Organizations in the Distribution Process - Tourism: Principles, Practices, Philosophies - page 151

Suppliers
Transportation Providers, Accommodations, Food Service, Resorts,
Recreation, Entertainment, Etc.

Specialty
Channeler Specialty

Channeler

Specialty
Channeler

Host Retail
Travel Agent

Direct
Channel
via
Internet
Telephone
Suppliers
Office

Tour
Wholesaler

Tour
Wholesaler

Tour
Wholesaler

Retail Travel
Agent

Retail Travel
Agent

Specialty
Channeler

Retail Travel
Agent

Tour
Wholesaler

Retail Travel
Agent

Home-based
Travel Agent

Customers
Individuals, Pleasure Groups, Business Groups, Etc.

Figure 7.2 Tourism

distribution channels.

TRAVEL AGENTS

Travel, whether for business or pleasure, requires arrangements. The traveler usually faces a variety of
choices regarding transportation and accommodations; and if the trip is for pleasure, there are a
variety of choices regarding destinations, attractions, and activities. The traveler may gather
information on prices, value, schedules, characteristics of the destination, and available activities
directly, investing a considerable amount of time on the Internet, or possibly money on long-distance
telephone calls, to complete the trip arrangements. Alternatively, the traveler may use the services of
a retail travel agency, obtaining all these arrangements for a fee.

What Is a Travel Agent?

A is individual parts or a

combination of the parts to the consumer. In marketing terms, a travel agent is an agent middleman,
acting on behalf of the client, making arrangements with suppliers of travel (airlines, hotels, tour
operators) and receiving a commission from the suppliers and/or a fee from the client.
In legal terms, a travel agency is an agent of the principal

travel agency is a middleman — a business or person selling the travel industry '

speci cally, transportation companies.
The agency operates as a legally appointed agent, representing the principal in a certain geographic
area. The agency functions as a broker (bringing buyer and seller together) for the other suppliers, such
as hotels, car rentals, ground operators, and tour companies.
A travel agent is thus an expert, knowledgeable in schedules, routing, lodging, currency, prices,
regulations, destinations, and all other aspects of travel and travel opportunities. In short, the travel
agent is a specialist and counselor who saves the client both time and money. This travel agent still
exists today, but in smaller numbers than in the past. Increasingly, they are being replaced by

—

online

travel agencies (OTAs), which provide information and let the consumer make the booking. These

include companies such as Expedia, Travelocity, Orbitz, Priceline, and Hotwire, for example. Finally,
there are home-based travel agents working with hosts.

Airlines Reporting Corporation

When talking about travel agents, it is necessary to talk about the Airlines Reporting Corporation
(ARC) because travel agents are accredited by ARC, endorsed by the International Airlines