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

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