How is the wholesaler different from tour operator and local tour operator?

Answer 1

A wholesaler generally has a contract with a hotel group/s with discounted rates which would then be sold only to tour operators (international / local) A tour operator has a contract with hotel group/s with nett rates that they pay to the hotel. The difference between the nett rate and the public advertised rate direct from the hotel is usually used to add extra services and make a package, this package is then sold by a travel agent or to the public direct by the tour operator. if a travel agent sells the package (with or without extras) they usually receive a commission that comes from the difference between the nett rate and the publicly advertised (rack) rate.

a local tour operator can be defined as a ground handler, where they hold the contracts with the accommodation establishments, and have their own vehicles (or subcontract vehicles) in order to look after the traveler while in the local country, the local operator would usually have a contract with the hotels group/s locally, would make a package / sell the accommodation outright at a discount to an overseas tour operator / travel agent. if to an overseas tour operator this operator can sell via agents or direct to public, knowing that a local tour operator is there to look after the clients "on the ground" nett rate: rate for tour operators | rack rate: publicly advertised rate from hotel - this rate is also commissionable by travel agents, usually at industry standard 10%