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Traditional Travel Agency Case Study

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Since 1841, after Mr. Thomas Cook introduced the Travel Business to the world, traditional travel agencies have operated their businesses as intermediaries between Consumer Travelers and the Travel service suppliers such as airlines, hotels, restaurants, transport providers and other service providers. With the vast development gained by the Internet and the World Wide Web (WWW) related activities during the recent past, whole new set of challenges and opportunities were immerged in most of the business sectors. The Travel & Tourism business could be identified as one major area where the presence and challenges of WWW was experienced in major scale. Traditional Travel Agents who acted as the intermediaries faced the challenge due to the open …show more content…
Currently, travel service suppliers can reach millions of consumer travelers with the help of internet and latest online distribution channels. The greatest potential challenge for traditional travel agents could be identified as the direct sales made by travel service providers as well as online travel agents via the internet. The opportunity of travel service suppliers to make transaction with travel consumers direct diminish the objectives of traditional travel agents as intermediaries. Therefore traditional travel agencies must also adopt new strategies in order to overcome the challenges created by e-tourism …show more content…
Therefore, travel agencies in those countries are charging a fixed fee as a service charge for their services. However, most of the travel service providers either pay travel agencies a certain percentage of the total selling price or they offer special rates for the travel agencies which are generally low rates compared to the published rates in the open market. Most of the major tour companies are highly dependent on the bulk sale because they have to maintain very low rates in order to be competitive in the travel market, hence they are trying to sell maximum number of travel packages at a lower rate and make sure that they are generating a profit from the bulk sale. Even if they are selling a hundred travel packages at a lower rate, it is comparatively better than selling ten travel packages at a higher rate, and also attracting travelers who are willing to pay a higher rate has been a very difficult task in the general travel market. Therefore it is beneficial for both Travel Agency and the Travel service supplier to follow the common procedure and specially travel service suppliers will be free from the responsibility of conducting their own advertising campaigns and distribution operation because the travel agencies will carry out that task as a partner of the

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