Tour operators function as intermediaries in the tourism distribution system linking producers and consumers. Their expertise in packaging tourism products allows for more offerings to a wider range of tourists. This study examined the role tour operators fill in packaging travel to developing countries using Indonesia as a case study. Many developing country governments, including Indonesia, have assumed active roles in tourism development. The results of this study indicate that the active role should include a focus on tourism's distribution channels, especially tour operators, if some of the problems common to developing countries' tourism development efforts are to be overcome.