Contracting Considerations for Tour Operators Analytical Essay by Hans

A review of the issues facing small to medium sized tour operators regarding outsourcing transport and accommodation options in the package holiday industry.
# 149745 | 2,703 words | 8 sources | APA | 2011 | GB
Published on Dec 29, 2011 in Business (Industries) , Tourism (General)

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This paper deals with the issues faced by small to medium sized business operating in the tourism sector who contract out transport and accommodation operations as part of a package tour. In addition to analyzing various options for these businesses, the report also gives a clear set of recommendations on the subject of outsourcing travel and accommodation options.

Contracts for Accommodation and Other Services
Contracts for Transportation

From the Paper:

"In the first instance, the company must select between contracting directly with accommodation providers or through the use of a third party agency (Cooper et al 2008). Negotiation directly may help the company to save money by excluding the fees of a third party however, the downside is that the company may have to deal with a large number of accommodation providers each with their own peculiarities and unique circumstances. On the other hand, the company could opt to use another intermediary who will undertake such sub-contracting on the behalf of the tour operator, for the tour operator this reduces complexity in the contracting process in that the tour operator now has only a single point of contact (Holloway et al 2009). However, on the downside the tour operator will now incur additional costs from the fees levied from a third party, in addition the tour operator will also lose a degree of control over the accommodation which is to be provided and arranged by the third party. This may have an impact upon the tour operator whose clientele falls with the A and B social bands and so have very specific requirements in relation to their individual accommodation needs in comparison to other segments of the market."

Sample of Sources Used:

  • Cooper, C, Fletcher, J, Gilbert D, Fyall, A, Wanhill, S. 2008. Tourism: Principals and Practise. 4th ed. Harlow: FT Prentice Hall.
  • Griffin, R, W, Pustay, M, W. 2010. International Business. 6th ed. Boston: Pearson.
  • Holloway, C, J, Humphreys, C, Davidson, R. 2009. The business of tourism. 8th ed. Harlow: FT Prentice Hall.
  • Jobber, D. 2007. Principles and practice of marketing. 5th ed. London: McGraw Hill.
  • Johnson, G, Scholes, K, Whittington, R. 2008. Exploring corporate strategy Text and cases. 8th Ed. Harlow: FT Prentice Hall.

Cite this Analytical Essay:

APA Format

Contracting Considerations for Tour Operators (2011, December 29) Retrieved March 05, 2021, from

MLA Format

"Contracting Considerations for Tour Operators" 29 December 2011. Web. 05 March. 2021. <>