Definitions of Tour

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

Holloway (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.

Today, tour operators have become highly competitive. They endeavor to

achieve a high volume of turnover, and maximum International and domestic
market share by effectively operating. Moreover, the success of many developed
and developing nations as tourists' destinations depend heavily on a tour
operator’s ability to attract tourists, development and promotion of tourism plant,
diversification of tourism product and their social responsibilities to develop a
remote and backward area.

Types of Tour Operators

Tour operators are basically categorized into four types. These are categories
on the basis of their nature of the business and its operations.

1. Inbound Tour Operators

2. Outbound Tour Operators
3. Domestic Tour Operators
4. Ground Operators
Inbound Tour Operators
These are also known as incoming tour operators. Technically, the operators
who receive guests, clients/tourists, and handle arrangements in the host country
are called inbound tour operators. For example, a group of American Tourists
is coming through TCI Ltd. to India and the company makes arrangements and
handles the group in India then TCI is called an inbound tour operator.

Incidentally, the inbound traffic to the country for the last two decades has been
decreasing. Essentially the tour operators need to adopt innovative marketing
strategies and should introduce a special interest tour to cater the special needs
of Japanese, Americans, French and British people.

Outbound Tour Operators

Tour operator who promote tours for foreign destinations, maybe business tour or
leisure tour is called outbound tour operators. For example, a group of
American tourists going to a trip of India and Thomas Cook handle arrangement
in America like as ticket reservation, hotel booking etc. then Thomas Cook is
called Outbound Tour operators in the context of America.

Domestic Tour Operators

Domestic tour operators are those who assemble, combine tourist components
into inclusive tours and sell it to the domestic travelers. In general, these tour
operators provide travel services within the tourist’s native country.

The domestic tour operators operate within the boundary of the home country
and offer package tour to the travelers viz. Domestic inclusive tours or
independent tours.
Ground Operators/Destination Management
Companies
These are commonly known as handling agencies and their main function is to
organize tour arrangements for incoming tourists on the behalf of overseas
operators. Let us take the case of India as a destination that – has a varied
culture.

When a tour operator himself promotes beach holidays, wildlife holidays,

adventure tours, heritage tours at the different places, the difficulty arises. It is
the ground operator then who by handling the incoming travelers in the same
season but at different places ensures that the entire operation is according to
the package tours or agreements.

Sometime when a handling agency is at a prominent tourist place i.e., Delhi and
it has to make arrangements to Goa, then it contracts (If it has no office of its
own) with a local operator (known as excursion agent) to handle the arrangement
on his behalf.

Why Ground Operators?

Obviously, the tour operation companies do not have close contact with
suppliers, governments, destinations and so on. It leaves no choice with the
companies but to appoint handling agencies at the destinations.  The main
reasons are:

 Introduction of new products or plant to promote an exotic destination.

 Lack of Government regulations.
 Lack of personal contract.
 Language problem.
 The company cannot establish its own branch.
Recognizing the very fact that the reputation, performance, and profitability of
tour company in its own market largely depends on the efficiency and
effectiveness of ground operators, it has because necessary for the company to
consider various factors before the selection of a handling agency, they are:

 Size of business
 Professional staff
 Length of business
 Area of operation/Product line
 Market share

Functions of Ground Tour Operators

Over the years of functions and activities of the destination, companies have
changed drastically to cope with the changing environment of the tourism
industry. In fact, today’s destination companies have become more professional
and are bound to provide personalized travel services to the tourists. The
following functions are performed by ground tours operators:

1. Land arrangement
2. Contract and Negotiate with other vendors
3. Handling of Arrival and departure procedure
4. Planning and organizing local package tour
5. Escorting the tourists
6. Providing market information
7. Costing and pricing package tour

Practically, if we see the working of the travel agencies and tour operators in the
industry we find that most of the organizations are performing different types of
activities like the retail travel agency, wholesale travel agency, and tour
operators.

The travel agency business is no longer an amateurism. Over the last two

decades, the pattern and structure of travel agencies have changed to meet
tough challenges in the international market. Today, small-scale agencies are
finding the travel industry increasingly complex.
Thus, the small and medium scale travel agencies are disappearing or merging
or falling instead of rising. On the other hand, a new concept has also emerged
i.e. tour operation business. The tour operation business is new but a maturing
business at the global level.

Functions of Tour
Operator
A tour operator is an organization, firm, or person who is responsible for the
actual arrangement of transport and accommodation facilities on any tour or
vacations. They are also responsible for operating and providing vacation
through contracting, booking, and packaging together of the various components
of the tour such as hotel, transportation, meals, guides, optional tours, and
sometimes flights.

A tour operator is like a service provider, providing the most convenient option for
tourists to stay, visit, as well as leave from the city. A tour operator owns a high
volume of travel services across carriers, services, and accommodation. Some
most important functions of the tour operators are following as:

Planning a Tour
The most important functions of the tour operators are planning a tour. Tour
operators plan a tour and make tour itinerary which contains the identification of
the origin, destination and all the stopping point in a traveler’s tours. A
prospective tour operator also gives advice to intending tourists in various types
of tour programmes, which they may choose for their leisure or commercial
travel.
Making Tour Package
Tour operator buys individual travel components, separately from their suppliers
and combines them into a package tour. Tour operators make tour package by
assembling various travel components into a final product that is called tour
package which is sold to tourist with own price tag. Making tour packages is also
an important function of Tour Operator.

Arranging a Tour
Tour operators make tour package and also arrange a tour according to tourist
demands. Tour operators arrange the tour package and various tourist activities
to provide the best experience to tourists/traveler.

Travel Information
Whatever the size of tour operators, it has provided necessary travel information
to the tourists. This task is utterly difficult and very complicated. A tour operator
must give up-to-date, accurate and timely information regarding destinations,
modes of travel, accommodation, sightseeing, immigration, health and security
rules about various permits required to travel in a particular area etc.

Reservation
It is a very important function of all type tour operators and travel agencies. Tour
operator makes all the reservation by making linkages with accommodation
sector, transport sector and other entertainment organizations to reserve rooms,
and seats in cultural programmes and transportation.

Travel Management
Tour operators manage tour from beginning to the end of the tour. A tour
operator has the responsibility to look after the finer details of a vacation or tour
such as hotel, accommodation, meals, conveyance etc. Tour operators provide
travel guide, escorting services and arrange all travel related needs and wants.

Evaluate the Option Available

Tour operators evaluate all available options to provide a unique or unforgettable
travel experience to tourists during their journey. Tour operators evaluate the
various options available for a tour package and provide best of them to tourists.

Promotion
Tour Operators makes tour packages and promote them into various tourists'
markets at domestic as well international level. Tour operators promote a travel
destination to attract a large group of tourists at domestic as well as international
level. In the promotion of tourist destination, tour operators play a key role. Travel
agencies or tour operators are called as image builder of a country.

Sales and Marketing

Tour operators do sales and marketing of tourist products. Tour operators buy
individual travel components, separately and combine them into a tour package,
which is sold with their own price tag to the public directly. Tour operators do
marketing of tourist destinations and tourism products to attracts the attention of
the tourists/travelers.

Taking Care of Glitch

Tours operators are also called handling agencies which handles tour package
and take care of all the glitches and problems arises during a tour package. Tour
operators fix the glitches and provide the best available alternative to tourists
during their journey.
Importance of Tour
Operators
Tours operators play a key role in the tourism sector. Tour operators create
tourist products, promote them a finally sold them to tourists.

Tour operators provide the best and competitive price to the tourist. Tour
operators negotiate with suppliers of tourism products such as hotels, airlines
and provide the best possible price to the tourist. Tour operators buy tourist
products in bulk and get huge discounts from suppliers. So that they provide
tourist products at a cheap price.

Tour operators organized a tour in the best way. They personalize and make
sure each and every component of the tour is well-taken care. Tour operators
provide the best travel experience during a tour. Tour operators save tourists'
time and money.

Tour operators provide immediate support systems at the host country as well as
a foreign land. When tourists travel to a foreign land and things get uncertain,
maybe it's a health or loss of documents and need to return back or change of
travel plan. A qualified tour operator takes care of all these unseen events with
efficiency.

Tour operator caters to the needs of tourists on the based on their taste of travel.
Tour operator provides all the best available option according to tourist needs
and demands
Difference between Travel
Agent and Tour Operator
There is a lot of confusion about the difference between tour operators and travel
agents what exactly makes them different. The main difference between a Travel
agent and Tour operator are following as:

1. A travel agent is a person who has full knowledge of tourist product –

destinations, modes of travel, climate, accommodation, and other areas of
the service sector. He acts on the behalf of the product providers/principals
and in return get a commission.
2. Tour operator is an organization, firm, or company that buys individual
travel components, separately from their suppliers and combines them into
a package tour, which is sold with their own price tag to the public directly
or through middlemen.
3. Tour operators are like wholesalers and travel agents are the retailers.
4. A tour operator makes the package holidays up and the travel agents sell
them on.
5. Tour operator taking up the bulk of the responsibilities and his fee is
obviously much greater than a travel agent.
6. A tour operator has the responsibility to look after the finer details of a
vacation or tour such as hotel, accommodation, meals, conveyance, etc.

The wholesale travel agencies may offer or operate the package tours or may
specialize in developing tours for inbound as well as outbound travelers. They
are often referred to as tour operators, but there is a difference between
Wholesale Travel Agencies and Tour Operators.