Lecture Topic 3.1.

1 Travel Agency and Travel Agent

Most travel agents will work for a travel agency, even those who work as a home-based travel
advisor. Travel agencies provide travel advisors with the resources they need to become successful
travel salespeople. Agencies will provide initial training, mentorships and ongoing education for
travel agents.

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 agency is one of the most important organizations in the tourism private sector which plays a
significant and crucial role in the entire process of developing and promoting tourism in the country
or at a destination. It is a travel agency which packages and processes all the attractions, accesses,
amenities and ancillary services of a country and present them to tourists. That’s why travel agency
is known as ‘image builder‘ of a country.

A prospective travel agency is one which makes arrangements of travel tickets (air, rail, road, and
sea); travel documents (passports, visa and other documents required to travel); accommodation,
entertainment, and other travel-related services from principle suppliers. It may also secure travel
insurance, foreign currency for traveling people.

Difference between Wholesale Travel Agencies and Tour operators

The wholesale travel agencies may offer or operate the package tours or may specialize in
developing tours for inbound as well as outbound travelers. They are often referred to as tour
operators, but these two essentially different:

1. Wholesale travel agency does not sell directly to the public, while tour operators do sell
directly to clients.

2. A wholesale travel agency usually combines, assembles and contacts for existing travel
services to formulate a new travel product she has his own one or more components of
travel product i.e. ‘ inclusive tours.’

3. Wholesale travel agencies are less inclined than tour operators to perform ground services
i.e. handling agency or ground operators.

4. A wholesale travel agency may deal with one component of travel product while a tour
operator offers a variety of tour programmes.

5. The size of the business is large in the case of tour operators in comparison to a wholesale
travel agency.

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:-

1. An important link between the clients and principal suppliers.

2. Image-Builder.

3. Ensures rapid travel services.

4. Provider of authentic and reliable travel information.

5. A social a continuous process.

6. Establishes a good relationship with clients and vendors.

These are the most important features of the Travel Agency Business.

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.

The operation of each travel agency is based on the scope of its activities and organizational size.
Here we discuss the functions of a large scale travel agency that performs all types of activities such
as Retail travel agency, wholesaling and tour operations, etc. The main function of a large-scale
travel agency are:

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.