Theoretical aspects of tour operator services in tourism industry

Article 34. Rights of associations of tour operators and travel agents
Associations of tour operators and travel agents are entitled to:
analysis of compliance with the rights and legitimate interests of tourism subjects;
exercising public control over the implementation of tourism legislation;
participation in the development and discussion of draft regulations in the field of tourism;
participation in public councils under the authorized state body;
participation in the formation of a support system for tourism subjects, strengthening guarantees for the protection of their rights, freedoms and legitimate interests;
preparation and introduction of proposals for improving the legislation on tourism, the involvement of other business entities in the processes of developing measures to improve the tourism sector;
assistance in promoting the national tourism brand of Uzbekistan and products in the tourist markets, attracting investments, including foreign, as well as modern technologies in the tourism sector.
Based on Lex.uz 2019
Chapter 1. Theoretical aspects of tour operator services in tourism industry. 1.1 The essence and characteristics of tour operators
Tour operators are a key factor in the success of the tourism industry. Tourists count on tour operators to turn their dream vacations into realities. Booking a tour is an easy way for a traveler to experience a foreign land and make sure they hit the best spots. In this article we are going to talk about the roles and functions of tour operators that are aiming to provide the ultimate travel experience.
In most cases, tour operators are expected to make travel arrangements for the group of people on the tour. This includes transportation from one activity to another to ensure that all the group members make it to the next destination. Tour operators often assist with flight tickets and work closely with hotels to provide suggestions to the group members. Tour operators work diligently to create tour packages that offer high-quality service to customers for a cheaper price than if the customer was to book each commodity on their own, while also creating a profitable business. Tourists purposely seek out help from a travel agent or tour operator because it provides more bang for their buck. It is important that tour operators spend time on evaluation of pricing before finalizing a tour package.
A tour should be everything a traveler wants, and more. A tour operator should be very well versed in putting together an experience that will create memories to last a lifetime. 
As important as it is to deliver a meaningful, positive experience, it is also vital to keep your travelers safe throughout the trip. Some tour activities may pose a potential risk to travelers, which poses a liability to your company.
As a tour operator, it is wise to encourage your traveler to invest in travel insurance, for example, ABTA Travel Sure travelers insurance. Insurance will provide comfort to both you and your client as they embark on adventures of a lifetime. 
Tour operators contribute to the positive experiences that travelers across the globe endure. They allow people to travel stress-free and for a relatively cheap price.
Tour operators aren’t allowed to have an off day. The reality is, they are working with people every day who are having a great time on vacation and making carefree memories with their family members and friends. This means that tour operators have to adopt that same mood each and every day in order to match the enthusiasm of their travelers. Tour operators need to be friendly, approachable, social and funny.
must be able to conduct themselves as such. An effective leader is organized and is able to effectively use technology in order to maximize the efficiency of the tours. At any given moment, the tour guide should know the latest manifesto, the tour operator is the leader of any activity that has been planned, and they understand the availability of resources and be able to troubleshoot should the need arise. In addition to being able to multi-task while conducting a tour, a tour guide also needs to know how to use the resources that are available. Sometimes, this means using a mobile device to access cloud-based technology and provide customers with the information they need. In other cases, such as in the event of an injury or illness, the tour operator will need to be able to provide first aid care. The best guides know what resources are within arm’s reach, and they know how to best use those resources. Every day is different when you are a tour and activity operator. The best guides are able to adapt to changing circumstances. This includes staying composed in the event of an emergency, or when someone is delivering negative feedback. It means that they are able to think quickly on their feet, and deliver solutions if a problem arises. They are comfortable with the flexible nature of the position and the excitement that each day can bring.
What does a tour operator do? Typical employers | Qualifications and training | Key skills
Responsibilities of a tour operator vary according to the time of year and size of employer, but generally include:
deciding how many holidays to sell each season and the resorts/countries to use
visiting resorts to ascertain accommodation quality and suitability
liaising with coach operators, airlines, hoteliers and resort reps
agreeing service levels, contracts and costs
confirming customer names with airlines/hotels
collecting, evaluating and responding (as appropriate) to customer feedback
using market research information to guide decisions
producing brochures and internet-based information
providing pricing information
marketing holidays to clients via travel agents, websites, brochures and television advertising
handling bookings, invoicing and issuing of tickets
predicting profits or number of bookings
working with travel consultants from different travel agencies to put holiday packages together
combining travel, accommodation and services such as sightseeing arrangements to create holiday packages.
Typical employers of tour operators
Private touring companies
Small specialist organizers
Major international tour operators
Bespoke tour designers
Cruise liners.
Vacancies are advertised online and in trade publications including Travel Trade Gazette and Travel Weekly, as well as their online equivalents. Networking and speculative applications are advisable. A few larger companies operate graduate training schemes. Paid summer vacation jobs may be available with some employers.
Qualifications and training required
A degree is not a standard formal requirement for this role, though it may be an advantage. Degrees in leisure, travel, tourism, management, marketing, IT, business, languages or hotel and catering management are particularly likely to be relevant. Relevant professional or vocational qualifications, such as NVQs and HNDs, may also be beneficial.
Pre-entry experience gained working with the general public or within the hotel, tourism or travel trades (particularly overseas) will strengthen your applications and improve your chances. It may be possible to start work in a tour rep, tour guide or travel agent role and then move on to a tour operator position.
Key skills for tour operators
A demonstrable interest in travel
Knowledge of key holiday destinations
Foreign language skills
Excellent interpersonal skills
Communication skills
Customer service skills
Organizational skills
IT skills
Commercial awareness
Good time management skills.
Types of Tour Operators
There are five main categories of tour operators that you could fall into: inbound tour operators, outbound tour operators, domestic tour operators, receptive tour operators, and ground tour operators. Let’s find out which one of these five you fall into.
Inbound Tour Operators (AKA Incoming Tour Operators)
Inbound tour operators bring tourists into a country as a group or via individual tour packages. They handle all arrangements in the host country; and the types of tours they curate are specifically for non-residents touring the country.
Let’s look at an example.
If a group of Italian tourists want to explore Germany, then the tour operator in Germany who handles all the arrangements for the tour is known as an inbound tour operator. So, inbound tour operators are locally based and offer tours that cover their own country.
Most inbound tour operators hire local travel agencies for things like airport pick-up and drop-off; form partnerships with local hotels and businesses; and have key partnerships with other types of tour operators (who help them run tours on the ground).
Outbound Tour Operators
Unlike inbound tour operators, outbound tour operators work within their countries to take travelers to other countries. They are tour operators who market their tours for international destinations, either for business or leisure travel.
Let’s say, for example, that a group of Canadian tourists are planning a trip to Italy. Then the tour company in Canada that handles all the ticket reservations and hotel bookings is the outbound tour operator.
To further simplify things, outbound tour operators design and package tours for tourists in their home country to visit an international destination.
Now, most outbound tour operators choose to specialize in specific destinations: either a destination that is “trending” or one in which they have particular expertise and distribution partners. They often work with other tour and activity providers in the destination when designing their travel packages.
Domestic Tour Operators
Domestic tour operators are those that put together inclusive tour packages and sell them to domestic travelers. In other words, they are tour operators who provide travel packages and tours within a tourist’s native country.
Domestic tours usually involve residents of a specific country traveling within that country. They can visit national parks, scenic areas, hospitality tours, city tours, train tours, etc. Since there are many options that tourists can choose from, domestic tour operators often combine several tourist components into an inclusive package that they can sell to travelers within the boundary of the country.
Domestic tour operators form key partnerships with other tour and activity providers in order to attain a larger share of the domestic tourism market.
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.
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.
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
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 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 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.
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 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.

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  Definitions of tour operator
  

If you’re looking for a formal definition of a tour operator with a reputable source, you may want to reference Polyether, who in 1993, defined the tour operator as;‘[an organization or person] who has the responsibility of putting the tour ingredients together, marketing it, making reservations and handling actual operation .Similarly, Holloway (1992) states 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’. The Organization for Economic and Cultural Development (OECD) define a tour operator as follows; ‘Tour operators are businesses that combine two or more travel services (e.g., transport, accommodation, meals, entertainment, sightseeing) and sell them through travel agencies or directly to final consumers as a single product (called a package tour) for a global price. The components of a package tour might be pre-established or can result from an “a la carte” procedure, in which the visitor decides the combination of services he/she wishes to acquire. ‘Importance of tour operators
Tour operators are an important part of the tourism industry. Tour operators make the logistics of organizing a holiday much easier for the consumer. This makes people more likely to travel, more often.
Tour operators have a lot of power. If they choose to sell holidays in a particular location, for example, then that location will receive many of the associated positive and negative economic impacts of tourism. Tour operators are often vertically or horizontally integrated with other organizations, such as travel agents and airlines. This allows for easier management and distribution of products. Tour operators typically build holidays end masse. This means that economies of scale play a key role in driving down prices- the more you produce the cheaper the product becomes! This is obviously beneficial to the consumer and helps travel agents to have a competitive advantage when selling holidays.
The difference between a tour operator and a travel agent Many people are not aware that a travel agent and a tour operator are actually two totally different organizations and they are not aware of the difference between a tour operator and a travel agent.
In fact, it is quite easy to understand this difference!
A tour operator is the organization which puts the different elements of a holiday together. And the travel agent is the organization who sells it to the consumer.
Whilst this differentiation is pretty easy to comprehend, it is easy to understand why people get tour operators and travel agents confused. This is largely because many organizations will operate under the same company. For example, TUI has a tour operator and a travel agent (and an airline too). As a result, many people do not realize that in actual fact, there are two separate organizations doing two separate jobs.

What does a tour operator do?

Parked boat Photo by Asad Photo Maldives on Pexels.comUltimately, a tour operator is responsible for putting the different elements of a holiday together into a commodified package. To do this, there are a number of different roles and responsibilities that tour operator staff will have. This includes: Data analysis- which destinations will sell best, how many holidays should they sell etcAssessing suitability of accommodation, transfer and transport options
Liaising with stakeholders e.g. coach operators, airlines, hoteliers and resort representatives
Negotiating contracts
Confirming reservations with airlines/hotels
Managing and responding to customer feedback
Undertaking market research
Production of marketing material
Providing pricing information
Handling bookings, invoicing and issuing of tickets
Working with travel consultants from different travel agencies to put holiday packages together
Products and services sold by tour operators
Tour operators have a number of products and services that they sell, depending on their specific business model, business intentions and target market. A tour operator will typically package together two of more elements to form a packaged product, which is then sold at an inclusive price.
Examples include:
Package holidays
Accommodation
Transfers
Excursions
Information on destinations
Representative service in resorts
Types of tour operator
Tour operators come in all shapes and sizes. Some are large, multinational organizations and other are small, independent business.
Different types of tour operators develop products for different types of tourism. This can include the mass market, niche tourism market, special interest tourism, the luxury market, tailor-made products and dynamic packages.
great wall of china
Photo by Johannes Plena on Pexels.com
There are four different types of tour operators, which I will explain below.

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  Inbound Tour Operators
  

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  Outbound Tour Operators
  

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  Domestic Tour Operators
  
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  Ground Operators
  

The tour operator. types of tour operators.

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  Inbound tour operators
  

An inbound tour operator is one who facilitates inbound tourism.
The aim of an inbound tour operator is to bring tourists in to a particular country or countries.
Inbound tour operators will often collaborate with local travel agencies and transport operators to facilitate travel arrangements for their customers.
Inbound tour operator example: A group of German tourists conduct a tour of China, encompassing a visit to Shanghai, Hangzhou and the Yellow Mountains. The tour operator who organizes their travel is Chinese-based company China Highlights. This company is based locally in China and they offer local, Chinese tours.

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  Outbound tour operators
  

An outbound tour operator is one who facilitates outbound tourism.
The aim of an outbound tour operator is to send tourists out of a particular country or countries.
Outbound tour operators will often collaborate with foreign travel agencies and transport operators to facilitate travel arrangements for their customers.
Outbound tour operator example: A family of four from Liverpool, UK want to book an all-inclusive summer sun holiday in Alicante. They book through TUI, the largest tour operator in Britain, who specializes in outbound travel. They are based in the UK, but they work with foreign partners to facilitate holidays overseas.

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  Domestic tour operators
  

A domestic tour operator is one who facilitates domestic tourism.
The aim of a domestic tour operator is to organize travel within a particular country or countries.
Domestic tour operators will often collaborate with domestic travel agencies and transport operators to facilitate travel arrangements for their customers. Domestic tour operators will often also serve the inbound tourism market.
Domestic tour operator example: A group of twenty-something boys from Chicago want to travel to Florida for the spring break holiday. They want to do a tour of the local attractions in the area and have some time to relax on the beach. They organize their travel through the tour company, Trek America. Staff at this company are experts in domestic travel within the USA.

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  Ground tour operators
  

A ground tour operator is an organization who dopes the ground work as grass roots level.
Many tour operators do not have connections in all places around the world, therefore they build a network of connections to help them run their business.
Essentially, some of the work is passed on to a third party, known as a ground operator. This work may include negotiating local contracts, liaising with local suppliers and providing market data, amongst other things.
This is especially common for small tour operators.
You may also hear ground tour operators referred to as handling operators or handling agents.
Ground tour operator example: A backpacker wants to ‘give something back’ and book a volunteer tourism holiday in Kerala. She wanted to use a known and trusted tour operator to book her trip so she booked it with Intrepid Travel. Intrepid Travel create and sell adventure holidays all over the world, and it is impossible for them to have contacts and every staff in every corner of the globe. Therefore, they work with local ground operators, who do the work on the ground. In this instance, the ground organization is Iris Travel– a tour operator based in Kerela, India.
The Association of Independent Tour Operators
The Association of Independent Tour Operators, abbreviated as AITO, is a travel industry trade group (like ABTA or ATOL) based in Britain. They launched in 1976.
The AITO represents around 120 independent tour operators across 200 countries.
These tour operators provide access to a huge range of activities including city breaks, safaris, luxury holidays and much more. The AITO is based in Tw Ickenham, south-west London.
The AITO does a variety of things. Most importantly, you can be reassured that your holiday is well-protected thanks to the Association of Independent Tour Operators.
They assess every member financially as well as by their own business practice code before granting membership; this means that you are guaranteed clear and accurate descriptions of holidays as well as tour standards that are consistently monitored.

The tour operator: To conclude

Tour operators are an important part of the tourism industry, and with AITO, you have added security when booking your travels through a tour operator. Hopefully after reading this article you are now confident with what a tour operator is, how these organizations work and the different types of tour operators operating the market.avel agent is, as well as the different types of tour operators.
A tour operator is a manufacturer that combines two or more tourism products and then develops travel packages according to customers’ needs and interests. Learn more in: Analysis of the 5Vs of Big Data in Virtual Travel Organizations2.A person or company which creates and/or markets inclusive tours and subcontracts with suppliers to create a package. Most tour operators sell through travel agents and/or directly to clients. Learn more in: Building Foundations for Understanding the International Travel Agency and Tour Operation3.A company that combines and organizes two or more travel services (transport, accommodation, meals, sightseeing, etc.) in an all-inclusive package holiday which is sold through travel agencies or directly to final consumers. Learn more in: Consumer Confidence in Responsible Tourism: How Business Reporting Systems Can Encourage Respectful Behaviour4.A firm that arranges tourists’ holidays in terms of travel, accommodation, activities, and attractions. Learn more in: Role of Social Media in Travel Planning and Tourism Destination Decision Making5.Is a company that provides holidays in which travel and accommodation are booked for. Learn more in: The Role of Public and Private Sector for Sustainable Tourism and Hospitality Business Development in Ethiopia: A Case Study in Addis Ababa6.A company/agent that makes arrangements for travel and places to stay, often selling these together as package holidays (travel and accommodation are booked for the tourist). Learn more in: Marketing Strategies of Travel Agencies and New Technologies Used for the Marketing Strategy7.A tour operator is mostly a wholesaler that creates mass package tours and makes collective agreements with service providers. Learn more in: Internet of Things for Travel Services8.They buy distinct elements of transport, accommodation, as well as other services. Afterwards, they combine them into a package. The touristic package can be sold directly or indirectly. Learn more in: Throughput Accounting: The Analysis of Managerial Implications on the Tourism Services Market9.A tour operator typically combines a tour and travel components to create a holiday. While considering tourism business information and technology, the tour operators examines bookings such as transportation, sightseeing, accommodation, etc., planned in advance. Learn more in: Online Travel Trade in India: Challenges and Opportunities10.A company/agent that makes arrangements for travel and places to stay, often selling these together as package holidays (travel and accommodation are booked for the tourist). Learn more in: Sharing Economy and Sustainability in Tourism: New Challenges for the Tour Operators.
Any travel agency that desires to expand its scope of services will
undoubtedly branch out to tour packaging and the operation of tours –
whether outbound, inbound, domestic or local tours.
In the Philippines, Tour Operators are travel agents who expand their product
range by setting up a tours department. This department is tasked to
assemble the various travel components into a tour package, and sell the
resulting package as one product. It develops and assembles well-made tour
packages that are offered to the travelers through other travel agencies.
In order to make these packages attractive to the travelers, a tour operator’s
product development sections, is constantly on the look-out for new
destinations, attractions and activities. It also conducts research on the
travel trends of the market, and often consults the travel agents for relevant
in-puts.
As an assembler of services, a tour operator acts as a middleman. It contact
transportation services, such as airlines, bus/car operators’, shipping lines;
hour for lodging and meals; restaurants and night clubs for entertainment;
and guides.
“The tour operator is the “nut” that keeps all the “bolts”
(suppliers) together.”
A Tour Operator contacts the separate travel components of transportation,
accommodations and their other services, and combines these into a single
tour package.
A tour operator has three (3) main functions:
1. Plans and develops tour packages that meet the needs of the various
markets.
2. Assembles the various travel components as an integral part or
component of a single tour package.
3. Delivers the tour package by operating worry-free and secured
programs and/or itineraries that are cheaper than when each service is
purchased individually.