Angelika Zajc THMN 505, 2011/2012

Operations of Travel Agencies

Many sources define the travel agency as an business, which has place a constantmediation statment concluding contracts for tourist services, tour operators with permission of the country or to other service providers established in the country. To the group of other tourist service providers we must include sub- service hoteliers, airlines, leisure service providers, tour guides, cruises lines, etc., whose aim is to organize tourist events and do not mediate on behalf of the customer in concluding contracts for tourist services. This kind of group could also include intermediaries acting on behalf of other tourism business but not clients. The main function of travel agency is to act as an agent, which means to sell travel products and services on behalf of supplier. Furthermore in contrast to other retail businesses, they are not trying to keep a funds in their hands. As long as a package holiday or ticket is not requested by customer they do not purchase it from a supplier. At that time the ticket is supplied to them at a discount. In that case the profit for the travel agency is the difference in price announced in advertisment, payed by client, and the discount price which they gain from suppliers. Such behaviours is wildly know as commission. In some countries as for example Australia the entities who decide to sell tickets have to proved the licence of a travel agent. Another action which were taken by tourist service providers is example of airlines. In some countries the airlines have stopped providing commission to travel agencies, which force them to charge a percentage premium or a strandar flat fee to every sale. Nevertheless some companies still can afford to give to tourist agencies proper percentage, but mostly its practice among big tour comapnies which simply can afford to do this. They decision is based on the fact that for them is still more profitable to sell thousand of trips at cheaper price than hundred ones at a higher rate. In such way is more profitable for both travel agencies and tourist service providers.

Other examples of operations undertaken by travel agencies, especially by those which are pary of big tourist chains, can be: in house insurance, like house or health insurance; travel guide books, which provides information about a geographic location, toursit destinantion or itinerary and all necessary information about place included; timetables, which represent public transport information to assist a passenger with planning their trip with use of such way of transport; car rentals, which rents automobiles for short periods of time (generally from few hours to a few weeks) for a fee; services of an on-site Bureau de change, in another words currency exchange, where customers can exchange one currency for another; Cyber cafes, which provides internet access to the public, usually for fee; sightseeing tours, which is arranging visit to the place of local interest.

Many of travel agents to protect themselves and their clients against possibilities of commercial failure, either their own or a suppliers they try to advertise themselves as they are surety bonded. Surety bonded means that in the case of failure, the customers are guaranteed either an equivalent holiday to that which they lost or according to their preferences possibility of refund. Nowadays many American as well as British agencies and tour operators are bonded with some special organizasion to prevent that. To such organisations we can include: International Air Transport Association (IATA), for those who issues air ticket; Air Travel Organisers Licensing (ATOL), for those who order ticket in; Association of British Agents (ABTA), UK travel trade association for those who sell package holidays on behalf of tour company; American Society of Travel Agents (ASTA), for those who sell package holidays on behalf of tour company in the area of USA. Furthermore travel agent suppose to offer impartial travel advice to the customer. However nowadays this function is about to disappearded with the mass market package holiday. Furthemore some agency chains started to develop so called holiday supermarket concept, which is based on customers who want to choose their holiday from the brouchres on racks and then book it from a counter. For this situation a huge influence has variety of social and economic changes in past years, which cause to bring the force once more, particulary with the advent of multiple, no-frills, low- cost airlines.

According to each country internal policy we can distinguish different types of agencies. For example nowadays in United Kingdom we can distinguish three different types of agencies: Multiples, which are a collaboration between two or more independent agencies; Miniples, which are a tourist agencies with a small number of branches often in particular area; Independent agencies.

The former comprises a number of national chains, often owned by international conglometates, like for example ThomsonHolidays, now a subsidary of TUI AG, the German multinational. At present its very often common for the large mass market tour companies to purchase controlling interest chain of travel agencies, in order to control the distribution of their products. In case of smaller chains, they are often based in area of particular regions. While in United Kingdome we can distingish 3 types of agencies in United States there are four different types, such as: Mega (for example: American Express and American Automobile Association) Regional (for example: Florida Travel Agencies) Consortium (for example: The Freedome Travel Group Consortium) Independent agencies

For both distinctions common is distinguish of Independent agencies. Independent agencies usually cater to a special or niche market, which can be for example the needs of resident in an upmarket commuter town or suburb or particular group interested in a similar activity, like sporting events, football, golf or tennis. Besides possibility of distinguish main types of agencies it is also possible to present two different approches of travel agencies which can characterise them. First one is out bound travel agency, in other words can be characterise also as traditional or multi destination, which is based in the originating location of the traveler. At present this kinf of approach is used by larger operator, as for example Thomas Cook. The another one is in bound travel agency, which is destination foused one, based in the destination and delivers and expertise on that location, which is used by smaller, independent operators. Brochures for travel locations, rental car companies, entertainment, etc. are obtained from the wholesale houses and service providers with whom ATI deals. Brochures for ATI are handled by a local graphic arts company and are mailed to potential customers upon request. Additional literature such as direct mail, print ads, and sales promotion materials will be utilized as needed. ATI will maintain a database from which customer/contact information will be drawn.

Nowadays many traditional Travel Agencies has to faced the threat of using Internet which force them to change tha way how they work. Brochures for travel locations, rental car companies, entertainment, etc., are obtained from the wholesale houses and services providers with whome Travel Agency deals also additional literature such as direct mail, print advertisment and sales promotion materials are not any longer enough to act efficiency on market. Many of agencies based their activity on new technology sources, same walking away from the traditional approach and also decreasing number of workers in their offices. One of example of using new technologies in new approach can be Computerized Rezervation System (CRS). The CRS enables travel agencies to identify what the customer is looking for and make that information avaliable quickly. It also increases the speed and efficiency with which Travel Agencies can communicate with suppliers. What is more the CRS makes customer data storage and retrieval relatively simple. For every Travel Agencies essential is to make constonant market research of new trends and destinations on the market as well as communication with the costumers and suppliers. The usage of Internet make its much more easier. As an example of operations on the website we can present one of the cruises lines website which matches matches consumers with appropriate cruises offered by advertising travel agents. Upon opening the attractive page with color graphics and an easy-to-use interactive format, the consumer sees a listing of three categories: Cruise Lines Cruise Destinations Other Destinations

The potential customer clicks on their choice and a screen appears describing the available cruises meeting their requirements. If they want to receive a quote or receive further information, they click the quote button. The screen that appears contains a questionnaire with general information which must be completed for the process to continue. Questions include: Name Telephone number E-mail address A contact time The number of cabins required

After the general type and location of room, previous cruising background, and availability for cruises on short notice information is completed, specific reservation information is requested. This questionnaire queries on details of the cruise requested. This includes the customer's available sailing dates, price categories,. After completing the questionnaires, the consumer submits the information by activating the submit button. The information is e-mailed to the company databank and the advertising travel agent which posted the cruise listing. Many times the listed cruises are no longer available or the location requested is not among the listings, or the pricing requested is not available. In those instances TripBlaster will refer these potential customers to MLC. Other advertisers on the website have agreed to this arrangement. MLC will not compete with these agencies at this site. The company believes that this will be a steady source of potential customers. Besides that many comapny focuse strictly on their Internet operation. That means that there will not be walk-in customers, nor will there be a marketing area limited by geography. Operations will take advantage of modern electronic and telephonic communications. The company's office will be minimal, functioning as a communications center housing the company's agent and computer systems. Initially operations in many of them consist of two agents dealing with the public and travel industry professionals and one management member specializing in marketing and Internet technology. A typical transaction take place as follows: 1. The agent contact a potential customer obtained through the TripBlaster site or from the company's site. The agent have all relevant information needed to assist the customer derived from Internet site questionnaires. 2. Consulting the company's data base of available cruises containing relevant data such as departure data, prices, availabilities, and port visits, the agent can match the customer with an appropriate cruise. 3. The booking information is e-mailed to the cruise line or cruise agent. 4. Confirmations are sent to the customer. As a conclusion important is to mentioned that present operations in Travel agencies are much more different compare to those former ones. The world of travel agencies operations is constantly changing.