Travel Agent

Historically, the main value of a travel agent was just access. Before the internet they were the only people who held physical airline tariffs and had GDS (Global Distribution System) terminals needed to issue a ticket.

When the democratization of access to basic inventory through self-service websites followed with the internet, the role changed fundamentally to survive:

• Old Model (Transactional): Taking an order, looking up a price, and printing a physical ticket.
• New Model (Consultative): Creating highly complex itineraries, using personal supplier relationships to access VIP perks, and dealing with disruptions to the trip (e.g., instantly rebooking a client in the event of a sudden airline strike). This is why the title “Advisor” is now the preferred nomenclature.

Modern-day travel advisors are super users of specialized B2B travel technology. Their techs are likely to have this list of tools in their daily use:

• GDS (Amadeus, Sabre, Travelport): The engine at its core is used to book flights, work with complex rules for fares, and handle PNRs (Passenger Name Records).
• Travel CRM: These are advanced customer relationship management applications that are being used to manage complex client preferences (seat selections, food preferences, passport expiration dates) to provide hyper-personalized service.
• B2B Booking Portals: Platforms (such as bed banks or special tour operator portals) that provide wholesale net rates that enable the advisor to dynamically package trips and control their own margins.

The way travel agencies work financially has changed dramatically in the past two decades.

• Commissions (Legacy Model): Suppliers such as luxury hotels, cruise operators, and tour operators pay a percentage of booking value (often 10% to 15%) back to the agent after the traveler completes his or her trip.
• Service Fees (Modern Reality): Major airlines famously reduced base commissions to zero in the late 1990s and early 2000s. In order to make up for the labor involved in booking airfare, agents now charge the client a direct professional service fee (i.e., a $50 ticketing fee or a flat $500 itinerary design fee).