Chapter One
INTRODUCTION TO TOUR OPERATION
Learning Objectives:
A. Understand the history and types of Tour
B. Tour Operator-Importance, meaning, Scope and functions.
C. Different types of Tour Operator
A.1 History of Tour:
 Thomas Cook - First travel professional who
organized a tour package in -July 1841.
 Henry Wells of USA- In 1841 he formed a firm Well
Fargo, in 1850- American Express, Traveller’s
Cheque etc
A.2 There is basically two types of tours
 Custom Designed tours
 Pre-Packaged tours
Pre-Packaged tours are again divided into: Independent Tours
 Hosted Tours
 Escorted Tours
A.3 Types of Package tours are:All inclusive tours: - a Package tour which includes
all the travel components except shopping and any other
personal expenses is termed as “all inclusive tours”.
Partially escorted tour: - A tour in which some part of
a particular package tour also has an escort service.
Independent or individual tours: - A tour that does not
include a guide or a host or a set routine of daily
activities.
Extended or day tours: - Tours that can be added to an
existing tour, before or after, to create a longer
trip.
FIT: - means foreign independent tour or Foreign
Inclusive tour or Free Independent tour. Now generally
used to indicate any independent travel, domestic or
international, that does not involve a package tour.
B.1 Tour operator:
A tour operator typically combines tour and travel
components to create a holiday. The most common example
of a tour operator's product would be a flight on a
charter airline plus a transfer from the airport to a
hotel and the services of a local representative, all
for one price.
A tour operator usually checks the following things in
a destination to sell it which is also termed as
“5 A’s of Tourism”:
 Accommodation: - All destinations require nearby
place where tourists can to take rest and relax.
 Accessibilities: - Basic transportation facilities
are required to visit the place.
 Amenities:-Amenities are the services that are
required to meet the needs of tourists while they
are away from home such as public toilets,
eateries,
restaurants,
telecommunications
and
emergency medical services etc.
 Attractions:-A tourist attraction is typically the
interest the tourist have in visiting that place
such as for museums, theme parks, beaches etc
 Activities:- It is the activities taken by the
tourist after reaching the destination
B.2The main functions of large scale tour operating
company are –
 TRAVEL INFORMATION-The first and foremost function
of a Tour Operator is to give their client the
travel related information, let it be either for
international or for domestic sector.
 ITINERARY PREPRATION- A Tour Operator prepares
mainly two types of itineraries
(a) General itinerary- An itinerary that combines
all travel components and are designed to appeal the
general tourists.
(b) Special tourist itinerary- An itinerary that
combines elements designed to appeal to those with some
special interests.
 RESERVATIONS & TICKETING – Making Airline ticketing
and railway reservations for the clients for
international as well as domestic sectors.
 ACCOMMODATION RESERVATION-Tour Operator books a
room in a hotel either directly or by contacting
the hotel or by using CRS (Computerized Reservation
System).
 PRICING A TOUR PACKAGE- Generally, a Tour Operator
use
marginal
pricing
techniques
i.e.,
after
studying the market trends at their margin and
package
tours
cost
is
prepared.
Or
after
calculating the operational fixed cost plus some
profit for the company, the prices are decided
 TRAVEL INSURANCE
Depending upon the tour the traveller can purchase
insurance which is known as the policy which covers
medical expenses, Baggage losses, trip cancellation.
For International Tour it is mandatory to take overseas
travel insurance.
C.1TOUR OPERATOR AND ITS TYPES:Tour Operator is categorized into the following
categories: Domestic Tour Operators- As the name suggests these
Tour Operators sells package tours within the
native country of the tourist. They combine all the
elements of travel and sell it to the Domestic
tourists.
 Inbound Tour Operators- Those Tour Operators who
receive tourists and handle all the aspects of tour
in the host country are called Inbound Tour
Operators or incoming Tour Operators.
 Outbound Tour Operators-Those Tour Operators who
sells package tours other than home country of the
tourist is known as the Outbound Tour Operators.
 Mass Market Operators- This type of operators
offers packages of hot destinations of the world.
 Specialist Tour Operators-Those Tour Operators that
deal with the specific needs of the traveller and
arranges a tour especially for them are known as
Specialist Tour Operators.