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Tour operators can be considered the wholesalers of the industry. Their product, which is a service, is the packaged tour. Packaged tours offer transportation, hotel accommodations and transfer to, and from the airport. The tourist pays a lower price for this package than if he were trying to make all the arrangements on his own. In addition to the basic features, the tour package may also offer meals, entertainment, sightseeing, a rental car and many other extras.

The typical package that the European tour operators put together consisted of the least expensive two-week holiday tour. It was primarily intended for northern Europeans who wanted a Mediterranean vacation. As the competition among the operators brought prices down, many people who had never travelled before were encouraged to try a trip abroad. Both tourism in general and the tour operating companies themselves expanded very quickly.

Tours are also arranged for employees and their spouses by corporations. The corporations typically offer these vacation trips as a reward for superior sates effort or as an incentive to improve performance. This type of tour is not open to the general public, but it is welcomed by the airlines and by hotel operators in the established resorts that frequently attract business of this kind.

It is possible to distinguish between two general types of tours. One is the holiday package that has a resort hotel as its destination. While local sightseeing or entertainment may be included in the package, the tours are generally without expensive extras. The major attractions usually include sun, sea and activities such as golf or tennis that are offered by the resort itself. Local colour is not important - many holiday-makers are hardly aware of what country their hotel is in.

The second is the guided tour that features sightseeing or some other special attraction. These tours are accompanied by a guide who is in charge of travel arrangement and activities. The activity offered by the tour is its principal attraction. The tour may combine travel with education. Most of these tours include several different destinations and a good deal of local travel within one region. Thus, they require careful arrangement and co-ordination of accommodations, local transportation, luggage handling, and all the other details that accompany any kind of travel.

The person who leads such tours is the tour guide. He is multilingual, he relates well to other people, and he deals with the variety of problems that arise not only in making travel arrangements, but also in carrying them out. He deals with the problems of lost luggage and unsatisfactory hotel accommodations, with rainy days and fatigue, with sudden illness, and with interpersonal problems that arise among the members of the group.

There are many advantages in the packaged tours, the most obvious being the price. When airplane tickets and hotel rooms are reserved in blocks by the tour operators, considerable savings are passed on to the customers. A second advantage is the opportunity for tourist to make all his travel arrangements in one place at one time. A third advantage can be summed up in the term accessibility. Tours make it possible for people to visit many remote areas that would otherwise be too difficult for them to try to see on their own. Tour operators have made countless places throughout the world accessible to the general public.