Objectives

At the end of the

2. Enumerate the key difference between Travel Agent and Tour Operator.

3. Show interest while listening to this lecture.

PUBLISHED ON DECEMBER 31,2018 BY: HAROLD G

 Travel Agent
 Tour Operator
 Key Differences
What is Travel Agent?

 A travel agent only plans or organizes the trip. He does not accompany travelers
or tourists. If he’s working under a travel agency then he plans everything out for
the tourists. Moreover, a travel agent help the tourists in buying tickets, telling
them about promotional offers on ticket purchase. Some travel agents are also
private retailers. They advertise various hotels, places, resorts of different counties
or cities to their customers.
 For this, they charge money, of course. They even pay services to the travelers on
behalf of all these hotels, resorts or even rent-a-car services. So, they actually sell
products on behalf of suppliers. They even tell the travelers about discount offers.
So, the travel agent is a person who works under a private or public retailer and
provides the tourism and travel related services to others on behalf of the
company under which supervision he is operating.
 When it comes to tourism and travel facilities then all kind of facilities comes
under this area like car rentals, hotels booking, railway or airline reservation,
cruise lines etc. The working system of modern-day travel agents has been
reshaped to much extent. Now in addition to providing the ordinary tourism
services, these provide the system for making travel arrangements for commercial
and business purposes as well. The designation travel agent itself describing a
person working as an agent. So, being an agent, the source of income of travel
agent is the commission that he is paid by the agencies for which he is working.
 In addition to earning commission against bookings, he also received benefits and
bonuses from the tourism and travel companies as well. Money exchange, travel
guide, travel insurance and likewise other services can also be the mode of
earning of travel agents as well.
 In short, the basic role of travel agent is to work as an agent for sale and
administration of the packages of the company under which supervision he is
working.
What is Tour Operator?

 There are specialized tour operators as well. Like for one distinct country, there
will be a specialized tour operator, who knows almost everything about that place.
Tour operate also supply travelers with a complete package of residency,
transportation and even flight. So, tour operators basically create pre-packages
holidays for the travelers. So, a tour operator actually plans out the tour or
holiday. He book tickets, a hotel, destinations, flight, transportation and even
food! You can also ask for a tour guide. Their responsibility is to provide your
vacation with all the necessities.
 Just like a travel agent, travel operator deals in the combined business of travel
and tourism. Most of the operation of travel operators are linked with the sale and
purchase of tickets and the visa process. Some travel operators provide the other
facilities to their clients as well in the shape of arranging special trips for their
clients. Some common types of tour operators are inbound tour operators,
outbound tour operators, domestic tour operators, group operators and destination
management companies. The basic functions of all these remain with little
difference on the additional services and sectors in which they operate. It has
proper organization structure because in a case of large travel operating company
there can be subsidiaries in the other cities or countries as well.
 The sources of income of travel operators are providing services to the clients and
also earning commission from the different companies by booking their services
for the clients. However, most of the travel operators have their own service area
as well and instead of hiring the third-party services, these provide the all kind of
services to the clients on their own.
 If talk about the management, then travel operator business requires fulfilling
more legal formalities. Moreover, a license permitting the carrying on business of
travel operator is also required to be acquired from the concerned ministry of
travel and tourism.
Key Differences between Travel Agent and
Tour Operator
 Travel agents usually sell packages, they have bought from various tour operators.
 Tour operators look into all the aspects of a vacation, they plan almost each and
everything. While travel agents sell packages to their clients on the basis of where
do their clients actually want to go.
 There are specialized tour operators as well. Dealing with specially one country at
a time. But there’s no specialization in the case of a travel agent.
 Some travel agents work directly with tour operators and provide the tour
operators with the information of clients.
 A travel agent keep his profit. While, a tour operator keeps less profit than a travel
agent.
 Many a people now prefer a tour operator rather a travel agent.
 Travel agent gets permit to work from the respective tour operator either private or
public while travel operator acquires license from the regional ministry of tourism.
 Becoming a travel agent doesn’t require so much time as compared to the travel
operator that needs more to sustain and grow in the competitive travel industry.
 There are proper training programs in order to pursue the career as a travel agent
while travel operator needs the business management practices.
 Due to change in lifestyle and traits the focus of travel operators is more on the
diversification of package while the focus of travel agents is more on the sale of
package tours, hotel bookings, and traveling documents processing.
 The duties of travel agent are mostly services based that requires not too much
investment while travel operator is required to invest in the business.
 Tour operator is directly responsible to the regulatory authorities while travel
agent is first responsible to the clients and then to the travel operator.
 In term of legality and liability, travel agent comes at first position to answer the
clients while travel operator has secondary liability in this regard.
 There is no licensing system in case of travel agent while travel operator is
required to get a license from the respective ministry of travel and tourism. He is
also required to renew the license from time to time.
 Common types of tour operators are inbound tour operators, outbound tour
operators, domestic tour operators, group operators and destination management
companies. Wholesale and retail travel agent are the types of the travel agent.
 The source of income of travel agent is commission and benefits that he get from
the travel operator. While travel operator earned by providing services to the
clients and he also earned commission from the different companies by booking
their services for the clients.
 Travel operator is the name of a full-fledged company in comparison to the travel
agent who only sells the tour operator’s tours to the willing traveler or tourists.
 A travel operator can be the supplier of the services as well that he present to its
customers. In that’s way he doesn’t work as commission agent for the services
providing companies. While travel agent in all cases remains the distributor of
these services.
 Travel operator offers diverse kind of traveling and tourism programs while travel
agent tends to focus more on a specific area.
End.