tour operator role definition

What is a tour operator and how does it work?

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

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

What is a tour operator?

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

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

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

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

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

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

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

Similarly, Holloway (1992) states that;

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

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

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

Tour operators are an important part of the tourism industry .

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

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

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

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

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

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

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

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

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

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

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

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

Examples include:

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

Types of tour operator

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

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

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

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

An inbound tour operator is one who facilitates inbound tourism .

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

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

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

An outbound tour operator is one who facilitates outbound tourism .

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

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

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

A domestic tour operator is one who facilitates domestic tourism .

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

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

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

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

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

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

This is especially common for small tour operators.

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

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

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

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

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

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

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

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

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

• Types of travel agents | Understanding tourism
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• 10 jobs in travel and tourism that will be BIG in 2022 and beyond
• What does the World Travel and Tourism Council do?

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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 .

Who is a Tour Operator? Know Roles and Responsibilities

If travel destinations and tourist places are something that interest you or fill you with enthusiasm, probably then, you must know about a tour operator. Tour operators advise customers about different travel options. They organize tours for individuals or different groups of travelers. As professionals, they prepare tour itineraries, and tour packages and coordinate with vendors for your holidays.

In this write-up, we delve into a tour operator’s roles and discuss the necessary skills, roles, and education qualifications for the job.

Who is a Tour Operator?

A tour operator is someone who belongs to the hospitality industry. He organizes tours and helps customers during trips so that they have positive reviews. Advising customers on different tour packages based on their budget and interests, and handling all logistics of a tour, such as booking tickets and accommodations, are some basic roles assigned to them.

Tour operators generally work for travel agencies or tour companies A tour guide will accompany tourists on their trips, but tour operators are solely available to answer their questions. They provide detailed information about tourists’ itineraries.

Types of Tour Operators

Here are some types of tour operators who can help you plan your holidays better and make them memorable!

1. Domestic Tour Operators

 Domestic tour operators provide tours and travel services within their own country. They serve tourists who desire to explore different regions or attractions within their country.

2. Inbound Tour Operators

These operators serve foreign tourists visiting their country. They plan and organize tours within their own country, and provide services such as transport, accommodation, guided tours, and activities.

3. Outbound Tour Operators

Outbound tour operators organize tours for residents of one country traveling to another country or countries. They arrange the trip, including flights, accommodations, transportation, and activities at the travel destination.

4. Special Interest Tour Operators

These operators specialize in planning tours catering to specific interests or hobbies, such as wildlife safaris, culinary tours, photography tours, adventure travel, or cultural immersion experiences.

5. Wholesale Tour Operators

Wholesale tour operators sell pre-packaged tour products in bulk to travel agencies or retail outlets. They often provide discounted rates to travel agents. Travel agents usually earn a profit by reselling the tours to clients.

6. Incentive Travel Companies

These companies organize travel experiences for corporate groups or organizations as rewards or incentives for employees or clients. They often tailor trips to meet the guided objectives and preferences of the organization.

Tour operators design and organize pre-packaged tours or holiday packages while the Travel agents help clients in booking individual travel components.

What is the Role of a Tour Operator?

Tour operators play a wide array of roles when it comes to planning holiday packages and dealing with tourists.

1. Planning Tour Packages

These professionals design and schedule travel packages for individual travelers or groups of tourists. They coordinate with their clients to discuss their likes and dislikes and then suggest a range of attractions, accommodations, and transportation options to enable the clients to select the tour packages that meet their preferences.

2. Negotiating Rates

Often the tour operators can try to book a group of room /blocks in a hotel for their bigger group. This leads to lower rates for the tourists.

3. Arranging Travel

Tour operators ensure that passengers have their train tickets to travel between the cities or even book a car rental to help customers visit the attractions according to their schedule.

4. Providing Customer Support

A tour operator offers travelers with the technical assistance that they may need before a trip. For example, they may reply to customer questions about a trip they are planning, tell them about currency exchange rates, or notify them if there are any changes in their itinerary.

5. Preparing Tour Budgets

A tour operator comes up with different price options with sample itineraries and counsels customers on the kind of lodging and attractions that are within their budget.

6. Researching Travel Options

Tour operators are specialists who gather and study data on traveling patterns to suggest itineraries to tourists about where they should go, where they will stay, and where they can eat on their trips.  

They read articles and browse online for details about travel trends and popular tourist spots that they can use to stay updated with what is trending currently.

Educational Requirements for a Tour Operator

To become a tour operator you need a high school diploma or equivalent. Some employers, particularly tour companies or travel organizations, may prefer to hire candidates with a bachelor’s degree.

Tour operators need a degree in tourism and travel services management or hospitality management. Many colleges and universities offer these undergraduate programs, and it typically takes four years for students to complete their degree. You can also consider doing short-term courses in the following streams.

• Hospitality finance
• Foundations of tourism
• International hotel management
• Tourism information technology
• Hospitality management strategies
• Sustainable tourism planning
• Revenue management
• Service technology
• Event planning
• Human resources management
• Hospitality sales and marketing

Difference between Travel Agent and Tour Operator

Tour operators and travel agents both play important roles in the tourism industry, but they have distinct functions and responsibilities. Let’s differentiate between the two.

Travel Agent :

A travel agent is an individual or a company that acts as an intermediary between travelers and travel service providers. They may specialize in certain types of travel, destinations, or services.

Travel agents typically earn commissions from the travel suppliers they book with, rather than charging clients directly for their services.

They assist clients in planning and booking the trip, including flights, accommodations, transportation, and activities.

Tour Operator :

A tour operator is a company that designs, organizes, and sells pre-packaged tours or holiday packages to travelers. Tour operators handle all aspects of the tour, including accommodations, transportation, meals, guided tours, and activities. They often work with travel agents to sell their tour packages to clients.

They may specialize in specific types of tours, such as adventure tours, cultural tours, luxury tours, or eco-tours. Tour operators also offer customized tour packages tailored to the preferences and needs of individual clients or groups.

Wrapping Up

The profile of a tour operator is special as it blends creativity, expertise, and impact. Tour operators have the privilege of turning travelers’ dreams into reality by crafting unique and immersive travel experiences tailored to specific interests and preferences.

They have an extensive knowledge of travel destinations, coupled with strong connections with local suppliers. This enables them to offer better service and access to exclusive travel opportunities.

Check also: Best Places to Visit in Kashmir

Moreover, tour operators play a crucial role in promoting sustainable tourism practices as they support local communities, and preserve cultural and natural heritage. Although they may face challenges such as changing rules and unforeseen circumstances, tour operators show professionalism in ensuring the safety and satisfaction of their clients.

A tour operator designs organizes, and sells pre-packaged tours or holiday packages to travelers. They plan and coordinate all aspects of the tour, including accommodations, transportation, meals, guided tours, and activities.

They also negotiate contracts with travel suppliers such as hotels, airlines, transportation companies, and tour guides. A tour operator promotes tour packages to attract clients.

Moreover, they assist and support to travelers before, during, and after the tour. They also ensure compliance with safety regulations and provide a high-quality travel experience.

While both tour operators and travel agents are involved in the travel industry, they have separate roles and functions.

A tour operator specializes in designing and organizing pre-packaged tours or holiday packages for travelers. They handle all aspects of the tour, from transportation and accommodations to planning activities and excursions.

On the other hand, a travel agent acts as an intermediary between travelers and travel service providers. They assist clients in planning and booking various aspects of a trip, such as flights, accommodations, transportation, and activities.

Travel agents may work with tour operators to sell their tour packages to clients, among other services.

A tour operator designs and creates pre-packaged tour itineraries tailored to specific destinations or themes. They negotiate contracts with hotels, airlines, transportation companies, and other travel suppliers to secure competitive rates and check availability.

They handle all logistics related to the tour, including booking accommodations, arranging transportation, and organizing guided tours and activities.

They market and promote tour packages to target audiences through online platforms, travel agencies, and promotional events.

A tour operator provides assistance and support to travelers throughout the tour, including addressing any issues or concerns that may arise.

Finally, they ensure compliance with safety regulations and industry standards to ensure the well-being and safety of travelers.

Last but not least, a tour operator continuously evaluates and improves tour offerings based on customer feedback and market trends to improve the overall travel experience.

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What Does a Tour Operator Do?

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

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

Tour Operator Job Duties

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

Tour Operator Salary & Outlook

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

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

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

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

Tour Operator Job Requirements

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

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

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

Tour Operator Skills

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

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

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

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

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

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

Tour Operator Work Environment

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

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

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

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

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

Advancement Prospects

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

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

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

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What is a Tour Operator? Types, Importance, Pros & Cons

Home » Blog » What is a Tour Operator? Types, Importance, Pros & Cons

Tour operators are the masterminds behind many unforgettable vacations. They organize travel experiences taking the hassle out of planning for travelers ensuring a seamless journey.

But what exactly are tour operators? What do they do, and why are they important?

Stay with us as we discuss all the above queries and more!

Table of contents

What is a tour operator, 1.inbound tour operators, 2.outbound tour operators, 3.domestic tour operators, 4.receptive tour operators, 5.ground tour operators, roles of a tour operator, importance of a tour operator, best tour operators, best tour operator software, tour operator vs travel agency, difference between a tour operator and a travel agency (infographics), frequently asked questions.

A tour operator is a company that specializes in designing and packaging travel itineraries . They act as a one-stop shop for travelers, offering pre-arranged tours that typically include flights, accommodation, transportation, sightseeing activities, and sometimes even meals.

They cater to various interests and budgets, offering adventure trips, cultural experiences, luxury getaways, and more. A tour operator not to be confused with a travel agency thinks up ideas for holidays, researches the ideas, designs the holiday itinerary, and contracts all the services needed.

Types of Tour Operators

Tour operators can be divided into five main categories: inbound, outbound, domestic, receptive, and ground.

Inbound tour operators bring tourists into the country in groups or through individual travel packages. They make all the arrangements in the host country, and the trips they organize are mainly intended for foreigners visiting the country.

When a group of Indian tourists wants to explore France, the company in France that organizes the whole trip is called the inbound operator. So inbound operators are local and offer trips that include their own country.

Unlike inbound, outbound tour operators work in their own country to take travelers to other countries. These are operators that market their travel to international destinations for either business or leisure.

For example, suppose a group of German tourists are planning a trip to India. Then the outbound operator is a German travel company that handles all ticket and hotel reservations.

Domestic tour operators are those who put together complete travel packages and sell them to domestic travelers. In other words, they are operators that offer travel packages and trips in the tourist’s home country.

Domestic travel usually involves residents of a certain country traveling within that country. They can visit national parks, scenic areas, hospitality tours, city tours, hikes, etc.

Receptive Tour Operators (RTO) provide travel products to companies in other markets (as a business-to-business relationship).

In particular, RTOs sell travel products to operators and/or travel agents, whether sold in a package or individually. They are primarily wholesalers and do not sell directly to the public.

Ground Tour Operators operate domestically. However, they differ from domestic operators in that they organize trips for inbound tourists on behalf of the inbound operator (and sometimes also the outbound).

Tour operators are responsible for the operation of a vacation by contracting, booking, and packaging together various travel components . These components can include: hotel, transportation, meals, guides, optional tours, and flight.

• Development of Tour Packages: These professionals develop travel packages for individual clients or groups of travelers. They work with clients to understand their interests and recommend different attractions, accommodations, and transportation options to help clients choose a travel package.
• Negotiating Prices: Companies usually negotiate prices with other vendors, such as hotels and transport companies. For example, they can ask the hotel to lower the room rates for a large tourist group.
• Travel Management: These professionals help organize travel plans for clients to reach their destinations. For example, they can book a bus to help customers travel between cities or a rental car to help customers reach various attractions.
• Providing Customer Support: The company provides customer support to help their customers prepare for their trips. For example, they can answer customers’ questions about the destination, provide information about exchange rates, or notify them of changes to travel plans.
• Travel Budgeting: Travel companies work with clients to help them budget for their trips. They develop different itineraries at different prices and advise clients on accommodation and sightseeing within their desired budget.
• Researching Travel Options: These professionals research different trips to give their clients recommendations on places to visit, stay, and eat. They read articles and search the web for information on travel trends and new destinations to stay current in their field.

Explore this article “World Tourism Ranking by Country 2024”

Pros and Cons of Tour Operator

A tour operator puts together packages by bundling the individual services making up itineraries. That’s why it’s sensible to review your options.

So, what exactly are the advantages and disadvantages of using a tour operator?

• Competitive Prices: They can offer more economical packages than individual options providing better value for money. They often negotiate discounted rates, making travel more affordable.
• Peak Season Options: They can anticipate peak season dates and offer options for these times.
• Convenience: Travel companies can provide seamless connections from one location to the other. They handle everything, allowing travelers to relax and enjoy the experience.
• Expertise: Their knowledge of destinations ensures a well-rounded itinerary with hidden gems and local experiences. They can ensure that travelers don’t miss any hidden corners of a destination.
• Reduced Stress: No need to research or book individual components, leaving travelers free to focus on having fun.
• Resolve Unseen Problems: Travel companies can resolve unforeseen problems, such as flight delays or cancellations.
• Safety and Security: Companies can provide an environment of safety for visitors. They can assign guides for support and guidance, especially in unfamiliar destinations.
• Assurance: If the arrangements made by an operator fall short of what was agreed, you can seek redress by way of a refund.

However, working with an operator can have downsides as well. Some disadvantages may include:

• Less Flexibility: Itineraries are predetermined, offering less freedom for spontaneous exploration. If you discover an activity or a restaurant you’d like to try that isn’t on your pre-planned itinerary, you may not be able to explore it.
• Limited Personalization: Customization options might be limited compared to independent travel.
• Higher Cost : It might not be your cheapest option. Tour packages can sometimes be pricier than piecing things together yourself.
• Larger Groups: Tour groups can range from private trips to groups of 50 or more people. Some tours involve group travel, which might not suit everyone.

Tour operators play a vital role in the tourism industry by planning and coordinating travel plans, travel packages, activities, and itineraries for their clients.

They use their expertise and resources to create high-quality tour packages helping tourists travel stress-free. Other reasons why tour operators are important are:

• Competitive Pricing: They negotiate in advance with hotels and airlines and offer you the best rates.
• Well Organized: Since the company is a travel company, they want to provide you with the best ground services. They personalize and ensure that every part of the tour is well taken care of.
• Boosting Tourism: They promote destinations and generate tourist revenue, benefiting local economies.
• Ensuring Quality: They maintain high standards for travel experiences, making sure travelers have a positive experience.
• Convenience and Accessibility: They make travel accessible to a wider range of people, including those who might not have the time or expertise to plan their own trips.
• Immediate Support System: When traveling to a foreign country things can become uncertain at any time. A competent company handles all these unprecedented events efficiently.
• Supporting Local Businesses: They partner with local businesses, contributing to the growth of sustainable tourism practices.
• Networking Opportunities: A tour company targets many people like you. Staying, traveling, and eating together is a great way to increase your network.

There isn’t a single best tour operator as it depends on your travel style, budget, and destinations. However, here is a list of the 10 best travel companies & tour operators in the USA with 191,668 reviews. [Source: tourradar ]

Travel companies that organize guided tours use travel operations software to manage customer information, travel information, and background functions. This type of tour operator software helps companies keep track of the organizational aspects of travel such as schedules, itineraries, meal plans, and more. In addition, it tracks tourists and participants, as well as personal tasks and activities. Companies can use this type of software to manage costs, expenses, and revenue. Capturing 75% of the Global Tourism market with over 883,934+ downloads globally and surpassing software like Rezdy, Peek Pro, Bokun, and more, the best software is found to be WP Travel . Here’s a list of the 5 best tour operator software:

Check this article on Best Tour Operator Software for a detailed overview of features and prices.

A tour operator is a person or organization responsible for planning travel and vacation packages. G Adventures and Intrepid Travel are some famous examples.

A travel agency is a private broker or agency that sells holiday packages. American Express Travel is an example of a travel agency. While Booking.com is also a travel agency, it is regarded as an Online Travel Agency (OTA) rather than a traditional one.

When the tour operator creates services, the travel agency is the intermediary that sells those services.

Further differences between a tour operator and a travel agency can be discussed below:

Explore this article “Tour Operator vs Travel Agent- What are the Differences?”

Launching your own tour operator business can be an exciting and rewarding venture. Here’s a roadmap to get you started: 1. Research the market and develop a solid business plan. 2. Create a unique brand and effective marketing strategy. 3. Develop tailored tour itineraries by collaborating with local businesses. 4. Prioritize safety protocols and staff training 5. Integrate technology like online booking and tour management software.

To package a tour, tour operators first research trends, design itineraries, then source local activities, and negotiate bulk rates with hotels and transportation. With everything neatly bundled (accommodation, meals, travel), they create a price-conscious package and market it through various channels. Some even offer customization options for the customer.

Tour operators function by streamlining the travel experience. They utilize bulk rates on flights, hotels, and activities. This allows them to create pre-designed packages that bundle everything you need for your trip – flights, accommodation, transportation, and sometimes even meals or entrance fees. This one-stop-shop approach simplifies trip planning, letting you focus on enjoying the destination.

Here’s a step-by-step process to start your very own tour operator business. Research and Planning 1. Legal and Financial Consideration 2. Branding and Marketing 3. Operations and Logistics 4. Technology Integration 5. Hiring and Training Staff 6. Launch and Growth Strategies. To look into these steps in detail, check this article on starting a tour company .

No, booking.com is not a tour operator. It is one of the largest online travel agencies in the world. Booking.com does not create its own travel packages but helps tour operators from around the world market their packages.

Yam Bahadur Chhetri is a content writer and vivid contributor to the WordPress community and a WordPress enthusiast with an experience of 7+ years in the relative field. He also loves to develop WordPress Themes, Plugins, and custom WordPress development for clients.

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What is a Tour Operator?

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

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

The Benefits of Choosing a Tour Operator

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

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

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

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

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

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

Tour Operators vs. Travel Agencies

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

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

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

Why Choose a Tour Operator?

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

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

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

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

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

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

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

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What is a tour operator and how to become one

A tour operator is a professional who plans and leads tours for groups or individuals. They research information about fares, hotel ratings, and travel-related providers to ensure a smooth and enjoyable experience. They also book and operate private tours and national programs. Tour operators use systems like Sabre to reserve hotels, airfare, and other travel arrangements. They also work closely with transportation accommodations and other travel-related providers to address customer complaints and ensure customer satisfaction. Additionally, they customize tours combining air, land, and cruises, and help travelers with documentation and financial matters. They also work with international partner travel agencies to provide corporate and private booking services to travel groups and individuals.

How long does it takes to become a tour operator?

It typically takes 2-4 years to become a tour operator:

• Years 1-2: Obtaining an associate degree in a relevant field, such as travel and tourism or business.
• Year 3-4: Accumulating the necessary work experience in planning tour itineraries, negotiating with suppliers, and leading tours.
• Salary $47,294
• Growth Rate 4%
• Jobs Number 26,040
• Most Common Skill Reservations
• Most Common Degree Bachelor's degree
• Best State Massachusetts

Tour Operator career paths

Travel agents often transition into roles like tour operators, where they plan vacations for clients. They also work in sales, account management, and marketing. Some, like tour operators, even open their own businesses.

Key steps to become a tour operator

Explore tour operator education requirements.

The educational requirements for a tour operator typically involve a high school diploma at minimum, with many operators holding an associate or bachelor's degree. According to the data, 21.82% of tour operators have a high school diploma, 32.48% have an associate degree, and 30.03% have a bachelor's degree.

According to Jane Smith, a tourism industry expert at the World Tourism Organization, "A degree in business, hospitality management, or marketing can provide a solid foundation for a career as a tour operator." However, she also emphasizes the importance of practical experience and on-the-job training, stating, "While education is important, it's also crucial for tour operators to have firsthand experience in the industry."

Most common tour operator degrees

Bachelor's

Master's

Start to develop specific tour operator skills

Tour operators use computer databases to research information about fares and hotel ratings. They also book and operate private tours and national programs, and supervise programmers in writing integrated computerized travel reservation systems. They educate customers about visas, investigate complaints, customize tours, and confirm customer names with airlines and hotels. They also work closely with decision-makers at local attractions to accommodate group tours and collect customer feedback to improve customer satisfaction.

Complete relevant tour operator training and internships

Research tour operator duties and responsibilities.

Tour operators use computer databases to research information and book tours. They supervise the development of travel reservation systems, manage operations, and investigate customer complaints. They also customize tour packages, reserve hotels and airline tickets, and maintain relationships with clients and vendors. They may also handle marketing and product development, participate in promotional activities, and provide customer service. Finally, they may work closely with tour guides and manage office administration.

• 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.

Prepare your tour operator resume

When your background is strong enough, you can start writing your tour operator resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a tour operator resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose From 10+ Customizable Tour Operator Resume templates

Apply for tour operator jobs

Now it's time to start searching for a tour operator job. Consider the tips below for a successful job search:

• Browse job boards for relevant postings
• Consult your professional network
• Reach out to companies you're interested in working for directly
• Watch out for job scams

Are you a Tour Operator?

Share your story for a free salary report.

Average tour operator salary

The average Tour Operator salary in the United States is $47,294 per year or $23 per hour. Tour operator salaries range between $27,000 and $82,000 per year.

What Am I Worth?

How do tour operators rate their job?

Tour operator faqs, what degree do you need for hospitality and tourism, search for tour operator jobs.

Updated April 25, 2024

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

Tour Operator Related Careers

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Understanding the Role of a Tour Operator in the Travel Industry

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

Definition of a Tour Operator

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

Services Provided by Tour Operators

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

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

Key Responsibilities of a Tour Operator

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

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

Types of Tour Operators

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

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

Benefits of Using a Tour Operator

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

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

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

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Job descriptions and industry overviews

Tour operator: job description.

targetjobs editorial team

21 Nov 2023, 12:07

Tour operators are responsible for organising and preparing holiday tours. They follow trends in the popularity of destinations and packages, and adjust company plans accordingly.

What does a tour operator do? Typical employers | Qualifications and training | Key skills

Due to Covid-19, you may find it difficult to gain work or experience as a tour operator. As we explain here , however, recruiters will not view time out of work due to the pandemic as a 'gap' in your CV. For guidance on searching for work during this difficult time, take a look at our advice for job hunting during a pandemic .

Responsibilities of a tour operator vary according to the time of year and size of employer, but generally include:

• deciding how many holidays to sell each season and the resorts/countries to use
• visiting resorts to ascertain accommodation quality and suitability
• liaising with coach operators, airlines, hoteliers and resort reps
• agreeing service levels, contracts and costs
• confirming customer names with airlines/hotels
• collecting, evaluating and responding (as appropriate) to customer feedback
• using market research information to guide decisions
• producing brochures and internet-based information
• providing pricing information
• marketing holidays to clients via travel agents, websites, brochures and television advertising
• handling bookings, invoicing and issuing of tickets
• predicting profits or number of bookings
• working with travel consultants from different travel agencies to put holiday packages together
• combining travel, accommodation and services such as sightseeing arrangements to create holiday packages.

Typical employers of tour operators

• Private touring companies
• Small specialist organisers
• Major international tour operators
• Bespoke tour designers
• Cruise liners.

Vacancies are advertised online and in trade publications including Travel Trade Gazette and Travel Weekly , as well as their online equivalents. Networking and speculative applications are advisable. A few larger companies operate graduate training schemes. Paid summer vacation jobs may be available with some employers.

Qualifications and training required

A degree is not a standard formal requirement for this role, though it may be an advantage. Degrees in leisure, travel, tourism, management, marketing, IT, business, languages or hotel and catering management are particularly likely to be relevant. Relevant professional or vocational qualifications, such as NVQs and HNDs, may also be beneficial.

Pre-entry experience gained working with the general public or within the hotel, tourism or travel trades (particularly overseas) will strengthen your applications and improve your chances. It may be possible to start work in a tour rep, tour guide or travel agent role and then move on to a tour operator position.

Key skills for tour operators

• A demonstrable interest in travel
• Knowledge of key holiday destinations
• Foreign language skills
• Excellent interpersonal skills
• Communication skills
• Customer service skills
• Organisational skills
• Commercial awareness
• Good time management skills.

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We've got you

How Do Tour Operators Work?

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

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

The Role of Tour and Activity Providers

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

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

What are the different types of tour operators?

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

How do tour operators work with accommodation and transport providers?

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

Building Relationships with Accommodation Providers

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

Partnering with Transport Providers

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

Creating Cohesive Travel Packages

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

Adapting to Client Needs

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

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

How do tour operators work with travel agents and OTAs?

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

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

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

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

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

How to create inclusive tour packages?

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

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

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

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

How do tour operators pay suppliers?

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

Advance Payments and Deposits

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

Credit Facilities and Post-Payment Agreements

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

Bulk Payment Contracts

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

Net Rate Agreements

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

Direct Billing for Services

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

Electronic Payments and Wire Transfers

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

Managing Currencies and Exchange Rates

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

Contingency Funds for Unforeseen Expenses

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

Why is the booking process so important for selling tours?

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

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

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

Tips for Operators

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

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

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

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

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

Conclusion: Making Great Tours Happen

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

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

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

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

FAQ Section

How important are tour operators.

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

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

What is the life of a tour operator?

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

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

What are the strengths of tour operators?

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

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

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

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

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

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Navigating Success: Essential Business Tips for Tour Business Owners

We've compiled a comprehensive guide of essential business tips tailored specifically for tour business owners.

Discover how tour operators create seamless travel experiences through great partnerships, flexible packages, and easy booking processes.

Understanding the Difference Between Tour Operators and Travel Agents

By Rebecca Somes

Tour operators and travel agents might seem similar at first glance, but they have distinct roles when it comes to planning a vacation. While they both offer some similar services, it’s helpful to know which one best fits certain needs.

What is a Tour Operator?

A tour operator handles the nitty-gritty of a holiday experience, from booking and packaging to organising accommodation, transport, meals, guides, and optional tours. They’re like the behind-the-scenes magicians who ensure everything runs smoothly once a customer steps off the plane at a destination

On the other hand, travel agents act as matchmakers, connecting customers with the perfect vacation package from various tour operators. They’re like personal travel advisors, helping navigate through different destinations, budgets, and travel preferences to find the ideal fit for a dream getaway. Once customers have made a choice, they liaise with the tour operator to ensure all requests are met, handling the paperwork and payments along the way.

In the past, travel agents were the go-to choice for booking tour packages. However, with the rise of the internet and travel technology over the last couple of decades, many people now opt to book directly with tour operators. The internet has made it easier than ever to access and book tour packages independently, reducing the need for an agent to identify available operators. Nowadays, most tour operators engage directly with clients and sell their packages, cutting out the middleman.

However, some people still prefer to rely on their trusted local or family travel agent, with whom they have built a long-standing relationship over the years.

Types of Travel Agency

In the travel industry, there’s a growing number of independent travel agents who operate without ties to a specific agency. This presents a fantastic opportunity for people looking for remote work in the travel sector.

These independent agents come in various forms. Some create bespoke itineraries tailored to each client’s preferences, while others partner with specific travel companies. Additionally, some act as resellers, offering pre-packaged tours through Host Agencies.

Regardless of their specific model, most travel agents excel at helping to plan a trip. They use their expertise to provide recommendations based on their customer’s interests, budgets, and travel requirements. The advantage of working with a travel agent lies in their insider knowledge and knack for navigating the complexities of holiday planning and booking. When it comes to travel agencies, there’s a varied range of options available to suit every preference. Here are some of the different types of travel agencies:

Online Travel Agencies (OTAs): These are websites that allow users to search and book travel-related services online. OTAs offer a wide range of options, from flights and cruises to tours and activities, all in one convenient platform.

Brick-and-Mortar Travel Agencies: These are traditional travel agencies with physical offices where customers can visit and speak with travel agents face-to-face. They provide personalized service and assistance in planning and booking travel arrangements.

Corporate Travel Agencies: Specializing in business travel, corporate travel agencies cater to the needs of companies and organizations. They manage corporate travel policies, negotiate discounts with suppliers, and help with itinerary planning and expense management.

Specialist Travel Agencies: These agencies focus on specific types of travel, such as adventure travel, luxury travel, or niche markets like eco-tourism or culinary tours. They offer expertise and tailored recommendations for travellers with particular interests or preferences.

Overall, the travel agency landscape is diverse and caters to a wide range of travellers, each with unique needs and preferences.

The Roles of Tour Operators and Travel Agents

In conclusion, while tour operators and travel agents share some similarities, they play distinct roles in the holiday planning process. Tour operators handle the logistics of a vacation, from booking and packaging to on-the-ground arrangements, ensuring a hassle free experience for travellers. On the other hand, travel agents act as intermediaries, connecting customers with the perfect holiday package from various tour operators, and offering personalized advice and assistance throughout the planning process. Despite the rise of online booking platforms and websites , many travellers still rely on trusted travel agents for their expertise and insider knowledge. Additionally, the travel agency landscape continues to evolve, with independent agents offering bespoke services and various types of agencies catering to different travel needs and preferences. Ultimately, whether booking through a tour operator or a travel agent, travellers have access to a diverse range of options to suit their individual preferences and requirements thanks to the advancements in travel technology and products .

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Retrospect, Inspire, and Learn

What is the role of tour operators in the tourism industry.

As a person working in the tourism field, I can confidentially say that the tourism industry has emerged as one of the most promising industries, with millions of people travelling across the country and internationally. There are numerous factors associated with a person’s need to travel, which may vary from business, leisure, medical purpose, or visiting a relative and friends. Taking care of your travel arrangements can be a cumbersome task, especially when you are exposed to a large number of online portals and offline agents boasting of exclusive packages and discounts. Here is where a tour operator comes to your rescue. He/she caters to all your travel needs, from taking care of documentation, money exchanges, hotel bookings, transportation, etc., to providing a seamless experience and a memorable time with your loved ones. During a discussion with Mr. Manoj Tulsani, CEO of Rayna Tours, we came up with some crucial points on the importance of travel and tourism.

Importance of Travel and Tourism

1) economic growth.

Tourism sparks economic growth in a region, thus helping local tourism recover. Countries where tourists visit the most get an influx of wealth from visitors coming in and spending on food, hotels, transport, activities, etc.

2) Gaining a New Perspective

This is something that I have personally experienced. When travelling, people expose themselves to various cultures, customs, religions, and lifestyles. Venturing into a new place can teach you more than any movie or book can.

3) Protecting the Environment

Many tour companies are becoming more conscious of the environmental implications of tourism by developing more socially responsible and environmentally friendly vacation packages.

By booking a tour, travelers can experience a foreign land and make sure that they visit the best spots. Here I have mentioned the role and functions of tour operators that aim to provide travelers with an ultimate travel experience.

Roles of a Tour Operator

While a tour operator’s role can vary depending upon their position and employer, these professionals are generally responsible for the following:

1) Creating Tour Packages

No one knows the travel destinations better than the tour operators. They are experts responsible for developing tour packages for individual customers or groups of travelers. They work with customers to understand their interests, thereby recommending a variety of attractions, modes of transportation, and accommodation options to help customers choose the tour package as per their requirements.

2) Prepare Travel Arrangements

Tour operators help arrange travel plans for customers so that they can easily reach their destinations. For e.g., they can book their train or flight tickets to help customers fly between cities or reserve a rental car so that customers can visit tourist attractions. All of your trip plans, including visa processing, hotel reservations, airport transfers, and travel insurance, are handled by them.

3) Budgeting the Tour Operations

Tour operators work with customers to help them prepare a budget for their tour. They develop different itineraries with varying prices and guide and advise their clients on attractions and accommodations within their preferred budgets.

4) Negotiating Rates

Tour operators negotiate rates with vendors, such as transportation companies and hotels and get the best deals for their clients. People travelling in large groups can benefit from this.

5) Providing Customer Support

A tour operator offers customer service to assist clients in preparing for their excursions. For instance, they may answer customer questions about a destination, provide information about currency exchange rates, or notify them about any changes in their itinerary.

6) Researching Travel Options

Tour operators research various travel options and provide recommendations to their clients about where to visit, stay, and eat during their tours. They gather the latest information about changing travel trends and provide their clients with the current information.

7) Providing a Safe and Enjoyable Tour

If you’re travelling somewhere for the first time, you probably want to know beforehand how safe it is for visitors. The help of tour operators is offered here, and they provide you with all the information you need. You’ll be able to keep away from any locations that might endanger your life. Tour guides ensure that you have a pleasurable and memorable experience with your family and friends in addition to attending to your safety concerns.

8) Providing Sustainable Tourism

Tour operators have a social responsibility to provide sustainable tour packages to reduce their negative impact while building a greener tourism industry. This includes focusing on creating benefits for local communities, protecting the environment through conservation projects, and giving priority to animal welfare.

Some More Responsibilities of a Tour Operator

• Use operations management skills
• Use sales and marketing skills
• Manage human resources
• Develop products
• Use financial management skills
• Directing visa application process
• Collaborating with the security staff, marketers, and venue operating teams
• Shipping requisite equipment to pertinent locations
• Remaining accessible to stakeholders
• Managing allotted finances
• Completing client-requested errands (within reasons)

Thus, I can conclude that tour operators play an important role in the success of the tourism industry. They contribute to the positive experiences that travelers across the world endure with their knowledge and expertise, allowing people to travel stress-free at a relatively reasonable price. Tourists can count on them to make their dream vacations a reality.

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What is a Tour Operator: A Travel Definition

What is a tour operator.

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

Definition of a Tour Operator

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

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

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

A tour operator – operates the tour

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

Creating a Package Holiday

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

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

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

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

All package holidays are subject to Package Travel Regulations .

Niche Tour Operators

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

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

Starting As A Tour Operator

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

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

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Different types of tour operators that you should know about.

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

Types of tour operators

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

1. Inbound Tour Operators

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

2. Outbound Tour Operators

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

3. Domestic Tour Operators

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

4. Specialist Tour Operators

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

5. Travel Agency and Tour Operators

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

6. Luxury Tour Operators

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

7. International Tour Operators

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

8. Coach Tour Operators

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

9. Receptive Tour Operators

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

10. Adventure Tour Operators

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

11. Educational Tour Operators

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

Why tour operators are crucial?

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

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

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

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

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

Frequently Asked Questions

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

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The differences between outbound and inbound tour operator agents

By Blake Ng — 25 Mar 2018

distribution   inbound tour operator   inbound travel   outbound tour operator   outbound travel

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

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

Inbound vs. outbound travel

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

Let’s look at an example:

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

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

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

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

Inbound tour operator agents

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

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

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

Inbound tour operators are locally based

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

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

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

Choose an inbound tour operator if:

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

Outbound tour operator agents

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

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

Most outbound tour operators cater to international travelers. 

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

A particular region of the world is often their specialty

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

Choose an outbound tour operator if:

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

Advantages and Disadvantages

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

Inbound tour operators

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

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

Outbound tour operators

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

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

Which one should you choose?

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

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

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

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

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

Using Rezdy Channel Manager is as simple as:

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

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

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

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The Difference Between Tour Operators & Travel Agents

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

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