OPERATIONAL ISSUES AND THE TOUR OPERATOR

Operations Management & Tour Operators























Aside from the external environmental operational issues faced by the tour operators, which include events like the 9/11 twin towers attacks, the Bali bombing, and the war in Iraq, which saw a booking slump of more than 20% in the months leading up to it, tour operators face many other operational issues.

Small companies seem to be flexible, enterprising and customer-focused. However according to Phil Davies, editor of Travel Trade Gazette says, ‘the model used by the big companies, with their own travel agents, aircraft and hotel interests, has not changed much over the past 20 years.’ The smaller companies have been able to react to the change in demand because they’re more manageable and not weighed down by their own aircraft or the need to sell in volume. The large operators are also being forced to offer more flexible travel arrangements, more activities and entertainment, and the upg...