A Tour Wholesaler creates packages by combining multiple activities, most likely, transportation and other services, and sells them via a sales channel. A Tour Operator is an organization or a firm that combines components from different travel suppliers and sells directly to the public.

The primary difference between a tour operator and a tour wholesaler lies in their relationship with the end consumer and the "product" they sell. A tour operator is the "manufacturer" of the travel experience; they research, design, and organize the actual itinerary, contracting directly with hotels, airlines, and local guides. They often market and sell their packages directly to travelers or through travel agents. In contrast, a tour wholesaler acts as a middleman; they purchase travel components (like blocks of hotel rooms or airline seats) or even entire packages from tour operators in bulk at highly discounted rates. Wholesalers generally do not sell directly to the public; instead, they sell these discounted products to retail travel agents, who then sell them to the consumer. While a tour operator takes on the operational risk of running the tour, a wholesaler takes on the financial risk of "inventory"—if they don't sell their bulk-purchased rooms, they lose money. Essentially, you book with an operator to experience their creation, but your travel agent might book through a wholesaler to get you a better price.