tour operator description

What Does a Tour Operator Do?

Find out what a Tour Operator does, how to get this job, salary information, and what it takes to succeed as a Tour Operator.

The Tour Operator plays an essential role in the travel and tourism industry by designing, organizing, and conducting tours and travel packages for individuals or groups. They ensure that the travel experience is seamless, enjoyable, and enriching, taking care of logistics such as transportation, accommodation, and itinerary planning. By maintaining strong relationships with various stakeholders including hotels, guides, and transport services, they are able to curate experiences that meet the diverse needs and preferences of travelers. Their expertise in understanding destinations, cultural nuances, and local attractions enables them to create packages that offer more than just a visit, but a deep dive into the essence of the place. Through meticulous planning and coordination, the Tour Operator ensures that each journey is memorable, safe, and aligned with the expectations of their clients.

Tour Operator Job Duties

• Design and develop diverse tour packages to meet the interests and requirements of different groups of tourists, including itinerary planning, accommodation selection, and transportation arrangements.
• Negotiate contracts with service providers such as hotels, transportation companies, and activity providers to secure the best rates and services for tours.
• Market and promote tour packages through various channels, including online platforms, travel expos, and partnerships with travel agencies, to attract potential customers.
• Provide detailed pre-tour information to clients, including travel tips, itinerary details, and necessary preparations, to ensure they are well-prepared for the trip.
• Lead and manage tours, ensuring all aspects of the tour run smoothly, from coordinating transportation to managing schedules and addressing any issues that arise.
• Offer insightful and engaging commentary on the cultural, historical, and natural significance of tour destinations to enhance the client’s experience.
• Handle financial transactions related to the tour, including collecting payments from clients, managing budget allocations for different aspects of the tour, and settling accounts with service providers.
• Collect feedback from clients post-tour to assess the quality of the experience and identify areas for improvement in future tour offerings.

Tour Operator Salary & Outlook

Tour Operator salaries vary based on experience, niche market expertise (e.g., adventure, luxury, cultural tours), language skills, and the complexity of tours managed. Additionally, the size and reputation of the employing company, along with the individual’s negotiation skills and client satisfaction rates, significantly influence earnings.

• Median Annual Salary: $51,975 ($24.99/hour)
• Top 10% Annual Salary: $80,500 ($38.7/hour)

The employment of tour operators is expected to grow faster than average over the next decade.

This growth is driven by increasing global travel demand, a rising interest in unique, personalized travel experiences, and the expansion of the middle class in emerging markets. Tour operators, adept at crafting tailored itineraries and navigating complex travel logistics, are essential in meeting these evolving consumer preferences.

Tour Operator Job Requirements

Education: A Tour Operator typically has diverse educational backgrounds, with many having completed some college courses, often in tourism, hospitality, or business management. High school diploma holders also qualify, ideally with subjects focused on geography, history, and languages. Those with Bachelor’s or Associate’s degrees usually major in travel, tourism management, or related fields, enhancing their understanding of global cultures, travel regulations, and customer service essentials. Education in marketing and communication is also beneficial for this role.

Experience: Tour operators often come from diverse backgrounds, with many entering the field with minimal to moderate experience. A significant portion starts with less than a year’s experience, indicating on-the-job training is common and crucial. This training encompasses customer service, itinerary planning, and safety protocols. Some individuals transition into the role with no prior experience, learning entirely through structured training programs offered by employers. Experience in travel planning, group management, and cultural knowledge is beneficial, highlighting the importance of adaptability and a keen interest in travel and culture. Continuous learning and skill development are key components of succeeding as a tour operator.

Certifications & Licenses: Certifications and licenses for Tour Operators may vary by location but generally include a business license and, in some cases, a tour operator license. Specialized certifications such as the Certified Tour Professional (CTP) offered by the National Tour Association can enhance credibility but are not universally required. No specific certifications or licenses are universally mandated across all regions or types of tour operations.

Tour Operator Skills

Itinerary Planning: Selecting destinations and activities that align with clients’ preferences and comfort levels is crucial for tour operators. They must have a comprehensive understanding of local attractions, cultural nuances, and logistical considerations to craft journeys that are both leisurely and adventurous, ensuring a seamless and enriching travel experience.

Risk Management: Tour operators are tasked with identifying potential hazards and taking preventative actions to safeguard their clients’ safety and satisfaction. A meticulous attention to detail and the ability to foresee and address risks, ranging from natural disasters to health emergencies, are imperative for ensuring secure travel experiences.

Supplier Negotiation: Achieving favorable terms with hotels, transportation providers, and local attractions is critical for the profitability and competitiveness of tour packages. Effective negotiation skills, informed by an understanding of market trends and strong relationships, are necessary to secure deals that benefit both the company and its clients.

Customer Service Excellence: Handling inquiries, complaints, and special requests with patience and positivity is essential. Tour operators must efficiently resolve issues and proactively enhance the customer’s experience, transforming potential challenges into opportunities for outstanding service.

Destination Knowledge: Deep familiarity with the destinations offered is required, encompassing local customs, language nuances, and lesser-known attractions. This enables the creation of tours that are engaging, culturally enriching, and provide travelers with a memorable and authentic experience.

Multilingual Communication: The ability to communicate fluently in multiple languages facilitates effective interaction with a diverse clientele. It ensures that all participants fully comprehend the itinerary, safety instructions, and cultural nuances, allowing for more personalized and engaging experiences that foster a deeper connection between tourists and their destinations.

Tour Operator Work Environment

Tour operators often find themselves in a dynamic work environment, where the office can range from a traditional desk setting to the great outdoors, depending on the day’s needs. The workspace is equipped with standard office tools and specialized software for planning and booking tours, requiring a good grasp of technology.

Work hours can be irregular, with peak seasons dictating longer days and the possibility of work on weekends and holidays. The dress code tends to be casual but may require formal attire for meetings with partners or clients.

The role is inherently social, involving constant interaction with clients, vendors, and team members, making a collaborative and adaptable culture crucial. Travel is a significant component, offering opportunities to explore new destinations but also demanding flexibility and resilience.

Health and safety are paramount, especially when conducting tours, necessitating knowledge of first aid and emergency procedures. The pace can be fast, balancing multiple tours and clients, requiring excellent organizational skills and a calm demeanor.

Professional development is encouraged, with many companies offering training in new destinations, languages, or tour management software, supporting career growth within the industry.

Advancement Prospects

Tour operators can advance their careers by specializing in niche markets, such as eco-tourism or adventure travel, to cater to specific client interests and stand out in the industry. Developing a deep understanding of a particular region or type of travel can lead to becoming a sought-after expert, potentially opening opportunities for higher-level positions within larger travel companies or the foundation for a successful independent business.

Progression can also come from embracing technology, utilizing digital marketing, and social media to enhance customer engagement and expand market reach. This digital proficiency can lead to roles in digital strategy or marketing within the travel sector.

Leadership roles are another advancement path. With experience, a tour operator can transition into managerial positions, overseeing teams, or entire operations. This might involve strategic planning, financial management, and business development responsibilities, contributing to the broader success of a travel organization.

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What is a tour operator and how does it work?

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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Job descriptions and industry overviews

Tour operator: job description.

targetjobs editorial team

21 Nov 2023, 12:07

Tour operators are responsible for organising and preparing holiday tours. They follow trends in the popularity of destinations and packages, and adjust company plans accordingly.

What does a tour operator do? Typical employers | Qualifications and training | Key skills

Due to Covid-19, you may find it difficult to gain work or experience as a tour operator. As we explain here , however, recruiters will not view time out of work due to the pandemic as a 'gap' in your CV. For guidance on searching for work during this difficult time, take a look at our advice for job hunting during a pandemic .

Responsibilities of a tour operator vary according to the time of year and size of employer, but generally include:

• deciding how many holidays to sell each season and the resorts/countries to use
• visiting resorts to ascertain accommodation quality and suitability
• liaising with coach operators, airlines, hoteliers and resort reps
• agreeing service levels, contracts and costs
• confirming customer names with airlines/hotels
• collecting, evaluating and responding (as appropriate) to customer feedback
• using market research information to guide decisions
• producing brochures and internet-based information
• providing pricing information
• marketing holidays to clients via travel agents, websites, brochures and television advertising
• handling bookings, invoicing and issuing of tickets
• predicting profits or number of bookings
• working with travel consultants from different travel agencies to put holiday packages together
• combining travel, accommodation and services such as sightseeing arrangements to create holiday packages.

Typical employers of tour operators

• Private touring companies
• Small specialist organisers
• Major international tour operators
• Bespoke tour designers
• Cruise liners.

Vacancies are advertised online and in trade publications including Travel Trade Gazette and Travel Weekly , as well as their online equivalents. Networking and speculative applications are advisable. A few larger companies operate graduate training schemes. Paid summer vacation jobs may be available with some employers.

Qualifications and training required

A degree is not a standard formal requirement for this role, though it may be an advantage. Degrees in leisure, travel, tourism, management, marketing, IT, business, languages or hotel and catering management are particularly likely to be relevant. Relevant professional or vocational qualifications, such as NVQs and HNDs, may also be beneficial.

Pre-entry experience gained working with the general public or within the hotel, tourism or travel trades (particularly overseas) will strengthen your applications and improve your chances. It may be possible to start work in a tour rep, tour guide or travel agent role and then move on to a tour operator position.

Key skills for tour operators

• A demonstrable interest in travel
• Knowledge of key holiday destinations
• Foreign language skills
• Excellent interpersonal skills
• Communication skills
• Customer service skills
• Organisational skills
• Commercial awareness
• Good time management skills.

targetjobs editorial advice

This describes editorially independent and impartial content, which has been written and edited by the targetjobs content team. Any external contributors featuring in the article are in line with our non-advertorial policy, by which we mean that we do not promote one organisation over another.

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Tour Operator Job Description Template

Looking for a Tour Operator to join your team? Our job description template can help you find the perfect candidate. As a Tour Operator, you will be responsible for designing, planning, and executing tours and travel packages for clients. You should have excellent communication skills, in-depth knowledge of different destinations, and be able to provide exceptional customer service. With our template, you can easily outline the skills, qualifications, and responsibilities required for the position. Start your search for the ideal Tour Operator with our customizable job description template.

Tour Operator Job Description

A tour operator is responsible for designing, organizing, and selling tour packages for individuals and groups. They work in collaboration with tour guides, transport service providers, and accommodation professionals to ensure a seamless travel experience for their customers.

Key Responsibilities:

• Design, plan and implement tour packages according to customer requirements
• Collaborate with service providers such as hotels, transport companies, and tour guides
• Negotiate rates with service providers to ensure a competitive price for customers
• Advertise and market tour packages to attract potential customers
• Provide customers with all necessary information about their travel plans including visa requirements and travel insurance
• Assist customers in booking flights and arranging transportation to and from airports
• Ensure customer satisfaction by offering exceptional customer service throughout the tour

Requirements:

• Bachelor's degree in travel and tourism, business or related field
• Proven experience in the tourism industry is a plus
• Excellent communication and interpersonal skills
• Strong organizational and planning skills with attention to detail
• Ability to work under pressure and meet deadlines
• Proficient in Microsoft Office and travel reservation software
• Fluency in multiple languages is an asset

Introduction

As a tour operator, you understand the importance of hiring the right personnel for the success of your business. One of the best ways to do this is by creating a compelling job posting to attract the right candidates. In this article, we'll guide you through the process of creating an effective tour operator job posting.

1. Determine the Job Title and Job Summary

To create a compelling job posting, it's crucial to have a clear job title and job summary. The job title should accurately reflect the role's responsibilities, and the job summary should provide an overview of the job's purpose and essential duties.

• Job title: Tour Operator
• Job summary: We are seeking an experienced tour operator to join our team. As a tour operator, you will be responsible for creating and coordinating tours for our clients, ensuring that they have a seamless and enjoyable experience.

2. List the Job Responsibilities

The job responsibilities section is where you outline what the role entails. Be specific when listing these responsibilities as they give potential candidates an idea of what the job requires.

• Create and coordinate itineraries for various tours
• Manage bookings and liaise with suppliers and vendors
• Ensure that tours operate within set budgets
• Provide exceptional customer service to clients

3. List the Required Skills and Qualifications

Having a clear list of skills and qualifications required for the role helps filter out applicants that may not be a good fit for the job. As a tour operator, you should consider the following skills and qualifications:

• Bachelor's degree in Tourism, Hospitality, or a related field
• At least two years' experience in tour coordinating or event management
• Excellent organizational skills and attention to detail
• Strong communication, customer service, and negotiation skills

4. Include Information on Compensation and Benefits

Providing information on compensation and benefits can help attract top talent for the role. In this section, be sure to include details about salary, benefits, and any other incentives that come with the job.

Creating a compelling tour operator job posting can attract the best candidates for the job. Be clear, specific, and transparent about the role, responsibilities, qualifications, and compensation. Doing this could be the first step in finding the perfect candidate for your tour operating business.

Frequently Asked Questions on Creating Tour Operator Job Postings

1. what are the essential components of a tour operator job posting.

A Tour Operator job posting should have a clear and concise job title, a brief job summary, the key responsibilities of the role, the requirements of the position, and any relevant details relating to the company, compensation, and benefits.

2. Should I include the qualifications and experience required for the Tour Operator job?

Yes, it is crucial to include the qualifications and experience required for the Tour Operator job. It can include the level of education, years of experience in the tourism industry, any necessary certifications, and other skills required for the role.

3. How should I structure the Tour Operator job posting?

It would help if you started with a strong title followed by a summary of the role, responsibilities, and qualifications required. This should be followed by a detailed description, and any relevant information about the company and the compensation or benefits offered.

4. What keywords should I use in my Tour Operator job posting to attract qualified candidates?

Keywords such as tourism industry, guiding, customer service, problem-solving, communication skills, travel, and organizing are vital in attracting qualified candidates.

5. Should I include a salary range in the Tour Operator job posting?

It is up to the company or the hiring manager, but it is recommended to include a salary range to attract qualified candidates and avoid wasting time on uninterested candidates.

6. What should I do to make my Tour Operator job posting stand out?

To make your Tour Operator job posting stand out, you should use an eye-catching headline, clearly state what your company provides its employees, convey your work culture, and be specific about the job responsibilities and requirements of the position.

7. How can I ensure that the Tour Operator job posting reaches the right candidates?

You should use the right online job boards, social media platforms, and targeted advertising to ensure that the Tour Operator job posting reaches the right candidates. Additionally, you can share the job posting with industry associations, schools, and tourism organizations.

8. Should I add any disclaimer in the Tour Operator job posting?

It is essential to add a disclaimer in the Tour Operator job posting to protect the company from any legal disputes. This can include a statement that the job posting does not constitute an employment contract and that the company can change the job duties and requirements at any time.

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Who is a Tour Operator? Know Roles and Responsibilities

If travel destinations and tourist places are something that interest you or fill you with enthusiasm, probably then, you must know about a tour operator. Tour operators advise customers about different travel options. They organize tours for individuals or different groups of travelers. As professionals, they prepare tour itineraries, and tour packages and coordinate with vendors for your holidays.

In this write-up, we delve into a tour operator’s roles and discuss the necessary skills, roles, and education qualifications for the job.

Who is a Tour Operator?

A tour operator is someone who belongs to the hospitality industry. He organizes tours and helps customers during trips so that they have positive reviews. Advising customers on different tour packages based on their budget and interests, and handling all logistics of a tour, such as booking tickets and accommodations, are some basic roles assigned to them.

Tour operators generally work for travel agencies or tour companies A tour guide will accompany tourists on their trips, but tour operators are solely available to answer their questions. They provide detailed information about tourists’ itineraries.

Types of Tour Operators

Here are some types of tour operators who can help you plan your holidays better and make them memorable!

1. Domestic Tour Operators

 Domestic tour operators provide tours and travel services within their own country. They serve tourists who desire to explore different regions or attractions within their country.

2. Inbound Tour Operators

These operators serve foreign tourists visiting their country. They plan and organize tours within their own country, and provide services such as transport, accommodation, guided tours, and activities.

3. Outbound Tour Operators

Outbound tour operators organize tours for residents of one country traveling to another country or countries. They arrange the trip, including flights, accommodations, transportation, and activities at the travel destination.

4. Special Interest Tour Operators

These operators specialize in planning tours catering to specific interests or hobbies, such as wildlife safaris, culinary tours, photography tours, adventure travel, or cultural immersion experiences.

5. Wholesale Tour Operators

Wholesale tour operators sell pre-packaged tour products in bulk to travel agencies or retail outlets. They often provide discounted rates to travel agents. Travel agents usually earn a profit by reselling the tours to clients.

6. Incentive Travel Companies

These companies organize travel experiences for corporate groups or organizations as rewards or incentives for employees or clients. They often tailor trips to meet the guided objectives and preferences of the organization.

Tour operators design and organize pre-packaged tours or holiday packages while the Travel agents help clients in booking individual travel components.

What is the Role of a Tour Operator?

Tour operators play a wide array of roles when it comes to planning holiday packages and dealing with tourists.

1. Planning Tour Packages

These professionals design and schedule travel packages for individual travelers or groups of tourists. They coordinate with their clients to discuss their likes and dislikes and then suggest a range of attractions, accommodations, and transportation options to enable the clients to select the tour packages that meet their preferences.

2. Negotiating Rates

Often the tour operators can try to book a group of room /blocks in a hotel for their bigger group. This leads to lower rates for the tourists.

3. Arranging Travel

Tour operators ensure that passengers have their train tickets to travel between the cities or even book a car rental to help customers visit the attractions according to their schedule.

4. Providing Customer Support

A tour operator offers travelers with the technical assistance that they may need before a trip. For example, they may reply to customer questions about a trip they are planning, tell them about currency exchange rates, or notify them if there are any changes in their itinerary.

5. Preparing Tour Budgets

A tour operator comes up with different price options with sample itineraries and counsels customers on the kind of lodging and attractions that are within their budget.

6. Researching Travel Options

Tour operators are specialists who gather and study data on traveling patterns to suggest itineraries to tourists about where they should go, where they will stay, and where they can eat on their trips.  

They read articles and browse online for details about travel trends and popular tourist spots that they can use to stay updated with what is trending currently.

Educational Requirements for a Tour Operator

To become a tour operator you need a high school diploma or equivalent. Some employers, particularly tour companies or travel organizations, may prefer to hire candidates with a bachelor’s degree.

Tour operators need a degree in tourism and travel services management or hospitality management. Many colleges and universities offer these undergraduate programs, and it typically takes four years for students to complete their degree. You can also consider doing short-term courses in the following streams.

• Hospitality finance
• Foundations of tourism
• International hotel management
• Tourism information technology
• Hospitality management strategies
• Sustainable tourism planning
• Revenue management
• Service technology
• Event planning
• Human resources management
• Hospitality sales and marketing

Difference between Travel Agent and Tour Operator

Tour operators and travel agents both play important roles in the tourism industry, but they have distinct functions and responsibilities. Let’s differentiate between the two.

Travel Agent :

A travel agent is an individual or a company that acts as an intermediary between travelers and travel service providers. They may specialize in certain types of travel, destinations, or services.

Travel agents typically earn commissions from the travel suppliers they book with, rather than charging clients directly for their services.

They assist clients in planning and booking the trip, including flights, accommodations, transportation, and activities.

Tour Operator :

A tour operator is a company that designs, organizes, and sells pre-packaged tours or holiday packages to travelers. Tour operators handle all aspects of the tour, including accommodations, transportation, meals, guided tours, and activities. They often work with travel agents to sell their tour packages to clients.

They may specialize in specific types of tours, such as adventure tours, cultural tours, luxury tours, or eco-tours. Tour operators also offer customized tour packages tailored to the preferences and needs of individual clients or groups.

Wrapping Up

The profile of a tour operator is special as it blends creativity, expertise, and impact. Tour operators have the privilege of turning travelers’ dreams into reality by crafting unique and immersive travel experiences tailored to specific interests and preferences.

They have an extensive knowledge of travel destinations, coupled with strong connections with local suppliers. This enables them to offer better service and access to exclusive travel opportunities.

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Moreover, tour operators play a crucial role in promoting sustainable tourism practices as they support local communities, and preserve cultural and natural heritage. Although they may face challenges such as changing rules and unforeseen circumstances, tour operators show professionalism in ensuring the safety and satisfaction of their clients.

A tour operator designs organizes, and sells pre-packaged tours or holiday packages to travelers. They plan and coordinate all aspects of the tour, including accommodations, transportation, meals, guided tours, and activities.

They also negotiate contracts with travel suppliers such as hotels, airlines, transportation companies, and tour guides. A tour operator promotes tour packages to attract clients.

Moreover, they assist and support to travelers before, during, and after the tour. They also ensure compliance with safety regulations and provide a high-quality travel experience.

While both tour operators and travel agents are involved in the travel industry, they have separate roles and functions.

A tour operator specializes in designing and organizing pre-packaged tours or holiday packages for travelers. They handle all aspects of the tour, from transportation and accommodations to planning activities and excursions.

On the other hand, a travel agent acts as an intermediary between travelers and travel service providers. They assist clients in planning and booking various aspects of a trip, such as flights, accommodations, transportation, and activities.

Travel agents may work with tour operators to sell their tour packages to clients, among other services.

A tour operator designs and creates pre-packaged tour itineraries tailored to specific destinations or themes. They negotiate contracts with hotels, airlines, transportation companies, and other travel suppliers to secure competitive rates and check availability.

They handle all logistics related to the tour, including booking accommodations, arranging transportation, and organizing guided tours and activities.

They market and promote tour packages to target audiences through online platforms, travel agencies, and promotional events.

A tour operator provides assistance and support to travelers throughout the tour, including addressing any issues or concerns that may arise.

Finally, they ensure compliance with safety regulations and industry standards to ensure the well-being and safety of travelers.

Last but not least, a tour operator continuously evaluates and improves tour offerings based on customer feedback and market trends to improve the overall travel experience.

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What is a tour operator and how to become one

A tour operator is a professional who plans, organizes, and oversees tour packages and travel arrangements for individuals or groups. They use computer databases to research information on fares, hotel ratings, and travel destinations. Tour operators book and operate private tours and national programs, customizing tours that combine air, land, cruises, and car rentals. They work closely with international partner travel agencies, providing corporate and private booking services. Tour operators also maintain relationships with clients, exceeding their expectations for customer service while securing their travel arrangements. Additionally, they educate customers on travel issues, such as required documentation for international travel and financial matters. Tour operators may also coordinate promotional activities and trade shows, and assist with office management duties.

How long does it takes to become a tour operator?

It typically takes 2-4 years to become a tour operator:

• Years 1-2: Obtaining an associate degree in a relevant field, such as travel and tourism or business.
• Year 3-4: Accumulating the necessary work experience in planning tour itineraries, negotiating with suppliers, and leading tours.

Avg. Salary $47,294

Avg. Salary $59,228

Growth Rate 4 %

Growth Rate 0.3 %

American Indian and Alaska Native 0.86 %

Asian 9.87 %

Black or African American 6.45 %

Hispanic or Latino 10.32 %

Unknown 5.61 %

White 66.90 %

female 54.96 %

male 45.04 %

American Indian and Alaska Native 3.00 %

Asian 7.00 %

Black or African American 14.00 %

Hispanic or Latino 19.00 %

White 57.00 %

female 47.00 %

male 53.00 %

Stress level is manageable

Complexity Level is intermediate

7 - challenging

Work Life balance is good

Tour Operator career paths

Tour operators often move on to become travel agents, consultants, or account executives. They may also start their own business or become managers. In some cases, their skills can be applied to roles like administrators, sales managers, or marketing consultants.

Key steps to become a tour operator

Explore tour operator education requirements.

The educational requirements for a tour operator typically involve a high school diploma at minimum, with many operators holding an associate or bachelor's degree. According to the data, 21.82% of tour operators have a high school diploma, 32.48% have an associate degree, and 30.03% have a bachelor's degree.

According to Jane Smith, a tourism industry expert at the World Tourism Organization, "A degree in business, hospitality management, or marketing can provide a solid foundation for a career as a tour operator." However, she also emphasizes the importance of practical experience and on-the-job training, stating, "While education is important, it's also crucial for tour operators to have firsthand experience in the industry."

Most common tour operator degrees

Bachelor's

Master's

Start to develop specific tour operator skills

Tour operators need to be skilled in researching information about fares and hotel ratings, booking and operating tours, and supervising the development of computerized travel reservation systems. They must also be able to manage customer complaints, customize tours, and maintain relationships with clients and vendors.

Complete relevant tour operator training and internships

Research tour operator duties and responsibilities.

A tour operator's main responsibilities include researching information about fares and hotel ratings, booking tours and travel arrangements, and supervising programmers in writing an integrated computerized travel reservation system. They also focus on operational execution, sales and marketing, and product development for domestic and international resources. Additionally, they customize tours, arrange travel packages, and maintain relationships with clients and vendors.

• Plan itineraries, make reservations, lead tours, obtain licenses for foreign pilots, manage a fleet of light aircraft.
• Manage VIP guest calendar to ensure these guests are given quality service from staff.
• Process and issue airlines, transfers, hotels, and city tours reservations for groups.
• Train customers in operating Segway personal transport devices and hold entertaining tours.

Prepare your tour operator resume

When your background is strong enough, you can start writing your tour operator resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on a tour operator resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose From 10+ Customizable Tour Operator Resume templates

Apply for tour operator jobs

Now it's time to start searching for a tour operator job. Consider the tips below for a successful job search:

• Browse job boards for relevant postings
• Consult your professional network
• Reach out to companies you're interested in working for directly
• Watch out for job scams

How Did You Land Your First Tour Operator Job

Are you a Tour Operator?

Share your story for a free salary report.

Average tour operator salary

The average Tour Operator salary in the United States is $47,294 per year or $23 per hour. Tour operator salaries range between $27,000 and $82,000 per year.

What Am I Worth?

How do tour operators rate their job?

Tour operator faqs, what degree do you need for hospitality and tourism, search for tour operator jobs.

Updated June 25, 2024

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

Tour Operator Related Careers

• Art Museum Aide
• Campus Tour Guide
• Driver/Guide
• Escort Service Attendant
• Fishing Guide
• Hunting Guide
• Museum Attendant
• Museum Guide
• Outdoor Guide
• River Guide

Tour Operator Related Jobs

• Art Museum Aide Jobs
• Campus Tour Guide Jobs
• Docent Jobs
• Driver/Guide Jobs
• Escort Jobs
• Escort Service Attendant Jobs
• Fishing Guide Jobs
• Hunting Guide Jobs
• Museum Attendant Jobs
• Museum Guide Jobs
• Operator Jobs
• Outdoor Guide Jobs
• River Guide Jobs

What Similar Roles Do

• What Does an Escort Do
• What Does a Guide Do
• What Does an Operator Do
• What Does a River Rafting Guide Do
• What Does a Tour Guide Do

Resume For Related Jobs

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What is a Tour Operator?

Embarking on a journey to a new destination is an exciting adventure that brings with it the promise of discovery, cultural immersion, and unforgettable experiences. While the allure of wanderlust beckons, the complexities of planning a seamless trip can sometimes be daunting. This is where tour operators step in to create a bridge between your travel dreams and reality. In this blog, we’ll delve into the world of tour operators, highlighting their benefits and comparing them to traditional travel agencies.

A tour operator is a travel professional or company that designs, organizes, and sells comprehensive travel packages that include various elements such as transportation, accommodation, activities, meals, and more. These packages are carefully curated to offer travelers a hassle-free and well-structured experience. Tour operators work closely with local suppliers, hotels, transportation providers, and guides to ensure that every aspect of your journey is thoughtfully planned and executed.

The Benefits of Choosing a Tour Operator

Expertise and Local Insight: Tour operators possess in-depth knowledge of the destinations they offer. They have the ability to craft itineraries that showcase the must-see attractions as well as hidden gems that might go unnoticed by the average traveler.

Saves Time and Effort: Planning a trip can be time-consuming and overwhelming. Tour operators take the burden off your shoulders by handling all the logistics, from booking accommodations and arranging transportation to organizing activities.

Tailored Experiences: While group tours are popular, tour operators also offer customized itineraries for travelers who prefer a more personal touch. They consider your preferences, interests, and travel style to create a journey that suits you perfectly.

Seamless Transitions: Moving from one location to another can sometimes be tricky, especially in unfamiliar places. Tour operators ensure smooth transitions between destinations, taking care of transportation and minimizing any potential stress.

Access to Exclusive Experiences: Tour operators often have established relationships with local guides and suppliers, granting you access to unique experiences that might not be available to independent travelers.

Safety and Support: Traveling to a foreign country can present unexpected challenges. Tour operators provide a safety net, offering assistance and support in case of emergencies or unforeseen circumstances.

Tour Operators vs. Travel Agencies

While both tour operators and travel agencies play pivotal roles in the travel industry, they differ in their approach and scope:

Tour Operators: As discussed, tour operators focus on crafting comprehensive travel packages that encompass various aspects of a journey. They specialize in creating cohesive experiences, handling everything from accommodations to activities.

Travel Agencies: Travel agencies primarily assist with booking individual components of a trip, such as flights, accommodations, and car rentals. They offer flexibility but often require travelers to assemble these components into a coherent itinerary themselves.

Why Choose a Tour Operator?

Holistic Experience: Tour operators offer a complete, well-rounded experience that takes the stress out of planning.

Local Insights: Their expertise ensures that you gain insights into the culture, history, and lifestyle of your destination.

Time and Effort Savings: With all the logistics managed for you, you can fully immerse yourself in the journey without worrying about details.

Peace of Mind: The support and assistance of a tour operator provide a safety net, enhancing your sense of security while traveling.

Exclusive Access: Tour operators often provide access to unique experiences that are carefully curated to enhance your journey.

In the realm of travel, tour operators emerge as true architects of unforgettable experiences. With their dedication to crafting seamless journeys, local insights, and personalized touch, they stand out as ideal partners for turning your travel dreams into reality. When considering your next adventure, think beyond the conventional travel agency and embrace the benefits of choosing a tour operator. Your voyage awaits – let Juniper guide you on a path to remarkable discoveries.

Thanks for checking out Juniper Tours’ Travel blog! We hope you enjoyed your read and if you’re looking for more content please check out our other blog posts ! If you’re looking for help planning your next travel adventure then book a FREE travel consultation with one of our Travel Specialists today!​

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Tour Operators

Tour operator is an organization, firm, or company who buys individual travel components, separately from their suppliers and combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen, is called a Tour Operator .

More precise tour operators are primarily responsible for delivering and performing the services specified in a given package tour. They can provide these services themselves as some have their own cars and coaches, hotels, and other travel-related services or can obtain these from the other suppliers. That is why they are called manufacturers of tourism products .

Tour operators are sometimes called wholesalers but this is partially true because a wholesaler buys goods and services in bulk at his own account to prepare a tour package and then retails it through the travel agencies or directly to clients. However, a tour operator who has his own one or more tourists products components, (SOTC, TCI, Thomas Cook, Indo Asia KUONI formulates a new tourist product for example ‘ inclusive tours .’

Tour operators generally offer a variety of package tours to cater to the needs of different kinds of travelers.

Definitions of Tour Operator

Poyther (1993) defines, “tour operator is  one who has the responsibility of putting the tour ingredients together, marketing it, making reservations and handling actual operation.”

Holloway (1992) stated that tour operations undertake a distinct function in the tourism industry, they purchase separate elements of tourism products/services and combine them into a package tour which they sell directly or indirectly to the tourists.

Today, tour operators have become highly competitive. They endeavor to achieve a high volume of turnover, and maximum International and domestic market share by effectively operating. Moreover, the success of many developed and developing nations as tourists destinations depend heavily on a tour operator’s ability to attract tourists, development and promotion of tourism plant, diversification of tourism product and their social responsibilities to develop a remote and backward area.

Types of Tour Operators

Tour operators are basically categorized into four types . These are categories on the basis of their nature of the business and its operations.

Inbound Tour Operators

Outbound tour operators, domestic tour operators.

• Ground Operators

These are also known as incoming tour operators . Technically, the operators who receive guests, clients/tourists, and handle arrangements in the host country are c alled inbound tour operators . For example, a group of American Tourists is coming through TCI Ltd. to India and the company makes arrangements and handles the group in India then TCI is called an inbound tour operator.

Incidentally, the inbound traffic to the country for the last two decades has been decreasing. Essentially the tour operators need to adopt innovative marketing strategies and should introduce a special interest tour to cater the special needs of Japanese, Americans, French and British people.

Tour operator who promote tours for foreign destinations, maybe business tour or leisure tour is called outbound tour operators . For example a group of American tourists going to a trip of India and Thomas Cook handle arrangement in America like as ticket reservation, hotel booking etc. then Thomas Cook is called Outbound Tour operators in the context of America.

Domestic tour operators are those who assemble, combine tourist components into inclusive tours and sell it to the domestic travelers. In general, these tour operators provide travel services within the tourist’s native country.

The domestic tour operators operate within the boundary of the home country and offer package tour to the travelers viz. Domestic inclusive tours or independent tours.

Ground Operators/Destination Management Companies

These are commonly known as handling agencies and their main function is to organize tour arrangements for incoming tourists on the behalf of overseas operators. Let us take the case of India as a destination that – has a varied culture.

When a tour operator himself promotes beach holidays, wildlife holidays, adventure tours, heritage tours at the different places, the difficulty arises. It is the ground operator then who by handling the incoming travelers in the same season but at different places ensures that the entire operation is according to the package tours or agreements.

Sometime when a handling agency is at a prominent tourist place i.e., Delhi and it has to make arrangements to Goa, then it contracts (If it has no office of its own) with a local operator (known as excursion agent) to handle the arrangement on his behalf.

Why Ground Operators?

Obviously, the tour operation companies do not have close contact with suppliers, governments, destinations and so on. It leaves no choice with the companies but to appoint handling agencies at the destinations.  The main reasons are:

• Introduction of new products or plant to promote an exotic destination.
• Lack of Government regulations.
• Lack of personal contract.
• Language problem.
• The company cannot establish its own branch.

Recognizing the very fact that the reputation, performance, and profitability of tour company in its own market largely depends on the efficiency and effectiveness of ground operators, it has because necessary for the company to consider various factors before the selection of a handling agency, they are:

• Size of business
• Professional staff
• Length of business
• Area of operation/Product line
• Market share

Functions of Ground Tour Operators

Over the years of functions and activities of the destination, companies have changed drastically to cope with the changing environment of the tourism industry. In fact, today’s destination companies have become more professional and are bound to provide personalized travel services to the tourists. The following functions are performed by ground tours operators:

• Land arrangement
• Contract and Negotiate with other vendors
• Handling of Arrival and departure procedure
• Planning and organizing local package tour
• Escorting the tourists
• Providing market information
• Costing and pricing package tour

Practically, if we see the working of the travel agencies and tour operators in the industry we find that most of the organizations are performing different types of activities like the retail travel agency , wholesale travel agency, and tour operators.

The travel agency business is no longer an amateurism. Over the last two decades, the pattern and structure of travel agencies have changed to meet tough challenges in the international market. Today, small-scale agencies are finding the travel industry increasingly complex.

Thus, the small and medium scale travel agencies are disappearing or merging or falling instead of rising. On the other hand, a new concept has also emerged i.e. tour operation business . The tour operation business is new but a maturing business at the global level.

Functions of Tour Operator

A tour operator is an organization, firm, or person who is responsible for the actual arrangement of transport and accommodation facilities on any tour or vacations. They are also responsible for operating and providing vacation through contracting, booking, and packaging together of the various components of the tour such as hotel, transportation, meals, guides, optional tours, and sometimes flights.

A tour operator is like a service provider, providing the most convenient option for tourists to stay, visit, as well as leave from the city. A tour operator owns a high volume of travel services across carriers, services, and accommodation. Some most important functions of the tour operators are following as:

Planning a Tour

The most important functions of the tour operators are planning a tour. Tour operators plan a tour and make tour itinerary which contains the identification of the origin, destination and all the stopping point in a traveler’s tours. A prospective tour operator also gives advice to intending tourists in various types of tour programmes, which they may choose for their leisure or commercial travel.

Making Tour Package

Tour operator buys individual travel components, separately from there suppliers and combines them into a package tour. Tour operators make tour package by assembling various travel components into a final product that is called tour package which is sold to tourist with own price tag. Making tour packages is also an important function of Tour Operator.

Arranging a Tour

Tour operators make tour package and also arrange a tour according to tourist demands. Tour operators arrange the tour package and various tourists activities to provide the best experience to tourists/traveler.

Travel Information

Whatever the size of tour operators, it has provided necessary travel information to the tourists. This task is utterly difficult and very complicated. A tour operator must give up-to-date, accurate and timely information regarding destinations, modes of travel, accommodation, sightseeing, immigration, health and security rules about various permits required to travel in a particular area etc.

Reservation

It is a very important function of all type tour operators and travel agencies. Tour operator makes all the reservation by making linkages with accommodation sector, transport sector and other entertainment organizations to reserve rooms, and seats in cultural programmes and transportation.

Travel Management

Tour operators manage tour from beginning to the end of the tour. A tour operator has the responsibility to look after the finer details of a vacation or tour such as hotel, accommodation, meals, conveyance etc. Tour operators provide travel guide, escorting services and arrange all travel related needs and wants.

Evaluate the Option Available

Tour operators evaluate all available options to provide a unique or unforgettable travel experience to tourists during their journey. Tour operators evaluate the various options available for a tour package and provide best of them to tourists.

Tour Operators makes tour packages and promote them into various tourists markets at domestic as well international level. Tour operators promote a travel destination to attract a large group of tourists at domestic as well as international level. In the promotion of tourist destination, tour operators play a key role. Travel agencies or tour operators are called as image builder of a country.

Sales and Marketing

Tour operators do sales and marketing of tourist products. Tour operators buy individual travel components, separately and combine them into a tour package, which is sold with their own price tag to the public directly. Tour operators do marketing of tourist destinations and tourism product to attracts the attention of the tourists/travelers.

Taking Care of Glitch

Tours operators are also called handling agencies which handles tour package and take care of all the glitches and problems arises during a tour package. Tour operators fix the glitches and provide the best available alternative to tourists during their journey.

Importance of Tour Operators

Tours operators play a key role in the tourism sector. Tour operators create tourist products, promote them a finally sold them to tourists.

Tour operators provide the best and competitive price to the tourist. Tour operators negotiate with suppliers of tourism products such as hotels, airlines and provide the best possible price to the tourist. Tour operators buy tourist products in bulk and get huge discounts from suppliers. So that they provide tourist products at a cheap price.

Tour operators organized a tour in the best way. They personalize and make sure each and every component of the tour is well-taken care. Tour operators provide the best travel experience during a tour. Tour operators save tourists time and money.

Tour operators provide immediate support systems at the host country as well as a foreign land. When tourists travel to a foreign land and things get uncertain, maybe its a health or loss of documents and need to return back or change of travel plan. A qualified tour operator takes care of all these unseen events with efficiency.

Tour operator caters to the needs of tourists on the based on their taste of travel. Tour operator provides all the best available option according to tourist needs and demands

Difference between Travel Agent and Tour Operator

There is a lot of confusion about the difference between tour operators and travel agents what exactly makes them different. The main difference between a Travel agent and Tour operator are following as:

• A travel agent is a person who has full knowledge of tourist product – destinations, modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of the product providers/principals and in return get a commission.
• Tour operator is an organization, firm, or company that buys individual travel components, separately from their suppliers and combines them into a package tour, which is sold with their own price tag to the public directly or through middlemen.
• Tour operators are like wholesalers and travel agents are the retailers.
• A tour operator makes the package holidays up and the travel agents sell them on.
• Tour operator taking up the bulk of the responsibilities and his fee is obviously much greater than a travel agent.
• A tour operator has the responsibility to look after the finer details of a vacation or tour such as hotel, accommodation, meals, conveyance, etc.

The wholesale travel agencies may offer or operate the package tours or may specialize in developing tours for inbound as well as outbound travelers. They are often referred to as tour operators, but there is a difference between Wholesale Travel Agencies and Tour operators .

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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Photo Credit: Destination BC / Toshi Kawano

Tour Operators are involved in planning, development, promotion, administration and implementation of tourism products. They oversee all the day-to-day tasks and also supervise, motivate and train staff. They are employed by tour or transportation companies, resorts or attractions. They may travel to proposed tour sites, check them out and experience the services first hand before assessing their tourism potential.

Responsibilities

• Use operations management skills
• Use sales and marketing skills
• Manage human resources
• Develop products
• Use financial management skills

Knowledge, Skills and Abilities

• A secondary school diploma is required
• A university degree or college diploma in tourism or history is an asset
• Previous management and tourism experience is an asset
• Human resource management skills
• Leadership skills
• Team-building skills
• Financial management skills are required
• Good communication
• Excellent customer service skills are required
• Knowledge of relevant destinations, attractions and travel are important
• Research skills are an asset
• Knowledge of a second language is an asset
• Risk management skills are an asset
• Time management skills are an asset

Possible Future Career Paths

• Senior Manager
• General Manager
• Owner/Operator of tour operation

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The leading free job board for tourism and hospitality jobs in BC. From front line customer service to culinary/trades/technical to senior executive positions, BC’s vibrant tourism and hospitality industry offers a variety of occupations. Whatever your career goals are, the go2HR Job board can help get you there.

https://www.go2hr.ca/career-summary/tour-operator

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What is a Tour Operator? Types, Importance, Pros & Cons

Home » Blog » What is a Tour Operator? Types, Importance, Pros & Cons

Tour operators are the masterminds behind many unforgettable vacations. They organize travel experiences taking the hassle out of planning for travelers ensuring a seamless journey.

But what exactly are tour operators? What do they do, and why are they important?

Stay with us as we discuss all the above queries and more!

Table of contents

What is a tour operator, 1.inbound tour operators, 2.outbound tour operators, 3.domestic tour operators, 4.receptive tour operators, 5.ground tour operators, roles of a tour operator, importance of a tour operator, best tour operators, best tour operator software, tour operator vs travel agency, difference between a tour operator and a travel agency (infographics), frequently asked questions.

A tour operator is a company that specializes in designing and packaging travel itineraries . They act as a one-stop shop for travelers, offering pre-arranged tours that typically include flights, accommodation, transportation, sightseeing activities, and sometimes even meals.

They cater to various interests and budgets, offering adventure trips, cultural experiences, luxury getaways, and more. A tour operator not to be confused with a travel agency thinks up ideas for holidays, researches the ideas, designs the holiday itinerary, and contracts all the services needed.

Types of Tour Operators

Tour operators can be divided into five main categories: inbound, outbound, domestic, receptive, and ground.

Inbound tour operators bring tourists into the country in groups or through individual travel packages. They make all the arrangements in the host country, and the trips they organize are mainly intended for foreigners visiting the country.

When a group of Indian tourists wants to explore France, the company in France that organizes the whole trip is called the inbound operator. So inbound operators are local and offer trips that include their own country.

Unlike inbound, outbound tour operators work in their own country to take travelers to other countries. These are operators that market their travel to international destinations for either business or leisure.

For example, suppose a group of German tourists are planning a trip to India. Then the outbound operator is a German travel company that handles all ticket and hotel reservations.

Domestic tour operators are those who put together complete travel packages and sell them to domestic travelers. In other words, they are operators that offer travel packages and trips in the tourist’s home country.

Domestic travel usually involves residents of a certain country traveling within that country. They can visit national parks, scenic areas, hospitality tours, city tours, hikes, etc.

Receptive Tour Operators (RTO) provide travel products to companies in other markets (as a business-to-business relationship).

In particular, RTOs sell travel products to operators and/or travel agents, whether sold in a package or individually. They are primarily wholesalers and do not sell directly to the public.

Ground Tour Operators operate domestically. However, they differ from domestic operators in that they organize trips for inbound tourists on behalf of the inbound operator (and sometimes also the outbound).

Tour operators are responsible for the operation of a vacation by contracting, booking, and packaging together various travel components . These components can include: hotel, transportation, meals, guides, optional tours, and flight.

• Development of Tour Packages: These professionals develop travel packages for individual clients or groups of travelers. They work with clients to understand their interests and recommend different attractions, accommodations, and transportation options to help clients choose a travel package.
• Negotiating Prices: Companies usually negotiate prices with other vendors, such as hotels and transport companies. For example, they can ask the hotel to lower the room rates for a large tourist group.
• Travel Management: These professionals help organize travel plans for clients to reach their destinations. For example, they can book a bus to help customers travel between cities or a rental car to help customers reach various attractions.
• Providing Customer Support: The company provides customer support to help their customers prepare for their trips. For example, they can answer customers’ questions about the destination, provide information about exchange rates, or notify them of changes to travel plans.
• Travel Budgeting: Travel companies work with clients to help them budget for their trips. They develop different itineraries at different prices and advise clients on accommodation and sightseeing within their desired budget.
• Researching Travel Options: These professionals research different trips to give their clients recommendations on places to visit, stay, and eat. They read articles and search the web for information on travel trends and new destinations to stay current in their field.

Explore this article “World Tourism Ranking by Country 2024”

Pros and Cons of Tour Operator

A tour operator puts together packages by bundling the individual services making up itineraries. That’s why it’s sensible to review your options.

So, what exactly are the advantages and disadvantages of using a tour operator?

• Competitive Prices: They can offer more economical packages than individual options providing better value for money. They often negotiate discounted rates, making travel more affordable.
• Peak Season Options: They can anticipate peak season dates and offer options for these times.
• Convenience: Travel companies can provide seamless connections from one location to the other. They handle everything, allowing travelers to relax and enjoy the experience.
• Expertise: Their knowledge of destinations ensures a well-rounded itinerary with hidden gems and local experiences. They can ensure that travelers don’t miss any hidden corners of a destination.
• Reduced Stress: No need to research or book individual components, leaving travelers free to focus on having fun.
• Resolve Unseen Problems: Travel companies can resolve unforeseen problems, such as flight delays or cancellations.
• Safety and Security: Companies can provide an environment of safety for visitors. They can assign guides for support and guidance, especially in unfamiliar destinations.
• Assurance: If the arrangements made by an operator fall short of what was agreed, you can seek redress by way of a refund.

However, working with an operator can have downsides as well. Some disadvantages may include:

• Less Flexibility: Itineraries are predetermined, offering less freedom for spontaneous exploration. If you discover an activity or a restaurant you’d like to try that isn’t on your pre-planned itinerary, you may not be able to explore it.
• Limited Personalization: Customization options might be limited compared to independent travel.
• Higher Cost : It might not be your cheapest option. Tour packages can sometimes be pricier than piecing things together yourself.
• Larger Groups: Tour groups can range from private trips to groups of 50 or more people. Some tours involve group travel, which might not suit everyone.

Tour operators play a vital role in the tourism industry by planning and coordinating travel plans, travel packages, activities, and itineraries for their clients.

They use their expertise and resources to create high-quality tour packages helping tourists travel stress-free. Other reasons why tour operators are important are:

• Competitive Pricing: They negotiate in advance with hotels and airlines and offer you the best rates.
• Well Organized: Since the company is a travel company, they want to provide you with the best ground services. They personalize and ensure that every part of the tour is well taken care of.
• Boosting Tourism: They promote destinations and generate tourist revenue, benefiting local economies.
• Ensuring Quality: They maintain high standards for travel experiences, making sure travelers have a positive experience.
• Convenience and Accessibility: They make travel accessible to a wider range of people, including those who might not have the time or expertise to plan their own trips.
• Immediate Support System: When traveling to a foreign country things can become uncertain at any time. A competent company handles all these unprecedented events efficiently.
• Supporting Local Businesses: They partner with local businesses, contributing to the growth of sustainable tourism practices.
• Networking Opportunities: A tour company targets many people like you. Staying, traveling, and eating together is a great way to increase your network.

There isn’t a single best tour operator as it depends on your travel style, budget, and destinations. However, here is a list of the 10 best travel companies & tour operators in the USA with 191,668 reviews. [Source: tourradar ]

Travel companies that organize guided tours use travel operations software to manage customer information, travel information, and background functions. This type of tour operator software helps companies keep track of the organizational aspects of travel such as schedules, itineraries, meal plans, and more. In addition, it tracks tourists and participants, as well as personal tasks and activities. Companies can use this type of software to manage costs, expenses, and revenue. Capturing 75% of the Global Tourism market with over 883,934+ downloads globally and surpassing software like Rezdy, Peek Pro, Bokun, and more, the best software is found to be WP Travel . Here’s a list of the 5 best tour operator software:

Check this article on Best Tour Operator Software for a detailed overview of features and prices.

A tour operator is a person or organization responsible for planning travel and vacation packages. G Adventures and Intrepid Travel are some famous examples.

A travel agency is a private broker or agency that sells holiday packages. American Express Travel is an example of a travel agency. While Booking.com is also a travel agency, it is regarded as an Online Travel Agency (OTA) rather than a traditional one.

When the tour operator creates services, the travel agency is the intermediary that sells those services.

Further differences between a tour operator and a travel agency can be discussed below:

Explore this article “Tour Operator vs Travel Agent- What are the Differences?”

Launching your own tour operator business can be an exciting and rewarding venture. Here’s a roadmap to get you started: 1. Research the market and develop a solid business plan. 2. Create a unique brand and effective marketing strategy. 3. Develop tailored tour itineraries by collaborating with local businesses. 4. Prioritize safety protocols and staff training 5. Integrate technology like online booking and tour management software.

To package a tour, tour operators first research trends, design itineraries, then source local activities, and negotiate bulk rates with hotels and transportation. With everything neatly bundled (accommodation, meals, travel), they create a price-conscious package and market it through various channels. Some even offer customization options for the customer.

Tour operators function by streamlining the travel experience. They utilize bulk rates on flights, hotels, and activities. This allows them to create pre-designed packages that bundle everything you need for your trip – flights, accommodation, transportation, and sometimes even meals or entrance fees. This one-stop-shop approach simplifies trip planning, letting you focus on enjoying the destination.

Here’s a step-by-step process to start your very own tour operator business. Research and Planning 1. Legal and Financial Consideration 2. Branding and Marketing 3. Operations and Logistics 4. Technology Integration 5. Hiring and Training Staff 6. Launch and Growth Strategies. To look into these steps in detail, check this article on starting a tour company .

No, booking.com is not a tour operator. It is one of the largest online travel agencies in the world. Booking.com does not create its own travel packages but helps tour operators from around the world market their packages.

Yam Bahadur Chhetri is a content writer and vivid contributor to the WordPress community and a WordPress enthusiast with an experience of 7+ years in the relative field. He also loves to develop WordPress Themes, Plugins, and custom WordPress development for clients.

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Different types of tour operators that you should know about.

Tour operators are an integral part of the travel industry. They play a crucial role in creating and selling travel packages to different destinations worldwide. A tour operator is a company that puts together travel packages, which usually include transportation, accommodation, and activities, and sells them to consumers. This blog will discuss the different types of tour operators and their roles in the travel industry. Knowing the types will help one to choose the better fit. 

Types of tour operators

As per the requirement, there are different types of tour operators in the travel industry. Some of these include inbound tour operators, outbound tour operators, domestic, specialist among others. Let us explore them one by one. 

1. Inbound Tour Operators

Inbound tour operators organize and sell travel packages for visitors coming into the country. They are responsible for creating itineraries and ensuring that visitors have a memorable experience during their stay. They typically work with local suppliers, such as hotels, transportation companies, and tour guides, to assemble their packages.

2. Outbound Tour Operators

Outbound tour operators are companies that organize and sell travel packages for consumers who are traveling out of their home country. They are responsible for creating itineraries and ensuring that travelers have everything they need for their trip. They work with local suppliers in the destination country to ensure everything is in place when their clients arrive.

3. Domestic Tour Operators

Domestic tour operators organize and sell travel packages within their home country. They specialize in creating tours that showcase the best that their country has to offer. They work with local suppliers, such as hotels, transportation companies, and attractions, to create their packages.

4. Specialist Tour Operators

Specialist tour operators focus on specific niches within the travel industry. They may specialize in adventure, education, luxury, or any other type of travel that appeals to a particular group of travelers. They typically have a deep knowledge of their niche and can create unique and memorable client experiences.

5. Travel Agency and Tour Operators

Travel agencies and tour operators are often used interchangeably, but there is a noticeable difference between the two. Travel agencies typically sell flights, hotels, and transportation, while tour operators create and sell complete travel packages that include activities and accommodation.

6. Luxury Tour Operators

Luxury tour operators create and sell high-end travel packages to discerning travelers. They typically offer personalized service, exclusive access to attractions and activities, and top-of-the-line accommodations. Luxury tour operators cater to travelers who are looking for a one-of-a-kind experience.

7. International Tour Operators

International tour operators are companies that create and sell travel packages to destinations around the world. They work with local suppliers in each destination to develop itineraries that showcase the best of what the goal has to offer.

8. Coach Tour Operators

Coach tour operators are companies that organize and sell tours that are conducted on a coach or bus. These tours typically cover a large area or several countries. They offer a convenient and affordable way to see multiple destinations in one trip.

9. Receptive Tour Operators

Receptive tour operators work with other tour operators to create travel packages for a specific destination. They are responsible for coordinating the local suppliers and ensuring that everything runs smoothly during the trip.

10. Adventure Tour Operators

Adventure tour operators specialize in creating and selling travel packages that offer outdoor activities and adventures. These tours may include hiking, rafting, or wildlife safaris and are designed for travelers looking for an adrenaline rush.

11. Educational Tour Operators

Educational tour operators create and sell travel packages that focus on educational experiences. These tours may include visits to historical sites, museums, or cultural events and are designed to give travelers a deeper understanding of the destination.

Why tour operators are crucial?

Tour operators play a vital role in the travel industry as they create and sell travel packages that offer unique and memorable experiences for travelers. By understanding the different types of tour operators, travelers can choose the right tour operator for their specific needs and preferences.

It's also worth noting that many travel agencies also offer tour operator services, so it's important to do your research and choose a reputable company with experience in the destinations and types of travel that interest you.

Whether planning a domestic trip or an international adventure, working with a tour operator can save time and hassle while providing unique and memorable travel experiences. In addition, many tour operators are now offering more sustainable travel options, such as eco-tourism and responsible travel. These tours aim to minimize the impact of tourism on the environment and local communities while providing travelers with unique and authentic travel experiences.

Another trend in the tour operator industry is using technology to enhance the travel experience. For example, some tour operators now use virtual reality to provide travelers with a preview of their destination or to offer immersive experiences during the trip. Tour operators will likely continue to adapt and innovate as the travel industry continues to evolve to meet travelers' changing needs and preferences. Suggested Read:  How to Become a Travel Agent

In summary, tour operators play a vital role in the travel industry, offering travelers a wide range of options and experiences. By understanding the different types of tour operators and their functions, travelers can make more informed choices when planning their trips. With the increasing focus on sustainability, responsible travel, and technological innovation, the tour operator industry is poised to continue growing and evolving in the years to come.

Frequently Asked Questions

Q1. what are the criteria for classifying tour operators, q2. who do tour operators collaborate with, q3. what industry does a tour operator work in, q4. what is the role of an inbound tour operator, q5. what sets luxury tour operators apart.

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Tour Operator Career

*A job as a Tour Operator falls under the broader career category of Travel Guides. The information on this page will generally apply to all careers in this category but may not specifically apply to this career title. Job Description for Travel Guides : Plan, organize, and conduct long-distance travel, tours, and expeditions for individuals and groups.

Is Travel Guide the right career path for you? Take the MyMajors Quiz and find out if it fits one of your top recommended majors!

Travel Guide Career

What travel guides do:.

• Give advice on sightseeing and shopping.
• Resolve any problems with itineraries, service, or accommodations.
• Attend to special needs of tour participants.
• Arrange for tour or expedition details such as accommodations, transportation, equipment, and the availability of medical personnel.
• Evaluate services received on the tour, and report findings to tour organizers.
• Plan tour itineraries, applying knowledge of travel routes and destination sites.
• Sell travel packages.
• Administer first aid to injured group participants.
• Lead individuals or groups to tour site locations and describe points of interest.
• Pay bills and record checks issued.
• Verify amounts and quality of equipment prior to expeditions or tours.
• Provide tourists with assistance in obtaining permits and documents such as visas, passports, and health certificates, and in converting currency.
• Instruct novices in climbing techniques, mountaineering, and wilderness survival, and demonstrate use of hunting, fishing, and climbing equipment.
• Explain hunting and fishing laws to groups to ensure compliance.
• Sell or rent equipment, clothing, and supplies related to expeditions.
• Pilot airplanes or drive land and water vehicles to transport tourists to activity or tour sites.
• Set up camps, and prepare meals for tour group members.

What work activities are most important?

Holland code chart for a travel guide.

Which Type of Tour Operator are You?

Let’s be honest – the tour operator business is highly competitive as companies try to get a large share of the international and domestic markets they operate in. In order to better navigate the landscape, you need to understand where you stand in that market.

We all know that a tour operator is one who packages key components (or all) of a trip, markets it, sells it to a traveler or tourist, and handles the entire tour operation.

But do you know exactly which type of tour operator you are?

Having clarity on this question will help you identify key partners to work with (like DMOs or hotels) and make better business decisions overall. As a result, you’ll be able to curate better tour packages and run your entire tour operation smoothly, efficiently and successfully.

This is why we’ll cover the different types of tour operators below (plus – we’ve attached a handy infographic at the end for your reference).

So, let’s get to it – which type of tour operator are you?

Types of Tour Operators

There are five main categories of tour operators that you could fall into: inbound tour operators, outbound tour operators, domestic tour operators, receptive tour operators, and ground tour operators. Let’s find out which one of these five you fall into.

Of course any tour operator cannot be fully successful without a booking system that will automate all reservation processes and allow them to generate more revenues. If you still haven’t got a booking system, try Regiondo , the most popular booking system in Europe designed to streamline your booking process. Book a demo with Regiondo experts to learn how your business can leverage booking system.

Inbound Tour Operators (AKA Incoming Tour Operators)

Inbound tour operators bring tourists into a country as a group or via individual tour packages. They handle all arrangements in the host country; and the types of tours they curate are specifically for non-residents touring the country.

Let’s look at an example.

If a group of Italian tourists want to explore Germany, then the tour operator in Germany who handles all the arrangements for the tour is known as an inbound tour operator. So, inbound tour operators are locally based and offer tours that cover their own country.

Most inbound tour operators hire local travel agencies for things like airport pick-up and drop-off; form partnerships with local hotels and businesses; and have key partnerships with other types of tour operators (who help them run tours on the ground).

Outbound Tour Operators

Unlike inbound tour operators, outbound tour operators work within their countries to take travelers to other countries. They are tour operators who market their tours for international destinations, either for business or leisure travel.

Let’s say, for example, that a group of Canadian tourists are planning a trip to Italy. Then the tour company in Canada that handles all the ticket reservations and hotel bookings is the outbound tour operator.

To further simplify things, outbound tour operators design and package tours for tourists in their home country to visit an international destination.

Now, most outbound tour operators choose to specialize in specific destinations: either a destination that is “trending” or one in which they have particular expertise and distribution partners. They often work with other tour and activity providers in the destination when designing their travel packages.

Domestic Tour Operators

Domestic tour operators are those that put together inclusive tour packages and sell them to domestic travelers. In other words, they are tour operators who provide travel packages and tours within a tourist’s native country.

Domestic tours usually involve residents of a specific country traveling within that country. They can visit national parks, scenic areas, hospitality tours, city tours , train tours, etc. Since there are many options that tourists can choose from, domestic tour operators often combine several tourist components into an inclusive package that they can sell to travelers within the boundary of the country.

Domestic tour operators form key partnerships with other tour and activity providers in order to attain a larger share of the domestic tourism market.

Receptive Tour Operators (RTOs)

Receptive Tour Operators (RTOs) provide tourism products to tour operators in other markets (as a business-to-business relationship).

Specifically, RTOs sell tourism products, whether they are sold in a tour package or alone, to tour operators and/or travel agents . They are essentially wholesalers and they don’t sell directly to the public.

So how do they make money?

They add a percentage rate (or fee) to the final price that the tour operator is selling the product or service for. When a travel agent buys the tour product, they incur the RTO’s fee in the final price. In that sense, RTOs do not charge commission. They simply market the tourism product and add their fee to the final product price.

Another key characteristic of RTOs is that they are experts in the region they operate in; and know much more than just the hotels and types of tourism activities that are offered in the region. As such, RTOs to help other tour operators identify things like hotels, services and design itineraries in regions they are not familiar with.

Ground Tour Operators

Ground tour operators operate domestically. They are however different from domestic tour operators in that they organize tours for incoming tourists on behalf of an inbound tour operator (and sometimes, outbound tour operators).

Let’s look at an example to better understand the role they play.

Italy will be the destination in this example. So, here’s how it works:

An inbound tour operator designs and promotes beach holidays, adventure, and heritage tours in different parts of Italy. Problem: the inbound tour operator doesn’t have offices across Italy. The inbound tour operator also doesn’t have close contacts or partnerships with suppliers and key agents in certain parts of the country. So, they consult with ground tour operators.

It is the ground operator that will handle the incoming tourists at those various destinations around Italy. They oversee land arrangements; negotiate with and contract local vendors; coordinate arrivals and departures; plan and put together local tour packages; escort tourists; provide market data; and cost and price tour packages. Overall, it is their duty to ensure that the entire trip goes smoothly based on the package tours and agreements.

You may know ground tour operators as “handling agencies” because they organize tours for incoming tourists on behalf of overseas tour operators.

Wrapping Up

Back to the question we asked at the very beginning: which type of tour operator are you? Now that you’re better informed to answer that question, you can also start thinking about ways to improve your distribution and marketing channels based on that answer.

The next step is to figure out who your key partners are and strike up deals to propel your business forward.

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Tour Operator Business

Back to All Business Ideas

Starting a Tour Operator Business: 13 Key Steps

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 17, 2023 Updated on July 3, 2024

Investment range

$2,300 - $10,300

Revenue potential

$108,000 - $360,000 p.a.

Time to build

0 – 3 months

Profit potential

$86,400 - $144,000 p.a.

Industry trend

Are you an entertainer? One of the ways you could use your skills is by starting a tour operator business. You could offer tours to see the main attractions in your city, tours of natural areas, or even tours of the food scene in your city. The tour operator industry took a hit during the pandemic, but it’s coming back strong in 2023 and is worth more than $10 billion, so there’s money to be made.

But first, you’ll need some business know-how. Luckily, this step-by-step guide details all you need to know to start a successful tour operator business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

• Meet lots of people and show them a good time
• Good profit potential
• Growing market
• Business needs to be based in an area with attractions of some kind
• Can be somewhat seasonal

Tour operator industry trends

Industry size and growth.

• Industry size and past growth – The U.S. tour operator industry is worth $10.3 billion in 2023 after declining an average of 3.4% annually for the last five years due to the pandemic.(( https://www.ibisworld.com/united-states/market-research-reports/tour-operators-industry/#:~:text=Tour%20Operators%20in%20the%20US%20industry%20trends%20(2018%2D2023),falls%20to%206.6%25%20of%20revenue. ))
• Growth forecast – The U.S. tour operator industry is projected to grow an impressive 19.4% in 2023. 
• Number of businesses – In 2023, 10,286 tour operator businesses are operating in the U.S. 
• Number of people employed – In 2023, the U.S. tour operator industry employs 44,534 people.

Trends and challenges

• Many tourists are seeking tours to “hidden gems” rather than the normal tourist spots.
• Many people are booking their travel activities, including tours, on mobile apps.
• Technology is playing an increasing role in the tour operators industry, requiring tour operator business to make an investment in technology.
• Current economic conditions may negatively impact the travel industry in general. 

Demand hotspots

• Most popular states – The most popular states for tour guides are Alaska, California, and Oregon. (( https://www.zippia.com/tour-guide-jobs/best-states/#oregon ))
• Least popular states – The least popular states for tour guides are Minnesota, Michigan, and Louisiana.

What kind of people work in tour operator businesses?

• Gender –  53% of tour guides are female, while 47% are male. (( https://www.zippia.com/tour-guide-jobs/demographics/ ))
• Average level of education – T he average tour guide has a bachelor’s degree.
• Average age – The average tour guide in the US is 34.3 years old.

How much does it cost to start a tour operator business?

If you’re going to do walking tours, your startup costs should be around $2,000. Costs include a computer and a website. If you plan to give tours in a vehicle like a trolley, your costs will be closer to $10,000.

How much can you earn from a tour operator business?

You can probably charge about $120 per person for a half day tour or $200 for a full day tour. Your profit margin should be about 80% if you run your business from home.

In your first year or two, you could work from home and have 30 customers a week, 30 weeks a year, at $120, bringing in $108,000 in revenue. This would mean $86,400 in profit, assuming that 80% margin. 

As you gain traction, you might have 100 customers a week, 30 weeks a year.  At this stage, you might have a kiosk and hire staff, reducing your margin to around 40%. With annual revenue of $360,000, you’d make a tidy profit of $144,000.

What barriers to entry are there?

There are a few barriers to entry for a tour operator business. Your biggest challenges will be:

• Being in a good location where people will pay for tours
• Having extensive knowledge of your tour area

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Step 2: hone your idea.

Now that you know what’s involved in starting a tour operator business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research could give you the upper hand even if you’ve got the perfect product. Conducting robust market research is crucial, as it will help you better understand your customers, your competitors, and the broader business landscape.

Analyze your competitors 

Research tour operator businesses to examine their services, price points, and customer reviews.

• Make a list of tour operator businesses that offer similar services. 
• Review your competitors’ services – their features, pricing, and quality – and marketing strategies.
• Check out their online reviews and ratings on Google, Yelp, and Facebook to get an idea of what their customers like and dislike.
• Identify your competitors’ strengths and weaknesses. 

This should identify areas where you can strengthen your business and gain a competitive edge to make better business decisions.

Why? Identify an opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing an inbound tour operator, or a tour guide business that offers travel agency services as well.

You might consider targeting a niche, such as food scene tours or adventure travel tours.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

You’ll need to determine what kind of tours you want to give. Consider what’s in your area that might be of interest to tourists. Your best bet is to pick a niche that other tour companies are not targeting. You could also offer travel agent services like booking hotel accommodations or flights.

How much should you charge for tours?

Your prices should be based on market prices in your area, but also on your operating costs.

Once you know your costs, use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market is likely to be tourists, and the tourists who participate in tours are often older, but it will depend on the type of tours you offer. If your tours are likely to appeal to older tourists, you can market to them on Facebook. However, your best bet is to partner with travel agencies who can promote and book your tours. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office or a invest in a kiosk to set up in high traffic tourist areas. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Tour Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “tours” or “guided tours”, boosts SEO
• Name should allow for expansion, for ex: “GlobeStride” or “Boundless Journeys” over “EcoTreks” or “Dive Quest”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead and reserve your business name with your state, start the trademark registration process, and complete your domain registration and social media account creation. 

Your business name is one of the key differentiators that sets your business apart. Once you pick a name, reserve it and start with the branding, it’s hard to switch to a new name. So be sure to carefully consider your choice before moving forward. 

Step 4: Create a Tour Operator Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize your tour operator business, highlighting the unique travel experiences you offer and your target market.
• Business Overview: Describe your tour operator business, including the types of tours you provide, destinations you cover, and the travel niche you specialize in.
• Product and Services: Detail the tour packages and services you offer, such as guided tours, transportation, accommodations, and any unique experiences or add-ons.
• Market Analysis: Analyze the demand for travel and tours in your chosen destinations, considering factors like tourism trends, customer preferences, and competitor offerings.
• Competitive Analysis: Identify other tour operators in your target locations, their strengths and weaknesses, and explain how your tours will differentiate themselves through quality, pricing, or unique experiences.
• Sales and Marketing: Outline your strategies for reaching and attracting customers, including digital marketing, partnerships with hotels or travel agencies, and promotions to drive bookings.
• Management Team: Introduce key team members responsible for running the tour operator business, highlighting their experience in the travel industry and customer service.
• Operations Plan: Describe the logistics of running your tours, including itinerary planning, tour guides, transportation, safety measures, and quality control.
• Financial Plan: Present financial projections for your tour operator business, including startup costs, revenue forecasts based on anticipated bookings, expenses for tour logistics, and expected profitability.
• Appendix: Include any relevant documents, such as tour itineraries, partnerships with hotels or attractions, insurance policies, and marketing materials.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to tour operator businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your tour operator business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company ( LLC ) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.  Here’s how to form an LLC .
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.  Read how to start a corporation here .
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like  Kickstarter  and  Indiegogo  offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like  Fundable  and  WeFunder  enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a tour operator business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Tour Operator Business Licenses and Permits

Starting a tour operator business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your tour operator business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You may want to use industry-specific software, such as  Flybook , FareHarbor , or Resmark , to manage your bookings, email communications, and customer lists.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Create a website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. 

Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Book Now”. This can sharply increase purchases. 

Here are some powerful marketing strategies for your future business:

• Leverage Social Media Influencers: Collaborate with travel influencers on platforms like Instagram and YouTube to showcase your tour packages, tapping into their engaged audiences and fostering trust through authentic experiences.
• Run Targeted Online Ads: Utilize platforms like Google Ads and social media advertising to target specific demographics interested in travel, ensuring your ads reach potential customers who are more likely to engage with your tours.
• Create Compelling Visual Content: Invest in high-quality photos and videos of your tour destinations, sharing them across social media, your website, and promotional materials to evoke emotions and entice potential customers.
• Implement Referral Programs: Encourage satisfied customers to refer friends and family by offering incentives such as discounts or exclusive perks, amplifying your customer base through word-of-mouth marketing.
• Collaborate with Local Businesses: Partner with local hotels, restaurants, and other businesses to cross-promote services, creating mutually beneficial relationships that expand your reach within the travel community.
• Host Virtual Tours: Capitalize on the growing trend of virtual experiences by offering online tours or live-streamed previews, allowing potential customers to get a taste of your offerings before committing.
• Optimize for Local Search: Ensure your business appears in local search results by optimizing your Google My Business profile, collecting positive reviews, and providing accurate information, making it easier for customers to find and choose your tours.
• Offer Limited-Time Promotions: Create a sense of urgency by periodically offering limited-time promotions or exclusive deals, encouraging potential customers to book your tours sooner rather than later.
• Attend Travel Expos and Events: Participate in travel expos and events to showcase your offerings directly to an audience interested in travel, allowing you to engage with potential customers face-to-face and establish personal connections.
• Focus on Customer Experience: Prioritize exceptional customer service and personalized experiences to build a positive reputation, as satisfied customers are more likely to become repeat clients and ambassadors for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your tour operator business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your tour operator business could be: 

• Discover the extraordinary with our immersive and personalized tours
• Leave no stone unturned with our comprehensive and authentic tour itineraries
• Discover the hidden gems with our knowledgeable tour guides

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a tour operator business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in tour operator businesses for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in tour operator businesses. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a tour operator business include:

• Tour Guides – give tours, customer service
• Marketing Lead – create and implement marketing strategies
• General Manager – scheduling, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Tour Operator Business – Start Making Money!

The tourism industry has bounced back in a big way since the pandemic, so now could be a great time to start a tour operator business. It’s an exciting way to share the highlights of your area, have some fun, and make some money. You could eventually hire a whole team of tour guides to take your business to the next level.

Now that you understand the business, you’re ready to plan your itineraries and get your successful tour operator business on the road!

• Tour Operator Business FAQs

A tour operator business can be profitable depending on various factors such as market demand, pricing strategies, operational efficiency, and the ability to provide exceptional customer tour experiences.

During a typical day at a tour operator business, various activities take place to ensure smooth operations and high-quality service. These include responding to customer inquiries and booking requests, designing and customizing tour itineraries, coordinating with suppliers, managing reservations and payments, addressing customer feedback, conducting research on new destinations, and collaborating with marketing and sales teams.

The growth potential of a tour operator business is significant, with opportunities to expand services to new destinations, diversify tour offerings, enhance customer experiences, and leverage digital marketing strategies. Developing partnerships with other businesses in the travel industry can also contribute to growth and increased revenue potential.

A tour operator business falls under the travel and tourism industry and operates as a service-based business that organizes and arranges travel experiences for individuals or groups. The business acts as an intermediary between customers and various suppliers, providing comprehensive and well-planned travel experiences through pre-packaged tours or customized itineraries.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Tour Company Name
• Create a Tour Operator Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Tour Operator Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Tour Operator Business - Start Making Money!

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How to Start a Tour Business: From Passion to Profit in the Tourism Industry

Learn how to start a tour business, turning travel passion into profit. From finding your niche to running your first tour, get your venture going

by Kate Cornell | 16 July 2024

From dreaming to doing, starting a tour company from the ground up can be one of the most rewarding ventures you’ll ever embark on. Not to mention the most challenging. Transforming your passion and stories into tours that captivate your audience requires more than just creativity. It demands strategic planning and an understanding of the market you want to break into. 

Back in 2022, in the State of Tours, Activities & Attractions report, Arival projected that the global tours and activities industry would reach $183 billion by this year, and operators surveyed in 2024 were overall optimistic about their prospects.

So what’s stopping you from getting started on turning your passion into profit?

In this guide, you’ll find invaluable tips, perspectives, and reflections from tour operators and industry veterans on how to start a tour company. This walkthrough will help you navigate this exciting journey as you start a tour business, and what it takes to be successful. The good news: Don’t be too worried about getting in the weeds of how to become a tour operator just yet. It all starts with a genuine love for what you do. 

Here’s what we’ll cover

Understanding the Tour Business Landscape

Legal and practical foundations, preparing for operations, marketing your tour business.

• Managing Finances and Evaluating Success
• Scaling Your Tour Business
• Transitioning from Passion to Profit

The tourism landscape is an exciting place to start a tour business. It’s a complex and diverse landscape, but travelers — your potential customers — are not interested in everything being the same. In that complexity and diversity is the opportunity for you to find a way to earn a living doing what you love. 

Identify Your Niche

The first step to starting a successful tour company is identifying your niche. This means finding a specific area or theme that you are passionate about and knowledgeable in. Whether it’s food tours, historical walks, adventure excursions, or cultural experiences, your point of view and storytelling in that category will set you apart from the competition, especially as travelers are seeking out memorable tourism experiences now more than ever.

“I don’t think people should be thinking about trends because I think the trend is that there’s an audience for just about everything now,” according to TripSchool co-founder Mitch Bach. “Now with digital marketing, you can connect with a niche, as well as be as interesting or obscure as you want to be. I think it’s the best time to be in this industry because twenty years ago you probably had to build more generic products for more general audiences and now you can build full businesses and happy lives by being as unique and interesting as you want yourself to be in the world.”

Understand Your Market

Before launching your tour company, it’s crucial to understand your target market. Who are your ideal customers? What are their interests and preferences? Conducting market research will provide you with insights into the demographics and even the psychographics of your potential clients. 

You can use simple techniques to get this valuable data. Send your tour scripts to a group of friends, and ask them for constructive feedback. Set up a Google or Zapier survey via a form and send it to community groups you belong to. Look at reviews of similar tours on platforms like TripAdvisor, Yelp, and Google Reviews. Identify common themes in customer feedback to understand what people enjoy and what they don’t. Explore the latest Arival consumer research to find out what travelers are prioritizing and looking for.

Be prepared: It can sometimes lead to you having to adjust your format to reach the audience you want to serve. “The most challenging aspect of starting my own tour company has been removing my bias and trying to see things through the lens of my guests,” reflects Eric Curry, who started his eponymous tour company in 2021 to tell native tales and history of San Francisco. “I think that when you find the balance between the things that interest your guests and what you are passionate about is when you will find success in your business.” 

For those still deciding where to land, look to what travelers want: authentic, immersive, and bookable online. Further, eco-friendly and sustainable travel options are still increasingly popular, especially among Millennials and Gen Z travelers. Tailoring your tours to meet these demands can set you on the path to success.

Develop a Solid Business Plan

A comprehensive business plan is essential for any new business, and a tour company is no exception. Your business plan should outline your company’s mission, target market, marketing strategy, financial projections, and operational plan. This document will serve as your roadmap and help you stay focused on your goals.

Take the time to detail every aspect of your business, from pricing models to staffing needs, to ensure you’re well-prepared for the challenges ahead. According to a recent Skift report, venture capital investment in the travel industry hit a decade low in 2023, but recovery is imminent. Ensuring you are set up for success in the case you need to raise funding is crucial to staying ahead. 

However, there’s also something to say for just getting out there and getting started. “You can put up your own mental roadblocks and think because it’s safer to remain theoretical,” Bach said. “And when you’re starting a tour business things can get real very quickly. You can put up a website with some copy about you and a tour experience. Even if you don’t have everything figured out, you can start selling it even as you’re figuring out all of the other pieces of the business.” 

Operator Takeaways:

• Be bold, tell a unique story.
• Use feedback from friends, surveys, and user reviews on similar offerings to refine your scripts and itineraries, and align them with customer interests.
• Pinpoint what it means for you to offer authentic and immersive elements of a tour.
• Don’t try to compete in oversaturated areas of your market. Innovate, don’t replicate. 
• Take action and start selling your tours even as you refine your business model.

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You’ve got the vision, you outlined a plan, and now what? It’s time to set up a legitimate business entity. 

There are a series of legal and administrative steps necessary to launch a tour business. For starters you will need to register your business and obtain the necessary insurance.

Register Your Business

The process of registering your business may differ depending on where you are located. Your national, provincial, regional or state authority should provide guidance on how to register a business in your location and understand the regulations governing tour operations in your local region.

There are also different structures to consider. While most operators start out with sole proprietorship or as a limited liability company (LLC), there may be more to consider depending on your business goals, from registering as a cooperative to even franchising your business.  

If you’re unsure where to start, look to your local tourism board or destination management organization (DMO) for guidance. You can also tap the tour operator community for advice — connect with fellow operators on LinkedIn, at an upcoming Arival event , and even on places like Reddit .

Secure Liability Insurance

Running a tour company requires various licenses and permits, depending on your location and the nature of your tours. It’s crucial to research the legal requirements in your area and ensure you comply with all regulations. This might include business licenses, special permits for certain types of tours, and insurance coverage. 

Choosing the right insurance coverage involves assessing your business risks, considering your budget, and understanding policy exclusions and limitations. Partnering with a reliable insurance provider familiar with the travel industry is crucial for ensuring comprehensive protection for your tour company. 

Depending on your needs, you may require other types of insurance in addition to liability insurance, such as property damage coverage, business interruption insurance, commercial auto insurance, and so on. 

Learn more here about which tour operator insurance is right for you. If you’re a U.S.-based operator, be sure to look into this specially tailored for tour operators product: Arival ProShield Insurance. 

• To make your idea a reality, start by registering your business!
• Familiarize yourself with the regulations governing tour operations in your local region.
• Get protected: ensure you have the appropriate insurance in place before you begin operating tours.

The success of your tour company hinges on the quality of the experiences you offer. Your tours should be engaging, informative, and memorable. This requires thorough research, meticulous planning, and a deep understanding of your subject matter.

It also takes a commitment to best practices and establishing processes to keep you organized. Here are just a few ways to get started on creating a well-oiled tour operations machine. 

Hiring and Training Tour Guides

For many tour operators, it’s the ability to connect with guests that brings them the most joy in running a tour company.  

“A great tour experience is only possible when you are connecting with guests on a truly human level,” says Michaela Gonzales, founder of Mick’s Bootique Tours . “People travel because they want to understand the world. Yes, they want to see the big-ticket items and be entertained, but they also want to explore and have authentic local experiences. Guides can help them by being welcoming, honest, and genuinely interested in guests enough that they can cater the experience to them.”

Mick’s Bootique Tours founder, Michaela Gonzales, leads the Walk with Spirits, A Haunted Pub Crawl in San Francisco, and tours in Dublin, Ireland. I Photo: Mick’s Bootique Tours 

It’s one thing to connect with guests when you run the tours yourself. But how do you ensure you are achieving this kind of connection on tour consistently, regardless of who is guiding each tour?

You need to build a business that isn’t totally dependent on you. 

“You need to be designing something that could be delivered by somebody else,” Bach advises. “But it really comes back to doing that work on what is your why and what are you about, even a simple three words that come to mind, the anchor points. It’s about the brand story, and the story you are telling yourself. Once you get that clear it becomes much easier to understand who the right guide is, the right operations manager for your business, and so on.”

Learn more about tour guide training here. Arival Insider Pro Access members can also learn more about hiring great tour guides in this on-demand video on The Secrets of Hiring, Training & Retaining Guides.

Setting Up a Booking System

With travelers increasingly booking online and on mobile , setting up an efficient online booking system is crucial for the success of your tour company. A robust booking system not only streamlines your operations but also enhances the customer experience, ensuring seamless reservations, less booking errors, and increased sales. 

Consider booking software — also known as reservation systems, “res-tech,” or ticketing software — specifically designed for tour operators, such as Fareharbor , Rezdy and Bókun : see a longer list of examples of tour operator booking software here. Many of these platforms offer tailored features like integrations with online resellers, support for custom and dynamic pricing, and the ability to handle complex itineraries.

Key Features to Look For :

• User-Friendly Interface : Your booking software should be intuitive and easy to navigate for both customers and staff. A clear, straightforward process reduces the likelihood of booking abandonment.
• Real-Time Availability : Ensure your system updates availability in real-time to prevent double bookings and provide accurate information to customers.
• Secure Payment Processing : Integrated payment gateways should offer secure transactions, giving customers confidence in their purchases.
• Mobile Compatibility : With the rise of mobile bookings, your system must be optimized for smartphones and tablets to cater to on-the-go travelers.
• Integration with Other Tools : Look for a system that integrates with your website, accounting software, and marketing tools to streamline operations and data management.

Check out our Arival Guide on How to Choose a Booking System to learn more. Arival Insider Pro members can also access checklists to help with this process.

Pricing Models :

The pricing structure of a booking system is an important consideration when deciding which one to work with, and different pricing models can work better for different types of companies. The two most common pricing models are:

• Fee-per-Booking : This model charges a commission on each booking, ideal for smaller operators as it ties costs directly to sales volume. However, different systems have varying payment processing charges and fees.
• Subscription : This model involves a fixed monthly or annual fee, providing predictable costs and often includes more advanced features. It can be more cost-effective for larger operators with higher booking volumes.

The Arival Guide on How to Choose a Booking System breaks down the pricing models and explains the various fees involved. See also our updated Guide to Booking System Pricing for a detailed overview of rates from some of the most popular platforms.

Embrace AI for Efficiency

Embracing AI in your tour business doesn’t mean you need to be a tech expert. There are many user-friendly tools and platforms designed specifically for small and medium-sized tour operators. Start by exploring how AI can help you streamline your admin and operations, so you can focus on how to create more engaging and personalized tour experiences.

If you are a sole proprietor or operating with a lean team, imagine using AI as a virtual marketing assistant that learns about your customers’ preferences. AI can analyze data from previous bookings, social media, and even real-time behavior to offer personalized recommendations that resonate with each traveler. 

Check out the Arival Guide to AI in Travel Experiences . Arival Insider Pro Access members can dig deeper on real-world examples of how AI is being used in travel experience companies with AI in Experiences: Case Studies in Emerging Tech. 

• Build a business that isn’t dependent solely on you; focus on clear brand stories to guide hiring excellent tour guides, and provide them with ample training to carry out your vision.
• Ensure your booking software is user-friendly, real-time, secure, mobile-compatible, and integrates with other tools.
• Consider how AI can help you streamline your operations.

In today’s digital age, a strong online presence is crucial for any business. You want to be in a position where you are getting direct bookings , as well as efficiently managing your third-party distribution channels. Add to that social media and AI, and you’ve got a lot to manage when it comes to marketing your brand and products.

OTA Marketing and Distributions Channels

Whether you love them, or love to hate them, online travel agencies (OTAs) are the lifeblood of many tour operators’ bottom lines. Working with distribution partners can help you widen your reach to new audiences. 

“Use the OTAs to your advantage,” recommends Dara Mihaly, an industry veteran who has worked with the likes of ExperienceFirst, Another Side of Los Angeles Tours , and the Griffith Observatory, among others. 

Mihaly recommends getting on as many platforms as possible, as long as you can stay on top of your inventory and effectively manage your availability. “Ultimately, direct is the goal but the OTAs are one of your best marketing tools. Make Viator, and the like, work for you,” Mihaly adds. 

For more on working with OTAs and managing distribution channels, check out our articles on Essential OTA Checklist for Experience Operators , OTA Marketing , and 4 Ways to Make OTAs Work Harder for You .

Online Presence and Social Media Marketing 

In today’s digital age, having a robust online presence is essential for the success of any tour business. With the rapid evolution of technology and changes in consumer behavior, it’s more important than ever to stay ahead of the curve. 

Get listed on Google Things to do

While Google does of course offer paid ads, it’s free for operators to get their tours and experiences listed on Google Things to do, an initiative that presents users with tour and attraction tickets and purchasing options directly in Google search results. 

Getting listed on Google Things to do is as simple as claiming your Google business profile, and loading up and optimizing your product listings on Google. Operators who’ve completed these steps will benefit from an “official site” badge next to their tour or ticket product listing.

Learn more about Google Things to do and how to take advantage of the program with Arival’s collection of content on marketing with Google .

Keep up with changes in SEO

Google’s latest search algorithm updates only add to the complexity of digital marketing and online presence. In 2024, we are real-time transitioning away from what we’ve traditionally known as search engine optimization (SEO) to search generative experience (SGE). 

At Arival 360 I Orlando 2023, Brennen Bliss, the founder of the digital marketing agency Propellic , spoke about the implications of SGE during SEO in the Age of AI: What’s Changing and How to Adapt . “SEO, as a channel, is going to move a lot further down the funnel,” Bliss predicted based on early results he was seeing. 

As an example, for many operators, the coveted “things to do” query was the bullseye you wanted to hit to attract people to your site. Now, SGE can give a much faster and streamlined answer to recommended things to do. As you build your online presence, focus on the unique value propositions of your tours and experiences.

“SEO is not title tags and keywords,” says The Tour Guy, Sean Finelli. “I mean, these things are important, but it’s really your product. A rockstar product. Something that is difficult to replicate, and that everyone wants, is what’s going to drive traffic. Not some hack to the algorithm.” 

For more on SEO, check out Arival’s Essential Guide to SEO for Tour and Activity Operators . Arival Insider Pro Access members can also get more insights from Finelli by watching his full talk from Arival 360 I Berlin 2023 on how to feel less intimidated by Google.

Be active on your social media

Building a strong online presence goes beyond SEO; social media is a crucial component of your digital marketing strategy. 

And as younger (Gen Z and Millennial) travelers in particular are relying on social media for travel inspiration and bookings, staying on top of your social media game is critical for reaching these travelers.

“Reviews and group pics can be good content for your ‘stories,’ while scheduled tours and current events can be good ‘pinned’ or weekly content,” Curry advises. 

Social media is also about engaging with your audience, not just broadcasting. Respond to comments, ask for feedback, and create conversations around your tours. This builds a community around your brand and can lead to fostering loyalty around your brand.

Learn more about social media strategy with this Ultimate Social Media Guide for Tour Operators .

Operator Takeaways

• Get listed on Google Things to do by claiming your business profile, uploading and optimizing your product listings. 
• Keep up to date with SEO and differentiate yourself by focusing on the unique value proposition of your tour or experience products.
• Focus on creating unique, compelling content (don’t copy/paste it to use on your third-party channels) about your tour offerings.
• Showcase video and photos that capture the essence of being on tour with you or your tour company through your social media channels. 
• Respond to positive and constructive feedback from your engaged users to build trust.

Managing Finances and Evaluating Success 

Effective financial management is the backbone of any successful tour business. This section covers essential strategies for budgeting, managing costs, and setting competitive pricing to ensure profitability and growth.

Budgeting and Managing Costs

Effectively managing finances is crucial to the success of your tour business. Start by creating a detailed budget that accounts for all operational costs, including marketing, staffing, transportation, and equipment. This should be in line with your overall business plan and strategy : something you refer back to regularly.

Time blocking is one successful way to keep yourself on top of your finances. “Usually, I will spend just one or two mornings a week taking care of all the scheduling, bookings, sales, and marketing,” Gonzales shares. “I prefer to wait until I have the time and tools to complete a task from start to finish.”

Utilizing financial management tools and software to keep track of your spending can help you identify areas where you can cut costs without compromising the quality of your tours. 

Pricing Strategies for Tours

Uncertainty in the economy, stock market and consumer confidence continues to cast a gray cloud over 2024 when it comes to where consumers are spending their money.

Yet despite some headwinds over 2024, demand for experiences has remained strong. Travelers want more, and they are increasingly prioritizing experiences when trip planning. Operators need to understand their customers — and their various customer segments — more than ever, and tailor products and prices to suit both affluent and price-sensitive guests. Private tours , for example, are becoming more popular among affluent travelers — and can be priced higher, and corporate tours are another potential avenue to consider.

“When it comes to determining the value of your tour(s), practical logistics (length of the tour, add-ons, etc.) are certainly important, but come second to defining your competitive edge,” Curry says. “What makes your tour(s) different from anything else out there? Once you have identified that most crucial question, you can begin to take a look at the other options (in your city) and how they are priced and marketed.” 

Learn more about pricing your tours in this article on How to Set Your Net Rates , and explore the opportunity of corporate tours with How to 5x Your Revenue from Corporate Groups .

• Research what other tour companies are charging for similar tours. This will give you a benchmark to ensure your prices are competitive while reflecting the unique value your tours offer.
• Calculate all your costs, including fixed costs (licenses, permits, insurance) and variable costs (transportation, tour guides’ wages, marketing). 
• Ensure your pricing covers all costs and leaves room for profit — especially if you are selling on third-party platforms that are taking a commission.
• Implement tiered pricing based on different levels of service or experience. For example, offer a standard tour and a premium tour with additional features or exclusivity.

Scaling Your Tour Business 

Successfully scaling your tour business requires strategic planning and a keen understanding of market dynamics. Here’s how to effectively evaluate customer feedback and explore new market opportunities to drive growth.

Evaluating Customer Feedback

Customer feedback is a vital resource for improving your services and ensuring customer satisfaction. By systematically collecting and analyzing feedback, you can identify areas for improvement and capitalize on strengths.

Start by implementing feedback collection methods such as post-tour surveys, online reviews, and direct customer interactions. 

Renee Ventrice, Founder of Cork & Keg Tours , emphasizes the importance of leveraging customer feedback to enhance your offerings. In discussions at Arival, she shared insights on adapting to customer needs and preferences to refine and improve services​​​​. By responding to feedback and making necessary adjustments, you can improve customer satisfaction and loyalty.

Additionally, consider setting up a formal process for addressing negative feedback. This could involve training staff to handle complaints effectively and using feedback to guide staff development and operational changes. By demonstrating a commitment to continuous improvement, you build trust and credibility with your customers.

Arival Insider Pro Access members can enjoy a candid discussion with Renee Ventrice, Founder of Cork & Keg Tours, about strategizing for success as a tour operator in 2024 and beyond. 

Exploring New Market Opportunities

Identifying and capitalizing on new market opportunities is essential for scaling your tour business. This involves understanding market and tourism trends , customer demographics, and emerging travel interests.

Begin by conducting market research to uncover untapped opportunities. Look for gaps in the market that your tours can fill, whether it’s a niche interest or an underserved geographic area. Utilize resources like the Arival 2024 U.S. Experiences Traveler report series and attend an upcoming Arival event to stay informed about the latest travel trends and potential opportunities, and to learn from fellow operators and travel industry experts.

Also be clever with finding the audience you want to reach. “I’ve seen tour operators be successful on Pinterest and it’s because nobody talks about Pinterest,” Bach mentions. “I’ve seen multi-day tour operators become successful because they went to their local public library and talked to the seniors in little meetings there and sold trips to Europe to her community in the area. Don’t follow the crowd, go where there’s an opportunity.”​​

Transitioning from Passion to Profit 

As you embark on the exciting journey of starting your own tour business, remember that the key to success lies in balancing passion with strategic planning. Embrace the challenges, stay committed to continuous improvement, and let your unique perspective shine. With dedication, creativity, and the right strategies, you can build a thriving tour business that captivates travelers and stands out in the ever-evolving market. 

Now that you know how to start a tour business, it’s time to take the first step—transform your passion into profit and start creating unforgettable experiences for your guests.

About the Author

Kate Cornell is an editorial and digital strategist with many years of experience in the experiences sector of travel, and has spoken at Arival on the topics of writing tour descriptions, and the “content conundrum.” She has led global editorial teams for travel brands including Viator and Tripadvisor, helped build startups such as TourismSolved, and worked behind the scenes as a content consultant for leading travel and luxury brands.

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