What so you undustand by Domistic Tour Operators / What is domestic tour operators ?

DOMESTIC TOUR OPERATORS

Domestic tour operators conduct tours within the boundary of the home country and cater to the diverse needs of individual and group travelers. They promote tour packages both through their own outlets and other retail travel agents. In fact, they are contributing to the cause of national integration.




GROUND TOUR OPERATORS

The ground operator is also referred to as, ‘reception operator’, ‘destination management companies’, and ‘handling agencies’ e.g. ground operators in the United States— ‘reception operator, ‘handling agencies’ in India, and destination management companies in the UK.

Ground operators are normally expected to provide ‘land arrangements’ at a particular destination. Thus, a ground operator who provides the services required by large tour companies where they do not have a local branch/office or are not dealing at the source with the principal suppliers such as hoteliers, transport operators, car rentals, entertainment organizations, and so forth.


GROUND TOUR OPERATORS

Ground operators are providers of travel services in their own country or regions. Sometimes inbound tour operators are also called ground operators.

The term is usually applied to companies that do not actively market their services directly to overseas customers.

These operations focus on providing travel services on the ground including activities like horseback riding, boat trips or guided diving tours, cooking or wine tours, etc that form part of large experience of package tours.



Example-

 Travel Link Pvt. Ltd located in the temple city Bhubaneshwar has been in ground handling business for the last three decades. The agency provides luxury cars and coaches, guides, and interpreter services. 




SOURCE OF INCOME FOR TOUR OPERATORS

Variable mark up

Use of cost savers and concessions

Use of advance deposits and cancellation fees

By selling optional tours

Foreign Exchange earnings

Shopping commission 



SOURCE OF INCOME FROM VARIOUS SUPPLIERS OR SERVICE PROVIDERS

Commission from Package Tour

Commission from Hotel Room Reservation- Special offers for bulk sale to Tour operators

Commission for Booking of Transport

Profits from Organizing MICE Activities 

Commission from Transaction of Foreign Exchange

Commission from Insurance- Tour operators takes the insurance services for insurance services and suggests the clients

Revenue from Bank Interests-go for term deposits for which he can get interest or make the down payments for borrowing loans from banks

Credit and Debit Card – Gets commission from banks 


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