Free Factors Involved In The Creation Of A Holiday Essay Sample

Type of paper: Essay

Topic: Tour, Tourism, Business, Operator, Commerce, Travel, Internet, Time

Pages: 4

Words: 1100

Published: 2020/09/11

Tourism industry includes holidays that are usually meant for the tourists. In the creation of holiday tourists are the main actors because they are the ones who are affected directly. A package holiday entails a number of activities that are also stipulated by the laws of the land in each and every state. It is a tour arranged and well organized by a travel agent, and it includes activities such as transportation, food, and lodging are provided at a given specified price. Tour operators use different contracting methods which are made specifically to serve their customers.
They include; rack rate, ad-hoc rate, commitment, allocation, free sale rate or sell and report.Rack rate is contractual method that is fully associated with accommodation of tourists. It includes public payable prices in which the accommodation should be available to the customer at the time of booking. For a tour operator to make a profit he should charge a fee that is at the rack price. It brings about an expensive product which is not affordable to all. In this type of contractual method, the tour operator does not need any the contractual relationship but it depends on the accommodation being available. In ad-hoc rate, method involves a price that is below the rack price but no guaranteed rooms. The tour operators in this case have a contract with the agreed price on which is usually below the rack price. This case the hotel does not assure the customer accommodation, so an individual is required to organize rooms for them. Due to this the operator does not guarantee bookings. Commitment method is another contracting method in which tour operators engage in offering services to their customers. It is a proffered method by some tour operators because they term it more favorable and desirable to their targeted customers. In this method, the tour operators agree to buy rooms for their clients to their ability and capability in accordance to the financial status of each tour operator. The tour operators agree or commits themselves to buy a certain number of rooms for the approaching season regardless of how many they can sell in the end. This method is considered to be more risky to the tour operators as compared to other available contractual methods. It can also be termed as the purchasing of lots of beds by the tour operators in which they are unable to sell. Allocation is another contracting method in which tour operators agree to take a certain number of rooms for the whole season. In this method, there is a release date of 21 to 28 days before the arrival. At this point of time, the tour operators can return some rooms that will not be sold and unoccupied by their clients. This method is popular among hotelier. This, method is more preferred by many tour operators because they are not obligated to pay for unsold rooms. It is the best contractual method because it does not involve a lot of risks that are experienced in the other methods. Free sale rate or sell and report rate is a method that some tour operators like and engage in it in their day to day activities. In this method, the hotels guarantee accommodation for booking by the tour operators. In this case the tour operator reports their sales in the due course. The hotel is mandated to provide the rooms to the tour operator until a time ion which it has to issue a notice to stop sales of the rooms. In this case the operator is just able to purchase only the available number of rooms which they can sell to their clients. Traditional brochures are used to direct and fully pass important information to tourists. They are designed in a way that attracts clients. They are not sometimes preferred because other means to pass the same information in a very effective way has been found as technological field develops and grows each and every day in the world of tourism. In the past time, tour operators strictly depended to traditional brochures but in the presence day’s website, videos, and virtual brochures have been developed to easy access to information by tourists. In Australia, there is a strong and reliable system which has been established by Jewel Reservation System. These include the sightseeing, charter, express and roistering which have made touring more easily and time saving. TourCMS is also an example of a website that has enhanced touring activities in many countries in the globe. These website blogs by those companies have enabled development, expansion and total growth of tour agencies by increased number of clients hence enhancing increased profits. Virtual Brochures are also an alternative for traditional brochures. They are more reliable and advanced than traditional brochures. They are more accessible and available to tourists, and they help provide effective information. These brochures include Thomas Cook brochures. They are time saving as compared to traditional brochures. Due to advanced technology the tour agencies have developed. Many firms have embarked on employment of personnel that is fully equipped with the required skills in the field. People are been encouraged to go through the necessary educational process and stages, for them to be fit to work in this field of work. Tour operators use different methods of distribution which they rely on a lot. They include direct sell, travel agencies, call centers, internet, teletext, and telephone. Direct sell is where by tour operators sell their packages to their clients by themselves without relying on the travel agents. A tour operator who sells direct to the client offers good value. They also don’t pay commission to travel agents. It is a good idea to buy packages from travel agency rather than direct sell because an individual may end up paying less than the quoted price of the tour operator. Buying holiday packages direct from the tour operator is not an easy to go thing because they might be on specific on seasons of the holidays.Travel agencies are more effective and efficient in the provision of services compare to the tour operators themselves. Sometimes they may end up offering low prices as compared to the tour operators. It shows that they care for the clients. These agents charge commission to the tour operators; they may also put in place restrict terms and conditions which are not friendly to the clients. Call centers do help tour operators to reach their clients more easily hence enabling smooth operations. They also help direct clients on to the required destinations. They also lead to increased expenses by the tour operator due to costs like payment of call bills. Internet has led to random increase in self-packaging of holidays. Through internet, tour operators can advertise their products. They are also able market their products effectively. Use of internet by tour operators has led to increased total expenses and recruitment of more personnel who are well equipped with those skills Teletext enables easier communication to different clients at different places at a minimum cost. It does not require special skills to text hence no recruitment of more personnel. It also increases the expenses of the company and does not include immediate feedback. On the other hand, telephone has enabled easy and fast communication to the clients that involve immediate feedback. It has led to increases consumption of power energy and at the same time increased expenses conclusive tour operators should embark on modernized ways of business operations for them to maximize their profits. They should invest more on technology for them to be in the presence standards of service delivery. By doing all these tour operators who experience an increased growth rate and expansion too.


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Frost, W. (2004) Travel and Tour Management. Harlow: Pearson.
Holloway, J. C. (2002) The Business of Tourism. Harlow: Prentice Hall.
Lickerish, L. & Jenkins, C. (1997) An Introduction to Tourism. Oxford: Butterworth Heinemann.
Middleton, V.T.C., Fyall, A., Morgan, M. & Ranchhod, A. (2009) Marketing in Travel and Tourism. Oxford: Butterworth Heinemann.
Page, S. J. (2011) Tourism Management: An Introduction. Abingdon: Routledge.
Swarbrooke, J. & Horner, S. (1999) Consumer Behaviour in Tourism. Oxford: Butterworth Heinemann.
Yale, P. (1995) The Business of Tour Operations. Harlow: Longman.

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Free Factors Involved In The Creation Of A Holiday Essay Sample. Free Essay Examples - Published Sep 11, 2020. Accessed June 26, 2022.

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