A tour operator is an international company that provides package holidays, which includes flights and accommodation. Tour operators work in partnership with many travel and tourism companies and organisations when developing and selling their holidays. There are ways in which tour operators work with travel agents, accommodation providers, ancillary service providers, surface transport operators, tourist attractions, airlines and regulatory bodies. ● Links with component industries
Travel agents work on behalf of tour operators. Travel agents are an advantage for tour operators, seeing as travel agents can sell holidays on behalf of a tour operator. In return, travel agents would get a commission in return of sold holidays.
A travel agent will have brochures from many different tour operators and be able to help customers out, but once customers actually booked a trip, they are in the hands of the tour operator.
An example of tour operator is Thomas Cook, a travel agent may have a Thomas Cook Brochure in their store, which will sell holidays to customers on behalf of Thomas Cook. This is an advantage for Thomas
Cook as they will get customers, and also an advantage for Travel agents as they will get their share of commission. If the tour operator are very satisfied with travel agents, they will give an incentive commission.
For example, a holiday in Magaluf for 1830’s, tour operators would have the rooms contracted. The hotel will be told they need approximately 50 rooms, even if the rooms are cancelled, tour operators would still pay the hotel. Other accommodation can be self catered cabins or tents. Ancillary services Ancillary services are extras E.g Excursions. If someone was to book a holiday, people would book extras like airport hotel for a few hours, currency exchange, travel insurance, car hire. A tour operator is to be a good tour operator who sells in bulk to travel agents and that’s how they make money,