The term tour operator refers to a company (business) that create and manage tours for clients. Clients may be the end user of the product (tourist), a whole-sale operator / broker (re-seller of tours), an inbound tour operator or a travel agency. Although tour operators may integrate a travel-agency into their organisation, to support tour operations, it is not a travel agency per se.

Inbound tour operators are those operators who serve in-coming foreign tourists who visit a specific country or region, but are not residents of the country or region being visited.

Regional or city tour operators are companies who offers tours in a specific city, town or small tourism region (e.g. whale watching tour operators at Plettenberg Bay).

At Africa Deluxe Tours (a South African based inbound tour operator) we mostly sell direct to the end users because we are able to reach them, and communicate with them effectively, through the internet. This leads to great cost and price reductions as well as enhanced personalised service levels.

USTOA* defines "tour operator" as follows (Dec 2002): "A tour operator ... is a company whose main business is the planning, packaging, selling, marketing and promotion of multiple vacation elements, including air or surface transportation arrangements combined with land accommodations."