Learning ObjectivesLearning Objectives
• To know the business scope of different tour operators.
• To know how tours are distributed.
Definitions Definitions
• Tour operators: They are professional companies that provide tour planning and/or tour execution services for groups of people.
• Travel agents: They serve as intermediaries between travel suppliers and ultimate consumers, selling products offered by travel suppliers to the general public.
Type of Tour OperatorType of Tour Operator
• Group tour operator: operators who work primarily with pre-formed groups and provide pre-formed tours and / or charter tours.
• Retail tour operator: operators who specialise in providing retail, public, or per capita tours.
Type of Tour OperatorType of Tour Operator
• Out-bound tour operator: operators with their business focus on long-distance tours, usually to another country.
e.g. TravelNet , Star Cruise Travel, Diners World• In-bound tour operator: specialises mostly in
groups arriving in a specific city, area, or country.
e.g Tour East, World Express, Holiday Tours
Type of Tour OperatorType of Tour Operator• Tour Wholesalers: they produce tour packages
and sell them to travel agents and other tour operators at a commissionable price.– Research a chosen destination– Purchase tour elements from suppliers in the chosen
destinations in bulk.– Package the services to develop tours– Price the tours and produce tour brochures– Distribute the tour brochures through travel agents and
other tour operators– Conduct tours
Type of Tour OperatorType of Tour Operator• Receptive operator: it sells tour elements and tours to tour
operator clients for eventually resale to the customer and takes over the tour upon its arrival at the destination. –Extensive buying power and thus have strong relationship with
suppliers.–Better dates and rates than can be purchased directly from
suppliers.–Development and administrative costs are greatly reduced.–A better tour because of the extensive knowledge the receptive
operator has about the destination.–Who is the most qualified receptive operator?
Distribution ChannelsDistribution Channels• Please refer to Fay, B. 1992, Essentials
of Tour Management, Page 59: Exhibit 4.1, 4.2 and 4.3
SummarySummary
• Tour operators can be classified in different ways and each type of tour operator has its own business focus.
• All industry players are involved in some way in the distribution of tour products.
• Distribution methods depend on the type of tour operator and the size of the operation.
Reference
Fay, B. 1992, Essentials of Tour Management, Chap. 3&4