What Is A Travel Agency

So, what is a travel agency?

A travel agency is a recreational retail business that sells travel related service and products to customers on behalf of clients, such as special holiday packages, airline tickets, tours, hotels and cruises. Travel agencies extend their services to more than traditional tourist. They also work with business and foreign travelers.

Some travel agencies specialize in business travel only, while other agencies work as general sales agents to foreign travel companies, and have locations in different countries. In short, travel agencies arrange personal, business and foreign travel.

What Is a Travel Agency As It Relates to Classification?

There are different types of travel agencies. In the United States of America there are four different types independent, consortium, regional and mega. For example, America Automobile Association, also known as AAA, and America Express are mega travel agencies.

Independent agencies work in special markets, known as niche markets, like a suburb or special groups who have similar interest such as, golf, tennis, or other sporting events.

What Is a Travel Agency's Relevance in Today's Competitive Travel Market?

Today, travel agencies are still beneficial to the traveler. Now that the general public has access to the internet, most airlines and travel companies sell directly to the customer. Airlines no longer have to pay commission to travel agents on every ticket sold. Starting in the late 1990's, travel agencies began to be disintermediated, but travel agents had to find a means to survive off more than cruise vacations and travel packages.

As the solution to the problem, travel agencies created travel websites so clients could book online and receive detailed information about travel plans. Popular online travel agencies include Orbiz, Expedia, Cheaptickets, Priceline, Hotwire, and CheapOair.

Travel agencies have also extended their network to include Global Distributions Systems such as SABRE, WorldSpan and Galileo CRS, allowing customers to book travel tickets, car rentals and hotels online. Travel website help agencies maintain revenue while allowing clients to compare flights, price, amenities, landmarks and proximity.

This works because travel agencies have found a way to create dynamic package deals that provide financial protection at prices equal or lesser than what an individual can book else where online.