Hospitality and travel compose the world's largest industry and contribute greatly to global
economic development. Tour operators and hotels are playing the most important and
critical role in the tourism sector. Their social and economic performance contribute this
role and show the importance of understanding the technical and financial relationship
between tour operators and hotels, which help to develop and solve problems of tourism
industry. The aim of this study is to explore the relationships between two types of
hotels/tour operators' contracts (allotment and commitment) and performance. Survey
data using self-administrated questionnaire have been collected from 300 general
managers of luxury hotels and class A tour operators in Egypt. Exploratory factor analysis
and structural equation modelling were conducted to achieve the research objectives. The
results indicate that commitment contract gives tour operators a very high technical and
operational power inside hotel, but it put high financial pressures on tour operators, and
make them work on risks especially during unstable economic and political periods. The
findings of the current study can be used by academics, hotel managers, and tour
operator'smanagers to completely understand the nature of the impacts of the two types of
contracts (allotment and commitment) on the company performa