A tour operator typically combines components to create a holiday. The most common example of a tour operator's product would be a flight on a charter airline plus a transfer from the airport to a hotel and the services of a local representative, all for one price.

Niche tour operators may specialise in destinations e.g. Italy, activities e.g. skiing, or a combination. The original raison d'etre of tour operating was the difficulty of making arrangements in far-flung places, with problems of language, currency and communication.

The advent of the internet has lead to a rapid increase in self-packaging of holidays, many believe[citation needed] that this trend created serious problems for many tour operators.
 

However, tour operators still have their competence in arranging tours for those who do not have time to do DIY holidays, and specialize in large group events and meetings such as conferences or seminars.

A travel agency is a business that sells travel related products and services, particularly package tours, to end-user customers on behalf of third party travel suppliers, such as airlines, hotels, tour companies, and cruise lines.

In addition to dealing with ordinary tourists, most travel agents have a special department devoted to travel arrangements for business travellers. Indeed, some agencies specialise in that work.

Some agencies also serve as general service agents for foreign travel companies in different countries.
 
 

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