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Unit 13 - P1
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Unit 13 - P1 assignment. This is corrected and achieved, so I hope it helps you throughout your assignment.
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Bianca AndreiUnit 13
P1
Tour operators
In this assignment I am going to explain the tour operatons environment and the challenges it faces.
Firstly, a tour operator is an organisaton that creates and puts together package holidays, which are
mainly formed of accommodaton and fights, subsequently adding extras to the holidays (e.g.
ancillary services; car hire, travel insurance).
As the tourism industry develops and the customers have diferent needs and preferences, tour
operators have links with other component industries and therefore they also have integraton, both
on the same level and diferent levels.
Tour operators need accommodaton and transport providers, as these are the principles of their
package holidays and chain of distributon the way the organisaton delivers its products and
services to the component and eventually to the customers.
In view of that, tour operators have links with transport providers. The interest of tour operators is
to get seats in bulk for their package holidays from airline companies, rail operators, coach
companies, taxis, in order to provide these to their customers when creatng package holidays. This
can be done by signing contracts and having partnerships with major companies, such as Britsh
Airways, where tour operators include fights provided by major companies in their package
holidays, or they can buy and merge with smaller companies, integratng them under their business
and name, such as Thomas Cook did with MyTravel Airways (they merged with the smaller company,
MyTravel Airways, and renamed the airline “Thomas Cook Airline”).
Moreover, tour operators have also links with accommodaton providers. When creatng package
holidays, tour operators need to get rooms to sale in their package holidays, hence they have links
with accommodaton providers in diferent destnatons. Tour operators negotate with the
accommodaton providers and they provided diferent types of budgets, and if both partes agree on
the negotaton, tour operators sign contracts with the accommodaton providers. Therefore, they
have a partnership with accommodaton providers. For instance, Virgin Holidays have partnerships
with diferent accommodaton providers in all destnatons they operate, such as Doubletree by
Hilton in Orlando, Florida or Four Seasons Hotel in Vancouver, Canada. These are some examples for
city breaks hotels provided by tour operators.
Furthermore, another link that tour operators have with is travel agents. Afer having the principles
and creatng the package holidays, tour operators need to sell these to the travel agents. As well as
with airline, tour operators have two links with the travel agents. They can have a partnership with
certain travel agents and they involve commission for each package holiday travel agents sell. On the
other hand, tour operators mainly merge and integrate with smaller travel agents. For instance,
Thomas Cook, which is also a travel agent, horizontally integrated with My Travel.
However, as tour operators might provide extras for the package holidays, they also have links with
the providers for ancillary products and services, such as car hire, travel insurance, airport lounges
etc. As well as the tour operators have links with the other components, they have the same with
the ancillary providers. Tour operators mainly have contracts with companies which supply extra
services for their customers, such as transfers from the airport, meet & greet arrangements,
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