2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
What is the difference between tour operator and travel agency activities? Both of these concepts imply the implementation of activities for the sale of a tourist product (TP). The difference is who exactly does this work - an individual or a legal entity.
Tour operator activity is the formation and implementation of TP, carried out by a legal entity - a tour operator. Travel agency activities are carried out by legal entities or individual entrepreneurs / travel agents. The subject of sale is also a tourism product.
Organizations involved in the preparation and sale of tours are called tourist and excursion organizations. In life, they are called differently - from a simple tourist bureau to a large-scale holding of travelers and tourists.
Since the concept of tour operator activity is based on the sale of a product to a client, therefore, regardless of the form of ownership, which may be different for tour operators and travel agents, the main market taskof all these companies is to achieve a sustainable position in the tourism market and receive a constant profit.
The concept of tourism product (TP)
TP is a set of works, goods and services that are necessary to meet the needs of a tourist as part of his tourist trip. The main three elements of the TP are tour, goods and additional tourist and excursion services - accommodation, meals, transport services, leisure. The tour is sold to the client as a whole. The main services included in the tourist package are purchased by the tourist at the place of residence. Additional - this is a free choice of a tourist, they can be purchased later and are not specified in the ticket: rental of additional equipment, telephone and personal services, Internet, mail, currency exchange, additional meals, public transport, various entertainment.
Tour operator and travel agency activity
From the point of view of the type of business in the tourism market, companies engaged in this activity can be divided into 2 groups: travel operators and travel agencies. What is the difference between them? Each type of tourist organization determines the direction of its business activities.
There is a difference between these firms and the availability of TP. The bottom line is that the tour operator always has a supply of TP for sale, and the client can always get it urgently, but the travel agent does not have this, he acts only at the request of the client, submitting a requestto the tour operator for a product or service as the customer needs.
Basic principles of work and cooperation
The technology of tour operator activity in the interaction of tour operators and travel agents is based on the process of creating, promoting and selling a tourist product (TP) to the end consumer. This product is formed by the tour operator on the basis of the tourist market conditions, by order of the client (individual or organization). The tour operator provides tourists with all the services included in the TP, either independently or with the help of responsible third parties.
Different types of promotional activities and the sale of TP by travel agents are specified in the contract between the tour operator and the travel agent. An agent can act on his own behalf too.
Tour Operators
These companies form and implement the TP, for which the total price is set under the sales agreement. Examples of tour operators include transport companies, hotels, catering and tour organizations, exhibition halls, museums, resort organizations, amusement parks and gambling and sports establishments.
When compiling a differentiated tourism product, the tour operator is based on the requirements and wishes of customers. We are talking about the development of specific tourist routes, saturated with services, the provision of which is provided by suppliers, also the tour operator prepares informational publications of an advertising nature that describe the TP, and determines the cost of the tourist product fortravel agent. Next, the travel agent promotes and sells the product directly to tourists.
The goal of a tour operator is to connect service providers with end customer tourists. It is important to know the tourism market from the inside, the current situation and make the right choice of service providers for the client. A professional approach to understanding and evaluating the market is important, you need to know the features of its development, be able to determine the levers for managing it.
In reality, the difference between a tour operator and a travel agent can be difficult to define. Today, it most often happens that both functions are performed by one company, it can act as a tour operator, developing routes, and as a travel agent, sell them to the final consumers - tourists. In addition, this company can purchase tours from other companies and sell them to its customers, pursuing its own interest.
Today, the tourism industry is very well developed all over the world, strong competition has influenced the definition of the structure of tour operators and their specialization.
Classification of tour operators
Tour operator activity is the provision of a differentiated product to the client. Depending on the volume and type of services provided, there are mass market tour operators selling a large number of TPs with charter flights included in them to mass-developed, from the point of view of tourism, certain destinations. There is a second category: specialized operators that focus on a specific product or country, type of tourism. That is, they cover a narrow, specific market segment.
Types of specialized travel service operators
- Offering a specific service to customers (for example, organizing a safari in Africa).
- Geographically narrow destination (there are companies that specialize exclusively in certain countries).
- A narrow audience operator offering family and youth tours, business trips.
- Offering specific destinations (eg camp sites).
- Organizations that use only a certain type of transport - trains, ships or buses.
Classification of tour operators by place of business
There are three types of tour operator companies, distinguished by their place of work:
- Operating on the domestic market - those that form the TP within our country.
- Travel companies form travel packages for foreign countries.
- Reception operators are based in destination countries and serve incoming foreign tourists for the benefit of other agents and tour operators.
Initiative tour operators
Such organizations send tourists on vacation in Russia or abroad, having an agreement with the host - with receptive organizations. Initiative companies differ from travel agencies selling other people's tours in that the tourist product formed by them consists of at least three services: accommodation, transportation of tourists and other services.
As a standard exampleAn initiative tour operator can be brought by a company that forms complex routes. Their tour operator activity is the provision of itineraries in a package, which are provided, in turn, by local tour operators in the places where the route passes. The initiative tour operator is obliged to provide travel to and from the starting point of the trip, as well as provide transport to the client within the route. These tour operators can be outbound and domestic companies that send domestic tourists to other regions of the state.
Receptive tour operators
These are "reception" companies that form tours and programs for tourists by entering into direct contracts on the spot with local service providers. For example, hotels and catering establishments, entertainment establishments and other companies.
To complain to
Tour operator activity is a rather difficult job, as the quality of services and relevance must always be at the highest level. The extreme saturation of the market with offers of such services provides serious competition for any tour operator, therefore, in order to retain customers and increase their loy alty, serious work should be done to maintain the quality of the services provided at the highest level. Follow market trends, follow the news, be aware of everything that happens in the market. If the tourist is not satisfied with the quality of the service provided, then, according to current international and Russian legislation, he must file a complaint with the company that sold himpackage of services. She is responsible to him, regardless of whether it is her services or a third party - their provider.
Differences between tour operators and travel agents by income system
Tour operator activities are based on the purchase of services, the formation of a package, the satisfaction of the client-tourist and profit from the sale of the tourist package. The tour operator receives earnings, which is formed from the difference between the cost of creating a product (tour) and the sale price to the client. The tour operator buys individual services, from this "set" forms a complex tourist product, which, in turn, has its own pricing mechanism, based, among other things, on current market prices.
As for the profit of a travel agent - in fact, a retailer - it is formed from the commission received for the implementation of the tour operator's tourist product. In addition, profit can be obtained from the difference between the purchase and sale price of the TP. The travel agent sells TP both in the complex and as separate services, such as renting a hotel room, air tickets and others at the prices of tour operators. It's just that the tour operator gives the agent a discount, which is his commission.
Travel agencies
Tour operator activity is also work with agents, intermediaries who sell tours formed by the tour operator. These intermediaries conclude an agency agreement with the tour operator, which determines the agent's discount, which is also a commission, which is the payment for the agent's work. Thus, the intermediary, having received his discount, sells the final product at a pricetour operator without overcharging the end customer.
A travel agency can also be a seller acting on the basis of contracts for the sale of tourist products.
TP from travel agency
TP is an "inclusive" tour - complexes that include a set of services, formed each time individually, without a clear list. Each client has his own approach, taking into account the wishes of the customer.
What does a travel agent add?
To the purchased tour, the agent adds the travel of tourists from their place of residence to the first accommodation point along the route and back.
This type of company is very common in the market today, with a large number of firms working directly with customers, acting as retail travel agencies.
The tasks solved by travel agencies are in three main points:
- Full coverage of leisure and travel opportunities by region.
- Promotion of this information through modern marketing.
- Sale tourism product.
Travel agency forms
There are some varieties of these companies, depending on the range and nature of the services provided, the specifics of their activities.
- Agencies working on a commission basis and providing an easy sale of tours created by tour operators.
- Transport and travel agencies. These companies organize transport tours. In cooperation with them, it is possible to organize a joint with transport organizationsfirm by joining forces with railways, air and air transit firms. One of the options for cooperation with transport companies is the conclusion of agency contracts for the sale of tickets.
- Diversified agencies for the implementation of tour operator activities. Today it is the most common type of company. These firms provide comprehensive customer service for all categories. Among the customers you can meet both ordinary tourists and business travelers.
- Highly specialized agencies providing services to people in business. That is, serving business trips of large firms. In addition to organizing leisure activities, these travel agents also include congress services.
Insurance
The most important aspect of tour operator activity - insurance of the work of such a company - is a very acute issue, since today very few insurance companies undertake to insure tour operators (many of them have recently declared themselves unable to fulfill their obligations, terminate their activities, shifting the responsibility for incurring losses to the insurer). In fact, the tour operator can collect money from customers and not pay contractors for services. Is the insurer obliged to bear such risks?
The sphere of tour operator activity, regulated by the RF Law of November 24, 1996 No. 132-FZ "On the Basics of Tourist Activities in the Russian Federation", is nevertheless subject to insurance. The tour operator is obliged at his own expense to insure the risk of liability,if, due to the termination of its activities, it cannot fulfill its obligations under the agreement on the implementation of the technological connection.
In the event of such a situation, tourists should be compensated for the actual damage caused by the tour operator's failure to fulfill its obligations under the contract. In this case, we are talking only about the tourist product that was not received, and not about fines, pen alties and lost profits if the tour operator fails to fulfill its obligations.
In the tour operator's liability insurance contract, in addition to determining the object of insurance and the terms of the contract, insured events are defined, the amount of the sum insured, the procedure and terms for paying the insurance premium are indicated. It is also mandatory to determine the procedure and terms for notifying the insurer of the occurrence of an insured event by the insured person, the procedure for claiming compensation, a list of necessary documents when filing a claim against the insured for damages. Finally, the measure of responsibility for improper performance or non-performance of the terms of the contract, as well as other rights and obligations of the parties, defined individually.
Laws
As mentioned above, Russian tour operator activity is regulated by Federal Law No. 132. It defines the principles of state policy aimed at creating the foundations of a single tourist market in the Russian Federation. The law regulates the relations that arise in the exercise of the right of citizens of the Russian Federation and non-residents to freedom of movement and other rights when traveling, the law describes the regulation of rationaluse of the country's resources suitable for tourism. The rights of clients are protected by the Civil Code of the Russian Federation.
Under what conditions do tour operators work
How to protect the rights of customers? A prerequisite for the implementation of tour operator activities is the presence of an insurance contract with the tour operator, which spells out the responsibility for failure to fulfill obligations to sell the TP. As an alternative - a bank guarantee for the fulfillment of obligations under the agreement on the implementation of the TP, that is, financial security, which we will discuss below.
Tour operators in the field of outbound tourism should be members of an association of similar tour operators, whose activities are regulated by the current legislation of the Russian Federation. These companies must have a tour operator personal liability fund.
The director or other official representative of the tour operator must not have a criminal record, unexpunged or outstanding, which was the result of an intentional crime, must not be convicted of violations in the field of tourism activities that are prosecuted by law.
Cash guarantees
Responsibility for legitimate tour operator activities, financial security, its amount, terms and conditions are defined in the tour operator's liability insurance contract or in a bank guarantee.
Financial security is determined by the amount of at least five hundred thousand rubles for tour operators of domestic or inbound tourism. For companies operating in the field of outbound tourism, this amount should not be less than thirty million rubles.
Tour operators who have not carried out outbound tours during the year, as well as newcomers in the field of outbound tourism, must have financial security of at least 30 million rubles.
Financial security rarely lasts less than one year. Not later than three months before the expiration of the current financial security, the tour operator must submit to the Federal Tourism Agency documents related to financial security for the next period.
According to the law on tour operator activities, financial security is not required:
- Companies providing excursion services on the territory of the Russian Federation for less than 24 hours in a row.
- State and municipal unitary enterprises.
- Government institutions carrying out tourism activities in the framework of social tasks.
- Tour operators in the field of outbound tourism with a 7% formed personal liability fund. The percentage is formed from the total price of the TP for the outbound sector for the previous year.
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