Travel Agency

In the past, a travel agency’s value was mainly access. Before the internet, consumers could hardly book a flight, as they physically could not access a GDS (Global Distribution System); they needed a licensed agent to do it on their behalf.

In the modern age, where access is ubiquitous through the web, the role has changed from transaction processing to consultation. Modern agencies (often rebranding themselves as travel advisors) concentrate on:

• Complexity management: Managing multi-stop international itineraries that are hard to book on a conventional website.
• Advocacy: Being a traveler’s representative to solve problems (cancellations, lost luggage) with suppliers.
• Curation: Filtering through the overwhelming amount of online choices to recommend personalized options.

While OTAs (Online Travel Agencies) and TMCs (Travel Management Companies) are technically travel agencies, most commonly the term is applied to three different operational models:

• Brick-and-mortar agencies: Offline physical storefronts. These now orient themselves strongly towards high-margin complex leisure travel (cruises, honeymoons) where trust and face-to-face interaction are paramount.
• Home-based/independent agents: A fast-growing segment of entrepreneurs who work remotely. They almost always affiliate with a larger host agency in order to access technology and higher commission levels without having to maintain a physical office.
• Consortia: Independent agencies often join cooperative networks (like Virtuoso or Travel Leaders). These consortia pool the buying power of thousands of small agencies to negotiate for exclusive perks (such as free room upgrades or shipboard credits) that an individual agency could not get on its own.

Even offline agencies rely on sophisticated technology to compete.

• GDS terminals: The key interface (Sabre Amadeus) for booking air and car rentals.
• CRM: Sophisticated databases used to track client preferences (e.g., “Prefers aisle seats,” “Allergic to feathers”) to automate personalization.
• Itinerary builders: Software such as Travefy or Umapped that brings confirmation emails and GDS segments into a presentable and mobile-optimized app for the client.