A person who operates a tour company is a broker. A broker is a middleman. Brokers buy or arrange items or services and sells these items or services to the end buyer. Some examples of brokers are:
Independent insurance agents. These agents do not provide insurance; they arrange insurance for you from an insurance company. Insurance agents usually get a commission from an insurance company.
Stock brokers. Like insurance agents, stock brokers help you buy and sell stock. They don't own the stock. These brokers also receive a commission based on the amount sold.
Real estate broker. Again, these brokers do not own the properties they sell and they get a commission based on the value of what they sell.
There are also tour brokers. Tour brokers serve a variety of customers. This article is about what a tour brokerage is and the basics of this business.
Here is a good description if what a tour is: A trip with visits to various places of interest for business, pleasure, or instruction.
Here travel is defined: To go from one place to another, as on a trip; journey.
A tour, then, is not only travel but it is travel with the purpose being pleasure or interest. You may think of a tour as extended travel with the object being to see and experience an area. Travel, on the other hand, is usually only about moving from one place to another.
A tour broker works with people on a continuous basis. If you are going to get involved in this type of business you should like working with people - you have to be a people person.
Tour brokers are not travel agents. Travel agents arrange for the travel needs of their customers. Usually a travel agent will only work with individuals or small groups (families, for example). Travel agents also always buy something that is already in place (air travel, car rentals, hotels, etc.), they do not originate anything.
Tour brokers originate - they arrange tours, they arrange the transportation, they arrange the lodging, they arrange the meals, and they arrange other services for their clients. A tour broker plans on what kind of tour he/she wants to operate.
Next, the tour broker makes arrangements for the various components of the tour - transportation, food, lodging, attractions, etc.
There are many types of tour companies. Some offer guided tours of a local area - tours of a city or an attraction, for example. Some offer tours in a natural setting - guided tours through the Grand Canyon fall into this category. Some offer tours to various national and state parks. Some offer tours through a large area, a multi-state tour is a good example.
IF YOU LIKE TO TRAVEL - FOR FREE - THIS IS A GREAT BUSINESS TO BE IN
You may have to do inspections of the hotels and attractions that you will be making a part of your tour. If you have been taught correctly you will know how to get "comp" (short for complimentary or Free) rooms and meals. If you will go along with the tour, you should expect to get comps again. How to set it up so that you get comps is something your mentor should teach .
NOTE THAT THE INFORMATION PROVIDED HERE ONLY APPLIES TO THE US. OTHER COUNTRIES MAY HAVE DIFFERENT RULES
As I mentioned before, this is a people business. Liking to work with people and liking to solve problems is a prime requirement.