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