receptive tour operator definition

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ABOUT THE RECEPTIVE TOUR OPERATOR (RTO) CHANNEL

What is a receptive operator.

• Wholesaler to overseas wholesalers
• Financial intermediary between U.S. suppliers (hotels/attractions) and international wholesalers.
• Develops products and contracts with hotels and attractions.
• Some aggregate hotels for resale via int’l travel agents.

PRODUCTS/SERVICES THEY OFFER

• FIT online booking systems
• Escorted group tours
• Fly-Drive programs
• Act as DMCs for international business
• International leisure groups
• M.I.C.E. tour programs
• Meet-and-greet and ground services

ROOM NIGHTS SOLD THROUGH THE RTO CHANNEL

• Total overseas room nights from leisure channel: 120 million room nights*
• RTO  channel represents 17 percent of total “leisure” room night sales from overseas**

ADVANTAGES OF WORKING WITH RECEPTIVE OPERATORS

• Most efficient way to access international travelers
• One RTO can place your product in as many as 70 countries
• RTOs deliver business during off-peak times
• RTOs help overcome language barriers
• RTOs have access to international groups and M.I.C.E.
• RTOs  assume currency and financial risk of collections
• RTOs require issuing relatively few contracts
• RTOs move distressed inventory at yields higher than OTA’s w/ less risk to brand image
• RTOs indirectly provide FREE ADVERTISING in overseas markets
• By placing your products  in tour operator brochures, RTOs can generate unexpected direct bookings for hotels

DISADVANTAGES OF WORKING WITH RTOs

• Must provide net rates 18 months in advance (in case of traditional operators national operators)
• Perception that they provide low-yield tourism class business (rarely true)
• Tiered rate discount for RTOs can seem unnecessary in strong economy
• RTOs may not always be able to fill their contracted allotments
• Sales from wholesalers can take 2-3 years to materialize

Which Type of Tour Operator are You?

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

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

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

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

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

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

Types of Tour Operators

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

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

Inbound Tour Operators (AKA Incoming Tour Operators)

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

Let’s look at an example.

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

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

Outbound Tour Operators

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

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

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

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

Domestic Tour Operators

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

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

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

Receptive Tour Operators (RTOs)

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

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

So how do they make money?

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

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

Ground Tour Operators

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

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

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

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

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

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

Wrapping Up

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

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

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Rocky Mountain International

International Tourism Marketing & PR

Working with Receptive Tour Operators

The receptive markets your product for you overseas. They attend trade shows both overseas and in the U.S. where they promote your product. They do advertising for you. Overseas tour operators who carry your product print brochures or offer online brochures that contain your product. There is no cost to you for any of this advertising and promotion until the guest books and stays at your property or uses your services. The cost is in the form of a percentage discount that you give to the receptive in your rates. You pay nothing for any of this advertising and promotion unless a client books your product.

It would cost you a lot of money in print or online advertising, trips overseas, and phone calls, emails and letters, not to mention the enormous amount of time it would take, for you to contact all the individual tour operators that a receptive tour operator can contact on your behalf during its normal course of business.

The receptive makes money by adding a percentage onto the rate you give them. The receptive adds a fee to the tour operator for booking its product. That tour operator may add on a fee to the travel agent who books that product. This is why you don’t have to deal with commissions when working with a receptive. Tour operators consult receptives for assistance in setting up their own tours and itineraries, whether they are for motorcoach tours, FITs, fly/drives or tailor made itineraries. The tour operator may not know much about a region so they need the assistance of a receptive to help them with identifying hotels or services or setting up itineraries.

Receptives are especially useful in our region because our four states are not as well known to the overseas markets as other areas in the U.S. and clients often choose our region because they want a unique vacation experience. RMI’s two official receptives – America 4 You and Rocky Mountain Holiday Tours - know about lesser-known, unique or special properties or services, as well as the well-known ones, that would fit well into a particular tour operator’s offerings or that would satisfy a particular client.

Large receptives may have access to a large number of hotel rooms across the U.S. but specialized regional receptives are more valuable to tour operators located in the overseas markets that RMI targets. Lena Ross, Director of Product Development at America 4 You, says “larger tour operators often simply provide what they know will be booked at high volume. Smaller operators look for the unique and different and the destinations that may not get 500 room nights but that will provide guests with an experience they will never forget.”

Gary Schluter, owner of Rocky Mountain Holiday Tours, says his company “can work with smaller, often more specialty or boutique lodging that cannot afford to have large room blocks set aside until just prior to the booking date.” He says large receptives “tend to contract only with the ‘standard’ lodges in the region. If a specific lodge is not available, they do not have the expertise to offer an alternative.” Tour operators know they can rely on the expertise of a receptive who understands their needs and knows the region well. It is too time consuming for a tour operator to research all the lodging options; they rely on the expert – the receptive.

A regional receptive, particularly America 4 You and Rocky Mountain Holiday Tours, can also better assist with unusual requests or with providing suggestions to make a client’s stay especially memorable. Schluter says “many times a day, we get specific requests for a lodge or an activity that a client may have seen in a travel article, on a tv show or movie, or heard about from a friend.” Ross says their company often receives requests from tour operators “for things that are outside the norm.” She says “that’s one of the benefits of working with a smaller operator. They have the time and understanding to find those unique things for clients that may not be offered normally.” In contrast, a large receptive who covers the entire U.S. doesn’t have the expertise to offer a better alternative for that client. These smaller receptives also offer other activities and options like ranches or specialty resorts. These all help to enhance a guest’s stay in our region, and hopefully keep them coming back.

Tour operators also like to work with receptives because it simplifies their billing. Instead of the tour operator having to pay ten individual hotels separately for each night where a client stayed during his trip, the receptive tour operator handles the billing. The tour operator pays one bill for all these overnights to the receptive. It’s much easier to handle this way and saves the tour operator money because they don’t have to convert each individual payment from their currency to USDollars. A tour operator who works with a receptive can often make one monthly payment for all their bookings that month. This saves them on bank wire fees.

In this industry relationships are key and this applies to working with receptives too. Tour operators develop close working relationships with smaller receptives and trust them because they realize how valuable they are to work with. Local suppliers, CVB’s, and states should develop close relationships with receptives.

Tour operators often consult a trusted receptive when they want to expand a program or create a new itinerary. Schluter says he works with many tour operators who call on RMHTours first when they are looking for a new program or a new group route. “They get to know that RMHTours is a specialist…in the RMI region and call on our advice before making any definite plans or changes to their current programs.” This special attention is something provided by the smaller specialist receptive. Ross elaborates: “we are able to provide clients with scenic routing, special hotels and cities, and activities that one might skip if you didn’t know the area better. It’s easy to pick the shortest route if a route is map-quested, but companies that know the area will make sure you see everything you need to see. It’s hard to do a full three-week tour in a place you have never been and choose the right options. That’s why we are here, to make sure the clients do.”

You don’t have to work with a receptive and this relationship may not work for your particular product. But it is to your benefit to explore whether or not it would make sense for your particular business. Some receptives specialize in fly/drives or groups, or in ranches or upscale lodging, others in particular markets, like Japan or Italy. You do not have to work with many receptives; you may choose just one or two that are right for you. Some tour operators will only work through receptives in our region so ask a tour operator who you want to work with which receptive they use.

If you choose to work with one you must give them your LOWEST RATE. At first you may think this is unreasonable, that you are giving away too much. Realize this is necessary because of the chain of bookings. Each party along the way must make some money or there is no incentive to promote and book. The receptive does not keep all the percentage discount that you give them. They keep only a small part of it. The tour operator and travel agent also get a share. In the end the guest will end up paying about what they would have paid had they booked it direct.

You will need to provide your rates early – the receptive needs to get these into their tariff and to the tour operators before they publish their information, all of which is done well in advance. For example, at Roundup 2013 they are looking for rates that cover 2014-2015. Also provide information on what your tax rate is because these are quoted together. See more on pricing and commissions at our International Marketing 101 page.

If you work with a receptive you must also be aware of international laws and their requirements. You cannot advertise certain services, like breakfast or free airport shuttles, and then not have them available once the guest arrives. If the hotel is undergoing renovations, or its pool or gym is closed, you must give adequate notice of these changes. Events in recent years, like the Icelandic volcano ash cloud or disturbances in North Africa, emphasize the importance of booking through a tour operator or travel agent. Travelers who booked online were not protected and received no assistance when they were stranded because of the ash cloud. By law, tour operators had to assist clients who booked with them. Events like these remind travelers to book with a reputable agency. It is another reason why you may want to associate with a receptive and not rely entirely on online business in the international market. Despite the growing worldwide trend to book directly online, there are still a great number of travelers who book only through agencies.

There will be a briefing session for suppliers at RMI’s Roundup in Boise where we talk about working with receptives and where you can ask questions of our two official receptives. You can also meet with them during the marketplace to discuss your particular needs.

Working with a receptive doesn’t mean you can’t also do individual direct bookings. It doesn’t mean you can’t work with several receptives. It does make your product more readily available to more outlets to purchase. In the long run if your product is available through more channels, you should get more bookings. Isn’t that what everyone wants?

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Building relationships with receptive tour operators

Date: Sep 23, 2019

You may have heard the term receptive tour operator or the acronym RTO. But what does it mean and why is it important for Team Alberta to invest in RTO relationships?

At Travel Alberta, we understand that navigating through   international selling and buying   can be tricky, and we are here to support you along the way! Travel Alberta team member Rhonda Hughes, International Markets Manager, shares how RTOs can help grow your business.

For those new to tourism, what’s an RTO?

Rhonda:   Receptive Tour Operators (RTOs)   are wholesalers who specialize in destinations, such as Canada.  They c ontract and package export-ready (able to accommodate international demand) accommodation, transportation and experiences for global travel providers to sell as either  fully independent travel packages or group travel services to the end international customer or travel agent.   They directly link tourism supply and demand in international markets and help a province such as Alberta strengthen our competitive advantage and grow global market share.   Travel Alberta’s international markets such as Mexico, Germany, China, Japan and the UK commonly book through RTOs. 

Why is it important for Travel Alberta to build strong relationships with RTOs ?

Rhonda:  RTOs are a critical piece of the booking journey for international markets. They are experts on Canada and handle all the contracting and payment with industry suppliers on behalf of international tour operators, saving them from having to contact a multitude of providers in Canada and sign hundreds of contracts.

The RTO facilitates the distribution of Alberta industry partners’ export-ready experiences to international markets. The RTO handles all payments, insurance, translation, cancellations and currency transactions with the international tour operator. By working with the RTO, Alberta suppliers need only work with one company to see their experience be sold in over 50 countries around the world.  

What does your work with RTOs involve?  

Rhonda:  RTOs are always looking for new experiences and new ways of packaging or creating new itineraries to offer to their markets. It is essential that RTOs know what there is to do and see in Alberta and have up to date information on all the existing and new experiences being offered. I work closely with the Experience Development team, who support our partners in the creation of new experiences throughout the province, to introduce these Alberta experiences to the RTOs. I also work with RTOs to explore how they can add to and diversify their product offerings and evolve their itineraries to grow tourism revenue for Alberta and better align with Travel Alberta’s strategy to drive visitation during need periods and in need areas.  

How can you influence RTOs to sell new Alberta experiences?

Rhonda:   It’s important to understand the different buying cycles and opportunities for growth within each RTO. They’re always looking for new experiences to add to their product offerings. By understanding what they currently sell and to who, I can support them by suggesting experiences and itineraries that they are missing and should consider adding to their product line. They are a business and want to make money. You need to demonstrate how they can increase sales by adding and packaging the products or experiences that our industry partners have to offer.

What should industry partners know about working with RTOs?

Rhonda:   It’s all about ensuring your experiences or products are featured in RTO itineraries. They sell what they know will ensure a great experience for the consumer. Establishing trusted relationships is key. It’s also important to respond to their questions as quickly as you can, before they move on to the next provider or experience that can offer what they are looking for.

How do industry partners get their experiences in front of RTOs?

Rhonda:   If you are interested in working with the international market and becoming export-ready (to sell internationally) contact your Experience Development Manager who can provide you with more information on what it entails.  See the   export-ready checklist   developed by our Experience Development team to assess if your business meets the criteria.

If you’re interested in learning more about Travel Alberta’s international markets, please check our Market Insights.

Once your experience is ready to work with the Travel Trade, Rhonda will educate and creatively inspire RTOs to include Alberta product in their itineraries, through coaching, training, events, planning sessions and business development trips.

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WHAT IS IITA?

The International Inbound Travel Association (IITA) is the nonprofit trade association for international inbound travel to the United States. IITA members include U.S. inbound operators, DMOs and suppliers (lodging companies, transportation, attractions, restaurants, etc.) from across the country.

IITA inbound operators (also known as receptive tour operators) are US-based companies that market and sell US travel products to international travel buyers, including tour wholesalers, travel agents and other travel producers and provide travel services throughout the US for their groups and FIT travelers. A tour operator shall be considered an inbound tour operator when the majority of its revenue is derived from inbound international travel to the United States.

Beginning as RSA in 1991, the Receptive Services Association was formed to bring together all of the major receptive tour operators and suppliers in the New York and New Jersey region. As a result of continuing interest and growth from across the country, RSA grew into a national organization.

Ever expanding its reach and influence, RSA joined forces with ITSA, the International Travel Services Association to form the Receptive Services Association of America (RSAA) in September 2004. ITSA was formed and founded in 1993, by receptive tour operators and destination management companies to create a united voice to address issues, education opportunities, and networking with new business partners.

Today, IITA is involved in a wide range of industry activities, working with suppliers, DMOs, industry organizations and regulatory agencies to improve the quality of travel related services for visitors to the US. IITA also addresses economic and public policy issues affecting tourism in collaboration with its members and the industry at large.

More than ever, IITA serves as the bridge to international inbound business and is committed to serving the needs of its members and to advancing the industry as a whole.

IITA’s mission is to grow inbound travel to the USA by providing the best and widest range of product, services and information to the international travel trade.

CODE OF ETHICS

As a member of the International Inbound Travel Association, my company and its representatives will…

• educate our management and staff to effectively operate business partnerships with fellow members,
• be guided in all of our activities by truth, accuracy, fairness and integrity,
• honor all our commitments to fellow members,
• avoid business practices which could be damaging to fellow members,
• avoid activities which would create a conflict of interest, and encourage high professional standards of service and conduct by our management and staff.

INSIDER KNOWLEDGE

Gain insider knowledge through our email newsletters, Inbound Insider Magazine and at our events!

MEANINGFUL CONNECTIONS

Make meaningful connections with other members at our events.

POWERFUL ADVOCACY

We educate government officials and other policymakers on inbound travel and its impact on the economy.

PARTNERS THAT PRODUCE

IITA Partners are valued supporters of the association. Visit the Partners page to learn more about becoming a Partner.

Receptive Tour Operators

A receptive tour operator is a  tour company that specializes in tourism experiences and offers a one-stop-shop for international or domestic tour operators. When a tour operator is planning an itinerary in a destination they are unfamiliar with, they seek the expert cooperation of a receptive tour operator.

Full service receptive tour operator offering local sightseeing tours customized for your group.

Full-service travel planner, creating custom itineraries, tours, meetings and events. We offer unique experiences you can’t find anywhere else.

The Inbound Report

Covering the Inbound Tourism Industry Since 1996

What Are Receptive Tour Operators Located in the USA’s Top Destination up to?

October 28, 2015 by Tom Berrigan

Orlando has emerged to be a prime location for RTOs working the Latin America market, but its reach has grown beyond that, as we found during our stop there during our recent 2015 East Coast Listening Tour to meet and talk with receptive tour operators, DMOs and travel suppliers based there. Following are some highlights from our conversation with Tourico ‘s CEO, Uri Argov .

During our wide-ranging conversation   Argov emphasized that the company’s goal is to “Convince the Unconvinced.” For example, he explained, a team of product managers fresh out of the Tourico Academy made a presentation to skeptical revenue managers at an airport hotel in Savannah, Georgia that was experiencing lower bookings because visitors don’t go to Savannah to stay in an airport hotel. Through a data-centric presentation, the young Tourico crew showed managers how they could increase bookings to their property. Once the contract was signed, Tourico began pushing the property internally with its offices in China where the company now has more than 150 staff, as well as India and other Asian markets.  Within days, the hotel received a quick flurry of unexpected bookings from Asia, a market they never attracted before. The management of the hotel chain that operates the Savannah property then signed 87 of its other hotels with Tourico. “That,” said Argov, “is an example of convincing the unconvinced, as our team promoted that hotel to a whole new segment of tourists that never connected to Savannah before.”

Meanwhile, Argov told Inbound that, of all programs Tourico has initiated in the last 20 years, he is most gratified by the reaction he is receiving from the Tourico Academy. Especially surprising is the unexpectedly high-skilled level of the applicant pool.  Among those seeking admission this year were many with Master’s Degrees, one of whom was from Harvard Business School and another with an engineering degree from M.I.T.   Asked why these applicants would apply for a tour operator training program, Argov responded by noting that this generation’s professionals are less money-motivated and do not see themselves in cubicle jobs–they find the prospect for a career in travel alluring.

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Receptive Tour Operator

Also called an inbound tour operator, a receptive tour operator is an in-destination operator who packages multiple elements together (accommodation, shuttles, activities, services, meals, etc.) in a variety of ways to sell packages that bring visitors from external markets to a destination. Receptive tour operators play an important role in the packaged travel industry.

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How to work with Receptive Tour Operators

Receptive Tour Operators open your business up to new markets. Mariko Ishikawa of ARA Professional Travel and Support shares inside knowledge and tips for working with RTOs.

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Tour Operator Terminology

On this page we’ll try to clearly define the terms you need to know to run a tour business, and interact in our  Tourpreneur Facebook Group .

General Tour Industry Terms

• Tour This is a catch-all term that implies a type of travel experience that takes place over time, generally visiting multiple sights. It could last 1 hour or 30 days, and be done as a walk, or in vehicle. It could be a solo traveler or a group of 50 people. Other words might be used to describe the same thing:  tour, experience, journey, excursion , etc. It usually implies something organized, either by the traveler themselves, or a tour operator, who designs and delivers a tour for a traveler or group of travelers.
• Guest/Customer/Client/Passenger/Participant/Traveler Thanks to Disney,  guest  is what we generally use to refer to our customers. Why the difference? “Customer” implies a financial relationship, whereas  guest  relates more to a personal connection and a sense of welcome and hospitality. But it’s the same as customer, passenger (PAX), traveler, etc., and different companies will prefer different terminology.
• Guide / Tour Guide / Tourist Guide “tour guide” is used more often in Anglophone countries, especially in the U.S., whereas “Tourist Guide” is used in Europe and elsewhere globally.
• Tour Leader/Tour Director/Tour Manager/Tour Escort/Trip Leader This role goes by many different names. It refers to a guide who works over multiple days, usually traveling with a group of guests to multiple cities or regions. In addition to delivering commentary about the locations visited, a tour leader also handles the tour logistics, including working with the motor coach driver, staying on schedule, checking into hotels, meals and activities on time. 
• Interpreter A guide working often at National Parks or heritage sights; interpretation theory is a 100-year old body of theoretical work focused on strategies for helping individuals make their audience connect with and care for the site that’s being interpreted.
• Docent The name sometimes used for a guide usually in a museum or cultural heritage sight.
• Day Tour A type of experience that begins and ends in the same day. Usually used to distinguish an experience from a multi-day tour.
• Multi-Day Tour Any type of experience that lasts for more than one day. Often includes hotels, meals, short activities, and a form of transportation.
• Package Tour A kind of experience (usually multi-day) in which several different components are bundled together: it may or may not include airfare, hotels, guided experiences, meals, etc.
• Group Tour You’ll see these terms used differently to a kind of experience in which separate individuals or smaller groups come together to share an experience. Group tours can be  public  or  private .
• Public Tour As the name implies, this is a tour that’s open to the general public to sign up. The tour therefore consists of a variety of people who don’t already know each other. A public tour is usually offered at a set time and day.
• Private Tour A tour that is sold specifically to an already-organized group of travelers who don’t wish to experience the tour with others. A private tour might be a couple, a small group of friends, or a large church group. Private tours might be at a set time, or organized according to group’s specific needs.
• Custom Tour A custom tour is usually also a private tour.  Custom  refers to the operator crafting an experience customized to the specific demands of a client. A tour operator might be engaged by a client to design a unique experience, for one person or a large group.
• Pre-Formed/Affinity Group These are commonly used terms in the multi-day tour space to refer to a group tour not made up of individual solo travelers & couples, but instead of an alread-formed large group of travelers. An “affinity group” shares a common trait—they belong to a church, a retirement community, or a family reunion traveling together, for example. A pre-formed group might also be created by a “Group Leader” who sells a tour  for  a tour operator ,  often in exchange for a free trip or a commission.
• Escorted Tour Used most often in the multi-day tour space, an escorted tour means you’re traveling with an escort (old fashioned term), more commonly referred to today as a tour manager, tour director, tour leader, or trip leader. The TM’s job is to handle the logistics of keeping the group together, checked into hotels, arranging meals, etc. They work  for  the tour operator.
• Guided Tour In short, an organized excursion led by an individual or individuals. “Tour Guide” is the generalized term, but a guide could be a museum “docent” or an adventure guide, tour leader, etc.
• Self-Guided Tour This has two different meanings, one related to technology, one related to nature. When talking about mobile phone apps, a self-guided tour is one usually done in-destination using audio recordings and GPS data to guide an individual along a tour route, sharing recorded stories. In the world of adventure tours, a self-guided tour happens when an individual hires a tour operator to provide guidance in the form of itineraries, maps, possibly technology, all to facilitate an extended journey involving walking, hiking, biking, etc.
• FAM Tour A “familiarization” tour, focused on helping one set of professionals (travel agents, for example) learn about a destination, or about vendors in an area. A group of tour guides might take a FAM tour to a new attraction that opened in town, to become familiar with it. A group of travel agents might sign up for a FAM to a destination that they’ll then sell to clients.
• FIT Tour Very confusing term. It’s evolved over time. It once meant “foreign independent travel” but now is more often thought of as “flexible independent travel.” The goal is to distinguish this kind of independent traveler from someone who buys into a packaged group tour. FIT is more associated with a client who engages with a travel agent or operator to design something that suits their specific customized needs. 
• Activity An activity is usually different than a tour in that it is less about guided sightseeing and more about doing something, well, activity based. Examples might be watersports, biking, hiking, etc.
• Attraction Think amusement parks, museums, and the Eiffel Tower. What do they all have in common? They require tickets, they’re single place-based experiences, and rather than do them in groups, thousands of people pour in at once, with no specific booked time requirements (unless doing so for crowd control or pandemic related reasons).
• “Tours & Activities Industry” This is just one of many ways to talk about our industry. You’ll also hear Tours, Attractions & Activities, 
• DMO/CVB/Tourism Board A Tourism Board or Destination Marketing Organization (DMO) or Convention & Visitors Bureau (CVB) are all essentially the same thing. — an organization (public, private, or a mix) whose goal it is to promote a destination, be it a city, region or country. Examples include  NYC & Company  and  Visit Scotland .
• MICE Pronounced like the animal, stands for Meetings, Incentives, Conferences and Events. From a tour perspective, this is where an operator might work with a CVB (see above) to organize tours for business customers hosting or attending a conference in a location. Incentive tours are reward experiences that a company offers a group of employees.
• B2B Tour operators who work with other operators 

Types of Tour Operators

• Tour Operator A business that organizes and sells tours. They sell to a customer, and possibly work with vendors (hotels, restaurants, vehicle companies, etc.) to create an organized tour experience. In short, operators do the grunt work.
• Travel Agent/Agency In general, an agency works with travelers, and books travel components to relieve the traveler’s burden of figuring it out on their own. An agency might book a tour operator’s tour as part of the services they provide the travel, in exchange for a commission from the operator.
• [insert word here]  Operator Tour Operator is a general term, but that’s not the only kind of operator out there. You might also be an adventure operator, watersports operator, ATV rental operator, you name it. But in all cases, you’re not an agency booking someone else’s service, you’re providing the service yourself.
• Day (or Multi-Day) Tour Operator Both are subsets of “tour operators” in general. It might be used in the Tourpreneur community when we’re referring to the specific challenges of a specific kind of operator, since the products and challenges of each type of tour can be very different.
• Inbound / Receptive Operator /  DMC (destination management company) These are all versions of the same thing, with terminology that is sometimes preferred over the other words for various reasons. This kind of tour operator creates experiences in a certain location (often a specific city or a region or country), working B2B with tour operators or corporate entities needing local knowledge and connections.  Receptive operator  is an older term meaning they “receive” clients who are coming in (or inbound) from somewhere else.
• Outbound Operator This version of tour operator (usually multi-day) designs experiences that take guests elsewhere. An outbound operator might be based somewhere (Australia, for example) but focus on creating trips that send their Australian customers outbound to other countries.

Sales, Marketing & Software Terms

• SEO Search Engine Optimization—the art of optimizing your website and online presence to bring your content to the top of search engine results (principally Google).
• PPC Means “Pay-per-click” and references the kind of digital advertising done by companies like Google: you create an advertisement to appear in search engine results, for example, and you pay for that ad a specific market rate each time someone clicks on your link.
• OTA Online Travel Agency—this is a catch-all term for a wide variety of online marketplaces servicing the travel industry, selling everything from rental cars to flights to hotels to tours. An OTA in the general industry might refer to big players like Expedia or Booking.com; in the tour industry, it refers to companies like Viator (the largest tour OTA) and GetYourGuide. There is a long tail of “niche OTAs” that serve specific types of tours and activities (like watersports) or a specific region.
• Online Marketplace / Platform This is a more general term for the kind of website platform (like Viator) that sells a wide variety of tours online. Think Guide Marketplaces like ToursByLocals or Withlocals, companies that curate large amounts of guides, but aren’t traditional OTAs like viator.
• Restech/Booking Software You’ll hear “restech” (alternately reztech, rez-tech, etc…) as a fast way to refer to the software industry centered around creating helping tour operators accept online bookings, and keep those bookings organized. The largest companies in this space work mainly with day tour operators.
• Tour Operator Software Different than booking software/restech, TO software offers an extended suite of features meant to help operators across their whole business, from operators to itinerary proposals to budgeting and pricing. This software may include a booking/payment component, but is a much more fully integrated and holistic (and expensive) solution.
• SaaS Short for “Software as a Service” — this is how the tech industry refers usually subscription-based websites or software that help you do something. Examples of SaaS include booking software and CRMs.
• Supplier In the language of selling tours to customers on a platform, tour operators are suppliers; you  supply  tours that are then  re-sold  by the platform.
• Connectivity This is the dark art of how you, the operator (supplier) connect to sales channels.
• Distributor/Reseller These are sales channels that sell tickets to your tours on behalf of you. They could be everything from an online marketplace like Viator and GetYourGuide, to a personal travel agent or hotel concierge..
• Channel Manager This is software that helps you manager all your different sales channels in one place.

Explore The World Of Advango Tours

AMERICA’S LEADING RECEPTIVE TOUR OPERATOR & DMC

Welcome to Advango Tours Inc.

At Advango Tours, we have over 25 years of experience providing exceptional travel arrangements for individual travelers in the United States, Canada, and Europe. As a leading inbound receptive Tour Operator and DMC, we specialize in creating unforgettable travel experiences that cater to your specific interests and needs.  Our extensive product range includes group hotel and resort accommodations, escorted tours in various languages, cruise handling, fly-and-drive packages, incentives, and industry-specific travel packages for multiple interests. We take pride in our product knowledge, quality holidays, excellent service, and customer satisfaction at competitive rates.  If you are an individual traveler looking for a personalized travel experience, we welcome you to contact us to discuss your needs. Our team of experienced travel experts will work closely with you to create a customized itinerary that exceeds your expectations and allows you to maximize your time exploring the world. Whether you want to embark on a solo adventure or travel with family and friends, we’ve got you covered. Please feel free to contact us today to start planning your dream vacation.  Please also check out our signature Advango Tours, specially designed to showcase the best of each destination we operate in. Our team of experts handcrafts these tours to provide you with an authentic and immersive travel experience. From exploring famous landmarks to indulging in local cuisine, our Advango Tours offer a unique and unforgettable way to discover the world. Please contact us today to learn more about our signature tours and how we can help you plan your next adventure.

Las Vegas & Grand Landscapes of the American West

Start this tour in a big way, arriving into Las Vegas Airport with the evening free to experience the bright lights and thrills of the city before venturing into some of the grandest landscapes in the American West, and the world. You’ll journey to the Grand Canyon with a scenic drive along the South Rim included, touring iconic Route 66 landmarks along the way. Discover Lake Powell and stunning Horseshoe Bend before venturing into Navajo nation.

Legends & Lore of the American West: Yellowstone, Grand Teton, Black Hills

Follow the footsteps of legends like Buffalo Bill and Calamity Jane while taking in the magnificent natural wonders of Yellowstone, the Grand Tetons, and the Black Hills. Tour Salt Lake City before blazing a trail through the wild American West, taking in the glory of the Grand Tetons and their soaring jagged peaks. Witness mesmerizing sights like Old Faithful in Yellowstone and immerse yourself in Cody’s cowboy culture, channeling your own pioneer spirit.

Hill Country & The Texas Triangle

This 11-day, 10-night tour uncovers the Texas Triangle, formed by the state’s four main urban areas, Houston, San Antonio, Austin, and Dallas-Fort Worth, as well as the heart of Hill Country. Begin with the highlights of Houston and then delve into San Antonio’s rich history with a tour that includes The Alamo. An unforgettable ranch stay allows you to step into the boots of a cowboy and hop onto a horse. Enjoy the beauty of Hill Country while learning about the German settlers and history of Fredericksburg before sampling Austin’s famously…

The Very Best of the Canadian Rockies

Come and joins on this Advango Tours exclusive adventure! The Canada’s Rocky Mountains are among the world’s greatest natural marvels. You’ll experience extraordinary beauty, glacial lakes that glow like aquamarine; winding roadways lined with ice-sculpted valleys, waterfalls and snowy peaks; endless wildlife; and streams of rivers that run through the glorious scenery in national parks that surely describe the northern Rocky Mountains. Learn all about glaciers and nature’s mighty power when you visit the Columbia Ice-Field…

Historic Railways and Epic Colorado Scenery

Explore Colorado with Advango Tours on an exclusive, bespoke designed journey that ensures a grand adventure traveling back in time on historic railways while taking in the majestic scenery the Rocky Mountain state is known for. Discover the charms of yesteryear while enjoying plenty of luxuries, complete with storied hotels, mouthwatering cuisine and fine wine.

Reise zu den Ursprüngen der Musik – USA Südstaaten Reise

Der Süden der USA ist die Wiege des uramerikanischen Sounds. Erleben Sie auf dieser Reise die einzigartige Musikkultur der amerikanischen Südstaaten. Viele Stilarten der modernen Pop- und Rockmusik haben hier ihre Wurzeln. Sie besuchen Nashville, die Hauptstadt des Country, Memphis, wo sich Blues und Soul entwickelten, wo der “King Of Rock’n’Roll” Elvis Presley lebte und arbeitete, sowie die “Wiege des Jazz” New Orleans. Sie erfahren viel Interessantes über die Geschichte der Südstaaten, z.B. über das Leben der Sklaven auf den Baumwollplantagen.

Choose Your Travel Style

Fit motor coach tours, exclusive advango tours, fly and drive, agricultural tours, why book with us.

Advango Tours knowledgeable, out of the box creative, and client-oriented staff works efficiently to provide a fast turnaround, excellent communication, and overall travel experience that surpasses expectations.

Advango Tours will help your organization to make your travel experience unique. We can build custom tour itineraries based on budget, individual needs, and specialized interest.

Our tailored product sourcing for each client is Advango Tours’ top priority. Each hotel accommodation, transportation company or venue, is carefully sourced to surpass the expectations of our visitors.

Austin’s Aquatic Gems: The Ultimate Guide to Refreshing Swimming Holes and Pools

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The EAA Reservoir: A Keystone in Florida’s Environmental and Agricultural Harmony

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Embark on the “Florida Agricultural Highlights” Tour with Advango Tours: A Fusion of Agriculture and Sightseeing

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From Speakeasies to Tunnels: Tracing the Mafia’s Influence on Chicago

The Mafia, also known as the organized crime syndicate, has significantly impacted the city of Chicago and its history. The Mafia's rise to power began during prohibition, from 1920 to 1933 when they gained immense control over the illegal production and...

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Exploring the Wild Side of Yellowstone: A Journey Through Nature’s Playground

Yellowstone National Park is one of the United States' most spectacular natural wonders. Established in 1872, it was the world's first national park, spanning over 2.2 million acres of protected wilderness in Wyoming, Montana, and Idaho. It is a world-famous...

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The Blues Highway 61 between Memphis and New Orleans

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Texas-Sized Barbecue Adventure: A Guide to the Best Joints

Texas is known for its love affair with barbecue, and with good reason. The state's rich history, cultural diversity, and thriving food scene make it a prime destination for barbecue enthusiasts. Whether you're a seasoned smoker or just starting out, Texas has...

Privacy Overview

• Whole Mexico

Tour Operator or Destination Management Company/DMC?

• February 8, 2021
• Blogs , Uncategorized
• 2 mins read

Does it really mean a big difference?

Conexstur managed to get the registration of ¨Tour Operador¨ in Mexico in 2016 when Enrique de la Madrid was the Tourism Minister of Mexico. We had to explain the difference between a Travel Agency and a Tour Operator . ¨Tour Operador Receptivo¨ still has another aspect which makes a big difference: Taking care of international tourists arriving in your country, managing the special requests in different languages, and taking into consideration the very different expectations from foreign clients. The organization of either leisure travel for individuals or groups, business travel, Incentive travel, or special events – when contracted from another country, the organization and supervision of all services are YOUR responsibility. It is a 24/7 service and preciseness is one of the most important key factors to become a reliable and confident partner in Mexico.

Only the Association of Conexstur is firm with this restriction and belonging to this association means that the tour Operator has a minimum of 80% of the total business with an international clientele. Also, managing US Dollar accounts, taking the risks of exchange rate instability, and register as a company whose main business is the exportation of tourism services.

The Tourism industry never put a lot of importance on the tour operator receptive who brings into the country the foreign tourists, with more days staying in the country with a normally higher budget for travelling than the national tourist and most important the income stays 100% inside the country. 

The benefit goes directly to the provider of the services in the region. And yes, international tourism spends much more on souvenirs and local handicrafts than the domestic travellers. 

The Tour Operators melt together with all the services alongside the chain of providers, including transportation, hotels, restaurants, guides, historical & ecological sites, entertainment & activities, and most important the local guides who accompany the guests on their travel experience through Mexico.

There are tour operators that have started with pure leisure travel and now also take care of events or corporate travel – the so-called MICE business. And yes, there is a difference that a regular tour operator can not cover. A DMC or Destination Management Company is considered the specialist for groups (small or big ones) that have a corporate theme or interest. Both segments of international or national events are handled by a DMC. They are professionals that guarantee the success of the event, give you the best tips and news about the locations, and work as an extension of the company that is requiring the services. Each event requires different providers and a good DMC knows the pros & cons parts of the providers, restaurant, hotels. etc – work with a local DMC helps you to not step into the dark and to be updated with the local services and infrastructure.

Most of the DMC´s have developed during the pandemic and now include even a more amplified range of services, starting with marketing and communication, production, and AV services.

Both activities – incoming tour operator/tour operador receptivo and on the other side a DMC, both create and promote the ideal place for a growing industry.

January 12, 2021 - In Itinerary , Itinerary>Zacatecas

February 18, 2021 - In News

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