Unit 3 - Reading 1 - Exercise 1

The role of tour operators

Instructions: Read the article and find the answers. Package holidays are created by tour operators and then sold through the chain of distribution.
Package holidays, which are also known as package tours, include all of the components necessary for a complete vacation:
        transport to and from the destination
        transfers between the airport / station / port and hotel
        food and accommodation at the destination
        other services such as a guide or holiday'rep'.
The professionals who bring these elements together to create a holiday are called tour operators. They buy in advance and in bulk from the principles: airlines, shipping lines, hoteliers, and so on. Because they buy hundreds of seats or rooms from the principle, they pay a much lower price for them than an ordinary member of the public. The tour operator then converts this bulk into individual packages known technically as inclusive tours (ITs). These are marketed to the consumer through travel agents or by other systems.
    In the past tour operators sold almost entirely through travel agents, but today they also use direct selling. This strategy eliminates the travel agents from the chain of distribution, and this reduces the final cost of the holiday package because direct sell operators do not have to pay commission to a travel agent. Many smaller tour operators, for example, prefer to deal directly with their clients.
    Not all tour operators sell the same type of holiday. The really big operators, the mass market operators, produce low-cost holidays to traditional sea, sun, and sand destinations like Spain, Greece, or Turkey. Other operators limit their.
a. What are the components of a typical package holiday?
b. Who else forms part of the chain of distribution?
c. How many different types of tour operator are there?
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