What Is A Travel Agent, Tour Operator, Or Online Travel Agency?

What Is A Travel Agent, Tour Operator, Or Online Travel Agency?

Any great travel company has to determine what type of travel provider they want to be. Below we discuss the different ways travelling is sold and the associated business operation name/description. 1 . ) Tour Operator – Traditional company that contracts hotel rooms, travel, and additional excursions/events for its guests. Tour operators market straight away to their guests and allow travel agents to re-sell their visit packages for a commission. The tour operator is the vendor as well as travel agent is the sales agent selling to the general public. Start-up money needed – minimum $20, 000. 00 2 . Standard Travel Agency – A traditional travel agency arranges travel for their family and friends and re-sell tour operators products. An example of a travel company business model is Liberty Travel They re-sell prearranged accommodation and flight packages arranged by tour operators. Classic travel agencies normally sell face-to-face with their clients, above the phone, or via email. Start-up capital needed aid minimum $6, 000. 00 3. Online Travel Agency or OTA – These agencies are 100% online. These contract hotels directly or through a third party wholesaler. Then they use a direct connection with the airlines to package travellers and hotels together. Typically they offer a contact/call core to aid people booking online, however in most cases they ebook 75% of their business online. Examples of this model include Expedia. com, Booking. com & CheapCaribbean. com. These companies begun very small and have grown to be massive companies, and seem to be the main sale of travel related products worldwide. Start-up investment needed – minimum $100, 000. 00 4. Travelling Affiliate Programs – This is the newest model, with the least number of capital required to start, and zero direct customer relationship. Online travel agencies and tour operators pay internet marketer websites to advertise their travel deals/specials and when a potential shopper visits the affiliate travel website and clicks for an offer, the tour operator or online travel agency pays the exact travel affiliate between $0. 10 – $4. 00 for the “click” when a potential guest leaves the affiliate marketing site to be taken to the tour operator or online travel organizations website. Some tour operators and online travel firms offer up to 10% commission if a guest gets to their whole websites via an ad they clicked on located on your individual travel affiliate site and completes and pays for your reservation. Start-up costs – $0 – $4000. 00 Reservations.com distinct focus on bringing the human touch back to online travel position the company for success in a crowded and rapidly evolving market