A travel agent is a person who has full knowledge of tourist product – destinations, modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of product providers/principles and in return gets a commission. Technically, a travel agent is an owner or manager of an agency, but other employees are responsible for advising tourists and selling packages tours/individual components of travel products.
A travel agent may be an individual /firm or corporation which is commonly known as a travel agency. An agency means the office of travel agent or organization where all travel goods and services are assembled and coordinated for the smooth conduct of travel agency business.
Travel agencies are basically categorized into two types-: Retail Travel Agency and Wholesale Travel Agency.
Retail Travel Agency
A retail travel agency sells tourists products directly to the public on the behalf of the products suppliers and in return get commissions. Some package tour is sold in two ways i.e., on a commission basis and mark up the price.
When a travel agency sells a tour on the marked-up price it means that first, it markup the cost of the tour and then sell it at a higher rate. The markup price is the difference between retail price and wholesale cost
Definitions of Retail Travel Agency
According to Airlines Reporting Corporation (ARC) a retail travel agency is defined as ” a business that performs the following functions: quotes fares, rates, make reservations, arrange travel tickets and accommodation, arrange travel insurance, foreign currency, documents and accepts payments.”
Wholesale Travel Agency
These agencies are specialized in organizing package tours, which are marketed to the customers/tourists through the network of a retail travel agency or directly to the prospective clients ( if wholesale travel agency has a retail division). A wholesale travel agency purchases tourists’ product components in the bulk and designs tour packages.
Features and Importance of the Travel Agency
Travel agency plays an important role in the travel sector business. Some most important features and importance of the travel agency business are following as:-
Functions and Services of Travel Agency
Today, Travel Agencies have been recognized as a vital component of travel and tourism and have become an integral part of the travel and tourism industry at globally. They account for more than 90% of international and 70% of domestic tourist traffic
Further, more than 60% of all travel agency revenues are derived from business travel. Most travel agencies sell both commercial and leisure travel but there are many travel agencies that only specialized in one sector or the other.
Travel Information
Whatever the size of a travel agency, it has to provide necessary travel information to tourists. A travel agency must give up-to-date, accurate, and timely information regarding destinations mode of travel, accommodation, sight-seeing, shopping, immigration, passport, visa, customs clearance and procedure, health and security rules, and various permits required to travel in particular areas, etc.
Itinerary Preparation
The term tourists itinerary is used to identify the origin, destination and all the stopping points in a traveler’s tours. It is a composition of various elements and designed after a detailed study of the market. Travel agencies prepare an itinerary for tour packages.
Airline Ticketing and Reservation
A travel agency sells a variety of tourism products. Airline ticketing and reservation is still a major source of revenue. Travel agencies perform a function of airline ticketing and reservation on behalf of various airlines.
Tour Packaging and Costing
Travel agencies prepare a tour package and sell them to tourists. The coasting and pricing of tour packages depend to a large extent on the ability of travel agents as to how effectively he is able to negotiate with the principal suppliers.
Reservation
It is a very important function of all types of travel agencies. A travel agency consistently makes linkage with the accommodation sector, transport sector and other entertainment organizations to reserve rooms, and seats in the cultural programs and transportation.
Travel Insurance
Some large-scale travel agencies perform additional functions to serve their clients. Travel insurance protects travelers against the person as well as baggage losses resulting from a wide range of travel-related happenings and problems.
Currency Services
Approved travel agency authorized by Govt. body provides currency exchange services to tourists.
Organization of Conference/Conventions
Large-scale travel agencies offer a complete convention/conference package which includes registration of the participants at the venue to be picked up for dropped to the airport/hotel, overhead projectors, slide projectors, TV, VCR, information counter, sightseeing, etc.
Travel Agency Linkages and Integration
Basically, a travel agency serves two types of clients: business travelers and leisure travelers. Incidentally, the requirements of these tourists are different and an agency has to assemble or purchase-related components from the principal suppliers to cater to their needs.
