1. Lecture #2 Tour operating business in the world economy

2. Plan & objectives: define the role of a tour operator and distinguish between different types of operator explain the functions of each type of operator understand how operators interact with other sectors of industry understand how the activities of operators are constrained understand the basic principles behind the construction and marketing of a package tour evaluate alternative methods of tour distribution and recognize the importance of new forms of electronic reservations and sales systems for operators and their clients.

3. Tourism often plays an important part in a nation’s economy by providing opportunities for employment, contributing to the balance of payments and stimulating economic growth. Countries that experience an influx of large numbers of tourists, however, also suffer the environmental and social consequences of mass tourism, unless care is taken to plan for and control the flow of tourists.

4. The package holiday has made the process of organizing holidays much more straightforward than before. For many holidaymakers, the convenience of booking a package, which provides all the component parts of the holiday, has encouraged travel to locations that, otherwise, they would not have considered. This has overcome language barriers as well as concerns regarding the suitability of the products, such as accommodation, airport transfers or tours, all at a competitive price. Thus, the demand for packages has ensured that tour operators have continued to have a significant role in the tourism industry. The importance of business

5. The use of tour operators as an intermediary in the travel booking process varies across nations. The decision as to whether or not to use intermediaries is influenced by a wide variety of factors, including the nature of travel (domestic or international) as well as the experience of the traveller.

6. Definition A tour operator typically combines tour and travel components to create a holiday. They prepare itinerary. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price.

7. Types of Organisation Tour operators Leisure travel agents Business travel agents Accommodation providers Airlines and airports Regulatory bodies Public sector organisations

8. Tour Operators Creating tours and travel activities Offering these to customers… Through travel agencies or Directly via the Web Four main firms dominate: TUI (Thomson) Thomas Cook MyTravel First Choice

9. Travel Agents Travel agents provide the link between tour operators and customers Range from large national chains to small independents Leisure travel agents provide services to holiday destinations Business travel agents provide services for commercial consumers

10. Accommodation Providers Hotel chains New trends, such as budget hotels Bed and breakfast Youth Hostel Association Villas and country houses

11. Regulatory Bodies Regulators exist to control an industry to ensure that public, business and consumers rights are protected The Civil Aviation Authority (CAA) is one of the travel and tourism industry’s main regulators

12. Roles & Responsibilities Travel and tourism organisations have responsibilities to: Customers Other businesses that depend on them The whole industry

13. Customers Have expectations, such as: Good service Quality products and services Effective complaints procedures Protection from improper business practice

14. Other Businesses In the first session we saw how the travel and tourism industry has many examples of vertical integration: Travel firms own businesses above and below them in the ‘chain’ e.g. Tour operator Travel agent Airline

15. Other Businesses They may not be owned by the same company, though Firms can still be inter- dependent, even though they may compete with each other

16. Whole Industry Organisations in travel and tourism have a responsibility to the entire industry because: It is a highly valuable industry Consumers’ confidence is vital Many firms’ growth and survival are inter-linked