Travel agent vs tour operator – what’s the difference?

Thinking about starting your own travel business but unsure about the jargon? Understanding the difference between a travel agent and a tour operator is a key first step. These terms are often used interchangeably but mean very different things within the travel industry. At Travel Counsellors, knowing these differences can open up exciting opportunities for you. Here’s what you need to know.

What does a travel agent do?

The word agent gives a clue here. A travel agent acts as a middleman, helping customers find and book holidays that are designed by a third party (typically a tour operator). Think of travel agents as advisers and sellers who connect travellers with pre-packaged holidays. They are sometimes referred to as "retailers" within the industry.

Key responsibilities include:

• Recommending holidays that meet customers’ preferences and budgets
• Booking trips created by other companies (such as tour operators)
• Earning a fixed commission (usually between 8–13%) for each booking.

Travel agents focus on delivering great service while making the booking process seamless for their customers.

What does a tour operator do?

Now for the role of a tour operator. A tour operator creates holidays from scratch. They might organise flights, hotels, transfers, and excursions, managing every element of the trip. Larger operators may even have dedicated transportation, in-house accommodations, and staff on the ground to provide direct support.

Often called "wholesalers," tour operators are responsible for:

• Designing the entire holiday package
• Coordinating logistics like transport, accommodation, and activities
• Ensuring customer trips are protected under legal travel licences (like ATOL in the UK).

Tour operators handle the nitty-gritty details, giving travellers peace of mind that every aspect of their trip is in capable hands.

Why knowing the difference matters for Travel Counsellors

At Travel Counsellors, you’ll have the unique ability to step into both roles, thanks to our powerful booking system, Phenix. With Phenix, you can act as a travel agent by selling holidays created by other companies. Alternatively, you can become a tour operator by building completely bespoke travel packages tailored to your clients’ needs.

Here’s how it works:

• Travel agent role: Sell pre-packaged holidays from tour operators and earn a fixed commission
• Tour operator role: Use Phenix to combine flights, hotels, and activities, creating custom itineraries while setting your own margins.

Every package you build is fully protected under our own ATOL licence and customer financial protection trust. This gives both you and your clients peace of mind.

The benefits of acting as a tour operator

Why bother creating your own holidays when you can sell pre-made packages? Acting as a tour operator offers several game-changing advantages:

Higher earnings

Instead of earning a fixed commission on a pre-packaged holiday, Phenix allows you to earn a commission on every individual component you include—flights, hotels, transfers, and more. Plus, you control the profit margin, setting prices that suit both you and your customer.

Tailored experiences

By creating bespoke itineraries, you can craft trips that perfectly match your clients’ needs—whether it’s a romantic Italian getaway or a family safari in Kenya. Personalisation is a powerful way to deliver exceptional service, ensuring customers come back to you time and time again.

Reduced reliance on third parties

Why depend on third-party providers who might bypass agents and sell directly to travellers in the future? By designing your own packages, you’re in control, building a more self-sufficient business.

Can I still act just as a travel agent?

Absolutely! Not every traveller wants a fully customised trip. Some prefer the simplicity of booking a pre-packaged holiday. With Travel Counsellors, you can do what’s best for your client. The flexibility is entirely in your hands.

However, by taking advantage of Phenix to modify or build packages, you have the opportunity to offer something special—adding more value to your service while creating bespoke experiences that reflect your customer’s needs.

What makes Phenix different?

Phenix is an intuitive booking platform developed by Travel Counsellors. It gives you access to an extensive range of travel components, including:

• Directly negotiated hotel contracts
• Competitive rates on transfers, flights, and car hire
• Tools to quickly build and customise travel itineraries

This level of flexibility is unmatched, letting you balance affordability for your customer with profitability for your business.

Start your journey with Travel Counsellors

Whether you’re an expert in travel or exploring franchise opportunities for the first time, becoming a Travel Counsellor gives you the tools and support to succeed. With the ability to act as both a travel agent and tour operator, you have the best of both worlds—along with the freedom to create unforgettable travel experiences.

Want to learn more about how you can use Phenix to build your own packages? Book onto a Discovery event to learn how Travel Counsellors can help you create a successful travel business with confidence.