The Tour Operator & Tour Distribution. Learning Objectives To know the business scope of different tour operators. To know how tours are distributed.

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Presentation transcript:

The Tour Operator & Tour Distribution

Learning Objectives To know the business scope of different tour operators. To know how tours are distributed.

Definitions Tour operators: They are professional companies that provide tour planning and/or tour execution services for groups of people. Travel agents: They serve as intermediaries between travel suppliers and ultimate consumers, selling products offered by travel suppliers to the general public.

Type of Tour Operator Group tour operator: operators who work primarily with pre-formed groups and provide pre-formed tours and / or charter tours. Retail tour operator: operators who specialise in providing retail, public, or per capita tours.

Type of Tour Operator Out-bound tour operator: operators with their business focus on long-distance tours, usually to another country. e.g. TravelNet, Star Cruise Travel, Diners World In-bound tour operator: specialises mostly in groups arriving in a specific city, area, or country. e.g Tour East, World Express, Holiday Tours

Type of Tour Operator Tour Wholesalers: they produce tour packages and sell them to travel agents and other tour operators at a commissionable price. –Research a chosen destination –Purchase tour elements from suppliers in the chosen destinations in bulk. –Package the services to develop tours –Price the tours and produce tour brochures –Distribute the tour brochures through travel agents and other tour operators –Conduct tours

Type of Tour Operator Receptive operator: it sells tour elements and tours to tour operator clients for eventually resale to the customer and takes over the tour upon its arrival at the destination. –Extensive buying power and thus have strong relationship with suppliers. –Better dates and rates than can be purchased directly from suppliers. –Development and administrative costs are greatly reduced. –A better tour because of the extensive knowledge the receptive operator has about the destination. –Who is the most qualified receptive operator?

Travel Agency

Distribution Channels Please refer to Fay, B. 1992, Essentials of Tour Management, Page 59: Exhibit 4.1, 4.2 and 4.3

Travel Agency

Travel Fair - Public

Travel Exhibition - Industry

Summary Tour operators can be classified in different ways and each type of tour operator has its own business focus. All industry players are involved in some way in the distribution of tour products. Distribution methods depend on the type of tour operator and the size of the operation. Reference Fay, B. 1992, Essentials of Tour Management, Chap. 3&4