia’s biggest travel agents chains. In Australia tour operators such as Jetset, Thomas Cook and Express also act as travel agents, prepared to book their own or other tours for a customer. Traditionally they have been classified as domestic, inbound and outbound tour operators.

Tour operators

A tour operator is a “company or individual that provides tours within a particular destination area. These tours can range from simple sightseeing journeys (e.g. harbour cruises) to extensive journeys of many weeks” (Harris & Howard, 1996, p. 153).

There are two broad types of tour operators, namely Local tour operators and Inbound tour operators. Local tour operators are tour operators that conduct tours within a particular destination and are located primarily in a traveller’s or tourist’s destination region. Howard and Harris (2001) argue that these operators’ services might also be used while en route to these areas by inbound tourists. Howard and Harris (2001, p. 361) further observe that while most local tour operators sell directly to consumers as well as through travel agents, many of them also “seek to have their services incorporated into the packages out together by tour wholesalers and inbound tour operators. In acting this way they are able to greatly increase their ability to sell their services to interstate and overseas travellers.”

Inbound tour operators are organisations, which arrange and oversee tour packages bought by inbound tourists to Australia. They do not only put together packages of services for use in a destination area by overseas travellers but also coordinate travel arrangements in Australia for overseas wholesale tour operators and retail travel agents. Their services include planning an itinerary in Australia, operating the tour, costing the tour components - including transfer, accommodation, sight-seeing, domestic transport, airport transfers, entertainment and meals (Stirling, 1993). Howard and Harris (2001) observe that service packages developed by Inbound tour operators in Australia are not sold directly to overseas

travellers but are purchased by tour wholesalers, travel agents and incentive houses located in the traveller’s home country who in tern would incorporate the packages into their own product offerings which they would then sell directly or via travel agencies, to consumers.

Travel agents

Travel agencies are intermediaries between principals (airlines, coach companies, hotel, vehicle, rental firm, tour wholesalers and cruise lines) and consumers (tourists). Travel agents evolved from pioneer travel agents such as Stewart Moffat Travel in Melbourne and World Travel Headquarters in Sydney in the 1950s even though there were a handful of agencies set up just to handle travel much earlier (Richardson, 1999). These pioneers were both wholesalers, retailers and inbound operators at the same time, and “…as time went on and markets became bigger, specialists developed either as separate companies or as subsidiaries or divisions of large ones” (Richardson, 1999, p. 252). Travel agents became more important when air travel increased popularity. Airlines viewed the use of travel agencies as a cheap and effective method of widening their distribution network in order to reach new and expanding markets (Vasudavan & Standing, 1999, p. 214). Furthermore, as more people travelled greater distances it became essential to have someone who knew about overseas destinations and regulations which became important to the overseas traveller (Dickman, 1989, p. 140). This led to the use of travel agents as brokers between tourism industry operators (principals) and consumers. Howard and Harris (2001, p. 24-26) argue that travel agencies in Australia can be grouped into four types, namely independent travel agencies, corporate chains, franchise agencies, and corporate buying groups.

Travel agents act not only to assist principals to distribute their services to those people who wish to purchase them (Howard & Harris, 2001), but also provide information, promotion and booking service to the market place (Stirling, 1993) in return for a commission “which is generally expressed as a percentage of the sale price of the travel product” (Howard &

Harris, 2001, p. 18). They also offer their clients a range of consulting services, including advice on travel services to purchase, and assisting clients in organising their trips. French et

al. (2000, p. 75) see agents as assuming a dual role. The first role being contractual between the agent and the principal 8 and the second being responsibility to the client in offering a service 9 .

Leiper (2003) sees travel agents as performing a number of responsibilities to their clients:

motivating sales prospects, informing consumers, making and confirming reservations, selling, planning clients’ trips, organising clients’ trips and supporting the management of clients’ trips; and principals: representing principals, selling and other promotional roles for principals, collecting information on booking, providing financial services and gathering market data. They also play an important intermediary role in the Australian tourism system. Given this duality of roles, Howard and Harris (2001, p. 18) argue that travel agencies are best defined as intermediary firms that derive financial gain (in the form of commission) by linking suppliers of tourism services with consumers through the provision of reservation, ticketing and other services.

• The tourism industry
• The impact of tourism in Australia
• The role of tour operators wholesalers and travel agents (You are here)
• Internal drivers
• Types of strategic alliances

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• Travel Industry Definitions & Glossary
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Travel Industry Definitions & Glossary

Privacy overview.

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 Travel Trade? History, Travel Agency, Tour Operators

• Post last modified: 19 January 2023
• Reading time: 24 mins read
• Post category: Tourism

What is Travel Trade?

Travel Trade is a tourism term referring to tour operators, travel agents, receptive operators, and wholesalers. These professionals organize and contract to buy travel products to sell to groups or individuals.

Table of Content

• 1 What is Travel Trade?
• 2.1 Origin of Traveller’s Cheque
• 2.2 Philanthropic Work
• 2.3 Diversification of Business
• 2.4 Acquisitions for Expansions
• 2.5 History of Travel Agency Business in India
• 2.6 Period of Pre Independence
• 2.7 Period of Post Independence
• 3.1 First German Travel Agencies
• 3.2 First Indian Owned Travel Company
• 4.1 Retail Travel Agency
• 4.2 Wholesale Travel Agency
• 5 Tour Operators
• 6.1 Inbound Tour Operators
• 6.2 Outbound Tour Operators
• 6.3 Domestic Tour Operators
• 6.4 Destination Management Companies/ Ground Operators
• 7 Difference between Travel Agencies and Tour Operators

The travel agency trade in India is about 60 years and has gained momentum from the growth of civil aviation in the country. Travel agency trade in India was a small start with a few firms, today it has about 750 approx. travel agencies spread all over the country.

The country is renowned for its uncertainties and it’s not easy to count out without any guidance. There in India travel agencies or tour operator emerges as a perfect travel companion chasing away the complexities and overcoming all hurdles and ensure you have a perfect traveling experience.

History of Travel Trade in India

People were not aware of the services of travel agencies and they used to face several types of difficulties to arrange tours on their own. Travel agents were appointed for the purpose of arranging logistics for the army personnel or reliefs for war victims.

They used to work providing postal and courier services to the government. The American Express Company celebrated its 150 anniversary in 2000 as a branded Credit Card and Traveler’s Cheque Company.

It has created its own niche in the credit card segment. Today, the company is the world’s largest wholesale travel agent and consolidator with provisions of travel solutions for flights, hotels, car rentals, holiday packages, cruises, and money exchanges to individuals, groups, and corporate travelers.

History of Travel Trade in India:

Origin of Traveller’s Cheque

Philanthropic work, diversification of business, acquisitions for expansions, history of travel agency business in india, period of pre independence, period of post independence.

American Express is a global company serving the public as well as government agencies with its unique supply chain management system to deliver travel products freely at distance places for the last one and a half-decade.

Travelers are well-known and comfortable with traveler’s cheques issued by American Express from several locations around the world. It was a travel solution for long-haul travelers carrying money for spending on transport, accommodation, food, tips, and shopping.

There were two benefits for American Express Company:

• It charged service charges for issuing cheques.
• Money, which was deposited for issue of cheque, was invested for earning interest.

Traveler’s cheque business became very profitable for the company and it expanded its network across the USA and other European countries including the UK.

American Express Company became a popular and reliable agency for the general public and government for its Money Order as well as Traveler’s Cheque.

The historic assistance of the American Express Company with its cheque became famous for the company to receive more acceptability.

The stranded passengers in European cities during the First World War were given cash against their traveler’s cheques and money orders instantaneously. It was a timely help for passengers that helped passengers spend on routine things.

Cargo and baggage handling and money exchange were the core business until 1915. A 30,000-mile world cruise tour connecting and stopping at different countries such as Cuba, Panama, Japan, China, Singapore, India, and Egypt along with the Mediterranean countries was conducted for passengers in 1922. The duration of the cruise tour was four-month-long.

The company also entered into the direct sale of bus, train, and cruise tickets. The diversification of business did not bring about visible changes in the business due to the political turmoil followed by two World Wars in a gap of two decades.

After the end of World War II, there were political unions across the world and many countries deeply realized the impact of wars on trade and commerce. Neighboring countries were engaged in dialogue for promoting trade and commerce.

That resulted in the movement of people from one country to another. American Express took the advantage of the mass movement of people in the early1950s and the business got revived. The first Credit Card was introduced in 1958.

As a result, credit cards were issued with easy formalities for the general public in America to use extensively. People took it as a status symbol and hassle-free way of purchasing and paying.

American Express went on acquiring companies that were directly and indirectly into the travel business. The names of the companies include Shearson Loeb Rhodes, First Data Resources, Trade Development Bank, Lehman Brothers, Kuhn Loeb, and Investors Diversified Services.

All the diversifications and acquisitions took place between the 1970s and 1980s. This had a significant impact on revenue generation. The profit reached the extent of $1 billion in 1986.

There was a setback to the company’s turnover when restaurant operators did not use the cards due to high rates for accepting the payments through the Amex cards.

The Company maintained strategic links with airlines, banks, retailers, and other tourism business establishments to expand the circulation of Amex Card.

Travel agents were not merely meant for selling travel-related services but also used to take part individually or with groups for the promotion of tourism destinations.

International travel organizations like Thomas Cook, American Express, and Cox and King have made remarkable contributions to the growth of travel agencies and tour operation business. Those travel agencies brought several new ideas to the limelight.

Similarly, travel agencies in various countries followed and practiced innovative business strategies.

The evolution of modern travel agency and tour operation business in India does not have a long history unlike the history of travel agency business in Western Europe and North America. Overseas travel agents like Cox & Kings and Thomas Cook used to operate the inbound tour in India.

There was no formal travel agency in small cities to handle the foreign visitors. Thomas Cook & Cox and Kings used to conduct the world tour and special interest tours for royal family members. Package tours were regularly conducted to India for British officials and their family members and relatives.

Some of the events during Post Independence Period opened opportunities for the travel agents to expand more functions. One such event is the report prepared by Sir John Sargent in 1945 about the development of means of travel from the nearest railway station, residential accommodation, travel brochures and guide books, provision of authorized guides, etc.

The formation of the Tourist Traffic Branch coordinated with the travel agencies and tour operators in India and overseas to promote domestic and inbound tourism in 1949. The branch also established coordination for the conduct of conferences on tourism and coordination with railways.

The establishment of the Tourist Bureau in States and development of tourist centers and the training of guides were some of the initiatives of the Central Government for the promotion of tourism.

Travel Agency

A travel agency is one of the most important organizations in the tourism private sector that plays an important and vital role in the entire process of developing and promoting tourism in the country or at the destination.

It is a travel agency that packages and processes all the attractions, accesses, amenities, and ancillary services of a country and presents them to tourists. That’s why travel agencies are known as image builders of a country.

A prospective travel agency is one that makes arrangements of travel tickets (air, rail, road, and sea) travel documents (passport, visa, and other documents for travel), accommodation, entertainment, and other travel-related services from the principal suppliers. It may also secure travel insurance, foreign currency for the traveling people.

Travel managers should have professional qualifications and experience. In a small agency, training will probably be on-the-job. Large companies may offer a training program.

The main features of travel agency business are:

• An important link between the clients and principal suppliers.
• Image builder.
• Ensures rapid travel service.
• Provider of authentic and reliable travel information.
• A social and continuous process.
• Establishes good relationship with clients and vendors.

First German Travel Agencies

The first German Travel agencies in the line of modern travel agencies were known as Immigration Agencies. These agencies were engaged in booking ship passages and sometimes group journeys from a collection point to the point of embarkation.

The oldest of such agencies was Reiseburo Rominger in Stuttgart in 1842. This agency subsequently extended its activities to the whole range of travel services in Europe. To make traveling simple for the individual, the concept of tickets for means of transport was introduced and issued by these larger agencies in Europe.

First Indian Owned Travel Company

Pallonji Katgara & Jamshedji Dastoor created the Jeena and Company (a shipping and export company) with a seed capital of US$ 75 in 1900. Jeena Tours and Travels was established in 1920 with the privilege of being the first Indian – owned travel company.

In 1961 the Company was merged into Travel Corporation (India) Pvt Ltd to become India’s largest travel company under the leadership of the Katgaras.

Types of Travel Agencies

These are major types of travel agencies:

Retail Travel Agency

Wholesale travel agency.

A retail travel agency sells tourist products directly to the public on behalf of the product suppliers and in return gets the commission. Some package tours are sold in two ways i.e. on a commission basis and mark-up price.

When a travel agency sells a tour package at a marked-up price, it means that first, it marks up the cost of a tour and then sells it at a higher rate. The mark-up price is the difference between retail price and wholesale cost.

A retail travel agency is defined as a business that performs the following functions: quote fares and rates, make reservations, arrange travel tickets and accommodation, arrange travel insurance, foreign currency, documents and accept payments.’ The main source of revenue for a retail travel agency is the commission received from the vendors.

However, the rate of commission differs from organization to organization and travel component to travel component. In India, retail travel agencies receive ninety-five percent of their revenue from the commission and the remaining five percent from consultancy services.

These agencies are specialized in organizing package tours, which are marketed to the customers/tourists through the network of a retail travel agency or directly to the prospective clients (if the wholesale travel agency has a retail division).

A wholesale travel agency purchases tourist product components in bulk and designs package tours. Sometimes, a wholesale travel agency buys travel components from a vendor in bulk and resells them to another travel business organization.

Wholesale travel agencies assemble package holidays and sell them to the clients by retail travel agencies. A typical package tour includes air tickets, accommodation, and sometimes other services may also be included in it such as entertainment, sightseeing, and sports activities, etc.

These packages are referred to as ‘package tours’ as most of these tours include the services of escorts but a few are sold to people who wish to travel independently.

How a wholesale travel agency generates profit? Generally, a wholesaler receives volume discounts from principal suppliers because a wholesaler might agree to purchase a large number of seats from a particular airline or reserve a large number of rooms at a particular hotel and resort.

Practically, a wholesaler who sells package tours is called a tour operator. However, technically there is a difference between a wholesaler and a tour operator. A wholesaler who sells tourists’ products individually without assembling them into package tours is called a consolidator.

Mostly, these are specialized in a particular product component, such as air tickets, accommodation, conferences, and conventions, etc.

Tour Operators

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. 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.

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 travelers.

Types of Tour Operators

Let’s discussed the types of tour operators which are given below:

Inbound Tour Operators

Outbound tour operators, domestic tour operators, destination management companies/ 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 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 traveling 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 travelers.

In general, these tour operators provide travel services within the boundary of the home country and offer package tours to the travelers 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, the difficulty arises.

It is the ground operator then who handles the incoming travelers in the same season but at different places 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.

Difference between Travel Agencies and Tour Operators

• The major difference between tour operator s and travel agencies is in the system of providing service to customers. A tour operator is a company that buys certain services from different companies (like hotels, restaurants, cafes, beauty salons) and forms a single tourist product out of them using its own pricing system. A travel agency acts like an independent reseller. Its profit is the commission for the sale of the operator’s tours to customers. That’s why the agent’s price is usually higher, although there are moments when agents deliberately understate their prices.
• Usually a tour operator is a comparatively large company in comparison with a travel agency. It has its main office and several subsidiaries in order to offer their services to more potential customers. Many big tour operators have subsidiaries in different countries. Irrespective of the number of subsidiaries a tour operator usually concludes agent agreements with independent travel agencies that then sell the operator’s tours to their customers. The more partners a tour operator has in as many countries and regions as possible, the more the sales volume is and, correspondingly, the more tourists will buy its tours and the more profit it will gain.
• A tour operator may be a supplier (meaning they might own hotels or car rentals or Both) and allow to use their own inventory or their supplying partner inventories for a fee. A travel agent is only a distributor, and typically travel agents rarely own any travel assets (such as car rentals or hotels) of their own.
• Travel agencies are less inclined than tour operators to perform ground services i.e. to act like a handling agency or ground operator.
• A t ravel agency may deal with one component of travel product while a tour operator offers a variety of tour programmes.

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The travel distribution system

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Distribution channels and consumer purchasing behaviour varies from market to market, so you need to understand the structure of the distribution system specific to your target markets before attending a trade show.

How does the distribution system work?

The travel distribution system is a complex, global network of independent businesses. This network includes a series of distributors or intermediaries, who play a specific role in the development, promotion and purchasing process of Australian tourism experiences.

Online technology and company mergers have transformed the tourism industry, with an increasing amount of crossover in the roles and functions of various sectors of the distribution system. Businesses engage a mix of distribution partners to reach their  target consumers.

The traditional structure of the distribution system includes Inbound Tour Operators (ITOs) based in Australia; wholesalers based overseas and international retail travel agents. However, this varies considerably from market to market. For example, it is not uncommon for an inbound tour operator to be part of a larger company that may also operate a wholesale arm in an overseas market, or for a wholesaler to also operate the travel agencies that sell its packages.

Many traditional travel distributors such as wholesalers and travel agents take an online approach as well as offering their services from a retail shop front.

Both online and traditional distribution partners have the opportunity to work with each other and directly with products and customers. As the traditional distribution system continues to evolve, it is important to clearly understand the structure of the companies that you work with and their relationships with other organisations. 

Why work with travel distributors?

Travel distributors allow you to broaden your customer base far beyond the reach of your own marketing budget.

They are important to the inbound tourism industry as overseas consumers still heavily rely on the advice of local travel experts when planning and booking their Australian holiday, particularly in long-haul and emerging markets. Travel distributors can also provide market intelligence, insights and advice on a specific market. The travel distribution system covers all the channels through which an international traveller can buy your product. 

Inbound tour operators

An inbound tour operator (ITO), also known as a ground operator or destination management company (DMC), is an Australian based business that provides itinerary planning and product selection, and coordinates the reservation, confirmation and payment of travel arrangements on behalf of their overseas clients. They bring the components of accommodation, tours, transport and meals together to create a fully inclusive itinerary. ITOs are the link between Australian tourism products and the overseas travel distributors that buy them, including travel wholesalers, direct sellers, travel agents, meeting planners and event planners.

Wholesalers

Wholesalers are located in overseas markets and have traditionally provided a link between travel agents and ITOs or tourism product. Wholesalers purchase programs developed by ITOs or develop their own packages and itineraries for travel agents and consumers. These packages will usually offer transport, accommodation, tours and attractions. In some markets, wholesalers are also ‘direct sellers’ who bypass travel agents to directly target consumers. In other markets, there are no wholesalers in the traditional sense and travel agents perform both roles. Traditionally, travel packages are published in brochures and promoted and distributed via retail travel networks. Wholesalers may operate their own retail outlets or work with an established network of travel agents in their own country. Many wholesalers specialise in specific market segments such as adventure or the seniors market and many also have an online presence.

Retail travel agents

Retail travel agents offer wide distribution in prominent shop front locations and a convenient place for travellers to make bookings and buy holidays. Traditionally, retail travel agents have provided a link between the wholesaler and consumers. With the integration of distribution roles, the retailer may deal directly with ITOs or Australian-based products, particularly in Asian markets. Many retail travel agents belong to a larger chain of travel agencies or consortiums that use their combined resources to market the agency brand. In some countries, retail agencies may be operated by travel wholesalers, or may concentrate on particular market segments such as special interest or family travel. Many retail travel agents also have an online presence.

Online travel agents

Online travel agents (OTAs) specialise in online distribution and have no intermediaries – they deal directly with consumers and tourism product. Consumers can purchase a product or an entire holiday package online. Online distribution is less structured than the traditional travel distribution system. Commission levels vary, depending on how the site is operated.

Meeting and incentive partners

The business events sector is one of the highest yielding inbound tourism segments. Meeting and incentive planners organise and manage all aspects of meetings and events including conventions, conferences, incentives, seminars, workshops, symposiums, exhibitions and special events.

Meeting and incentive planners use a wide variety of venues, tour operators, accommodation, team building companies and restaurants. They look for unique travel experiences and require different support and facilities to leisure tourism. Meeting and incentive planners are also known as: Professional Conference Organisers (PCO); Destination Management Companies (DMC); Conference Managers; Event Managers; Incentive Houses; Travel Fulfillment Companies; and Special Project Managers.

How do I price my products for distribution system partners?

Travel agents, wholesalers and ITOs provide valuable distribution that you may never be able to secure on your own. Commission is only paid once a sale has been made. You must understand the difference between nett and gross (or retail) rates and protect your rates by providing the correct rates to each level of the distribution system.

Rates should be clearly marked as either gross (retail) or nett. Gross Rate = Nett Rate + Agent’s Commission. The gross or retail rate of a product is the amount that the consumer pays and should be consistent across all distribution channels.

For example, a customer should pay the same price if they book direct, via an international travel agent or via the internet. Consumers will not purchase the product from a travel agent in advance if they know they can purchase it directly from you at a reduced price. Agents will not promote and market your product if they know the consumer is not going to buy from them.

Please note: Information on commission levels is intended as a guide only. For further details on the information you need to include in your rates agreements to distribution partners please refer to the Fact Sheet –“Product & Rate Information”. For further details on how to distribute your products via these distribution partners please refer to the Tourism Export Toolkit .

Discover more trade show tips

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We acknowledge the Traditional Aboriginal and Torres Strait Islander Owners of the land, sea and waters of the Australian continent, and recognise their custodianship of culture and Country for over 60,000 years.

*Disclaimer:  The information on this website is presented in good faith and on the basis that Tourism Australia, nor their agents or employees, are liable (whether by reason of error, omission, negligence, lack of care or otherwise) to any person for any damage or loss whatsoever which has occurred or may occur in relation to that person taking or not taking (as the case may be) action in respect of any statement, information or advice given in this website. Tourism Australia wishes to advise people of Aboriginal and Torres Strait Islander descent that this website may contain images of persons now deceased.

Wholesale tour operator

What is a wholesale tour operator.

A wholesale tour operator is travel professional that creates travel packages to be sold to travelers directly or through travel agencies at a discount.

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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What is the difference between a DMC and Travel Agency or Tour Operator?

A Destination Management Company (DMC) is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients. The purpose of a DMC is to provide an all-inclusive service to a client by coordinating and contracting the travel services that their client needs such as travel, lodging and entertainment while they are at their destination. A tour operator is similar to a DMC in that they offer customized tours and trip planning services on behalf of a brand or destination. 

DMS stands for Destination Management System . A DMC is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients. It is not uncommon to see two or three different companies working together in this way.

In contrast with a tour operator who provides lodging, meals and transportation for individual travelers as well as providing specific services such as booking air/bus tickets or car rentals; DMCs focus on providing an experience that takes you off the beaten track of your typical tourist destinations.

A DMC is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients.

A DMC is a company that contracts with local service providers (tour guides, restaurants, hotels and other vendors) to prepare and deliver custom itineraries for a travel agent’s clients. The term “DMC” is often used interchangeably with “travel agent,” but there are many differences between these two industries.

Travel agents typically work with wholesalers or other agencies that specialize in booking travel packages; they act as middlemen between the client and the supplier of their choice. Travel agents can be based out of one particular city or country but may also have offices elsewhere in the world so they can provide additional services such as suggestions for hotels or restaurants on each destination visited by their clients.

The purpose of a DMC is to provide an all-inclusive service to a client by coordinating and contracting the travel services that their client needs such as travel, lodging and entertainment while they are at their destination.

A DMC is an all-inclusive service that provides clients with a travel experience, managing all of their travel needs such as airfare, lodging and entertainment. DMCs also help you manage your business by finding new clients and saving money on marketing expenses.

A DMC will be able to provide the following services:

• Finders Fee – This is when we find the best deal for you from different suppliers in order to save money on your trip or vacation package. We do this by looking at various factors such as flight times, dates available etc., so that we can make sure that everything works out well without any extra charges later down the line (such as cancellation fees).
• Advance Bookings – If there are specific items which need to be pre-booked prior to arrival at destination then this would be done automatically through our system once payment has been processed through Stripe/PayPal account number associated with booking activity!

A travel agent can use a DMC to maximize profit by purchasing a certain package that meets the customer’s needs while minimizing the cost.

A DMC can provide a variety of services such as custom itineraries, hotel reservations, tour packages and more. It also helps in maximizing profits through strategies like bulk buying and reselling tickets at lower prices than what they are currently selling online or offline.

With this kind of service available through your local travel agency, you’ll be able to save money by getting exactly what you want at an affordable price point!

A tour operator is similar to a DMC in that they offer customized tours and trip planning services on behalf of a brand or destination.

A tour operator is similar to a DMC in that they offer customized tours and trip planning services on behalf of a brand or destination. However, unlike a DMC, which can be used as an umbrella term for any company that provides travel services (such as hotels), there are specific differences between the two:

• A tour operator typically offers more than just transportation to your desired destination. In fact, most have their own accommodation and activities planned for you during your stay. They will also be able to help with things like making reservations at restaurants or shopping for souvenirs while you’re away from home!
• Unlike most traditional travel agencies (which usually focus only on booking flights), many tour operators also offer guided tours around their city centers; this allows them access into areas not otherwise accessible by tourists who don’t want anything too strenuous while still being able see everything they came here looking forward too!

A tour operator or travel agency is a company that offers tours and activities. Travel agencies usually specialize in one type of activity or another, such as cycling tours or scuba diving trips. A good example would be Footprints Tanzania , who offer safaris in Tanzania’s Serengeti National Park.

A DMC (Diver’s Management Company) is an organization that provides safe diving locations and equipment for divers on their vacations around the world. These companies are often affiliated with dive shops in each destination where they operate so that you can use them as your local contact point when booking your trip

If you’re looking for an exciting way to explore some of these amazing places without having to worry about getting along with other people, all at once, then I highly recommend looking into setting up something like this!

If you serve travel agents, you may want to consider using DMS software.

If you serve travel agents, you may want to consider using DMS software. DMS is the most efficient way to manage your inventory, and it will help you grow your business by making it easier for clients to find the right tour or package. It also makes it easy for them to pay online so they don’t have to wait in line at an office or travel agency. And with an integrated payment solution like PayPal’s Braintree (which is used by over 150 million consumers), there are no additional fees!

There are many options to choose from when looking at DMS software. We hope that this article has helped you understand the differences between Destination Management Companies (DMCs) and travel agents or tour operators. If you do have any questions about our product or would like more information.

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