Unit 13: Tour Operations
P1: Explain the tour operations environment and the challenges it faces
M1: Discuss the impact of challenges facing tour operators
D1: Evaluate the effectiveness of tour operators in responding to challenges facing the sector
P1: Explain the tour operator’s environment and the challenges it faces:
In this assignment I will be explaining/evaluatng the tour operator’s environment and the challenges they
have to face.
Tour operator: A tour operator is a service
provider; providing holiday packages which
include transport, accommodaton, any
transfers, ancillary products and services and
excursions. A tour operator purchases the
individual’s component from other providers and
then re-sale them for a more expensive price to
make a proft.
Travel agents: Travel agents ofen merge
together with tour operators as it makes their
jobs much easier, as the travel agents usually sell
A chart showing the links with tour operators and other component
the holiday packages that were previously
industries. The chart clearly shows us how tour operators work together/
merging with other sectors to make share and increase to their profts. created by the tour operators so therefore it
results in the tour operators paying a
commission to travel agents. For example, the
very popular UK based tour operators TUI owns two travel agencies; Thomson and First Choice, and there are
Thomson travel agencies that TUI owns and First Choice too.
Transport providers: Tour operators
work together with diferent transport
providers, such as carter airlines that
provide transport for holiday packages,
coach and ferry providers. Some tour
operators such as Thomas Cook even
own their own airlines but even that
they stll need to charter them in case
For example, Thomas Cook do guided tours around a few places in Italy. And it requires of any issues of the aircraf having not
the customer to frst catch a train from Florence to Venice and then they can travel on enough space for customers on the
the tour.
aircraf, so the tour operators will have
to charter from outside of the group
and ofer seats to another tour operator. Charter airlines need to supply an aircraf and staf. So, this means
that a tour operator ofen needs their own plane and cabin crew team. But its not only that tour operators sell
holiday packages only but also fights-only to sell of any spare seats that they are lef on the aircraf to
maximise the capacity of the aircraf and that every available free space is flled, and money can be obtained
from that. So not only do Tour operators have links and work together with many airlines providers but also
bus, rail or ferry providers. For example, Tour operators may sell coach holiday tour packages, as they get
ofen get good deals on the tckets which then they sell for a bigger price. Bus, rail or ferry are needed to
transfer customers from place A to place B, so these transport tckets are already ofen included in the
customers holiday package.
Accommodaton providers: Tour operators also have links with diferent accommodaton providers as their
holiday packages usually consist of transport, accommodaton and any extras. So many tour operators work
within the hotel chain and have many mult-property relatonships so that they can be ofered low priced deals
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