Tour Operators and Packages

Vocabulary flashcards covering key terms from the lecture notes on tour operators, package holidays, and related concepts.

Tour Operator

An entity that controls, books, and assembles an entire trip into a package holiday by combining two or more travel components (transport, accommodation, and services).

Package Holiday

A travel product that arranges at least two components (transport, accommodation, and other services) into a single, all-inclusive offer.

Local Tour Operator (LTO)

Cater to local and foreign travelers at the destination; primarily a retailer, may act as wholesaler for other operators.

Domestic Tour Operator (DTO)

Serves local associations, schools, companies, and individuals; offers ad-hoc, tailor-made packages for national destinations.

Inbound Tour Operator (ITO)

Locally based operator that promotes the destination to non-residents and handles local arrangements (transfers, guides, etc.).

Outbound Tour Operator (OTO)

Designs and packs tour packages for residents of the operator's country to overseas destinations.

Ad-hoc Tour Package

A package created to meet a specific request (number of participants, duration, destinations, hotel category, etc.).

Regular Tour Package

A package assembled without tailoring to a specific traveler's or group’s particular requirements.

Negotiated Rates

Contracted, favorable rates obtained from suppliers based on track record, market potential, or leverage; usually cheaper than retail.

Deposits and Credit Terms

Terms with suppliers that may require deposits or offer specific credit facilities (e.g., 60-day or 90-day terms).

Integrated Tour Package

A single package that contracts and combines transportation, lodging, meals, and activities from multiple providers.

Excursion

A short journey or activity added to a tour package to generate extra revenue.

Optional Tours

Additional tours or experiences offered during the package that are not included in the original price.

Shopping Commission

Commissions earned from souvenir shops on sales generated for clients, with balance maintained in pricing.

Organizational Structure of a Tour Operator

A design balancing office and field operations so responsibilities are clearly defined and coordinated.

Charter Flight Package

A product example: a flight on a charter airline plus airport transfer and local representation, all for one price.