Travel agency

Allamanda Voyages, 3 Impasse de la Gaité, 75014 Paris 2014

Condor Viagens & Turismo Ltda

Tao Ko Travel Service HQ 20131103

Thomas Cook R.I.P. flowers Enfield, London

Keihäsmatkat 1972

Travel agency is a business or organization that provides travel and tourism related services to the public on behalf of suppliers such as activities, airlines, car rentals, cruise lines, hotels, railways, travel insurance, and package tours. In addition to dealing with ordinary tourists, most travel agencies have a separate department devoted to making travel arrangements for business travelers; some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.

History

The modern travel agency first appeared in the second half of the 19th century with its root in 1758 when Cox & Kings Ltd. was established. The development of the travel agency is closely linked to the development of commercial aviation.

Services

Travel agencies' main function is to act as an agent, selling travel products and services on behalf of a supplier. Consequently, unlike other retail businesses, they do not keep a stock in hand. A package holiday or a ticket is not purchased from a supplier unless a customer requests that purchase. The holiday or ticket is supplied to the agency at a discount. The profit is therefore the difference between the advertised price which the customer pays and the discounted price at which it is supplied to the agent. This is known as the commission. In many countries, all individuals or companies that sell tickets are required to be licensed as a travel agent.

In addition to dealing with ordinary tourists, travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.

Types of Agencies

Traditional

Traditional travel agencies have physical offices that clients can visit to consult with travel agents. They often provide comprehensive travel packages and have established relationships with tour operators and airlines.

Online Travel Agencies (OTAs)

Online Travel Agencies (OTAs) operate on the internet and offer a convenient way for consumers to compare prices and book travel services directly. Examples include Expedia, Booking.com, and Priceline.

Specialty Agencies

Specialty agencies focus on specific types of travel, such as luxury travel, adventure tours, or eco-tourism. They often possess in-depth knowledge of their particular niche.

Regulation

The regulation of travel agencies varies by country. In the United States, travel agencies are required to be licensed in the states where they operate. The International Air Transport Association (IATA) offers certification that is recognized globally.

Challenges

The rise of internet travel booking sites and direct sales by airlines and hotels have posed significant challenges to travel agencies by cutting out the middleman. However, many agencies have adapted by focusing on selling specialized travel experiences that are difficult to book online.

Future Trends

The future of travel agencies looks to be increasingly specialized and personalized, with agencies offering more tailored travel experiences. The use of technology, such as virtual reality previews of destinations and AI to customize travel packages, is also expected to increase.