Clients like to use the services of tour operators because making their own arrangements involves a lot of prior knowledge arid experience, which they may not have, and because they have the security of booking with a licensed operator. (See unit on legislation) It is also easier to pay locally, in familiar currency, a previously agreed and fixed price.
All these are reasons why clients like to use the services of tour operators but it is important to note that tour operators and travel agents are not necessary to clients. They only exist because of the convenience and service they provide.
In their own country the tour operators who have put the whole package together will be referred to as tour operators by the clients and as principals or tour operators by the retail agents. When the ground operators in the host country refer to these same overseas companies they will usually call them wholesalers.
The term “tour operator” therefore needs to be used with care, as it can be confusing!