Who is a Tour Operator?

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THE TOUR OPERATOR’S BUSINESS ENVIRONMENT
ITAM, MARGARET OKOI
INSTITUTE OF TECHNOLOGY AND MANAGEMENT

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TABLE OF CONTENT
1.0 Introduction - - - - - - - - - 2
2.0 The Tour Operator’s Business Environment in Nigeria - - - 2
2.1The position of Tour Operators in the Industry - - - - 2
3.0 Development of Tour Operators Industry - - - - - 3
3.1 Changes in Socio- Economic Circumstances - - - - 3
3.2Development in Technology - - - - - - 3
3.3 Product Development and Innovation - - - - - 3
4.0 Types of Tour Operators - - - - - - - - 3
4.1 Inbound Tour Operators - - - - - - - 3
4.2 Outbound Tour Operators - - - - - - 3
4.3 Domestic Tour Operators - - - - - - - 3
4.4 Specific Interest Tour Operators - - - - - - 3
4.5 Mass Operators - - - - - - - - 4
5.0 Services the Different Types of Tour Operators Offer - - - - 4
6.0 Structure of Tour Operators Industry - - - - - - 4
6.1 Public Sector - - - - - - - - 5
6.2 Distributors - - - - - - - - 5
6.3 Transportation - - - - - - - - 5
6.4 Regulatory Bodies - - - - - - - 5
6.5 Other Industry Players - - - - - - - 5
7.0 Conclusion - - - - - - - - - 6
8.0 References - - - - - - - - - 7
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1.0 INTRODUCTION
Tour operators are known as intermediary in the distribution chain of the tourism
industry (Barn and Holden, 1995). Although according to United Nations
Educational Scientific and Cultural Organisation (UNESCO, 2012 ) they describe
tour operators as ” The Dream Merchants” who make fantasies reality. This
industry’s main target is to package different elements (like transportation,
accommodation catering, entertainment etc.) together and sells the product to the
final consumer as one piece and in a single price (Cooper, 2012). It is not surprising
that, tourism has developed to one of the world‘s most important sectors, as a result
of the vital roles played by tour operators as intermediary in the industry (Fyall &
Wanhill, 2008).
This research seeks to examine the roles of tour operators industry including it
different categories, structure and development, product and services they provide
and their target markets using Nigeria as a case study.
2.0 THE TOUR OPERATOR’S BUSINESS ENVIROMENT IN NIGERIA
Tour operators are organisations that combine two or more services (example
transportation, accommodation, entertainment sightseeing) and sell them through
travel agencies or directly to final consumers as a single product (Mayer, 2003). In
line with Mayer’s view Cooperet al and Holloway, (1998) Described tour operators
as intermediary, which is very vital in tourism industries in Nigeria (Wanhill,
2008).Examples of these industries in Nigeria are: WESA Tours, Dip Tour Limited,
Essential Travel &Tour LTD and Lisbon Tours (Crusher, (2009).
2.1 THE POSITION OF TOUR OPERATORS IN THE INDUSTRY
Tour operators
Consumer
Travel Agents
Accommodation
Carriers
Services
Services
Source: adapted Holloway
1998

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3.0 DEVELOPMENT OF TOUR OPERATORS INDUSTRY
The history of package tourism emerge in 1950s, as a result of the Great Britain and
Thomas Cook mission, to popularise and democratise tourism by targeting tours to
the lower middle and working classes, offering relatively cheap package tours
(Honkanen 2004). Thomas Cooksawthe railways as an opportunity to create “travel
for the millions” and organized the first domestic package tour in 1841. Although
his offerings later covered international destinations and even journeys around the
world (Kostiainen, et al, 2004.) In 1920s, Shaw and Williams (1994) dated the first
phase of mass tourism in the United States, followed by the second phase in the
1950s in Europe. Notable seaside resorts tours accelerated due to the invention of
the motorcar and its increasing availability to growing numbers of population (Ryan
2003). Third phase of mass tourism was the phase of internationalization, in the
1950s - 1960s, which continued in the fourth phase from the 1980s onwards, as
mass tourism spread out to destinations all over the world (Shaw & Williams 1994).
The emergence of the package tourism industry was fundamentally influenced by
the social, economic, political, cultural, and technological development in the
Western societies after the Second World War. The increasing economic affluence,
the growing amount of leisure time, and the technological innovations were
significant contributors, but the democratization of travel was largely due to the
application of Fordist principles to the delivery of tourism (Ryan 2003; Kostiainen
et al. 2004; Robinson & Novelli 2005).
Surprisingly “In Europe, pleasure travel started seriously during the 1840s” and
1472 in Nigeria when the first Portuguese merchant landed in Lagos (Nigeria
Tourism Industry.com 2014).
4.0 TYPES OF TOUR OPERATOR
According to Cooper(2012). Tour operators are categorised into four sections base
on the scope of the industry. The four categories are inbound, outbound, domestic
and specific interest tour operators
4.1 Inbound Tour Operators: This type of tour operators are also called Receptive
tour operators (United Nation World Trade Organisation, 2014). They cater for the
needs of overseas visitors coming into the country and their target market is based

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on international tourist. Their product include: Accommodation Transportation,
Harry potter tour.
4.2 Outbound Tour Operators: These are tour operators whose target market is
based on tourist traveling out of their residents to another country. Their product
include Accommodation, Transportation and Food &Beverages services
4.3 Domestic tour operators: This type of operator’s package tour for tourist
traveling within their own country example a couple living in London going on
holiday to Cornwallis. Their target market is to attract tourist traveling within the
country
However, accordingto Lubbe, (2000) tour operators aredivided into two main kinds.
Namely
4.4 Specific Interest tour operators: These are operators that designed and
organized tour to suit the desires of a specific group of tourist. Example of their
product include Tour of the museums in Rome for art lovers, Gambling, spring
break, whale watching and fishing , and they target tourists who are more
responsible in their behaviors. (Hall, 1994)
4.5 Mass Operators:Theserefer tour operators that organised tours for majority of
tourist embarking on inclusive tours example Excursion, Church conference, and
pilgrimage. Lubbe, (2000).
Target Market: They attract travelers that prefer trips close to home and to seek
familiar environments in exotic settings (Plog’s 1991)
5.0 SERVICES THE DIFFERENTTYPE OF TOUR OPERATORS OFFER
In the view of (George, 2001). The services of tour operators are connected with
four basic characteristics that make their marketing different from the marketing of
manufacturing products, which include
 Intangibility: Their services are described as intangible services because
they cannot be seen, felt, heard, tasted or smelt before purchase (Pender,

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1999). Also George (2001) commented that the services offered cannot be
inspected or tested in advance and cannot be brought to the consumer.
 Variability: The services offer will always be different each time they are
consumed, becausethey are been producebyhuman. And no service provider
can provide the exact level of services each time is called upon. Or the same
levels of services as their colleagues(George,2001)
 Inseparability: The behavior of everyone involved in the product services,
from the hotel potter to the vehicle driver can have an effect on the outcome
of the experience of the tourist which is inseparable( George,2001)
 And perishability: There is a fixed period during which the sale and
consumption of a service can occurand if that period has passed, the revenue
that could have been earned by providing the service is completely lost
(Pender,1999)
6.0 STRUCTURE OF TOUR OPERATORS INDUSTRY
The diagram above shows the structure of tour operator’s industry and the different
sections it contain which are:
6.1 Public sector: Government plays an important role in the performance of the
‘actors’ example travel agent in the travel industry. They provide availability ofhigh
Distributors
Regulatory
Bodies
ABTA
CAA
Other industry
players
Car hire
Insurance firms
Transportation
Air
Road
Rail
Sea
Publicsector
Source: adapted
from (bizled,2014)
Tour OperatorsIndustry

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standard and well established infrastructural systems such as transport and
communication facilities, health and sanitation (IATA, 2005,)
6.2 Distributors: Distributors in the tour operators industry include travel agent
also called retailer, suppliers, on-line or “Dynamic “ and wholesaler called tour
operator. According to Canadian Association of Tour Operators (CATO, 2014).
6.3 Transportation:transportation is most often seen as part of the industry system,
because of the important role it play by bringing the tourists to the destinations, and
service as means of getting around the destination and leaving it once the duration
of the trip is over. We have three modes of transportation; they are Air Road and Sea
(page and Lumsdon, 2004)
6.4 Regulatory Bodies: These are organisations example (ABTA and CAA) set up
by the government to guide, monitor and control the industry (Bized, 2014).
6.5 Other industry players: other industry players include car hire and insurance
firms.

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7.0 CONCLUSION
Touroperators industry plays a vital role for the existence oftourism industry, which
is “the largest industry in the world (Holloway, 1998). In the course of this report,
the researcher was able to discuss the development of tour operators industry,
different types of tour operators, product and services they provided, structure and
position of tour operators in the travel industry.

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8.0 REFERENCES
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between hotelier’s and tour operators in the Mediterranean region. International
Journal of Hospitality and Tourism Administration 1(1), 113-119
Buhalis D, 2001 Tourism Distribution Channels: Practices, Issues and
Transportations
Cooper C, 2012. Essentials of tourism.
Fyall & Wanhill S, 2008. Tourism: Principles and Practice
George, R, 2001. Marketing South African tourism and hospitality. Cape Town,
Oxford: Oxford University press
Hall, C.M. (1994), Tourism and Politics: Policy, Powerand place. Chi Chester. John
Wiley
Holloway, Christopher J. (1998). The Business of Tourism .5ed. Singapore:
Addison Wesley Longman
Honkanen,A.(2004)Menneisyydentulevaisuus:Postmodernitmatkailuteoriat
ja vapaa-ajan matkailun muutokset eräissä Euroopan unionin jäsenvaltioissa
1985–1997. Keskustelua ja raportteja No 5. Matkailualan verkostoyliopisto,
Savonlinna.
Holloway, J.C.R. (1994), the Business of Tourism, (4ed). London: pitman
IATA, 2005, the business environment of travel and tourism industry.

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Kostiainen, et al.(2004) Matkailijan ihmeellinen maailma: Matkailun historia
vanhaltaajalta omaan aikaamme. Suomalaisen Kirjallisuuden Seura, Helsinki.
Lubbe,s(2000)
Avialable:www2,amk.fi/digme.fi/www.amk.fi/opintojaksot/050809/118464994450
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Nigeria Tourism Industry: A revolutiwww. bg/group.com.8
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