Why there is a Price Difference Between Tour Operators?

Travelling, whether for work or for pleasure should essentially be hassle-free. The very reason why we travel is to explore new opportunities and take a break from routine. So, what will make our travel well planned and minus any glitches?

Half the battle is won when you choose the best travel agent to assist and guide! However choosing a travel agent is a battle in itself. We always request quotes from several agents to book our dream holiday, but the options we receive make things even more difficult for us. To get out of the misery we book with cheapest one. And this is where we go wrong.

On what basis will you choose your travel agent? There are many points that will play a deciding role, the size of their operations, being one of them along with the cost of their services. Let us try to understand the composition of costs and what differentiates the charges levied by small and large tour operators and agents.

  • Small tour operators operate with a small team. A small team means less operating expenses. This helps the operators in providing services at lower prices than a large tour operator. Relying on small operators for a small, local trip is the best. This is because owing to their limited financial operations they might not have enough resources to execute a big tour. They also might lack an established network with hotels, transport operators and other service providers. An established network leads to better booking and additional freebies. You will be surprised to know that some tour operators run their business from home or from a small shop. They are not large enough to have approval and affiliations from the Tourism Boards and several recognised bodies. Booking tour with such operators can be risky as there is no guarantee.
  • Large tour agents have different departments such as sales, operations, accounts, IT team, Guides, Helpline etc. They get recognition from various tourism bodies owing to their capabilities and network. They are well-equipped to organise longer duration tours spread over many locations. They can also handle group tours. These operators have tie-ups with chains of luxury and premium hotels and it helps them to get extra services for their clients. Maintaining a large team in several departments entails cost and thus those get passed on to the clients.

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Thus operating costs, which depend on the size of an operation, determine the price a traveller/tourist pays for the services received.

Intent for this blog should be to warn people not to book with small operators. and book with recognised tour operators. So we can add more points to differentiate small tour operators vs big tour operators.

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