Tour Operations Management

Mamta Sandip Solanki
INTRODUCTION TO
TOUR OPERATION

INTRODUCTION TO TOUR OPERATION
Learning Objectives:
Understand the history and types of Tour
Tour Operator-Importance, meaning, Scope
and functions.
Different types of Tour Operator
Identify various important national and
international tour operators.

Who is a Tour Operator?
 Tour operator: A tour operator
typically combines tour and travel
components to create a holiday. 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.

A. History of Tour:
Contribution of Thomas Cook:-
 Thomas Cook - First travel professional
who organized a tour package.
 July 1841 – First package tour for England
to attend a delegate meeting for his 570
fellow passengers from Leicester to
Loughborough
 conducted tours - for school children and
excursionists.
 published a book - “Handbook of the trip
to Liverpool”.

A. History of Tour: contd.
Contribution of Henry Wells of USA
 1841- he formed a firm Well Fargo.
 1850- American Express Company with the
merger of Henry Wells (Wells &
Company), William G. Fargo (Livingston,
Fargo & Company), and John Warren
Butterfield
 1891- Traveler's Cheque was launched
 1957 -Introduced American Express Credit
Cards which is a very preferable
international card.

B. TYPES OF TOURS
A Tour is trip or journey which is
usually made for pleasure or for
business sake. Its main intention is
to visit different places.
There are basically two types of tours
 Custom Designed tours
 Pre-Packaged tours

B. TYPES OF TOURS : contd.
Pre-Packaged tours is again divided
into:-
 Independent Tours
 Hosted Tours
 Escorted Tours

CUSTOM DESIGNED TOURS: - It is a Tailor made
Package Tour which is designed according to
the need, interest and choice of the client
and is mostly arranged for Leisure Travellers.
ESCORTED TOURS :- On an escorted tour,
participants travel together as a group and
are always accompanied by a professional
escort, who coordinates the groups itinerary
and activities and is responsible for making
sure all aspects of the tour runs smoothly.

INDEPENDENT TOURS: - It is such type of tour in
which the clients travel alone and do not
travel in group and does not require a guide
or an escort.
HOSTED TOURS :- Hosted tours offers the
traveller to travel independently but also
able to receive the guidance, assistance and
help from a host at each of the tours
destinations.

C. SIGNIFICANCE OF A TOUR OPERATOR
In this era of technological revolution
people are interested in exploring new
destination and sites for which they
require a planned tour. A planned tour
is one in which prior booking such as
Transportation,Sightseeing, Transfers,
Accommodation etc is planned in
advance.Here comes the role of a Tour
Operator.He is the one who is
responsible to make all these
arrangements.He assembles together all
the travel components and sells it to
the customers as a “PACKAGE TOUR”

C. SIGNIFICANCE OF A TOUR OPERATOR :- contd.
C .1.Types of Package tours are:-
All inclusive tours:- Package tours
which includes all the travel
components except shopping and any
other personal expenses is termed as
“all inclusive tours”.
Partially escorted tour:- A tour in which
some part of a particular package tour
also has an escort service.

C. SIGNIFICANCE OF A TOUR OPERATOR:-
C.1.Types of Package tours are:- contd.
Independent or individual tours:- A tour
that does not include a guide or a
host or a set routine of daily
activities.
Extended or day tours:- Tours that can
be added to an existing tour, before
or after, to create a longer trip.

C. SIGNIFICANCE OF A TOUR OPERATOR:-
C.1.Types of Package tours are:- contd.
FIT:- means Foreign independent tour or
Foreign Inclusive tour or Free
Independent tour. Now generally used
to indicate any independent travel,
domestic or international, that does
not involve a package tour.

D. TOUR OPERATOR AND ITS TYPES :-
D.1. A tour operator usually checks the following things in a
destination to sell it which is also termed as
“5 A’s of Tourism”:
 Accommodation:- All destinations
require nearby place were tourists can
to take rest and relax.
 Accessibilities:- Basic transportation
facilities is required to visit the
place.

D.1. 5 A’s of Tourism: contd.
 Amenities :-Amenities are the
services that are required to meet
the needs of tourists while they are
away from home such as public
toilets, eateries, restaurants,
telecommunications and emergency
medical services etc.

D.1. 5 A’s of Tourism: contd.
 Attractions:-A tourist attraction is
typically the interest the tourist
have in visiting that place such as
for museums, theme parks, beaches
etc
 Activities:- It is the activities
taken by the tourist after reaching
the destination

D. TOUR OPERATOR AND ITS TYPES:-
D.2. Tour Operator are categorized into
the following categories:-
 Domestic Tour Operators- As the name
suggests these Tour Operators sells
package tours within the native
country of the tourist. They combine
all the elements of travel and sell it
to the Domestic tourists.

the following categories:-contd
 Inbound Tour Operators- Those Tour
Operators who receive tourists and
handle all the aspects of tour in
the host country are called Inbound
Tour Operators or incoming Tour
Operators.

D.2. Tour Operator are categorized into the
following categories:-contd
 Outbound Tour Operators-Those Tour Operators
who sells package tours other than home
country of the tourist is known as the
Outbound Tour Operators.
 Mass Market Operators- This type of operators
offers packages of hot destinations of the
world.

the following categories:-contd
 Specialist Tour Operators-Those Tour
Operators that deal with the
specific needs of the traveller and
arranges a tour especially for them
are known as Specialist Tour
Operators.

Specialized tour operators have a
number of
advantages:-
 Most carry small number of tourists,
therefore using smaller and less pricy
accommodation
 More flexible, switching to other
destination
 Expected to have a better knowledge
of the products

D. FUNCTIONS OF A TOUR OPERATOR :-
The main functions of large scale tour
operating company are –
 TRAVEL INFORMATION-The first and foremost
function of a Tour Operator is to give
their client the travel related
information, let it be either for
international or for domestic sector.

D. FUNCTIONS OF A TOUR OPERATOR :-contd
 ITINERARY PREPRATION- A Tour
Operator prepares mainly two types
of itineraries
(a) general itinerary- An itinerary
that combines all travel components
and are designed to appeal the
general tourists.

D. FUNCTIONS OF A TOUR OPERATOR :-contd
(b) special tourist itinerary- An
itinerary that combines elements
designed to appeal to those with
some special interests.

D. FUNCTIONS OF A TOUR OPERATOR :- contd
 RESERVATIONS & TICKETING – Making Airline
ticketing and railway reservations for
the clients for international as well as
domestic sectors.
 ACCOMMODATION RESERVATION-Tour Operator
books a room in a hotel either directly
or by contacting the hotel or by using
CRS (Computerized Reservation System).

 PRICING A TOUR PACKAGE- Generally, a
Tour Operator use marginal pricing
techniques i.e., after studying the
market trends at their margin and
package tours cost is prepared. Or
after calculating the operational
fixed cost plus some profit for the
company, the prices are decided

 TRAVEL INSURANCE
Depending upon the tour the traveller can
purchase insurance which is known as the
policy which covers medical expenses,
Baggage losses, trip cancellation. For
International Tour it is mandatory to
take overseas travel insurance.

THANK YOU

Tour Operations Management

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