Exactly What Is A Travel Agent, Travel Company, Or Online Travel Agency?

Every great travel company has to determine which kind of travel company they would like to be. Here we discuss the various ways travel is offered and also the connected business operation name/description.

1.) Travel Company – Traditional company that contracts rooms in hotels, transportation, and extra excursions/occasions because of its visitors. Tour operators market straight to their visitors and permit travel agents to re-sell their tour packages for any commission. The travel company may be the vendor and also the travel representative is the telemarketer supplying everyone. Start-up capital needed – minimum $20,000.00

2. Traditional Travel Agency – A conventional travel agency arranges travel for his or her visitors and re-sell tour operators products. One particualr travel agency business model is Liberty Travel They re-sell prearranged hotel and flight packages arranged by tour operators. Traditional travel agencies normally sell face-to-face using their clients, over the telephone, or via email. Start-up capital needed – minimum $6,000.00

3. Online Travel Agency and/or OTA – These agencies are 100% online. They contract hotels directly or through a 3rd party wholesaler / retailer. Then they make use of a direct reference to the airlines to package flights and hotels together. Typically they provide a messageOrcontact center to assist people reserving online, however generally they book 75% of the business online. Types of this model include,  These businesses began really small and are becoming massive companies, and appear is the largest purchase of travel related products worldwide. Start-up capital needed – minimum $100,000.00

4. Travel Affiliate Marketing Programs – This is actually the newest model, using the smallest amount of capital needed to begin, and nil direct customer interaction. Online travel agencies and tour operators pay affiliate websites to market their travel deals/specials so when a possible customer visits the affiliate travel website and clicks a deal, the travel company or online travel agency pays the travel affiliate between $.10 – $4.00 for that “click” whenever a potential guest leaves the affiliate site to automatically get to the travel company or online travel agencies website. Some tour operators an internet-based travel agencies supply to 10% commission if your guest will get for their websites with an ad they visited found on your travel affiliate site and completes and will pay for a reservation. Start-up costs – $ – $4000.00

We are not a fan of one model over every other. However we ought to explain the affiliate model is the greatest method for someone with limited sources, who desires no customer support liability, an easy (nearly hands off) approach, and also the fastest way to generate money. If cash is your motivator and you need to earn it rapidly, the affiliate model is what you want.

Within our next articles we’ll discuss working on your travel business idea and which from the four models might work good for you.

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