Travel operator and travel agencies in Russia. How does it works.
In accordance with the Law "On the basis of tourist activities in the Russian Federation" licensed legal entity or individual entrepreneur 1. formation of tourist products
2. determine the prices and discount policy
Touroperator's activity means following activities carried out by a
3. promotion of tourist products
Touroperators are taking the lead in international tourism, as they form the tourist product − book hotels − book flights − provide services for the provision of transport − excursions, etc.
4. sale of tourist products
They carry out their market promotion through − participation in trade fairs − exhibitions − organization of advertising − publishing catalogs, brochures, etc.
The subsequent implementation of the tour may be accomplished in several ways. Touroperator − can sell tours through travel agents, can not implement the full range of services included in the tourist product, but part of it, eg hotel accommodation − can sell tours on their own, without travel agents Methods of forming the tours varied: − touroperators have agreements with the host operators - foreign touroperators. In this case the touroperator adds to the tour package only transport (airticket, ferry ticket, etc.) − touroperator generates complex route tours and uses direct contracts with service providers (hotels, entertainment venues, transport, etc.).
Under the travel agency activities, in accordance with the Law "On the basis of tourist activities in the Russian Federation", refers to following activities carried out by a licensed legal entity or individual entrepreneur 1. promotion of tourist products
2. sale of tourist products
The essential difference between the touroperator and travel agent is that the travel agent is not involved in the formation of the tour, and the touroperator buys it ready for sale or sells it on behalf of a touroperator, and receiving a commission for it. The price of tourism product offered by the travel agent is usually not higher than that of the touroperator, travel agent sells tours as a touroperator on it's terms, and sometimes even lower than that of the touroperator, as the agent of the need to attract more customers and it donates part of it's commission to lower the price of the tour .
In the business of tourism in Russia is most common combination of functions of the touroperator and travel agent in one travel company.
Note: Many agents have permanent clients (luxury/ individuals, companies, special communities (e.g. sportsmen’s, musicians, doctors etc.). They are not going to sing a contract with foreign suppliers bur they need information (to inspire clients and offer something new). They usualy made reservations via tour operators, incoming companies or direct online.