Travel agency

« Back to Glossary Index

**Business Model and Revenue Sources**:
Travel agencies receive commissions and benefits from providers or may charge fees.
Hotel owners and tour operators pay higher commissions to travel agencies.
– On average, 78% of a travel agency’s revenue comes from commissions, while 22% comes from fees.
– Customers are often unaware of the travel agent’s earnings.

**Accreditation and Recognition**:
Travel agencies are recognized by vendors through accreditation numbers like those issued by ARC, CLIA, and IATA.
– Host agencies are designated for multiple agencies booking under the same number.
– In the U.S., 43-85% of leisure agencies book under a host agency.
– Accreditation numbers are crucial for vendor recognition.

**Travel Technology and Booking Systems**:
Travel agencies use major computer reservations systems like Amadeus and Sabre.
– Bookings may or may not be confirmed instantly via travel agents.
– Metasearch engines like Skyscanner divert traffic to service providers for booking.
– Some companies promote sustainable tourism through technology.

**Types of Travel Agencies and Market Segments**:
Travel agencies can be multinational, medium-sized, or independent, structured as LLCs, sole proprietorships, or host/franchise/consortium setups.
– Agencies cater to various markets like corporate travel, luxury travel, or niche markets.
– Some agencies focus on specific niches like youth travel or cultural tourism.

**Licensing, Associations, and Historical Development**:
Travel agencies must be licensed by IATA in many countries and are often bonded and represented by IATA.
– Associations like ABTA, ACTA, and ASTA represent agencies in the UK, Canada, and the U.S.
– Historical developments include the establishment of Intourist in 1929, ASTA in 1931, and in 1996.
– Licensing ensures agencies adhere to industry standards.

Travel agency (Wikipedia)

A travel agency is a private retailer or public service that provides travel and tourism-related services to the general public on behalf of accommodation or travel suppliers to offer different kinds of travelling packages for each destination. Travel agencies can provide outdoor recreation, arranging logistics for luggage and medical items delivery for travellers upon request, public transport timetables, car rentals, and bureau de change services. Travel agencies can also serve as general sales agents for airlines that do not have offices in a specific region. A travel agency's main function is to act as an agent, selling travel products and services on behalf of a supplier. They are also called Travel Advisors. They do not keep inventory in-hand unless they have pre-booked hotel rooms or cabins on a cruise ship for a group travel event such as a wedding, honeymoon, or other group event.

Allamanda Voyages travel agency in Paris
Travel agency in Rio de Janeiro, Brazil
Travel agency in Taiwan
« Back to Glossary Index