Saturday, April 4, 2020

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The Pros And Cons Of A Travel Agency.  

Travel is an 8 billion dollar a year business.

Travel have steadily increase with the many new technology used by travelers enabling self booking.

Number of travel agencies in recent years however shows the industry’s success is dwindling.

Travel agencies had to become more creative in their offerings and services to stay relevant. 

Types Of Travel Agencies

1.  Luxury Travel Agencies

2.  Corporate Travel Agencies

3.  International Travel Agencies

4.  Traditional Travel Agencies

5.  Vacation Travel Agencies 

Luxury Travel Agencies 

These agencies work with very high end clientele.  They will design the clients packages from start to finish.  They are very helpful and are on call for their clients to assist them with their travel needs.  Destination weddings, spa vacations, cosmetic surgeries, diet vacations and adventure tours are their areas of expertise. They have close relationships with their clients and are well connected within the areas they service.  They are very pricey due to all the services they offer their clients.

Corporate Travel Agencies

The corporate travel agencies provide services for business clients.  They assist with business travel plans within the guidelines of their agency.  Some businesses have in house travel agency.  They will assist the organization with group travel as well as individual travel.  They may also help to organize large conventions, meetings and team building activities.

International Travel Agencies

International Travel Agencies deal primarily with trips abroad.  They will provide clients with all they need to know, expect and have to make their trips safer, pleasant and less hassle.  

 Vacation Travel Agencies

Focus on tourism packages.  They concentrate mainly on seasonal business.   Their clients maybe students during their school vacation breaks, families when children are out of school for the summer, couples vacationing on special occasions such as anniversaries.  This type of agency maybe a little more pricey.  They work closely with hotels and vacation spots.  They often will arrange tour packages and sell all inclusive and non inclusive packages.

Traditional Travel Agencies

Traditional  or domestic travel agencies generally deal with domestic travel and international travel.  


You may wonder what is a travel agency exactly and how do they work?

Walter T Brownell established the oldest travel agency in North America on 1887: the Brownell Travel.

One notable travel is a European tour that set sail from New York on the SS Devonia.

Today, there is a plethora of travel agencies that offers services in every corner of the globe.

Considered a retail business, a travel agency sells travel-related products and services to consumers. It is like a one-stop shop of travel-related concerns.

It assists consumers with regard to air ticket, car rentals, cruise lines, hotel reservations, sightseeing tours, and package holidays.

As we have already stated travel agencies come in varied purposes.

There are agencies that deal only with ordinary tourists; some have other departments for business travelers, while others specialize in commercial travels.

The main function of a travel agency is to act as an agent.

It sells travel services on behalf of a supplier. In general, there are two approaches of travel agencies.

However, there are different types of agencies in various countries. Say for example the United Kingdom where there are three and United States has four.


In United Kingdome,

1.  Multiples,

2.  Miniples, and

3.  Independent Agencies.

Thomson Holidays is an example of Multiples which comprise of several national chains owned by international conglomerates.


In United States, there are:

1.  Mega,

2.  Regional,

3.  Consortium and

3.  Independent Agencies

4.  Home-Base Travel Agencies


Examples of Mega travel agencies are American Express and American Automobile Association.

Meanwhile, independent agencies cater to a special market such as a particular group interested in same activity—sporting activity, leisure travel, and adventure tours.

Operations Of Agencies

The operations of travel agencies are not equivalent to a retail business where it keeps stock.

They only purchase package holidays or tickets from suppliers only if a customer has already bought one.

Profit of Travel Agencies come from:

1.  Commissions

2.  Flat Fees

A travel agency gets profit from the discounted package holidays and tickets. Such profit is called the commission.

Typically, a 10-12% commission is a good deal. But this is not true for all other countries.

Some airlines do not give commission; hence travel agencies charge a percentage premium or standard flat fee per transaction.

While number of travelers continually increases, the Internet has somehow harmed the industry.

The number of available jobs as travel agents is decreasing because of self-service websites.

This led to a shift in home-based travel agencies.  Travel agencies have become more creative in offering their services and more efficient on delivering services.

Travelers want a personal touch and want to be catered to; so they look to a travel agent for the more difficult and tedious travel plans.   When it comes to planning a vacation, trip or company meeting a travel agency caters to the need of the traveler(s) and put everything together.  When a traveler need a car rental, hotel, flights and tour packages it is not an easy job pulling it all together.  



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