Travel Agency Types - PDF

TH1804 The Travel Agency Travel agency is a very important component of the tourism industry that helps facilitate travel. It operates as a legally appointed agent, representing the principal...

TH1804 The Travel Agency Travel agency is a very important component of the tourism industry that helps facilitate travel. It operates as a legally appointed agent, representing the principal in a certain geographic area. It is also a business that sells the travel industry’s products and services related to the following: o Airlines o Cruise lines o Hotels o Car rentals o Railway transport o Package Tours Travel Agent A travel agent is a person who represents a travel agency. Without the travel agents, it will be impossible for clients to interact with a travel agency. They also act as the following: The direct point of contact for a traveler who is researching and intending to purchase packages and experiences through an agency A specialist in certain types of travel including specific destinations, outdoor adventures, and backpacking, rail, cruise, cycling, or culinary tours to name a few Advisers who can help travelers when they seek advice about their trips Professionals who operate at a fixed address and offer services both online and at a bricks-and-mortar (a traditional business serving customers in a building) location Intermediaries who can have a face-to-face conversation with their customers or reach them through phone or e-mail Professionals who have a specialized diploma or certificate related to travel services. Types of Travel Agents According to the International Air Transport Association (IATA), the international regulating body for airlines, passenger sales agents, and cargo agents, there are two (2) types of travel agents in the Philippines: o IATA Travel Agents. These are agents accredited by IATA. Having been accredited, they are trusted by the airlines to issue tickets, directly oversee the rebooking, reissuance, or revalidation of tickets issued, or cause the endorsement to other airlines in case needed. Example: Golden Sky Travel and Tours (www.goldenskytravelandtours.com) o Non-IATA Travel Agents. As the name implies, they are not accredited by IATA, hence, are not authorized to issue tickets. They either buy from an IATA agent or from an airline company directly. Example: Gulf Air Travel Agents (www.gulfair.com) Types of Travel Agency As intermediaries, according to Confederation of Tourism and Hospitality (2011), the types of travel agencies are as follows: Independent o It offers a limited number of services, which may be specialized, that has a reputation for personal service and that can be family-owned or owned by an individual. Generally, a small town will have at least a shop for this. Example: Gates Travel (www.gatestravel.co.uk) 01 Handout 1 *Property of STI  [email protected] Page 1 of 3  TH1804 Miniple o It is located in a certain region, which may have a head office to go along with a number of branches that were established with one (1) shop and one (1) owner that has grown. It possesses knowledge of the local market and offers fewer services than multiple travel agencies. Example: Althams Travel (www.althams.co.uk) Multiple o It is located in many different areas of a particular country that are on main high streets or inside shopping centers. It offers a wide range of products and services in all its shops or branches. Examples: Thomas Cook (www.thomascook.com) and the Flight Centre (www.flightcentre.co.uk) E-Agent o It is also known as the online travel agent that can also be a major tour operator. It operates and sells all travel and tourism products online. Examples: Expedia (www.expedia.co.uk) and Lastminute (www.lastminute.com) Holiday Hypermarket o It is comprised of huge retail travel agencies that can also be in huge shopping centers. It has a specialized staff for the different types of holiday. Example: First Choice (www.holidayhypermarket.co.uk) Homeworker o It refers to home-based travel agents or people who are working from home—both part time or full time. Example: Travel Counsellors Specialist o It specializes in particular types of holidays, such as Christmas season and Thanksgiving, and is either an independent or miniple travel agency. Example: STA Travel (www.STATravel.co.uk) History of Travel Agency The history of travel agency can be traced back as follows: Cox & Kings (1758) o It is believed to be the very first travel agency and is considered as the longest travel and tours company in the world. The beginning of travel agency started in England in the year 1758 with typical rich customers as its clients. o It is founded by Richard Cox who was chosen to be the general agent to the regiment of Foot Guards in India under the command of Lord Ligonier. He worked on housing and feeding the guards and carrying favor with the military of Britain establishment. He became successful because of his ability to seek funds from various sources and creative business partners. He went on a partnership in the year 1765 with Mr. Drummond, whose family ran the London Bank, and had flourished their partnership becoming agents for eight (8) more regiments. Thomas Cook (1841) o He is known as the “father of travel agency.” o He opened a business that was dedicated to help out the Britons to see the world. He was the first person to organize a packaged tour, especially for travel by groups. In 1926, Thomas Cook opened his headquarters in the very fashionable Berkeley Street in London. 01 Handout 1 *Property of STI  [email protected] Page 2 of 3  TH1804 Aviation Development (1920s) o This era helped travel agencies boom as a business because of commercial aviation. Many of the brands that are familiar today, such as the Queensland and Northern Territory Aerial Service (also known as Qantas), Delta, American Airways (today’s American Airlines), and Pan American World Airways (PanAm), were formed at this time. Post World War II (1947–1953) o Countless travel agencies were already present since Cox & Kings, which was believed to be the first travel agency. After the World War II, middle-class people were the target market of the travel agents. This was the time when families could afford beach holiday packages. Travel agencies became more popular particularly to the high-class society who wanted a hassle-free vacation. People began to realize that it was very convenient and practical for them to have a package holiday tour rather than doing all things by themselves, like planning and preparing. Airline Reservation System (1960s) o On a parallel track with the growth of the airlines was the growth of travel agencies. Many travel agencies became important sales and booking channels for the airlines. As airline routes and booking processes became more complicated, travel agents became a more popular method for consumers to book their airline tickets. However, travel agents wanted more access to airline schedules and fares so they could sell tickets more efficiently and automate their side of the booking process. Thus, it gave birth to other airline companies creating their own systems—one of which was Delta Air Lines' own Delta Automated Travel Account System (DATAS). Present times o There are various travel agencies nowadays. As the time changes, the demand also changes with different trends. Travelers expect more options and a customized approach in their travel needs. Changes in booking and reservation can also be observed. References: Claravall, B. G. (2013). Travel and tour operations in the Philippines. Sampaloc, Manila: ACCUMIRO I.T. SOLUTIONS. Confederation of Tourism and Hospitality (2011). Travel agency and tour guide operations study guide (1st Ed.). Retrieved from http://b-ok.xyz/ireader/2540959 on August 22, 2018 Tuazon - Disimulacion, M. A. (2016). Principles of tourism 2. Mandaluyong: Books Atbp. Publishing Corp. Swain, D. S. (2014, February 26). Travel and tour operations management. Retrieved from Pondicherry University’s website: http://www.pondiuni.edu.in/sites/default/files/travel-agency-op-mgt- 260214.pdf on March 5, 2018 The history of Cox & Kings: Over 250 years of discovery. (2017). Retrieved from Cox and Kings’ website: http://www.coxandkings.co.uk/about-us/history on 5, March 2018 01 Handout 1 *Property of STI  [email protected] Page 3 of 3