If you are like most people in the developed world, you have had at least one infuriating experience when booking a hotel room or an airline ticket. Travel agents make travel arrangements for individuals or groups. They plan itineraries, make reservations for hotels, transportation, or tours. Also, prepare tickets, suggest places to go, give brochures, and gives all the information to the person traveling. To deserve your loyalty and money, a travel agent must provide a service that is better, faster and more affordable than you can do yourself or naturally you would, in fact, do it yourself. The Travel Agencies industry is growing once again, as traditional brick-and-mortar travel agents reinvent themselves to remain relevant in an industry now dominated by online bookings. The rise of online travel websites has completely revolutionized the industry. In the coming years, continual improvement in the broader economy will boost the industry’s prospects as travel rates lift. Online travel agents (OTAs) such as Expedia and Priceline have claimed huge market share gains from traditional players in a short period of time. Over the past 10 years the supply chain of the travel agency has evolved tremendously in order to incorporate the use of websites to promote online sales. They have grown into giants, with multiple brands and business lines, catering to all segments of the market. The role played by OTAs changes considerably according to market dynamics. The main goal of the travel agency is to attract and keep the customers through the personal approach of the service. Each individual market has different cultural, technological, regulatory, demographic and buying dynamics.
Travel agency will promote such benefits of adventure as excitement, personal growth, health and of course fun. The agency will also work on promoting its own personal services such as vacation’s success, savings and confidence of the clients. These differences can be seen in the type of products sold by OTAs, and in the way products are displayed and marketed. The travel agency market is competitive, and technology, namely the Internet and Computerized Reservation Systems (CRS), has changed the way travel agencies operate. The Internet gives agencies and individuals the ability to perform travel related research. Discount airfare brokers have taken advantage of the Internet by offering tickets online at discounted rates. This has increased price competition. Computerized Reservation Systems have increased the speed and efficiency of the agency-to-customer transaction. They have also increased the start-up costs for travel agencies who wish to be competitive. One notable trend in the travel industry is increased deregulation. Deregulation has increased the need for differentiation and has, in many cases, lowered the prices of airfare and other travel-related services. Additional trends include caps on agency commissions by many of the larger airlines, increases in adventure travel, and reduction of profit margins.
As one looks to the future, this industry is likely to continue evolving rapidly. While the traditional supply chain only allowed customers to receive a single quote, the online supply chain now allows these consumers to check prices at any time, as many time as they wish. In simple way The travel agency saves customers time by researching travel options and provides the travel supply companies a direct link to customers.