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What is a tour operator and how does it work?

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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 article 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 travel agent is, as well as the different types of tour operators.

What is a tour operator?

Definitions of tour operator, importance of tour operators, the difference between a tour operator and a travel agent, what does a tour operator do, products and services sold by tour operators, inbound tour operators, outbound tour operators, domestic tour operators, ground tour operators, the association of independent tour operators, the tour operator: to conclude.

Tour operators are inextricably linked to the package holiday model. The tour operator is the person or organisation 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 organisation 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.

If you’re looking for a formal definition of a tour operator with a reputable source, you may want to reference Polyther, who in 1993, defined the tour operator as;

‘[an organisation 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 e lements of tourism products/services and combine them into a package tour which they sell directly or indirectly to the tourists .

The Organisation 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.’

Tour operators are an important part of the tourism industry .

Tour operators make the logistics of organising 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 organisations, such as travel agents and airlines. This allows for easier management and distribution of products.

Tour operators typically build holidays en 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.

Many people are not aware that a travel agent and a tour operator are actually two totally different organisations 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 organisation which puts the different elements of a holiday together. And the travel agent is the organisation 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 organisations 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 realise that in actual fact, there are two separate organisations doing two separate jobs.

Ultimately, 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 etc
• Assessing 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

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
• Information on destinations
• Representative service in resorts

Types of tour operator

Tour operators come in all shapes and sizes. Some are large, multinational organisations 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 .

There are four different types of tour operators, which I will explain below.

• Inbound Tour Operators
• Outbound Tour Operators
• Domestic Tour Operators
• Ground 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 organises their travel is Chinese-based company China Highlights . This company is based locally in China and they offer local, Chinese tours.

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 specialises in outbound travel. They are based in the UK, but they work with foreign partners to facilitate holidays overseas.

A domestic tour operator is one who facilitates domestic tourism .

The aim of a domestic tour operator is to organise 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 organise their travel through the tour company, Trek America . Staff at this company are experts in domestic travel within the USA.

A ground tour operator is an organisation 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 organisation is Iris Travel – a tour operator based in Kerela, India.

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 Twickenham, 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.

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 organisations work and the different types of tour operators operating the market.

If you liked this article, why not take a look at these too?

• Types of travel agents | Understanding tourism
• What is e-tourism and how is it changing travel?
• 10 jobs in travel and tourism that will be BIG in 2022 and beyond
• What does the World Travel and Tourism Council do?

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Unveiling the Scope of the Travel and Tourism Industry: A Global Perspective

How to Build a Successful Career in Travel and Tourism Industry

Career In Cultural Tourism 2023 – Job Profile, Salary & Courses

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The scope of the travel and tourism industry is vast and ever-evolving. It encompasses a wide range of activities, services, and destinations that cater to the diverse needs and preferences of travelers. From leisure tourism and adventure travel to business trips and educational excursions, the industry offers something for everyone. It includes transportation services such as airlines, trains, and cruises, as well as accommodation options like hotels, resorts, and vacation rentals. Attractions and entertainment venues, such as museums, theme parks, and cultural sites, also fall within its scope. Additionally, travel agencies, tour operators, and online booking platforms globalization, the scope of the travel and tourism industry continues to expand, contribute to the industry’s extensive reach. With increasing connectivity and embracing emerging trends such as sustainable tourism, experiential travel, and digital innovations. As an essential catalyst for economic growth, job creation, and cultural enrichment, this industry holds immense potential for both individuals and societies, fostering understanding, appreciation, and exploration of our diverse world.

Let’s explore the scope of the travel and tourism industry from a global perspective:

1. International Travel:

The industry facilitates international travel, enabling people to explore different countries and cultures. International tourism involves activities such as leisure vacations, business travel, educational trips, and visiting friends and relatives. It contributes to cross-cultural understanding, global cooperation, and exchange of ideas.

2. Domestic Tourism:

Domestic tourism refers to travel within one’s own country. It includes activities such as visiting tourist attractions, national parks, heritage sites, and participating in local events and festivals. Domestic tourism promotes regional development, supports local businesses, and encourages the preservation of cultural and natural heritage.

3. Economic Impact:

The travel and tourism industry is a major economic driver worldwide. It generates revenue through various sectors, including transportation, accommodation, food and beverage services, entertainment, and attractions. The industry creates jobs directly and indirectly, supporting diverse sectors such as aviation, hotel management, tour operations, and more.

4. Hospitality and Accommodation:

The hospitality sector is a vital component of the travel and tourism industry, playing an essential role in providing services and amenities to travelers. It includes a range of establishments such as hotels, resorts, guesthouses, bed and breakfasts, and homestays. These accommodations offer lodging facilities, dining options, and additional amenities to meet the diverse needs and preferences of travelers.

5. Transportation:

Transportation is an integral component of the travel and tourism industry. It includes air travel, road transport, railways, cruises, and other modes of transportation. Airlines, airports, car rental companies, and public transportation systems contribute to the seamless movement of tourists within and between destinations.

6. Sustainable Tourism:

The concept of sustainable tourism has gained prominence in recent years. It focuses on minimizing negative impacts on the environment, culture, and society while maximizing the benefits of tourism. Sustainable practices include promoting responsible travel, conserving natural resources, supporting local communities, and raising awareness about environmental issues.

7. Travel Agencies and Tour Operators:

Travel agencies and tour operators facilitate trip planning, booking, and coordination of travel services. They provide assistance in selecting destinations, organizing itineraries, arranging transportation, accommodations, and tours. These intermediaries play a vital role in promoting tourism and offering customized experiences to travelers.

8. Government Initiatives and Policies:

Governments across the world recognize the importance of the travel and tourism industry and implement policies to promote its growth. They invest in infrastructure development, marketing campaigns, visa facilitation, and safety regulations to attract tourists and create a conducive environment for the industry.

9. Challenges and Opportunities:

The travel and tourism industry faces various challenges, including geopolitical uncertainties, natural disasters, public health crises, and changing consumer preferences. However, it also presents numerous opportunities for innovation, collaboration, and sustainable development. Emerging trends such as ecotourism, adventure tourism, wellness travel, and digital nomadism are reshaping the industry’s landscape.

10. Technological advancements:

Technological advancements have had a transformative impact on the travel and tourism industry. The introduction of online booking platforms, mobile applications, virtual reality experiences, and digital marketing strategies has revolutionized the way travelers plan and enjoy their trips. These technological innovations have provided convenience and efficiency to both businesses and travelers alike. Furthermore, ongoing technological advancements are expected to further shape the future of the industry. In conclusion, the travel and tourism industry holds immense global significance with its wide-ranging scope. It encompasses diverse activities, including international and domestic travel, hospitality services, transportation, and more. The industry plays a substantial role in driving economies, fostering cultural exchange, and contributing to the overall well-being of societies around the world.

Gaurav Gera

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7 Differences Between Travel Agent and Tour Operator

• Post author By varun
• Post date November 16, 2022

The travel industry is vast and expansive in nature. There exist multiple avenues through which a person can contribute to this ever-growing industry and consequently make a good amount of money. Due to the diversity of the platform, it can get confusing to comprehend who is engaged in what task.

One of the most common mix-ups takes place between what is known as a ‘travel operator’ and a ‘travel agent’. This blog will explain the significant difference between travel agent and tour operator. These two designations are different, but confusion arises because of the similarity in the terminology.

These two professions have characteristics that overlap each other, and in that sense, a travel agent can do specific tasks that are more likely to be done by a tour operator and the other way around.

In other words, travel agents and tour operators tackle the objectives of the travel and tourism sector. However, legitimate differences broadly divide the nature of both job descriptions.

Once you are aware of the difference between travel agent and tour operator, you will find it easier to avail services from each one of them in a more seamless manner.

What is a Travel Agent?

In the simplest terms, a travel agent is a representative of the travel and tourism industry who sells travel services directly to the end consumer. In this case, the end-consumer could be an individual, a group, or a corporation.

A travel agent is not in charge of creating the various travel services that customers look forward to buying, and their principal task is to act as a middleman between the tour travel companies and the clients. A travel agent makes it easier for the customer to find and avail of the right services at any time.

Becoming a travel agent takes more than knowing about the available travel services available in the market. In order to become a successful travel agent, one needs to imbibe excellent interpersonal and communication skills. Since the travel agent handles people, their overall people-handling skills take precedence over everything else.

Among other things, travel agents make customers aware of the different individual or compact packages that travel companies sell. When they are able to sell one or more of these services, they get a share of the profit.

What is a Tour Operator?

Tour operators are generally entities who are the real brains behind a particular travel service compilation. It could be an individual or a group of individuals who come together to build travel packages for interested travellers.

Tour operators work closely with various service providers, such as airlines and hotel chains, to coordinate a travel itinerary. A tour operator will work under the strict guidelines of travel regulations of the country where the operations will take place.

While plying their trade, tour operators could sell their services directly to the client or do it via a travel agent. A tour operator works in tandem with the latest offerings of the airline, hotel, and other allied industries to squeeze out the best deals for their prospective clients.

Be it transport and accommodations services, flights and airline tickets, hotel bookings, sightseeing, food, and lodging, it is the job of the tour operator to get everything sorted in the first place.

Once the entire structure of the services is compiled and adjusted per the end-user’s needs, they launch their travel services via online or offline means. In a way, the travel agent is dependent on the tour operator for success at both ends.

Seven Difference Between Travel Agent and Tour Operator

The main difference between a travel agent and a tour operator is that the latter is the architect of travel ideas and packages, which they then sell to either the travel agents linked to them or directly to the customers.

On the other hand, a travel agent will not develop travel plans from scratch but sell the same generated by tour operators they are working for or attached to.

Since travel agents are wholly dependent on tour operators for giving them the opportunity to sell services to clients, they make it a point to maintain camaraderie with a host of tour operators.

A travel agent will have close connections with several travel companies/tour operators as it increases their chances of getting hold of better deals and offers. They then bring those deals in front of the customer. Travel agents could maintain these links via the online mode or offline mode , or both.

This bond between a travel agent and a tour operator is based on mutual trust. Tour operators only allow specific travel agents to advertise and sell their services. Likewise, there will be travel agents who will work for only a chosen set of tour operators.

There will be instances when a tour operator would be more likely to sell its services to the clients via a travel agent. This happens when the tour operator is dealing with cases like international packages and targeted niche packages.

In some countries, such as the UK, the government has mandated that tour operators are required to engage travel agents to sell some specific services. This has been done with an eye to providing more employment opportunities to the local populace.

Importance of Knowing the Difference Between Travel Agent and Tour Operator

From the standpoint of the consumer, it becomes crucial to understand the difference between the travel agent and the tour operator. This is because as the end-user, you are supposed to know where you will find the correct information when trying to connect with either one of them.

There are often moments when customers blame travel agents for anomalies in services, which are the tour operators’ responsibility. The reverse is also true in other cases. When an instance like this occurs, it culminates in customers fighting with the travel agents and the tour operators.

The end user must also understand that a travel agent will not have total control over tour operators’ services. The travel agents go to great lengths to ensure that the customers are happy and satisfied with their travel experience.

However, in case there emerge untoward incidents, the customer should also fully cooperate with all the parties to come to an amicable solution.

At the end of the day, it is up to the consumer to determine which travel operators are rated highly in the public domain. Once they are confident of their choice, their next task would be to opt for a well-known travel agent who is diligent in their work and customer-friendly.

Once these two aspects are taken care of, the consumer can simply relax and interact with only the travel agent or both. Since travel is generally an expensive affair, you as a consumer must dedicate enough time to select only high-value tour operators and travel agents.

People mostly go on travels to recharge their exhausted minds after many days of hard work. Ergo, the right choice before the journey will go a long way in ensuring you have a memorable trip with your loved ones.

Now that we discussed the difference between travel agent and tour operator, we would like you to check out our other Pathfndr blogs. They will surely give you valuable insights into the travel and tourism industry.

How do Tour Operators Work?

To unlock the tourism industry's business and leisure travel potential, you must understand how tour operators work.

From package holidays to bespoke tours, tour operators make memorable holidays. Whether you're a domestic operator focusing on your country's destinations or an outbound operator designing trips abroad, this guide is for you.

The Role of Tour and Activity Providers

At the heart of the travel industry, tour operators like you, whether inbound or outbound, design travel packages that simplify things for tourists. This involves meticulous planning of land arrangements, accommodation, tours, and transport.

As a tour company, you may specialize in specific types of trips, such as leisure travel or business trips, creating packages that cater to your target market's preferences.

What are the different types of tour operators?

• Domestic Tour Operators : Focusing on the domestic tourism market, these operators provide travel packages within their home country.
• Outbound Tour Operators : These companies design holiday packages for travelers visiting other countries, often incorporating international destinations into their itineraries.
• Inbound Tour Operators : Inbound operators cater to tourists coming into their host country, providing local insights and experiences.
• Ground Tour Operators : Often known as ground operators, these firms handle local arrangements in the destination country, often working in collaboration with other tour operators.

How do tour operators work with accommodation and transport providers?

Tour operators play a pivotal role in crafting the perfect travel experience, and a big part of this involves working closely with accommodation and transport providers. Here's a glimpse at how this collaboration typically works:

Building Relationships with Accommodation Providers

• Negotiating Rates : Tour operators negotiate contracts with hotels and resorts to secure competitive rates. This often involves bulk booking or agreeing on fixed rates for a certain period.
• Customizing Guest Experiences : They work with these providers to tailor lodging experiences that align with the overall theme of the tour, whether it's luxury, adventure, or cultural immersion.
• Ensuring Quality and Standards : Regular inspections and feedback mechanisms are put in place to ensure that the accommodation meets the expectations and standards required for their clients.

Partnering with Transport Providers

• Seamless Logistics : Tour operators coordinate with various transport providers, including airlines, bus companies, and car rental services, to manage the logistics of getting travelers from one point to another.
• Group Deals and Scheduling : They often negotiate deals for group travel and ensure that transportation schedules align seamlessly with the overall tour itinerary.
• Quality and Safety Checks : Ensuring travelers' comfort and safety is paramount, so tour operators regularly check the quality of vehicles and the reliability of transport services.

Creating Cohesive Travel Packages

By integrating accommodation and transport seamlessly, tour operators create cohesive and hassle-free travel packages. This integration is crucial in providing a smooth and enjoyable experience for travelers, where every aspect of their journey is well-coordinated and managed.

Adapting to Client Needs

Tour operators remain flexible and responsive to their clients' needs, often customizing aspects of accommodation and transport to cater to specific preferences or requirements.

To summarize, negotiating strategically, ensuring quality, and meticulous planning are crucial to the relationship between tour operators, accommodation providers, and transport providers. In order to deliver great travel experiences that aren't just fun, they must be safe, comfortable, and just right to match discerning travelers' expectations.  

How do tour operators work with travel agents and OTAs?

Tour operators team up with travel agents and OTAs? It's like having the best of both worlds in the travel industry.

Here's the lowdown: travel agents are like sales gurus. They've got the skills to match your cool tour packages with travelers looking for their next adventure. It's all about personal touches and making travelers feel special.

Now, let's talk about OTAs – think big names like Expedia and Booking.com . These guys are your ticket to the global stage. They're not just about showing off your tours; they're about connecting you with travelers from all over, 24/7. Plus, with their smart marketing tools and the power of customer reviews (which, let's face it, are gold in our world), you're setting yourself up for some serious visibility and street cred.

Combining travel agents' personal selling charm with OTAs' global reach is how tour packages stand out in this competitive market.  

Talking about creating packages, how can you work with accommodation and transportation providers?

How to create inclusive tour packages?

As a tour provider, crafting appealing and inclusive tour packages, also known as package holidays or package tours, is key to attracting travelers.

These packages bundle services like flights, accommodations, and transportation for a hassle-free experience. Here’s how you can create comprehensive offers:

• Understand Your Travelers : Know who you’re designing for. Are they families, solo travelers, or adventure seekers? Tailoring your packages to fit their preferences is crucial.
• Forge Strong Relationships with Suppliers : Collaborate closely with accommodation and transportation providers. Strong partnerships can lead to better rates and unique offerings, making your packages more attractive.
• Quality Over Quantity : When choosing hotels and transportation options, prioritize quality. A well-selected hotel or comfortable transport experience can elevate your entire package.
• Flexibility is Key : Offer flexibility in your packages. Options for room upgrades, transport preferences, or even alternative activities can make your package more appealing to a diverse range of travelers.
• Highlight Unique Experiences : Include special experiences travelers can’t find elsewhere. Unique local tours or exclusive access to attractions can make your package stand out.
• Transparent Pricing : Ensure transparency in pricing. Hidden costs discourage travelers. Clear, upfront pricing builds trust and satisfaction.
• Feedback Loop : Regularly gather feedback from your customers and adjust your packages accordingly. Continuous improvement based on customer insights can significantly enhance your offerings.

By focusing on these areas, you can create inclusive tour packages that meet but exceed the expectations of your travelers, ensuring memorable and hassle-free trips.

How do tour operators pay suppliers?

For tour operators, establishing and maintaining a solid financial relationship with suppliers — including accommodation and transportation providers — is crucial for a smooth and successful business and tour operation itself. Here's a look at how these payments are typically managed:

Advance Payments and Deposits

Tour operators often make advance payments or deposits to secure services well ahead of tour dates. This is especially common with hotels and special activities that require early booking.

Credit Facilities and Post-Payment Agreements

In some cases, tour operators may have credit arrangements with suppliers, allowing them to pay after the service is delivered. This requires a high level of trust and a proven track record of reliable payments.

Bulk Payment Contracts

For regular or frequent services, operators might negotiate bulk payment contracts. Under these agreements, they pay a lump sum for a specified number of services or bookings over a period, often at a discounted rate.

Net Rate Agreements

Suppliers may offer net rates to tour operators, which are discounted prices exclusive of commissions. The domestic tour operators then mark up these rates when selling to customers, and the difference forms their profit margin.

Direct Billing for Services

In some collaborations, suppliers might directly bill the tour operator for services rendered, usually after completion.

Electronic Payments and Wire Transfers

With the digitalization of financial transactions, most payments are now made electronically. This ensures quick, secure, and traceable transactions.

Managing Currencies and Exchange Rates

For international tours, operators must adeptly manage payments in different currencies, considering exchange rates and transaction fees.

Contingency Funds for Unforeseen Expenses

Operators often set aside contingency funds to cover unexpected costs or last-minute bookings, ensuring that the tour runs smoothly without financial hiccups.

Why is the booking process so important for selling tours?

The booking process is crucial in the tour industry for several key reasons:

• First Impression Matters : This initial interaction sets the tone for customer experience and expectations.
• Ease Equals Sales : A simple, user-friendly booking system encourages more purchases.
• Trust Building : A smooth process builds trust, showing customers that they’re dealing with a professional operator.
• Upselling Opportunities : During the booking, there’s a chance to offer additional services or upgrades, enhancing the experience and increasing revenue.
• Data for Personalization : The information collected can be used to tailor future offerings and improve service.
• Effective Communication : This stage is vital for conveying key tour information and ensuring customer understanding.
• Reputation Impact : A positive experience can lead to recommendations and positive reviews, while a negative one can harm the operator's reputation.
• Resource Management : Understanding booking trends helps manage tours and resources.

In short, the booking process isn't just about securing sales; it's about shaping the entire customer journey, from first impressions to post-tour feedback.

Tips for Operators

Invest in a good, easy-to-use, and cost-effective booking software solution. Granted, it may incur some fees on your part, but think of the heavy lifting it does for you.

It does more than take reservations and bookings. It saves you tons of time with manual tracking, guest follow-up, and ticket management. It also eases the customer journey from point one to post-tour feedback.

Booking software solutions like TicketingHub save you stress and ease your guests. It charges 3% only for successful bookings.

Trusted by Egypt Sound and Light Shows, The Immersive Gamebox, Secret Food Tours, Sipsmith Distillery , and a hundred folds more - this software solution is jam-packed with time-saving features in an easy-interfaced navigation.

Whatever software solution you pick, aim for the solution that saves you time from needless complexities in design and usability - all while helping you stay profitable and leaving your guests satisfied right from the booking page.

Conclusion: Making Great Tours Happen

In wrapping up, it's clear that being a tour operator is about connecting the dots to create amazing travel experiences. Whether you're showing off the best spots in your own country or taking people on adventures abroad, the key is in the details – from picking great hotels to organizing smooth rides.

Your partnerships with local travel agencies, agents and OTAs are super important too. They help you reach more people and make sure your tours stand out. And when making tour packages, remember to listen to what travelers want and keep things flexible and interesting.

Don't forget, managing your money well, especially when paying for services, keeps everything running smoothly. And the booking process? That's your chance to make a great first impression and keep things hassle-free for your customers.

So, there you have it – mix in a bit of planning, a dash of good relationships, and a sprinkle of creativity, and you're on your way to creating trips that travelers will love. Happy touring!

FAQ Section

How important are tour operators.

Tour operators play a pivotal role in the tourism industry. They create and organize tour packages, catering to both business and leisure travelers. These packages simplify travel arrangements, offering hassle-free travel.

Tour operators are the key architects of memorable trips, ensuring travelers can explore various destinations easily.

What is the life of a tour operator?

Tour operators plan meticulously and collaborate with various stakeholders. They work closely with outbound and inbound tour operators, accommodation and transport providers, and even travel agents and online travel agencies (OTAs).

Their goal is to create appealing package holidays, manage travel arrangements, and provide tourism products that meet their target market's preferences.

What are the strengths of tour operators?

Tour operators have several strengths, including the ability to create inclusive tour packages that simplify travel for tourists. They can specialize in various categories, such as business or leisure travel. They can also collaborate with distribution partners like travel agents and OTAs to reach a wider audience.

Tour operators leverage market data to sell directly to their target market, offering tourism products that cater to different preferences.

What's the difference between a tour operator and a travel agent?

Tour operators and travel agents serve different roles in the travel industry. Tour operators design and create tour packages, manage travel logistics, and provide tourism products.

Travel agents, on the other hand, act as intermediaries between travelers and tour operators or suppliers. They assist customers in choosing and booking the right travel options, including tours created by tour operators, but they don't create the tours themselves.

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In many countries, more than 80% of travel and tourism spending actually comes from the domestic market. Image:  Unsplash/Surface

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Stay up to date:, travel and tourism.

• In 2020 alone, the travel and tourism sector lost $4.5 trillion and 62 million jobs globally.
• But as the world recovers from the impacts of the COVID-19 pandemic, travel and tourism can bounce back as an inclusive, sustainable, and resilient sector.
• Two experts highlight some of the key transformations in the sector going forward during the World Economic Forum's Our World in Transformation series.

The Travel & Tourism sector was one of the hardest hit by the COVID-19 pandemic, leaving not only companies but also tourism-driven economies severely affected by shutdowns, travel restrictions and the disappearance of international travel.

In 2020 alone, the sector lost $4.5 trillion and 62 million jobs, impacting the living standards and well-being of communities across the globe. Moreover, the halt in international travel gave both leisure and business travellers the chance to consider the impact of their choices on the climate and environment.

Amid shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be - and needs to be - built.

The World Economic Forum's Travel & Tourism Development Index 2021 finds that embedding inclusivity, sustainability and resilience into the travel and tourism sector as it recovers, will ensure it can continue to be a driver of global connectivity, peace and economic and social progress.

We spoke to Sandra Carvao , Chief of Market Intelligence and Competitiveness at the United Nations World Tourism Organization (UNWTO), and Liz Ortiguera , CEO of the Pacific Asia Travel Association in Thailand (PATA), and asked them to highlight some of the key areas of risk and opportunity in the sector during an episode of the World Economic Forum's Our World in Transformation series.

Have you read?

Travel & tourism development index 2021: rebuilding for a sustainable and resilient future, towards resilience and sustainability: travel and tourism development recovery, how can we really achieve sustainability in the travel sector, what are some of the top global trends you're witnessing currently in the travel and tourism sector.

Liz Ortiguera: Given the extended lockdown that we had on travel with the pandemic, vacation for friends and relatives (VFR) is now a high priority for people who haven’t been in touch for a long time thanks to the pandemic. So, people are reconnecting. And that kind of links to the second trend, which is multi-purpose or blended travel. Never before, particularly now that we can connect digitally through Zoom, has the ability to work from anywhere enabled travellers to cover multiple purposes, like visits with friends and multiple business trips. So, we'll find that the duration of travel and the length of stay is longer. And third is the continued high focus on safety and wellness which is top of mind for travellers due to the pandemic. All travel is wellness-related now.

Sandra Carvao: I think there is a bigger concern with sustainability, which is very welcome in our industry. Consumers, particularly the younger generation, are much more aware of the impact they have, not only on the environment but also socially and on the communities they live in. We've also seen an increase in expenditure per trip, so I think people are very eager to go outside, and they're staying longer. And on the other side, I think there are some challenges: we’re seeing a rise in late bookings because restrictions can change at short notice and that’s having an impact on the decisions of travellers. This is putting pressure on the industry in terms of planning and anticipating fluctuations in demand.

Social media surveys have shown that travellers who have immersive experiences are more likely to post about them, which is good for the industry.

What is community-based tourism and why is it important?

Sandra Carvao: One of the positive impacts of the pandemic is that people are looking for local experiences and are spending more time with communities. So, the concept of community-based tourism is obviously one that puts the community at the core of every development, ensuring that it's engaged and empowered and that it benefits. At the UNWTO, we worked with the G20 and the Saudi presidency back in 2020 and produced a framework for tourism development in communities, which states that communities need to be part of the planning and management of tourism activities. We need to go beyond traditional definitions of community to a point where the industry leans on partnerships between the public and private sectors and communities.

Liz Ortiguera: In July 2022, PATA is hosting a destination-marketing forum and one of the key themes is community-based tourism. The purpose is really to put the community and authenticity-in-culture activities at the heart of the travel experience. There are benefits for all stakeholders. One is that travellers can have an authentic experience. They're not in overcrowded, touristic locations and they experience something new and unique within the community. These experiences are designed in partnership with communities who get the benefit of financial inclusion, and if activities are designed properly, the reinforcement of their cultural heritage. Governments also engage in economic development more broadly across countries. Another interesting trend is creative tourism, which means you create an experience for tourists to participate in, like a dance lesson, or a cooking lesson. Social media surveys have shown that travellers who have these kinds of immersive experiences are more likely to post about them online and that's good for the industry.

It is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

How is technology and innovation helping to leverage cultural resources?

Sandra Carvao: One interesting trend we’re seeing is that more and more people are booking trips directly, so communities need to be supported to digitize their systems. Education and upskilling of communities are important so that they can leverage digital platforms to market themselves. From the tourists’ perspective, it is important to emphasize that virtual experiences, while they are a fun tool, can never replace visiting a destination.

Liz Ortiguera: People have been living virtually for more than two years. Amazing innovations have emerged, such as virtual reality and augmented reality, and all kinds of applications and tools. But the important thing is the experience. The destination. Real-world experiences need to remain front and centre. Technology tools should be viewed as enablers and not the core experience. And when it comes to staff, technology can really democratize education. There’s an opportunity to mobilize a mobile-first approach for those who are on the frontlines, or out in the field, and can’t easily access computers, but need to get real-time information.

How is the sector dealing with labour shortages and re-employment of the workforce?

Liz Ortiguera: Labour shortages are much more dynamic in North America and in Europe. But it’s having a knock-on effect on Asia. If, for example, their air carriers are limited by staff and they have to cancel flights, which we're very much seeing out of Europe, seating capacity then becomes a limiting factor in the recovery of Asia Pacific. That's the main constraint right now. And compounding that is the rising price of fuel. But people in the Asia Pacific are keen to get reemployed.

Sandra Carvao: Labour shortages are a priority for the sector in countries around the world. Many workers left the sector during the pandemic and the uncertainty that surrounded the measures taken to contain it left many people unsure of whether the sector would recover. It is time to address things like conditions, scheduling, and work/life balance, all things which have been top of mind for workers during the pandemic. As the sector recovers, we need time to bring new hires on board and to train them to take over where those who switched jobs left off.

Are we seeing a growing trend towards domestic tourism?

Sandra Carvao: We’re talking about 9 billion people travelling within their own countries. And in many countries, for example in Germany, more than 80% of the tourism spending actually comes from the domestic market, similarly in countries like Spain and even smaller economies. Whenever it's possible to travel again, domestic markets tend to be more resilient. They kick off first mostly due to perceptions of safety and security issues. As the world economy recovers from the pandemic, there is a good opportunity for nations to rethink their strategy, look at the domestic market in a different way, and leverage different products for domestic tourists.

When it comes to sustainable tourism, how quickly could we mainstream eco-friendly modes of transportation?

Sandra Carvao: Transport is one of the key contributors to energy impacts and tourism. But it's also important that we look at the whole value chain. The UNWTO together with the One Planet Sustainable Tourism Programme just launched the Glasgow Declaration, which includes green commitments from destinations and companies. We’re seeing a strong movement in the airline industry to reduce emissions. But I think, obviously, technological developments will be very important. But it's also very important to look at market shifts. And we can't forget small islands and developing states that rely on long-haul air travel. It’s important to make sure that we invest in making the problem much less impactful.

Liz Ortiguera: 'Travel and tourism' is such a broad encompassing term that it’s not fair to call it an industry: it is actually a sector of many industries. The pandemic taught us how broad the impact of the sector is in terms of sustainability. There's a big movement in terms of destination resilience, which is the foundation for achieving sustainability in the journey to net-zero. We now have standards to mitigate that impact including meetings-and-events (MIE) standards and standards for tour operators. There are multiple areas within our industry where progress is being made. And I'm really encouraged by the fact that there is such a focus not just within the sector but also among consumers.

This interview was first done at the World Economic Forum's studios in Geneva as part of 'Our World in Transformation' - a live interactive event series for our digital members. To watch all the episodes and join future sessions, please subscribe here .

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Tourism and travel-related services

Tourism plays an important role for nearly all WTO members, especially in terms of its contribution to employment, GDP, and the generation of foreign exchange. Tourism-related services are typically labour-intensive, with numerous links to other major segments of the economy, such as transport, cultural and creative services, or financial and insurance services.

Tourism and travel-related services include services provided by hotels and restaurants (including catering), travel agencies and tour operator services, tourist guide services and other related services.

A crucial aspect of trade in tourism services is the cross-border movement of consumers (mode 2). This permits a variety of workers, including those in remote areas, to become services exporters — for instance, by guiding tourists, performing in local events, or working in tourist accommodation. While digitalisation offers great potential for many aspects of tourism services, the sector continues to depend highly on the cross-border movement of both customers and employees, and remains strongly linked to transport services.

Current commitments and exemptions

Tourism commitments have been undertaken by over 133 WTO members, more than in any other service sector. This indicates the desire of most members to expand their tourism sectors and to increase inward foreign direct investment (FDI) as part of their efforts to promote economic growth.

The level of commitments by sub-sector varies widely for tourism and travel-related services. Commitments on services provided by hotels and restaurants are the most frequent, with a significantly smaller number of WTO members making commitments on travel agencies and tour operator services. Only about half of members with commitments on tourism have included tourist guide services, and only a few members have made commitments for the “other” tourism services category.

• Schedules of WTO Members with Specific Commitments on Tourism Services

Treatment of the sector in negotiations

Tourism services, like other services covered by the General Agreement on Trade in Services (GATS), were included in the services negotiations that began in 2000.

One of the earliest documents was a proposal for a GATS Annex on Tourism, originally sponsored by the Dominican Republic, El Salvador and Honduras ( S/C/W/127 and S/C/W/127/Corr.1 ). The proposal had two main aspects: more comprehensive treatment of the tourism sector (with respect to classification issues), and the prevention of anti-competitive practices. As part of the plurilateral process, a joint request was made by a group of developing countries, asking for improved tourism commitments for all modes of supply.

• Proposals and related negotiating documents on tourism services

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Jobs, Education and Training: Together, Tourism and Transport Can Deliver a Better future for Europe

By UNWTO Secretary General, Zurab Pololikashvili and European Union Commissioner for Transport, Adina Vălean

The pandemic hit tourism harder than perhaps any other sector. In Europe, global tourism’s biggest region since records began , travel was brought to a near-complete standstill. Now, as the sector’s restart has begun, there is every sign that it will continue to consolidate its status as the world’s tourism leader. Indeed, according to the latest UNWTO data, international arrivals were up by 126% over the first nine months of 2022 when compared to the previous year and reached 81% of pre-pandemic levels. Moreover, of the estimated 700 million international arrivals recorded worldwide for that period, some 477 million were welcomed by European destinations, around 68% of the global total .

Digging deeper into the data, we see that Europe’s tourism rebound is being driven by strong demand for regional or intra-regional travel. Research has found that, as a result of the pandemic, European travellers prefer to holiday closer to home, and heightened levels of insecurity coupled with economic uncertainty are only likely to reinforce this preference. At the same time, we have seen a post-pandemic shift in consumer behaviour towards more eco-friendly or sustainable tourism experiences . Young people have become increasingly aware of the impact of their travels and determined to keep their footprints as low as possible.

The restart of tourism, therefore, presents us with a unique moment to seize opportunity from crisis. In Europe, as in every global region, now is the time to capitalize on such shifts in behaviour and direct our sector on a different path, one that leads to a more sustainable and resilient future. Again, the demand among consumers is there. So too is the determination of both businesses and destinations themselves: interest in the Glasgow Declaration on Climate Action in Tourism , launched at COP26 last year, has been highly encouraging, with some of the biggest names in European travel among the 700-plus parties to have signed up over the past year alone.

But this is not enough. In the case of transport – unsurprisingly the single biggest part of tourism’s carbon footprint – joined-up thinking and strong political and economic support are needed if we are to both speed up and scale our shift to greater sustainability. The DiscoverEU initiative is an effective example of what’s possible. The project has succeeded in promoting smart travel, most notably through incentivizing people to choose the most sustainable mode of transport for their journey. And again, young people have been among the most enthusiastic users of DiscoverEU. The responsible travellers of tomorrow are being made today.

In order to replicate the success of this initiative across the European tourism landscape, the sector needs both political support as well as the correct amount of proper, well-targeted investments. We also need to see small enterprises supported through attractive business environments and innovative funding models, thereby giving them the tools and the space, they need to make a real impact.  

But we cannot just focus on investing in technology or infrastructure. It’s also essential to invest in tourism’s biggest asset – people. When the pandemic hit and travel came to a halt, many workers left the sector. And not all of them have returned. In recent months we have seen the consequences of this. The number of people employed in the air transport sector within the European Union dropped to the lowest level in almost 15 years. As a result, we saw sizeable bottlenecks at airports along with cancelled flights and other services during the peak summer season.

We need to work together – UNWTO, the European Commission, governments and employers – to make tourism an attractive sector to work in. That is, one that provides decent jobs, opportunities for women, for youth and for people living outside of big cities, and the possibility to grow professionally and develop skills that can be used either in tourism itself or in another field – because tourism’s capacity building provides skills for life . And, finally, we need to make tourism’s restart and transformation more inclusive. In the summer, UNWTO held our first Global Youth Tourism Summit in Italy, out of which came the Sorrento Call to Action , a pledge by the next generation of travellers, of professionals and leaders, to accelerate the progress of recent years and to reimagine the tourism of tomorrow. The voices of young people must now be reflected in Europe’s Agenda for Tourism 2030 , to build a sector that works for people, planet, and peace.

Zurab Pololikashvili, Secretary-General of the UNWTO

Adina Vâlean, European Commissioner for Transport

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The Role and Importance of Transport within the Tourism Supply Chain

• First Online: 15 July 2021

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• Slobodan Aćimović 5 ,
• Veljko M. Mijušković 5 ,
• Ivan Todorović 6 &
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The efficiency of managing the supply chain is the precondition of competitiveness of all successful companies, including those from the tourism sector. It represents a great challenge to respond to tourist expectations and evaluations regarding the price/quality relationship of the tourism products, which predominantly depends on the strength and performance of all the links between tourism supply chain partners. Tourism supply chains involve many components: accommodation, transport, excursions, bars and restaurants, handicrafts, food production, waste disposal, and the infrastructure that supports tourism within chosen destinations. The importance of one such component, transport, for the efficiency of the tourism supply chain is precisely the topic of analysis within the paper. The analysis encompasses an empirical research focused on the business practices of tourism companies in the area of Western Serbia, aimed to identify the supply chain determinants, which predominantly define the satisfaction of users of tourism products. The results of the carried-out research indicate that transport services have a significant role in generating the satisfaction of users of tourism products, thus seriously determining the efficiency of the tourism supply chains. The development of efficient transport systems represents a base for expansion of tourism activities, both in Western Serbia and in any other part of the world.

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Aćimović, S., Mijušković, V.M., Todorović, I., Spasenić, A.T. (2021). The Role and Importance of Transport within the Tourism Supply Chain. In: Karanovic, G., Polychronidou, P., Karasavvoglou, A., Maskarin Ribaric, H. (eds) Tourism Management and Sustainable Development. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-74632-2_7

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Tourism Transportation

The transport industry has gained a vital place in the global network system and is one of the most important components of the tourism infrastructure. It now becomes easier for people to travel from one place to another because of the various modes of transportation available.

The earliest forms of transportation in the ancient times were animals on land and sails on the sea. Travel development from the need to survive, to expand and develop trade to far off countries, and the hunger to capture new lands and territories. This was followed by the use of steams and electricity in the nineteenth century followed by internal combustion engines.

Aircraft with the jet engines were introduced in the 1950s . With the development of technology, travel became faster and more and people could travel around the globe.

Since tourism involves the movement of people from their places of residence to the places of tourist attractions, every tourist has to travel to reach the places of interest. Transport is, thus, one of the major components of the tourism industry. To develop any place of tourist attraction there have to be proper, efficient, and safe modes of transportation.

Transportation is vital to tourism. Studies have shown that tourists spend almost 30 to 40 percent of their total holiday expenditure on transportation and the remaining on food, accommodation, and other activities. This aspect once again highlights the importance of transportation.

A tourist can travel by a variety of means. The tourism professional, as well as tourist, should be aware of the various modes of transport available to reach the destination and at the destination.

The various mode of transport can be broadly divided into the following three categories :

• Air transport
• Land transport
• Water transport

Air Transport

Due to the growth of air transport in recent years, long-distance travel has become much simpler and affordable. Distance is now measured in hours and not in kilometers. The world has indeed shrunk and becomes a small village.

The development of air transport mostly occurred after World War I and II. Commercial airlines were created for travelers. Because of increasing air traffic, the commercial sector grows rapidly. Before the World War II, Swissair already was carrying around 14-16 passenger between Zurich to London.

The first commercial service was introduced by KLM, the Dutch Airlines, in 1920 between Amsterdam and London. Commercial air travel grew mostly after World War II. More facilities were introduced and there was more comfort in travel.

Jet flights were inaugurated by Great Britain in the year 1952. In the year 1958 Pan American introduced the Boeing 707 services between Paris and New York. Due to the introduction of jet flights, the year 1959 onward saw a tremendous increase in air traffic. The concept of chartered flights was also introduced during this year.

Jumbo jets have revolutionized travel. A large number of people travel by air because of the speed, comfort, and economy in terms of time saved.

The modern era, thus, is the era of mass air travel. After road transport, air travel is the most popular mode of travel, particularly for international travel. For the business travelers, air transport is more convenient as it saves their precious time and offers a luxurious and hassle-free travel. Many airlines nowadays offer special facilities to the business tourist such as Internet on board.

There two types of airlines . These are following as:

Scheduled airlines operate as regular schedules. Chartered airlines or the non-scheduled airlines operate only when there is a demand, mainly during the tourist seasons. The chartered flights work out cheaper than the scheduled carriers as they are operated only when there is a high load factor. Chartered flights provide cheaper packages to the destination such as Portugal and Spain.

India receives more than 400 chartered flights, especially to Goa. Goa has a maximum number of chartered flights coming in during the months of December to January.

The International Air Transport Association (IATA) regulates international air travel. IATA has more than 105 major airlines of the world as its members. IATA regulates the price of tickets on different sectors of travel in the world. The concerned government decides the domestic fares.

The airfares are normally determined on the volume and the air travel demand in an area.

The International Civil Aviation Organization (ICAO) is an intergovernmental organization established in the year 1945. Only the government of the country can become a member. The government has to enter into a bilateral agreement for the frequency of flights for operating commercial airlines between them.

Airlines are classified into two broad categories namely small carrier and large carrier . The small carrier also known as commuter airlines have less than 30 seats . The larger carriers, also known as major airlines fly direct routes between the major cities and seat and seat 100 to 800 passengers .

The recent boom in the aviation technology has certainly bought some new development to airlines industry. There has been a major change in the size of the aircraft.

Every year there are a growing number of new airlines being introduced. Because of the growing number of new private airlines, there is stiff competition among them. This has resulted in a considerable reduction in air fairs and has boosted the growth of air traffic. To woo and attract customers, many airlines offer cheaper promotional fares such as excursion fares, group fares, and apex fares.

Million of tonnes of cargo and mail are also handled by the air transport industry.

Road Transport

Humans travel place to place in search of food in the primitive era. They tamed animals such as the dog, ox, horse, camel, reindeer, elephants, etc. for carrying the load and traveling. After the discovery of the wheel, humans developed the cart, the chariot, and the carriage.

Until the seventeenth century, horses were used for traveling. Later on better roads were constructed and some of these roads developed into trade routes, which linked many countries. One of them is the Silk Route which was used for transporting silk from China to Persia and the Blue Gem road from Iran to Afghanistan and India.

Today, the most popular and widely used mode of road travel is the automobile or the car. Road transport is dominated by the automobile, which provides views of the landscape and the freedom to travel. Tourist often travels with their entire family for holidays.

To promote tourism , the vehicle required are coaches and tourist cars. Tourist coaches or buses are preferred for large tourist groups traveling together on a specified tour itinerary. Many tourists prefer to travel in comfort and privacy and hire cars. Cars of various makes and standards are available on a rental basis.

Tourist also uses their own motorcar when holidaying. Cars and coaches carried long distance by train facility is also available in some countries.

The car rental segment of the tourism industry is in a very advanced stage in foreign countries. The client can book a car, himself or through agents, and make it wait at the desired place at the destination. The client can then drive the car himself /herself on reaching the destination.

Rail Transport

The railway is the most economical, convenient, and popular mode of travel especially for long distance travel all over the world. The railroad was invented in the seventeenth century in Germany with wooden tracks. The first steel rail was developed in the USA during the early 1800s . The railways revolutionized transportation and mass movement of people seen in the nineteenth and twentieth centuries.

The broad gauge lines account for more than 55 percent of the total network and carry 85 percent of total traffic. The steam engines have been replaced by diesel and electric engines which have helped in increasing the speed. Railways have promoted tourism by introducing a special tourist train.

In Europe, the railway systems of six European countries have been clubbed to make rail travel easier for the people of Europe. A rail passenger can buy a ticket in any one country of Europe and travel through six countries. For the foreign tourists, Eurail Passes offer unlimited discounts travel in express trains for periods ranging from a week to three months. In the USA, AMTRAK operates trains.

Water Transport

Humans have been traveling through water since time immemorial and carried good and people from one place to another. The boats progressed from the simple raft with some modifications and improvement and were first used around 6000 BC.

Travel by ship was the only means for traveling overseas until the middle of the twentieth century. The Cunard Steamship Company was formed in 1838 with regular steamship services operating on the North Atlantic. During the World War I, in 1914 the operations of the steamship company had to be suspended. After the World War I, the steamship luxury liners were back to business till World War II.

After the World War II, the large luxury liners again started their operations all over the world and carried passengers and holidaymakers. Some of the linear were very large accommodating up to 1000 passengers and had facilities like swimming pools, cinema halls, shops, casino, etc.

The cruise lines are the new attraction among the tourist. The cruises are booked several months in advance for trips into the tropical and sub-tropical waters of the Hawaii, Caribbean, Mediterranean, etc. Water transport today plays two main roles in travel and tourism namely ferrying and cruising .

Modern vessels such as the wave -piercing, the hydrofoil and the hovercraft are the over the water transport and used for short distance routes.

Water transportation is also used in riverboat travel. The Mississippi River has been a popular tourist river since the first settlers came to the USA. Today, tourists enjoy two or three-day luxury trips along the river. In Europe, the Rhine, winding through the grapes growing areas of Germany, offers similar leisure tourist trips.

Motorized ferries and launches are used over rivers to transport tourists and locals, to transport vehicles, and offer facilities such as car parking, restaurants, viewing decks, etc.

Advantages and Disadvantages of Various Modes of Transport

Tourist has a wide variety of transport options available today. There are several advantages and disadvantages of all the model of transport. These are following as:

Direct root, high speed, quick service, social and political significance, luxurious travel are the advantages of air transportation.

High cost, jet lag, unsuitable for heavy bulk cargo, accidents always fatal, international rule to be observed are the disadvantages of air transportation.

Flexibility, reliable, door to door service, economical, supplements other modes of transport, quick transit for short distances are the advantages of road transport.

Slow speed, carrying capacity limited, accidents, none- AC coaches not so comfortable, comfort depends upon the conditions of roads are the disadvantages of road transport.

Long distance travel cheaper, carrying capacity large, dependable service, quicker than road transportation, ability to view scenery en route is the advantage of railways.

Inflexible, unfit to hilly regions, difficulties in rural areas, dining car facilities not always available are the disadvantage of railways.

Economical, carrying capacity enormously, develops international and coastal trades are the advantages of water transport.

Transportation As An Attraction

To attract customers as well as take them around an attraction, destination developers have used many forms of transport to move people around. These novel modes of transport ensure that major exhibits are viewed in a certain sequence and ensure that the crowd moves through at a reliable pace.

Overcrowding should be avoided at all costs to prevent untoward incidents and to maintain the beauty of the place. Tourist can cover the entire park in a shorter duration with the help of these modes of transport.

Transportation is the most crucial component of the tourism infrastructure. It is required not only for reaching the destination but also visiting the site and moving about at the destination. Variety in modes of transportation adds color to the overall tourism experience.

Unusual forms of transportation are also an attraction such as the cable cars in hilly terrain, the funicular railway, or jet boating. The choice of mode of transport is vast and tourists can choose a mode to suit their budget. They can opt for scheduled or non-scheduled transport such as the hiring of vehicles, boats, coaches or trains so that they can travel with their group.

The Geography of Transport Systems

The spatial organization of transportation and mobility

B.7 – Tourism and Transport

Author: dr. jean-paul rodrigue.

Tourism, as an economic activity, relies on transportation to bring tourists to destinations, and transportation can be part of the touristic experience.

1. The Emergence of the Tourism Industry

Since the 1970s where tourism became increasingly affordable, the number of international tourists has more than doubled . The expansion of international tourism has a large impact on the discipline of transport geography since it links traffic generation, interactions at different scales (from the local to the global), and the related transportation modes and terminals. As of 2016, 1.2 billion international tourist receipts were accounted for, representing more than 10% of the global population. The industry is also a large employer accounting for 10% of all the global employment; 30 tourist visits are usually associated with one job. 30% of the global trade of services is accounted for by tourism. Tourism dominantly takes place in Europe and North America , but geographical diversification is taking place.

Traveling has always been an important feature, but its function has substantially evolved. Historically, travelers were explorers and merchants looking to learn about regions, potential markets and to find goods and resources. The risks and exoticism associated also attracted the elite that could afford the large expenses and the time required to travel to other remote destinations. Many wrote realistic and even imaginary travel accounts. As time moved on and as transportation became more reliable, traveling became a more mundane activity taking place in an organized environment; tourism. In the modern world, traveling is more centered around annual holidays and can be reasonably well predicted.

As an economic activity, tourism is characterized by a high demand level of elasticity. As transport costs are significant for international transportation, cost fluctuations strongly influence demand. Therefore, transport is a key element in the tourism industry. The demand in international and even national transport infrastructures implies a large number of people to be transported in an efficient, fast, and inexpensive manner. It requires heavy investments and complex organization. Well-organized terminals and planned schedules are essential in promoting adequate transportation facilities for tourists, notably since the industry is growing at a fast rate.

Transport is the cause and the effect of the growth of tourism. First, the improved facilities have incited tourism , and the expansion of tourism has prompted the development of transport infrastructure. Accessibility is the main function behind the basics of tourism transport. In order to access sought-after destinations, tourists have a range of transportation modes that are often used in a sequence. Air transport is the primary mode for international tourism, which usually entails travel over long distances. Growth rates of international air traffic are pegged to growth rates of international tourism.

Transport policies and national regulations can influence destinations available to tourists. One dimension concerns the openness to tourism through travel visa restrictions , which vary substantially depending on the countries of origin of tourists. Unsurprisingly, travelers from developed countries, particularly Europe, face the least restrictions, while travelers from developing countries face a much more stringent array of restrictions. Another dimension concerns the provision of infrastructure. If the public sector does not cope with the demand in terms of transport infrastructures, the tourist industry might be impaired in its development. However, land transport networks in various countries are designed to meet the needs of commercial movements that tourism requires.

Tourism usually contributes enough to the local economy that governments are more than willing to improve road networks or airport facilities, especially in locations with limited economic opportunities other than tourism. There are, however, significant differences in the amount of spending per type of mode, namely between cruise and air transport tourism. Cruise shipping tourism provides much less revenue than a tourist brought by air travel. A significant reason is that cruise lines are capturing as much tourism expenses within their ships as possible (food, beverages, entertainment, shopping) and have short port calls, often less than a day. Tourists arriving by air transport usually stay several days at the same location and use local amenities.

2. Means and Modes

Tourism uses all the standard transportation modes since travelers rely on existing passenger transport systems, from local transit systems to global air transportation.

• Car traveling is usually an independent transport conveyance where the traveler decides the route and the length of the trip. It is usually cheaper since road fees are not directly paid and provided as a public. It is the only transportation mode that does not require transfers, in the sense that the whole journey, from door to door can be achieved. Along major highway corridors, service activities such as restaurants, gas stations, and hotels have agglomerated to service the traffic, many of which touristic. Car transport is the dominant mode in world tourism (77% of all journeys), notably because of advantages such as flexibility, price, and independence. Tourists will often rent cars to journey within their destinations, which has triggered an active clustering of car rental companies adjacent to main transport terminals (airports, train stations) and touristic venues.
• Coach traveling uses the same road network as cars. Coaches are well suited for local mass tourism but can be perceived as a nuisance if in too large numbers since they require a large amount of parking space. They can be used for short duration local tours (hours) but also can be set for multi-days journeys where the coach is the conveyance moving tourists from one resort to another.
• Rail travel was the dominant form of passenger transport before the age of the automobile. The railway network usually reflects more the commercial needs of the national economy then holiday tourist flows which can make it a less preferred choice as a traveling mode. The railway systems of several countries, notably in Europe, have seen massive investments for long-distance routes and high-speed services. Due to the scenery or the amenities provided, rail transportation can also be a tourist destination in itself. Several short rail lines that no longer had commercial potential have been converted for tourism.
• Air transport is by far the most effective transport mode. Notably because of prices, only 12.5% of the tourists travel by plane, but for international travel, this share is around 40%. Air transport has revolutionized the geographical aspect of distances; the most remote areas can now be reached any journey around the world can be measured in terms of hours of traveling. Business travelers are among the biggest users of airline facilities, but low-cost air carriers have attracted a significant market segment mainly used for tourism.
• Cruises are mainly providing short sea journeys of about a week. Cruising has become a significant tourist industry. Cruise ships act as floating resorts where guests can enjoy amenities and entertainment while being transported along a chain of port calls. The international market for cruising was about 22.2 million tourists in 2015, which involves an annual growth rate above 7% since 1990. The main cruise markets are the Caribbean and the Mediterranean, with Alaska and Northern Europe fjords also popular during the summer season. This industry is characterized by a high level of market concentration with a few companies, such as Carnival Corporation and Royal Caribbean Cruises who account for about 70% of the market. The impacts of cruising on the local economy are mitigated as the strategy of cruising companies is to retain as much income as possible. This implies that tourists spend most of their money on the cruise ship itself (gift shops, entertainment, casinos, bars, etc.) or on-island facilities owned by cruise shipping companies.

3. Mass Tourism and Mass Transportation

Tourism transport can be divided into two categories:

• Independent means of travel ; controlled by individual tourists who book them on their own. This mainly involves the private automobile, but also mass conveyances that are booked to travel on an individual basis such as regularly scheduled flights, rail connections, ferries, and even cruises.
• Mass travel ; where tourists travel in organized groups. The most common form involves chartered buses and flights used for this single purpose.

When tourism was mainly for the elite, independent means of travel prevailed. However, the emergence of mass tourism and the significant revenue it provides for local economies required the setting of mass transportation systems and specialized firms such as travel agencies organizing travel on behalf of their customers. These firms were able to take advantage of their pricing power being able to negotiate large volumes of passengers for carriers and hotels. Some were even able to become air carriers, such as Thomas Cook Airlines and Air Transat, which are major charterers in their respective markets. Paradoxically, the growth of online travel booking services has favored the re-emergence of independent means of travel since an individual is able to book complex travel services, including transport and hotel accommodations. Thus, the segmentation of the travel industry is linked with the segmentation of the supporting transport systems.

The seasonality of tourism has an important impact on the use and allocation of transportation assets.

• Air transport has a notable seasonality where tourism results in variations in demand, summer being the peak season. Because of this seasonality and the high cost of acquiring additional assets to accommodate peak demand, the airline industry has pricing power during peak touristic demand. This also leads the seasonal charter services to pick up the potential unmet demand. During the winter, charterers focus on subtropical destinations (e.g. Caribbean, Mexico), while during the summer there is more a focus on the European market.
• Cruises also have a seasonality where many cruise lines are repositionning their assets according to variations in the destination preferences. During winter months, the Caribbean is an important destination market, while during the summer, destinations like the Mediterranean, Alaska, and Norway are more prevalent.

4. Covid-19 and its Impacts

Related topics.

• Air Transport
• Airport Terminals
• Transportation and Economic Development
• The Cruise Industry

Bibliography

• Graham, A. and F. Dobruszkes (eds) (2019) Air Transport – A Tourism Perspective, Amsterdam: Elsevier.
• World Economic Forum (2017) The travel & tourism competitiveness report 2017, World Economic Forum.

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Retrospect, Inspire, and Learn

What is the role of tour operators in the tourism industry.

As a person working in the tourism field, I can confidentially say that the tourism industry has emerged as one of the most promising industries, with millions of people travelling across the country and internationally. There are numerous factors associated with a person’s need to travel, which may vary from business, leisure, medical purpose, or visiting a relative and friends. Taking care of your travel arrangements can be a cumbersome task, especially when you are exposed to a large number of online portals and offline agents boasting of exclusive packages and discounts. Here is where a tour operator comes to your rescue. He/she caters to all your travel needs, from taking care of documentation, money exchanges, hotel bookings, transportation, etc., to providing a seamless experience and a memorable time with your loved ones. During a discussion with Mr. Manoj Tulsani, CEO of Rayna Tours, we came up with some crucial points on the importance of travel and tourism.

Importance of Travel and Tourism

1) economic growth.

Tourism sparks economic growth in a region, thus helping local tourism recover. Countries where tourists visit the most get an influx of wealth from visitors coming in and spending on food, hotels, transport, activities, etc.

2) Gaining a New Perspective

This is something that I have personally experienced. When travelling, people expose themselves to various cultures, customs, religions, and lifestyles. Venturing into a new place can teach you more than any movie or book can.

3) Protecting the Environment

Many tour companies are becoming more conscious of the environmental implications of tourism by developing more socially responsible and environmentally friendly vacation packages.

By booking a tour, travelers can experience a foreign land and make sure that they visit the best spots. Here I have mentioned the role and functions of tour operators that aim to provide travelers with an ultimate travel experience.

Roles of a Tour Operator

While a tour operator’s role can vary depending upon their position and employer, these professionals are generally responsible for the following:

1) Creating Tour Packages

No one knows the travel destinations better than the tour operators. They are experts responsible for developing tour packages for individual customers or groups of travelers. They work with customers to understand their interests, thereby recommending a variety of attractions, modes of transportation, and accommodation options to help customers choose the tour package as per their requirements.

2) Prepare Travel Arrangements

Tour operators help arrange travel plans for customers so that they can easily reach their destinations. For e.g., they can book their train or flight tickets to help customers fly between cities or reserve a rental car so that customers can visit tourist attractions. All of your trip plans, including visa processing, hotel reservations, airport transfers, and travel insurance, are handled by them.

3) Budgeting the Tour Operations

Tour operators work with customers to help them prepare a budget for their tour. They develop different itineraries with varying prices and guide and advise their clients on attractions and accommodations within their preferred budgets.

4) Negotiating Rates

Tour operators negotiate rates with vendors, such as transportation companies and hotels and get the best deals for their clients. People travelling in large groups can benefit from this.

5) Providing Customer Support

A tour operator offers customer service to assist clients in preparing for their excursions. For instance, they may answer customer questions about a destination, provide information about currency exchange rates, or notify them about any changes in their itinerary.

6) Researching Travel Options

Tour operators research various travel options and provide recommendations to their clients about where to visit, stay, and eat during their tours. They gather the latest information about changing travel trends and provide their clients with the current information.

7) Providing a Safe and Enjoyable Tour

If you’re travelling somewhere for the first time, you probably want to know beforehand how safe it is for visitors. The help of tour operators is offered here, and they provide you with all the information you need. You’ll be able to keep away from any locations that might endanger your life. Tour guides ensure that you have a pleasurable and memorable experience with your family and friends in addition to attending to your safety concerns.

8) Providing Sustainable Tourism

Tour operators have a social responsibility to provide sustainable tour packages to reduce their negative impact while building a greener tourism industry. This includes focusing on creating benefits for local communities, protecting the environment through conservation projects, and giving priority to animal welfare.

Some More Responsibilities of a Tour Operator

• Use operations management skills
• Use sales and marketing skills
• Manage human resources
• Develop products
• Use financial management skills
• Directing visa application process
• Collaborating with the security staff, marketers, and venue operating teams
• Shipping requisite equipment to pertinent locations
• Remaining accessible to stakeholders
• Managing allotted finances
• Completing client-requested errands (within reasons)

Thus, I can conclude that tour operators play an important role in the success of the tourism industry. They contribute to the positive experiences that travelers across the world endure with their knowledge and expertise, allowing people to travel stress-free at a relatively reasonable price. Tourists can count on them to make their dream vacations a reality.

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Spain's tourism revenue seen hitting new record in 2024

S pain's tourism sector is expected to post record revenues again in 2024, the Exceltur tourism association said Tuesday, adding it was concerned at growing anger in the country against overtourism.

It predicted tourism earnings will reach 202.65 billion euros ($215.4 billion) this year, an 8.6 percent increase over the record set in 2023 which had already seen "a spectacular rate of growth," Exceltur vice president Jose Luis Zoreda told a news conference.

If confirmed, it will be the first time that tourism earnings in Spain -- the world's second most visited country after France -- will surpass 200 billion euros, he added.

Spain is benefiting from the rebound in global travel, especially from the Asian market, following the end of the Covid-19 pandemic.

Meanwhile security concerns in rival sunshine markets in the eastern Mediterranean due to the Israel-Hamas war were helping to drive up visitors to the country, Exceltur said.

The tourism sector is also getting a boost from the increase in air links as well as the arrival of new rail operators which has boosted competition and driven down the price of high-speed rail travel leading to higher domestic tourism, it added.

Spain welcomed a record 85.1 million foreign visitors last year, mainly from Britain, France and Germany, according to national statistics institute INE.

The surge in visitor numbers has sparked a backlash from locals in tourism hotpots such as the Balearic Islands, the Canary Islands and Malaga.

"Our concern is to continue to grow tourism in Spain so that it is sustainable and does not generate social revulsion," Zoreda said when asked about the growth of these anti-tourism movements.

Exceltur groups Spain's hotels, resorts, transport companies, car rentals and entertainment businesses.

Maldives Tries to Win Back Indian Tourists As Arrivals Fall 40%

Peden Doma Bhutia , Skift

April 16th, 2024 at 9:11 AM EDT

While Maldives enjoys record-breaking arrivals, its tourism companies aren't about to let the Indian market keep falling. They're on a mission to reverse the trend.

Peden Doma Bhutia

The Maldives Association of Travel Agents and Tour Operators is determined to increase Indian arrivals to the island destination and is taking steps to achieve this.

“Indian arrivals to the Maldives have gone down by almost 40%,” said Abdulla Ghiyas, the association’s president, in an exclusive interview with Skift.

In early January, #BoycottMaldives started trending in Indian social media following a diplomatic dispute between the two countries. Indians accused Maldivian politicians of making disparaging remarks against Prime Minister Narendra Modi.

As a result, India, which was the number 2 source market for Maldives, has now fallen to number 6 . India’s share of visitors had been almost 11% – it has shrunk to 5.6%.

Promotions in Indian Cities

Ghiyas said the association will be hosting roadshows in 3 Indian cities in July and confirmed to Skift that one of the cities would be Bengaluru.

The association also plans to engage with Indian social media influencers. “We also want to see how we can work with the tourism board in Maldives as we have partnered with them in the past as well. There are talks that the tourism board is also planning of doing something in India,” Ghiyas said.

At the July roadshows, he said he’s keen to look at cities that have direct connectivity with Maldives.

Ghiyas expressed a desire to have conducted the roadshow earlier, noting that May is when Indian outbound travel peaks. However, he mentioned plans for another round of roadshows towards the end of the year, aiming to include Tier 2 cities. “Even if they lack direct flights to the Maldives, these cities would represent an important market for us,” he said.

Maldives has so far received (from January 1-April 15) 693,867 tourists, up from 606,395 arrivals for the same period last year, as per the latest data from the Maldives tourism ministry.

China is the top source market for the island destination, followed by UK and Russia.

Between January 1-April 15, almost 39,000 Indians visited Maldives, a decline of almost 40%, compared to the 64,250 arrivals for the same period last year.

“We might not talk immediately about the growth scenario, but I would definitely like to see the 40% decline narrow down,” Ghiyas said.

Can’t Ignore India

While Maldives has experienced record-breaking tourism arrivals so far, Ghiyas said it still needs India. “There are properties and resorts that rely heavily on the Indian market, which have been severely affected. This will hurt us in the long term and that is why we have decided to engage with the India market.”

Aminath Suzan, CEO of Maldives Association of Travel Agents and Tour Operators, pointed to cultural ties, such as similarities in food, language, and pop culture. “We must ensure that unrelated matters do not negatively impact the bond, for which we have dedicated years and built this alliance.”

MATATO Meets with Indian High Commissioner to Foster Tourism Cooperation The Maldives Association of Travel Agents and Tour Operators (MATATO) engaged in a productive meeting with His Excellency Munu Mahawar, the Indian High Commissioner to the Maldives, to explore collaborative… pic.twitter.com/PNXiy3QdVz — MATATO – PATA Maldives Chapter (@matatoMV) April 9, 2024

The association members also recently met with Munu Mahawar, the Indian high commissioner in Maldives, to collaborate closely with his office to boost tourism initiatives.

Dubbing the meeting with Mahawar “positive,” Ghiyas said the high commission has offered assistance to the association. “Once we have a concrete plan, we will definitely follow up with the High Commission and share our plans.”

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