What is Tour Operation?/Travel agency

What is Tour Operation?

01. Important department of a tour operating company as it helps in the promotion of travel-related products and services

02. Makes necessary arrangements for the client such as accommodation, transportation, sightseeing, guiding, etc 

03. Prepare their travel product and sells them to their customers.

04. The business of tour operation is integrated with other tourism business as it is a linking point between tourists and other service providers

05. Tour operation business generates ample income sources.



What is a Travel Agency?

A commercial enterprise where a traveler can secure information and expertise, get impartial counseling, and make arrangements to travel by air, sea or land to any point in the world. 

Acts as an agent for different suppliers or providers of products and services.



TOUR OPERATORS

01. Tour operators are the professionals who have skills, expertise, and knowledge of organizing travel

02. Assembles travel components and sells it as a package tour.

03. Offers different kinds of package tours as per the preference of the customers.

04. These tours may be escorted and unescorted as per the needs.

05. Handles complete ground arrangements (based on types)

06. Tour operators are the partners in the distribution channel for catering to various forms of tourists

07. Tour Operators are also the destination promoters who create a comprehensive itinerary and innovative packages

08. Tour operators are largely responsible for making timely delivery of services

09. They have expertise and experience in planning and operation directly or through franchise


Tour Operator and Travel Agency

Travel Agent 

01.Retallers

02.Acts as Consults or Advisers To the Traveler.

03.Revenus are fixed and predetermined by suppliers

04.charges fees for documentation and ancillary services 


Tour Operator 

01. Wholesalers deals with travel agents (retailers)

02. Acts as middlemen between the suppliers and the vendors 

03. Have Variables but limited revenues incomes and profit margins

04. Sells optional products and services and makes use of deposits


DEFINITION OF TOUR OPERATOR 

An organization, firm or company which buys individual travel component separately from various suppliers, assembles them into a package tour by adding value, selling them with their own price tag through the middleman or directly to the customers.


Halloway (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.”


Poyhter (1993) defines, “tour operator is one who has the responsibility of putting the tour ingredients together, marketing it, making reservations and handling actual operation.”

    




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