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Package Tourism
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424 encyclopedia of tourism management and marketing
(Zapata Campos et al., 2018). Package holiday
operators have therefore evolved over the last Package Tourism
60 years from being companies that tended to
revolve around colourful owners or managing Package tourism is one of the most popular
directors to modern businesses following clear forms of travelling and typically consists of pre-
lines of corporate social responsibility. organized vacations assembled by a tour opera-
Graham Busby tor. A tour operator is a company that plans
a holiday package (generally including accom-
References modation, transportation, transfers, travel insur-
ance and other tourism services) from the initial
Anderson, L., Mastrangelo, C. and Chase, L. et al. idea of the vacation to the design of the content
(2013), ‘Eco-labeling motorcoach operators in the and the organization of tourism services. A tour
North American travel tour industry: analyzing operator commonly combines other suppliers’
the role of tour operators’, Journal of Sustainable services in the form of a vacation package and
Tourism, 21(5), 750–64. charges a premium for it. In some cases, a travel
Association of Independent Tour Operators (AITO) agency acts as an intermediary between the tour
(2021), ‘AITO sustainable tourism guidelines’, operator and the customer and sells the package
accessed 29 August 2021 at [Link]/sus to tourists. In other cases, the tour operator itself
tainable-tourism/guidelines/. sells the vacation directly to the customers.
Buhalis, D. (2000), ‘Relationships in the distribution Tour operators are generally connected with a
channel of tourism: conflicts between hoteliers large number of suppliers, such as accommoda-
and tour operators in the Mediterranean region’, tion services, food providers, travel agencies,
International Journal of Hospitality and Tourism local travel guides, transportation companies
Administration, 1(1), 113–39. and destination management organizations
Buhalis, D. (2001), ‘Tourism distribution channels: (DMOs). As central intermediaries, they have
practices and processes’, in D. Buhalis and E. Laws an impact on consumer preferences, supplier
(eds), Tourism Distribution Channels – Practices, behaviour and local tourism strategies.
Issues and Transformation, London: Continuum, The traditional package tourism business has
pp. 7–32. dominated the international tourism market for
Buhalis, D. and Law, R. (2008), ‘Progress in infor- many years. It contributed to the tourism boom
mation technology and tourism management: 20 of the 1970s and 1980s. Package tourism has
years on and 10 years after the Internet – the state shaped the development of many destinations
of tourism research’, Tourism Management, 29(4), over the last half-century. It has played a key
609–23. role especially in coastal destinations and has
Busby, G. and Huang, R. (2012), ‘Integration, inter- been a relevant source of foreign currency in
mediation and tourism higher education: concep- many developing countries. In the last few
tual understanding in the curriculum’, Tourism years, several factors have affected the pack-
Management, 33(1), 108–15. age tourism industry, as depicted in the figure.
Curtin, S. and Busby, G. (1999), ‘Sustainable desti- Digitization has been a powerful force in the last
nation development: the tour operator perspective’, two decades, as it has provided new distribution
International Journal of Tourism Research, 1(2), channels for suppliers as well as transformed
135–47. intermediation (Buhalis, 2020). Traditional tour
Picazo, P. and Moreno-Gil, S. (2018), ‘Tour opera- operators have faced growing pressure from
tors’ marketing strategies and their impact on online tour operators that represent a major dis-
prices of sun and beach package holidays’, Journal tribution channel in the contemporary tourism
of Hospitality and Tourism Management, 35, industry. More flexible and innovative forms
17–28. of package tourism have emerged. New types
Schwartz, K., Tapper, R. and Font, X. (2008), ‘A sus- of competitors have entered the market, such
tainable supply chain management framework for as low-cost airline companies. External shocks
tour operators’, Journal of Sustainable Tourism, have also affected the package tourism industry,
16(3), 298–314. such as political crises, terrorist attacks and the
Zapata Campos, M.J., Hall, C.M. and Backlund, S. ongoing COVID-19 pandemic. There have also
(2018), ‘Can MNCs promote more inclusive tour- been relevant changes in tourists’ preferences.
ism? Apollo tour operator’s sustainability work’, An increasing number of customers interested
Tourism Geographies, 20(4), 630–52. in self-tailored holidays have emerged (Cavlek,
Gianluca Goffi
package tourism 425
2013). Moreover, there has been a growing Package tourism industry is increasingly
number of independent travellers who plan their being characterized by differentiated market
holidays themselves and book the components segments who do not behave and travel in
online. the same way (Goffi, Cladera and Pencarelli,
Some tour operators have tried to react to such 2019). There has been an increasing interest in
changes by improving the quality of their pack- sustainability among package tourists. Hence,
ages, by differentiating and personalizing their the promotion of local gastronomy and culture,
products, by entering new markets, by finding interaction with residents, and environmental
new destinations to sell, and by adapting their preservation play a key role in explaining pack-
price strategies (Picazo and Moreno-Gil, 2018). age tourists’ satisfaction (Goffi, Cladera and
However, the factors noted above have resulted Osti, 2020). Such interest in more sustainable
in excess capacity, reduced margins, and they vacations should be a trigger for the package
have contributed to the bankruptcy of several tourism industry to invest resources in corpo-
tour operators. For example, in September 2019, rate social responsibility (CSR) initiatives.
Thomas Cook, the second-largest tour operator Until the 1990s, customers’ low interest in
worldwide, went bankrupt. Roughly 600 000 sustainability and little regulatory pressure did
people were stranded abroad, forcing govern- not motivate tour operators to invest in CSR
ments and insurance companies to coordinate practices. Tour operators are now facing grow-
a huge rescue and repatriation operation whilst ing pressure and expectations in terms of CSR
thousands of hoteliers and other suppliers were activities from a number of relevant stake-
never paid for services they had already pro- holders (Richards and Font, 2019). Several
vided (The Economist, 2019). small tour operators specializing in nature
Originally, the term package tourism had and cultural tourism are highly engaged in
positive connotations as it made medium- and sustainability (Goffi, Masiero and Pencarelli,
long-haul vacations affordable for a large 2018). As crucial intermediaries, tour opera-
number of people worldwide, reducing infor- tors constitute a leading force in the tourism
mation and transaction costs, and travel uncer- sector, especially concerning the preservation
tainties. The large-scale packaging of tourism of the environment and of local cultures. Tour
activities has been generally categorized as operators’ investment choices have a signifi-
‘mass tourism’. This has been viewed as a cant influence on many local communities. As
standardized, commodified and Fordist form argued by Budeanu (2005), they are key play-
of tourism, and also as an environmentally ers in the sustainable development of the tour-
and socially harmful activity (Poon, 1993). ism industry and are often the most influential
Changes in consumers’
Digitalizaon
preferences
Disintermediaon Tourists’ interest in
sustainability
Increased
Independent travellers
compeon
New types of New forms of tourism
competors
Pressure towards CSR New desnaons
External shocks
Factors that have affected the package tourism industry
Gianluca Goffi
426 encyclopedia of tourism management and marketing
actors for the preservation of natural and socio- a tourists’ perspective: the case of Punta Cana’,
cultural capital and for local empowerment Sustainability, 12, Article 4743.
as they influence suppliers, destinations and Goffi, G., Cladera, M. and Pencarelli, T. (2019),
consumers’ choices (Zapata Campos, Hall and ‘Does sustainability matter to package tourists? The
Backlund, 2018). case of large-scale coastal tourism’, International
However, the tour operating industry has not Journal of Tourism Research, 21(4), 544–59.
entirely exploited the opportunities offered by a Goffi, G., Masiero, L., and Pencarelli, T. (2021),
considerable effort in CSR (Dodds and Kuehnel, ‘Corporate social responsibility and performances
2010). Goffi, Masiero and Pencarelli (2021) of firms operating in the tourism and hospital-
showed that tour operators with high CSR ity industry’, The TQM Journal, [Link]
engagement experienced a significantly higher org/10.1108/TQM-06-2021-0166.
short-term growth of profits and sales volume. Goffi, G., Masiero, L. and Pencarelli, T. (2018),
Tour operators should rethink their approach to ‘Rethinking sustainability in the tour-operating
sustainability, recognizing that the preservation industry: worldwide survey of current attitudes and
of the sociocultural and environmental capital behaviors’, Journal of Cleaner Production, 183,
ensures the maintenance of the capital base of 172–82.
the company. In addition, destinations are not Picazo, P. and S. Moreno-Gil (2018), ‘Tour opera-
‘substitutable’ and greater attention should be tors’ marketing strategies and their impact on
given to foster local economic linkages and prices of sun and beach package holidays’, Journal
to avoid ‘enclavization’ of visitors within the of Hospitality and Tourism Management, 35,
resort areas (Goffi et al., 2019). The intercon- 17–28.
nection between environmental, sociocultural Poon, A. (1993), Tourism, Technology and
issues and long-term profitability, and the key Competitive Strategies, Wallingford, UK and
role played by local destination stakeholders – Boston, MA: CABI.
employees, businesses, governments, residents, Richards, P. and X. Font (2019), ‘Sustainability in the
non-governmental organizations should be tour operator–ground agent supply chain’, Journal
recognized. As the package tourism industry of Sustainable Tourism, 27(3), 277–91.
depends on the preservation of natural, social The Economist (2019, 28 September), ‘Thomas
and cultural resources, CSR initiatives can play Cook, the world’s oldest travel firm, collapses’,
a key role in enhancing the long-term profitabil- accessed 29 April 2021 at [Link]
ity of the business and the sustainable develop- com/britain/2019/09/26/thomas-cook-the-worlds-
ment of tourism destinations. oldest-travel-firm-collapses.
Gianluca Goffi Zapata Campos, M.J., Hall, C.M. and Backlund, S.
(2018), ‘Can MNCs promote more inclusive tour-
References ism? Apollo tour operator’s sustainability work’,
Tourism Geographies, 20(4), 630–52.
Budeanu, A. (2005), ‘Impacts and responsibilities for
sustainable tourism: a tour operator perspective’,
Journal for Cleaner Production, 13(2), 89–97.
Buhalis, D. (2020), ‘Technology in tourism – from Package Travel Contract
information communication technologies to
eTourism and smart tourism towards ambient intel- Package travel represents a significant part of
ligence tourism: a perspective article’, Tourism the travel market. In November 2015, ‘Directive
Review, 75(1), 267–72. (EU) 2015/2302 of the European Parliament
Cavlek, N. (2013), ‘Travel and tourism interme- and of the Council of 25 November 2015 on
diaries: their changing role’, in C. Tisdell (ed.), package travel and linked travel arrangements’
Handbook of Tourism Economics: Analysis, New (hereinafter PTD) was adopted. This repealed
Application and Case Studies, Singapore: World ‘Directive 90/314/EEC of 13 June 1990 on
Scientific, pp. 191–206. package travel, package holidays and package
Dodds, R. and Kuehnel, J. (2010), ‘CSR among tours’. The new Directive defines the concept
Canadian mass tour operators: good awareness but of package travel contract as ‘a contract on
little action’, International Journal of Contemporary the package as a whole or, if the package is
Hospitality Management, 22(2), 221–44. provided under separate contracts, all contracts
Goffi, G., Cladera, M. and Osti, L. (2020), ‘Sun, sand, covering travel services included in the pack-
and…sustainability in developing countries from age’ (Article 3(3) PTD).
Evanthia Kardoulia
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