Travel agents and Tour operators

Travel agents and Tour operators
Index/learning goals
- The tourist product: the package tour
- Tour operators and travel agents definitions
- The role of travel intermediares in the tourism
...
Tourism packages
- consist of organized trips following predetermined and detailed programs. Packages are usually sold at competitive prices ans are perceived as having a good quality- price ratio. TP involve:
- preliminary organisation: they are planned before the client’s demand
- services provided: they may consist on holiday stays and offer other services like transport, meals, entertainment
- fixed price: the price of the product is fixed in advance and payment is usually settled before leaving

The t. product (italian law)
The TP includes more than two services (accomodation, transport, other services) and should have the following characterics:
1) TIME: it takes more than 24 hours or should include at least one night. 2) PRICE: composed by the combination of interdipendent elements
3) DISTRIBUTION: made by travel agencies or other authorized operators
4) INCLUDED SERVICES: are fixed and provided in advance

The basic elements of tourism product
(2 minimum): accomodation, transport, other services



Tour operator
- is a company whose main business is the planning, packaging, selling, marketing and promotion of multiple vacation elements, including air or surface transportation arrangements combined with land accomodation.

Characterics:
1) the product should be ‘commisionable’ to retail travel agents
2) the TO must be financally strong to guarantee the effectivness of the product and must be in the position of paying his suppliers in advance
3) TO must have strong negotiating power in order to obtain competitive prices from hotels, airline companies and from other suppliers
4) the TO is responsable for the package he has designed and must pay for services he has ordered (transport and accomodation even if not used) risk



Travel agents
- are the main distibutors in the travel industry
They:
- offer customers packages or services provided by a Tou Operator
- organize tailor- made travels on request
- sell services as: air tickets, train tickets, sea tickets, transfer services, hotel booking, car rental, etc.
- inform and consul travellers

Incoming and outgoing travel agencies
Incoming activities: services for tourist travelling in the given country
Outgoing activities: services for customers travelling in another country

Key activities of travel agents
- deal with customers in a specific area
- control and monitor the market
- introduce the product to the market
- promote and sell TO’s packages
- promote and sell cruises
- organize special services on holidays
- organize events, meetings, workshops
- sell transportation and accomodation services
The T.O. marketing strategy after 11 September shock on demand
- reduction in number od seats in charter flights
- introduction of the insurance ‘free to change your travel’
- massive price reduction using the ‘last minute’ and the ‘advantace booking’ formulas
- offering of packages based on domestic tourism


(GDS- global distribution system ex.Galileo).