Unit 13 – Tour Operations
P1 – Explain the tour operations environment and the challenges it faces
M1 – Discuss the impact of challenges facing tour operators
In this assignment I will be explaining the tour operations environment and the challenges it faces.
A tour operator is a service provider which creates holiday packages which consist of the following
components, transport, accommodation, transfers and ancillary products and services. Tour Operators will
purchase the individual component off of different providers and then resell them for a profit.
Links with Other Component Industries
This is a chart which describes the links tour operators have with other sectors. In order for market share
to increase and too maximise profits tour operators have merged together with other components in the
travel and tourism industry.
Travel Agents; Tour operators have merged together with travel agents. The travel agents will sell the
package holidays that the tour operators put together. The tour operators will pay the travel agents
commission. For example, the tour operator TUI owns both Thomson and First Choice. There are Thomson
travel agents which TUI owns as well as First Choice travel agents which they own as well.