Tour Operators

Tour Operators
Distinct function in the tourism industry
Purchase separate elements of transport,
accommodation and other services
Combining all the elements into a tour
package which they sell directly or
indirectly to consumer

Tour Operators
Classified as travel suppliers or travel
wholesaler
Purchase services, and break bulk e.g.
buy in large quantities in order to sell in
smaller quantities to different travel
agency

Tour Operators
Sometimes classified as Travel suppliers
and travel wholesalers work in variety of
areas
Buy in bulk, and thus secure considerable
discounts from the travel suppliers or
travel wholesaler, which could not be able
to match by the customer buying direct

Tour Operators
Assemble and present to the customer a
tour package

Nature of tour operating

Success of a tour operator depends on its
ability to buy its product in bulk at a much
lower price
Compared to direct buying from
customers
Such packaging gives value for money to
the customers

Process of tour operator

negotiating
1) Airlines negotiation
) Once the dates of departures have been
fixed, negotiations start with different
parties e.g. Airlines, hotels and other
tourism counterparts, leading to formal
contracts

Process of tour operator

negotiating
Spell out the conditions for the release of
unsold accommodation or of block
bookings on air-seat of a scheduled flight,
or the cancellation of aircraft flights with
any penalties that the tour operator will
incur
10% of the total cost for a deposit to be
paid upon signing the contract

Process of tour operator

negotiating
Reputation of the tour operator is very
important determines the terms and
conditions and pricing for the contract
Determined dates and frequency of
departures, airports to be used and times
of arrival and departure
Consolidated into a form suitable for
printing into a tour brochure

Process of tour operator

negotiating
2) Hotel Negotiations
) Generally more informal
) Hotel agrees to guarantee
accommodation based on receipt of the
notification of booking from the tour
operator, whether by phone, mail fax or
e-mail

Process of tour operator

negotiating
Long-term contracts can be blocking of
rooms, attraction of providing the tour
operator with the lowest possible prices

Process of tour operator

negotiating
Tour operator must also clarify a number of
other facts; including : Reservations and registration procedures
Accommodation requirements for tour
guide or representatives
Handling procedures and fees charged for
Porter

Process of tour operator

negotiating
Special facilities availabilities
Languages spoken by hotel staff
Systems of payment by guest of drinks or
other extras
Reassurance on suitable fire and safety
precautions

Process of tour operator

negotiating
3) Ancillary Services
) Inbound tour operators and coach
companies to provide coach transfers
between airport and hotels
) Car rental companies commission

Different types of Travel

Operators
Different types of travel Operators
a) Mass market tour operator :- public,
organizing tour packages on popular
destinations and well-known attractions
bonded with long-term contracts with
hoteliers abroad, air-carriers and tour
operators from the destination

Different types of Travel

Operators
b) Domestic tour operator
Organize package holidays domestically
(locally), that is, to a destination within
the country in which the tourists resident
c) Other specialization
Strengths can lie in a specialized aspect
of tour, based on the target markets they
serve or the products they develop

Different types of Travel

Operators
Specialized tour operators have a number of
advantages: Most carry small number of tourists,
therefore using smaller and less pricy
accommodation
More flexible, switching to other
destination
Expected to have a better knowledge of
the products