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Future of Travel Agencies

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Future of Travel Agencies

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  • November 17, 2008
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Can agents see Life after the Web?
This essay is to discuss what the future is for travel agents in today’s world, when internet services are so popular and easily accessible. It will give a brief view on the travel retail industry and developments within the traditional channels of distribution. This essay will also include the present issues that have had an influence on the industry. Travel retail industry plays very important role in tourism. Travel agents are like a “communication bridge” between the suppliers and the customers. They work on a behalf of the tour operators providing travel services such as airline tickets, hotel rooms and train tickets. The financial risk of the travel agent is very low due to lack of stock. They do not buy products form the provider. There are other services offered by the travel agents for example insurance or car rental. For providing these products agents earn a commission. Usually it is about 10% but they often loose 1-2% on the plane tickets, hotel rooms or train tickets. The commission they get selling insurance can come up to 30% of the whole amount. Other services such as car hire can also bring more than standard 10%. Another way for travel agents to earn money is to accomplish ‘overrides’- particular sales aims set by the supplier. That often can allow the agent to gain about 2.5% of the selling price. Travel agents work to make sure that the most demanding product is available in the right place and at the right time. (Cooper. 2005) People travel for various reasons therefore there are different kinds of travel agents. They can be divided into two main types – leisure travel agencies and business travel agencies. Each of them adjusts the services provided to the needs of the potential customers. First one is basically aiming to tourists which travel is generally not connected with work. The other one is strictly focused on organising any kind of business trips, often offering high standard services. The example...