Travel agencies
We are witnessing a dramatic change in travel and tourism. With its emphasis on resource preservation, individual autonomy, comfort, convenience, affordability, and personalization, travel agencies encompasses all spheres of business, recreation and family life. Travel and tourism are perhaps one of the world's largest industry, with some $2 trillion in annual travel related sales around the world.
Technology
Personal computers connected into worldwide reservation systems will allow many travelers to book, ticket, and purchase all of their travel arrangements from the convenience of their home or office.
While the Internet has caused some business travelers to conduct dealings on-line to cut back on expenses, it has also opened up more possibilities for travelers. It allows travelers access to information on destinations, lodgings, and flight schedules. Electronic ticketing bookings and other travel transactions can also be done over the Internet.
This has created a tremendous impact on the travel industry. Coupled with cheaper air fares, many of the Airways announced a major restructure of its direct sales operations as a result of changing customer behavior and increased website sales and competition among themselves.
Travel agencies
Till yesterday, travel agencies were an integral part of the tourism industry. Agencies linked all the spheres of
travel activity, whether it is airline services, train services, road travel services, and hotel industry, and held a pivotal responsible position in the growth of travel business. Today their position is threatened with the advent of the technology driven online services.
Even the emergence of the budget airlines is having a huge negative impact on the tour operators industry, spelling disaster for many operators. Either they have to respond to the changes in the marketplace or perish.
There are significant changes in the relationship between travel agents and the rest of the industry due to the radical changes. Traditionally travel agents receive their commission basing on the number of travel bookings, but as people are booking directly, the airliners are deciding to either cut the commission to travel agencies, or get rid of them completely. Many smaller agencies are unable to survive this change and are vanishing from the scene. Where as the bigger agents have to adjust and alter the way to operate.
Now, travel agencies have started to charge the customers to make up for the loss of commission. They also got into offering services, like travel insurance, and other specialty services to cover up the revenues.
If people are booking for example a simple A to B destination booking then they are accessing the on-line and making the booking by surfing and finding the cheapest price. However, for a complicated travel arrangement where they need connecting flights or to stay at different hotels, more likely they book through a travel agency or specific tour operator.
This situation has resulted in the growth of 'dynamic packaging', where tour operators are offering more than just flight bookings and provide you with car hire, to a hotel accommodation to guided tour of destinations.
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