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.