Contents Introduction chapter 1

1.2 
The interaction of tour operators with other sector of tourism industry 
Receptive Tour Operators (RTOs)Receptive Tour Operators (RTOs) provide 
tourism products to tour operators in other markets (as a business-to-business 
relationship) Specifically, RTOs sell tourism products, whether they are sold in a tour 
package or alone, to tour operators and/or travel agents. They are essentially 
wholesalers and they don’t sell directly to the public. 
So how do they make money? 
They add a percentage rate (or fee) to the final price that the tour operator is 
selling the product or service for. When a travel agent buys the tour product, they 
incur the RTO’s fee in the final price. In that sense, RTOs do not charge commission. 
They simply market the tourism product and add their fee to the final product price. 
Another key characteristic of RTOs is that they are experts in the region they 
operate in; and know much more than just the hotels and types of tourism activities 
that are offered in the region. As such, RTOs to help other tour operators identify 
things like hotels, services and design itineraries in regions they are not familiar with.
Ground Tour Operators 
Ground tour operators operate domestically. They are however different from 
domestic tour operators in that they organize tours for incoming tourists on behalf of 
an inbound tour operator (and sometimes, outbound tour operators). 
Let’s look at an example to better understand the role they play. 
Italy will be the destination in this example. So, here’s how it works: 
An inbound tour operator designs and promotes beach holidays, adventure, and 
heritage tours in different parts of Italy. Problem: the inbound tour operator doesn’t 
have offices across Italy. The inbound tour operator also doesn’t have close contacts 
or partnerships with suppliers and key agents in certain parts of the country. So, they 
consult with ground tour operators. 

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It is the ground operator that will handle the incoming tourists at those various 
destinations around Italy. They oversee land arrangements; negotiate with and 
contract local vendors; coordinate arrivals and departures; plan and put together local 
tour packages; escort tourists; provide market data; and cost and price tour packages. 
Overall, it is their duty to ensure that the entire trip goes smoothly based on the 
package tours and agreements. 
You may know ground tour operators as “handling agencies” because they 
organize tours for incoming tourists on behalf of overseas tour operators. 
The components of such tours are air travel, air transfer, accommodation, travel 
documents, sightseeing, boat riding, entertainment, and other travel services
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Tour Operators are involved in planning, development, promotion, 
administration and implementation of tourism products. They oversee all the day-to-
day tasks and also supervise, motivate and train staff. They are employed by tour or 
transportation companies, resorts or attractions. They may travel to proposed tour 
sites, check them out and experience the services first hand before assessing their 
tourism potential. 
Responsibilities: 
-Use operations management skills 
-Use sales and marketing skills 
-Manage human resources 
-Develop products 
-Use financial management skills 
-Knowledge, Skills and Abilities: 
-A secondary school diploma is required 
7
Brunt, P. & Courtney, P. (1999). Host perceptions of sociocultural impacts. Annals of Tourism Research, 26(3), 493-
515. 

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-A university degree or college diploma in tourism or history is an asset 
-Previous management and tourism experience is an asset 
-Human resource management skills 
-Leadership skills 
-Team-building skills 
-Financial management skills are required 
-Good communication 
Excellent customer service skills are required: 
Knowledge of relevant destinations, attractions and travel are important 
Research skills are an asset 
Knowledge a second language is an asset 
Risk management skills are an asset 
Time management skills are an asset 
Possible Future Career Paths: 
Senior Manager 
General Manager 
Owner/Operator of tour operation 
Tour operator- is an organization, firm, or company who 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, is 
called a Tour Operator. 
More precise tour operators are primarily responsible for delivering and 
performing the services specified in a given package tour. They can provide these 
services themselves as some have their own cars and coaches, hotels, and other 

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travel-related services or can obtain these from the other suppliers. That is why they 
are called manufacturers of tourism products. 
A tour operator- is a business that typically combines and organizes 
accommodations, meals, sightseeing and transportation components, in order to 
create a package tour. They advertise and produce brochures to promote their 
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products, holidays and itineraries. Tour operators can sell directly to the public or 
sell through travel agents or a combination of both. 
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. Each tour operator may specialize in certain 
destinations, e.g. Italy, activities and experiences, e.g. skiing, or a combination 
thereof. The original raison d'être of tour operating was the difficulty for ordinary 
folk of making arrangements in far-flung places, with problems of language, currency 
and communication. The advent of the Internet has led to a rapid increase in self-
packaging of holidays. However, tour operators still have their competence in 
arranging tours for those who do not have time to do DIY holidays, and specialize in 
large group events and meetings such as conferences or seminars. Also, tour 
operators still exercise contracting power with suppliers (airlines, hotels, other land 
arrangements, cruise companies and so on) and influence over other entities (tourism 
boards and other government authorities) in order to create packages and special 
group departures for destinations that might otherwise be difficult and expensive to 
visit. 
The tour operator is an integral component of tourism, yet many people are unclear 
about what a tour operator actually is or what they do
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In this course work, I will explain what a tour operator is and why tour 
operators are important. I will also talk about what the difference between a tour 
8
Brunt, P. & Courtney, P. (1999). Host perceptions of sociocultural impacts. Annals of Tourism Research, 26(3), 493-
515. 
9
Budowski, G. (1976). Tourism and Environmental Conservation: Conflict, Coexistence, or Symbiosis . Environmental 
Conservation , 3 (1), 27-31. 

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operator and a torture operators are inextricably linked to the package holiday model. 
The tour operator is the person or organization who creates the package. A travel 
agency is then used to sell the package holiday. 
In the chain of distribution, the tour operator is represented by the term 
‘wholesaler’. This is because the tour operator is responsible for purchasing products 
of services in bulk and then redistributing them as a packaged product to consumers. 
To put it simply, a tour operator is the person or organization who takes the 
individual elements of a holiday (e.g. transfer, hotel, transport) and packages these 
together. 
The types of package vary. Most commonly, tour operators are associated with 
mass tourism and the traditional package holiday market. However, tour operators do 
also play an important role in the production of niche tourism products and services 
too.