Home Tour Operators 3 Reasons Why Tour Operators are Essential in the Industry

3 Reasons Why Tour Operators are Essential in the Industry

Why Tour Operators are Essential in the Industry
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7 min.

Today, tour operators are key to the success of the travel industry. Tourists rely on them to turn their dream vacations into a reality. And, as we know, one of the most common interactions between tour operators and travelers is the booking of a tour that allows them to explore different parts of the country they are visiting.

In this article, we are going to discuss the roles and responsibilities of tour operators, who generally aim to provide an unforgettable travel experience.

What are a tour operator’s responsibilities?

First of all, a tour operator’s main responsibility is to arrange services such as transportation and accommodation. The operator is the brains behind a dream vacation, leveraging their expertise and resources (supplier databases or technologies such as tour operator software).

Apart from this, a tour operator also fulfills these functions:

Creation of tour packages

A tour operator is responsible for creating and maintaining tour packages for clients. It is worth noting that tour package management includes the preparation of activities that appeal to the specific travelers embarking on the trip. 

Operators develop complex itineraries based on the needs of their customers and include possible modifications in their tour operator’s business plan. This enables them to better meet the group’s priorities. 

Preparing travel arrangements 

In most cases, tour operators are expected to provide travel assistance to the tour group during the trip. These changes might include changing the time of day from one activity to another, thereby ensuring that all members of the group arrive at the next destination.  

In fact, tour operators often help out with airline tickets. In addition, they work with hotels to provide suggestions to group members. 

Budgeting tour operations

Tour operators work diligently to create tour packages that offer high-quality service to customers. These packages are usually priced more economically than the customer could find by booking on their own. And they do this while creating a profitable business.

As we all know, tourists prefer to seek the help of a travel agent or tour operator because they offer them a more complete service to advise them on possible changes. For this reason, it is important for tour operators to take the time to evaluate prices before finalizing a tour package.

Provide a safe and enjoyable tour

A tour should be everything a traveler desires, and much more. Therefore, a tour operator should be a specialist in organizing experiences that create lifelong memories. 

Just as it is important to provide a positive and meaningful experience, it is also vital to keep travelers safe throughout the trip. Some tour activities can pose a potential risk to travelers, and this is a responsibility that your company must assume.

As a tour operator, it is best to advise your clients to invest in travel insurance, such as ABTA Travel Sure. Having this type of insurance will provide travelers with the safest travel experience.

What is the significance of travel and tourism?

The importance of travel to the economy

Tourism is able to drive economic growth in an area of high demand. In fact, the most tourism-intensive countries see their wealth increase thanks to visitors who come and spend money on hotels, food, souvenirs and activities. For example, the tourism sector boosted global GDP by $2.892 trillion last year. 

In addition, tourism supports communities that would otherwise have no alternative economic options. This makes travel a reliable and steady source of income in remote areas with limited access to resources.  

Meanwhile, online booking platforms and travel agencies drive the economy significantly. These platforms, in fact, achieved sales revenues of $99 billion in 2018. Overall, we can say that travel and tourism play a vital role in keeping money flowing around the world.

Gaining a new perspective

As we know, traveling allows people to break free from their daily lives and expose themselves to diverse cultures, languages, customs and ways of life. 

In fact, venturing into a new landscape with new people can teach a person more than any book or movie could ever accomplish. Being in a different environment can change your whole perspective of the world and open your eyes to how different life is in places far from your hometown.

This integration of lifestyles can lead to a more understanding world, where people accept each other and embrace differences. What’s more, travel helps eliminate fear of the unknown and fosters solidarity around the world.

Travel can protect the environment

In recent years, great efforts have been made to make travel more environmentally friendly. Part of those efforts are related to sustainable tourism, which promotes the protection of tourist destinations. If done correctly, the trip can leave a destination free of damage, and perhaps even improved if the tour includes activities such as cleanup or tree planting. 

For this reason, tour operators have a corporate social responsibility to offer sustainable tour packages. Sustainability doesn’t have to make a trip any less amazing. In fact, a tour operator can plan based on the best interests of the customer and the planet. 

For more information on sustainable tourism, check out our blog post on the role of tour operators in sustainable tourism.

How do tour operators work with other sectors of the travel industry?

Supply chain management

To better understand how tour operators work with other sectors of the travel industry, it is vital to gain a better understanding of supply chain management (or SCM for short).

SCM is the flow of goods and services from their original raw materials to the final product in the hands of customers. In fact, SCM is very important in the hospitality industry.

Customer satisfaction depends on the services offered while traveling. The food, the housekeeping service and even the reception at the front desk are factors that can make or break a visitor’s stay at a hotel. Therefore, good hotel suppliers play an important role in the overall tourist experience. 

The supply chain

The supply chain is a term that describes the interconnection between goods, wholesalers, retailers and consumers. The inner workings of these elements depend on each other to function smoothly, and all play a key role in the tourism industry.

Likewise, different tourism distribution channels must also be considered to reach different types of travelers.

To get a better understanding of how a distribution chain works, below we explain each of its components:

Goods

Goods are the basic elements that are sold to the consumer. In the tourism industry these include hotel rooms, transportation, activities, etc.  

Wholesalers

Wholesalers are the ones who gather the resources for the product to be sold. In fact, understanding how to become a travel wholesaler is essential to success. Tour operators fall into this category, as they are the sector that organizes the goods into a package for a consumer.

Retailers

Retailers sell products directly to consumers. An example of retailers are travel agents, as they sell tour guide services and many other services directly to their customers.

Consumers

Consumers are the people who obtain the final product. In the travel industry, these people are the tourists. The supply chain is complete once the consumer buys the services.

If you want to tap into the industry as a new player, we recommend you consult this list of travel industry registries/associations. It could prove very useful to you.

Tour operators are essential to the travel industry

As you can see, tour operators contribute to positive experiences for travelers around the world. In addition, they allow people to travel stress-free and relatively inexpensively.  Here at Mize we are committed to helping tour operators thrive. Our innovative technology is designed to maximize your company’s profits. By letting us help you make your life easier, you also help improve the experience for your travelers.

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Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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