Chapter 4: The Travel Trade

A photograph depicting people gathered on the side of a road next to a motorcoach bus, many with cameras. The landscape is of tall green mountains with rocky outcrops.
Tourists Disembark From Their Tour Bus to Take Photographs/ Photo Credit: Christine McIntosh, CC BY-ND 2.0

OVERVIEW

The travel trade refers to the network of businesses and organizations involved in packaging, distributing, and selling travel services and products to travelers. This chapter provides an introduction to the key players that make up the travel trade, including suppliers, wholesalers, retailers, and consumers, and their role in the travel product distribution chain.

We will explore in this chapter the history of the travel trade, business models and operations for different trade segments, the relationship between trade segments, and trends shaping the future. By the end of the chapter, readers will understand the complexity of travel distribution chains and how travel trade businesses package, market and sell diverse travel offerings. Knowledge of travel trade interconnection empowers future tourism professionals to effectively navigate this vital sector.

OBJECTIVES

  • Learners will identify the four pillars of travel product distribution and provide examples of different business segments for each.
  • Learners will articulate how technological innovation has affected the travel trade.
  • Learners will paraphrase the challenges of reselling travel products.
  • Learners will compare and contrast the business operations of the major players in the travel trade.
  • Learners will identify career opportunities within the travel trade.
  • Learners will discuss current issues and emerging trends shaping the future of the travel trade.

Key Terms

  • Travel Trade
  • Intermediaries
  • Travel Product
  • Group Leader
  • Travel Product Distribution
  • Travel Product Chain
  • Suppliers
  • Wholesalers
  • Retailers
  • Consumers
  • B2B (Business to Business) Tour Operators
  • Consolidators
  • B2C (Business to Consumer) Tour Operators
  • Travel Agents
  • Online Travel Agents (OTA)
  • Tour Packages
  • Receptive Tour Operator (RTO)
  • Ground Operator
  • Destination Management Companies (DMCs)
  • Packaged Tour
  • Packaged Holidays
  • FIT Travel
  • Global Distribution System (GDS)
  • Corporate Travel Agencies
  • Travel Management Companies
  • Online Booking Tools (OBTs)
  • Domestic Travel
  • International Travel
  • Leisure Travel
  • Business Travel
  • Bleisure Travel
  • Travel Managers

4.1 INTRODUCTION

4.1.1 What is the Travel Trade?

The travel trade is a term that refers to those companies and organizations whose business it is to manage, package, organize, or resell travel products, such as airfare, car rental, hotel or cruise accommodation, tours, etc. The players in this field are the intermediaries between the travel product suppliers (hotels, airlines, etc.) and the consumers who purchase the final travel product.

In Chapter 4, we discussed the concept of tourism products, which are the elements tourists consume during a travel event. The term ‘travel product’ has essentially the same meaning, however, it is used more often than ‘tourism product’ in the travel trade industry. The term ‘tourism product’ is used more in destination management and strategic planning. It is not necessarily something that can be bought and sold and can therefore include hiking trails, the people and culture in the destination, scenic views, or other things of interest to tourists. The term ‘travel product’ is more often used in association with things that require a financial transaction to consume.

Understanding the travel trade can be complicated because travel products can potentially go through many hands without the traveler’s knowledge before the products are purchased by the traveler. If a person is traveling for business, they may purchase their airfare from a corporate travel agent or travel management company but the plane ticket is actually sold by an airline consolidator who obtained discounted rates from the airline. If a person is traveling with a group on a tour, such as a school or church, the tour may have been packaged by a tour operator and sold through the group leader to the traveler. Or, if the consumer is traveling for leisure, they may purchase their hotel room through an online travel agent (OTA), who resells rooms on behalf of a hotel. These paths of travel product distribution will be described in further detail in this chapter.

4.1.1.1 Travel Product Distribution

The diagram below outlines the path travel products can take to get to the ultimate end consumer, the traveler. Generally, there are four links in the travel distribution chain , the supplier , the wholesaler , the retailer , and the consumer .

A flow chart displaying travel product distribution in four segments. Suppliers (accommodations, attractions, transportation, and destination management organizations) sell travel products to wholesalers (B2B Tour operators or consolidators), retailers (B2C tour operators, destination management companies, travel agencies, or online travel agencies), or consumers (travelers, group leaders, or corporations). Suppliers can also sell directly to retailers or directly to consumers. Technology impacts the transaction of selling and is noted on the chart between each segment.
Travel Products Are Purchased By Consumers By a Variety of Means/ Photo Credit: Meagan McGuire, Meagan McGuire

Travel suppliers sell travel products to consumers, to wholesalers, or to retailers. Wholesalers (described below), such as B2B (business to business) tour operators , and consolidators , do not sell directly to consumers, but instead resell travel products to retailers, such as B2C (business to consumer) tour operators , travel agents , and online travel agents . Revenue is earned at each stage by these companies through markups on the travel products, commissions on products sold, or through service fees.

While the above diagram shows a simplified travel distribution chain, alternative paths are sometimes taken before the travel product is finally in the hands of the traveler. The chain may be shorter if the traveler buys directly from the supplier. Travel agents and B2C tour operators may buy and sell travel packages from other B2C tour operators. Or, wholesalers may purchase packages from B2C tour operators to resell to other B2C tour operators, in which case the flow takes a step backwards before moving forward again. In addition, conglomerates like HelloWorld Travel Group encompass subsidiaries from multiple links in the chain. The various companies work together to provide travel product rates, booking tools, and packaged travel across the network.

Fact

Helloworld Travel Group (2022) dominates the travel distribution market in Australia and New Zealand. Subsidiaries include wholesalers and air consolidators, leisure and corporate travel agents, travel management companies, inbound and outbound tour operators, receptive and ground tour operators, destination management companies, and even technology companies. Below is a list with descriptions of Helloworld Travel Group subsidiaries (2022, reprinted with permission).

A graphic display showing the logos for each of Helloworld Travel Limited’s brands, as described below.
Helloworld Travel Limited’s Brand Portfolio, Used with Permission.

The Helloworld Travel Group (2022) has over 2,000 travel agencies throughout Australia and New Zealand, including ‘bricks and mortar’ stores and home-based agents. Helloworld agents have the advantage of utilizing Helloworld’s wholesale and consolidation subsidiaries. VivaHolidays, for example, is a large consolidation company that offers travel agents with wholesale rates booked through an online platform.

Helloworld has tour operating companies that offer wholesale, receptive, ground and DMC services. AOT Inbound, ATS Pacific and Experience Tours Australia work with agent partners globally to sell tours to Australia, New Zealand and the South Pacific. ATS Pacific, for example, provides inbound services to the UK, European, Scandinavian, American and Japanese markets for both the FIT and group segments (to be described later). Agents across the globe have the choice of booking via an online portal with over 4000 products in the region. Entertainment Logistix primarily works with the entertainment industry, managing complex freight and logistics for a range of customers across various sectors including the performing arts, live music, theater and stage, media, production, sports and large national festivals and corporate events, all with demanding tour schedules across Australia and New Zealand. Ground operator, Tourist Transport Fiji (TTF), services over 100,000 passengers each year, offering airport and group transportation, day tours, adventure travel and sightseeing in Fiji exclusively.

Helloworld Travel Group embodies nearly all levels in the distribution chain, exemplifying the interconnectivity of travel business sectors. By consolidating these companies under one umbrella, Helloworld Travel Group has the advantage of influencing the travel marketplace through high volume purchasing of travel products from suppliers and controlling each link along the chain of travel product distribution.

 

4.1.1.2 Technology

The biggest instigator of change within the travel trade is with changing technology. Technology-driven innovations, such as online booking, have drastically affected every link along the travel product distribution chain. Technology is the connection between each stage of product distribution identified in the diagram above. Whether it is a computerized network system such as the Global Distribution System (GDS) that connects travel product suppliers with retailers or online travel agents (OTAs) that offer consumers travel products online, the main way people buy and sell travel today is virtually.

While reading this textbook, note discussion on the technological innovations that have affected the travel trade industry. While the types of applications vary, modern technology has shaped today’s travel trade industry, and future technological development promises to continue to reconfigure how travel trade segments interact.

4.1.1.3 Challenges with the Travel Trade

Retailing travel can be challenging due to the lack of control of the travel product and worldwide instability.

Travel professionals sell another company’s travel products, such as when a retailer sells a hotel room to a traveler. The retailer has no control over the level of customer service provided by hotel staff, the cleanliness of the room, or the myriad of other issues that may arise. Dissatisfaction with the hotel may transfer to the retailer, which may result in a financial or reputational loss. Retailers often research travel product suppliers and conduct site visits of the hotels, restaurants, and destinations they resell to travelers. However, they are often unable to vet every travel product they resell nor can they control alterations in the suppliers’ daily operations.

Uncertainty in global travel accessibility presents many challenges for the travel trade. Destinations are not always stable and can be subject to climate change, political upheaval, social unrest, or changes in travel policy. Global interruptions, such as the Covid 19 pandemic and the September 11, 2001 terrorist attack in the United States, remove the travel product from the hands of the retailer when travel is locked down. Travel trade businesses are subject to disrupted business operations, resulting often in financial losses.

4.1.2 History of the Travel Trade

As discussed earlier in this textbook, one of the most influential early travel firms was founded in 1841 by businessman and Baptist preacher Thomas Cook. The company started by organizing and selling railway excursions and packaged tours to Europe, combining multiple travel products such as hotel stays, rail passage, and other activities into one product that was then marketed and sold to tourists. Cook’s operations steadily expanded and served nearly 20 million travelers across 16 countries prior to its liquidation in 2019. Its demise, after 178 years in operation, was brought on by global factors affecting tourism, Brexit (UK’s withdrawal from the European Union), and the company’s refusal to embrace the new, evolving online marketplace (Hernandez, 2020). Despite this, Cook led the way for growth of the travel trade.

Other travel firms, mainly independent travel agents, emerged in the marketplace to act as brokers selling tickets to travelers for rail and sea, as well as accommodation. In the mid-twentieth Century, when air travel became less expensive and less exclusive, travel agents played a key role in selling airline tickets. In fact, agents had specialized systems and connections to airline booking systems and the airline companies relied heavily on agents to book passengers on their flights. In the 1980s and 1990s, larger travel agency chains grew through mergers and acquisitions and some of these companies became more involved in organizing and operating tours and selling cruise passage (Page, 2019).

Today, many travel companies have found success in specializing in certain destinations or travel products. Some have incorporated different travel segments and products into their business models, such as planning independent travel, packaging travel, operating tours, reselling wholesale travel products, and counseling travelers on options. Some both specialize and generalize, such as with destination management companies, who specialize in opportunities within a certain destination but offer a wide variety of expertise in planning everything from flights and hotels to sightseeing, meetings and events. The variety of business models showcase the complexity of the travel trade as businesses have found ways to navigate an ever changing market landscape.

4.1.3 Significance of the Travel Trade

The travel trade is interconnected, meaning that each link along the travel product distribution chain needs the other segments to succeed in order for the travel product to get to the consumer. Suppliers looking to diversify their sales channels may choose to utilize a wholesaler or retailer to maximize sales. Each segment plays an important role along the chain, which contributes to the growth of global travel. The travel trade and distribution chains keep the travel economy open, dynamic, and competitive.

4.2 Today’s Travel Trade

This section will describe the major players who make up the four pillars of travel product distribution.

4.2.1 Suppliers

Suppliers are the companies that supply the original travel product. They are the hotels, bed and breakfasts, and vacation rentals that supply overnight accommodations. They are the museums, historical sites, amusement parks, and zoos that offer admission tickets. They are the airlines, trains, buses, and car rental companies that offer transportation services. These suppliers are selling the travel product, which may be distributed through the travel trade before it ends up with the consumer.

DMOs are considered suppliers as well. Some DMOs have travel products that they sell, such as the Tucson Attractions Passport that includes admission to over 100 Southern Arizona attractions for one price and is sponsored by Visit Tucson. However, most often DMOs do not sell anything but instead act as a middleman between buyers and suppliers. DMOs are considered suppliers because they often “sell” their destination to tour operators, travel agents, and consumers through sales and marketing activities. They market their destinations to tourists and business travelers, represent their suppliers in meetings with buyers, and they package suppliers’ travel products together into itineraries that they promote with tour operators and consumers.

When suppliers provide the elements of travel to wholesalers or retailers, they must negotiate the rate both buyer and seller will agree upon. In order for the travel product to be viable in the marketplace, the retailer must be able to sell it at a rate travelers will accept. The supplier, the wholesaler, and the retailer all must earn their revenue on the sale. Therefore, the role of negotiation with the original supplier contracted rate is a vital first step in the distribution chain.

Travel products can be sold directly to the consumer, ending the distribution chain in those two steps. They can be sold to a retailer, such as a tour operator, travel agent, or online travel agent. Or, travel products can be sold to a wholesaler and then resold to a retailer. Therefore, depending on the way a traveler purchases a travel product, the distribution chain can be short, or it can follow through multiple steps before being consumed.

With the digital revolution, the travel trade distribution chain has radically changed. No longer are travelers limited to purchasing travel products through travel agents as they often were prior to access to the internet. Now travelers can purchase directly from hotel, airline, and attraction websites, through travel agents and online travel agents like Expedia, or they can purchase packaged travel products through tour operator websites.

The chart above shows travel product distribution beginning with the supplier. Yet, it is really the consumer that affects this chain. Suppliers sell their travel products based on where and how consumers purchase. If they do not find their travel products are ultimately being purchased by the consumer through one of these channels, they will alter their selling approach.

4.2.2 Wholesalers

Wholesale travel trade businesses sell their travel products to other companies, not to the consumer directly. A wholesaler works with travel product suppliers to negotiate a net rate (also known as bulk, consolidator, or private rate) for the travel product. A net rate is a discounted, bulk rate that wholesalers add a markup to when they resell the product to retailers (tour operators or travel agents). Because wholesalers have increased buying power due to the volume they purchase, they typically obtain heavily discounted rates for travel products.

Wholesalers typically resell travel products in mass quantity, prompting travel product suppliers to offer more heavily discounted rates. The travel product will go through a retailer before it is sold to a consumer, meaning that another markup will be added to the rate. In order to keep the product competitive, the rates for wholesalers are usually lower than retailers, typically around 25% – 30%, while retailers receive around 15-20% lower rates. For example, a travel product worth $100 will be sold to a wholesaler for $70-$75 and a travel agent for $80-$85. The wholesaler may sell that travel product through the travel agent to the consumer (with an added markup) so that the total rate would remain comparable.

Many travel product suppliers, especially hotels, are concerned with rate parity , which is the practice of maintaining consistent rates across all distribution channels. Therefore, the rates offered to wholesalers are not publishable, which means they cannot be displayed to the public on a website, in a brochure, or other means of communication. This is called, “opaque pricing” and allows for travel product suppliers to offer wholesalers cheaper rates without undercutting their general public rate.

4.2.2.1 B2B Tour Operators

Tour operators, B2B or B2C, package the elements of travel together for resale to the traveler either directly, through other tour operators, or through a travel agent. Tour packages combine two or more travel elements, such as accommodation, transportation, entertainment, car rental, flight, meals, travel insurance, and entertainment and are sold for an all-inclusive price.

Wholesale, or B2B tour operators do not sell to the general public but instead sell their packages through the travel trade, such as travel agents or B2C tour operators, or through corporations, affinity groups, and other intermediaries.

While B2B tour operators do not deal directly with the consumer, they must keep the end-user, the traveler, in mind in order to develop packages that will appeal to the consumer. For example, their tours can cater to certain audiences like seniors or youth or they can specialize in particular types of experiences like adventurous activities or luxurious recreations.

The business of tour operating is similar whether wholesale or retail. A more detailed description of this travel trade segment will be provided under 5.2.3.1 B2C Tour Operators. The main concept to remember in regards to B2B tour operators is that they do not deal directly with the traveler but instead sell through the retail travel trade.

4.2.2.1.1 Receptive Tour Operators and Ground Operators

Tour operators that specialize in a specific home region and sell those tours to other tour operators that are not as familiar with that region are called Receptive Tour Operators (RTOs) . For international travel, RTOs act as national liaisons for customs and translation services and domestic booking agents, uncomplicating issues with language barriers and regional familiarity (Berry, 2018; Brand USA, 2023).

Hospitality Tours plans tours to destinations in Eastern and Atlantic Canada and Northeastern United States, such as Virginia Beach, Washington D.C., New York City, Niagara Falls, Quebec and the Canadian Maritimes. Ted Nelson (personal communication, November 13, 2023), owner of Hospitality Tours, markets his tours to tour operators, travel agents, affinity groups (a group made up of people with a common interest), alumni groups (an association of former university students), and bank travel clubs (tour programs banks offer to wealthier customers to retain their loyalty). Nelson explains that the customers of those intermediaries trust them to arrange for positive and safe travel experiences. It is the bank, alumni group, or tour operator’s brand, not his, that is primarily associated with the tour. Therefore, he must mitigate risks for the sake of those intermediaries. His company’s reputation amongst these retailers and consumers have kept him in business since 1981.

 

Some tour operators sell tours to travelers directly but also develop tours for other tour operators. Therefore, they are playing the role of a B2B tour operator at times and a B2C tour operator at other times.

The term, ‘ground operator’ , is sometimes used interchangeably with receptive tour operators. A ground operator usually lives in the destination and acts as the receiving agent to assist with local execution of a tour. They are very knowledgeable of the best routes, the local history, exclusive experiences, and local culture and they often act as step-on guides (tour guides that ”step onto” a tour bus to provide guide service). They are typically very well connected with the local DMO, transportation companies, attractions, and other suppliers. Ground operators are also referred to as handling agents because they take care of the local vendor arrangements and negotiations, coordinate arrivals and departures, and escort tourists.

 

Here is a description of Tourism Transport Fiji (TFF) from Helloworld Travel (2022):

Tourism Transport Fiji (TTF) is more than just a transport operator, covering ground handling arrangements for all Helloworld Travel Group customers while in Fiji. TTF will attend to customers’ travel needs while in Fiji – no issue is too big or small – and TTF will lend a helping hand or offer advice as needed. This might include the arrangement of tours or activities, a group meal or a special function. If TTF can’t assist, they certainly know people who can!

TTF has developed a reputation over many years of being a courteous and reliable ground handler and assists over 100,000 customers in Fiji annually, on behalf of international and local clients. With 24 hour access to on-call staff, TTF will be there when needed.

On arrival into Nadi International Airport, all Helloworld Travel Group guests are greeted with a complimentary shell lei by a TTF representative. Additional services such as flower leis and bottled water can be provided as required. TTF representatives will direct customers to the office for exchange of documents and then to their various transfer vehicles. (p. 19)

Another term to note is Destination Management Companies (DMCs) , which will be described in more detail in 4.2.3.2 Destination Management Companies. The term is often used interchangeably with the terms ‘receptive’ or ‘ground tour operator’. DMCs focus on the travel experience within a destination and coordinating airport pickups, accommodation bookings, vehicle rentals, and more. They are often hired by internationally focused travel agents and tour operators who are planning travel for clients to foreign destinations for which they are not as familiar. DMCs also encompasses a wide variety of professional services primarily focused on assisting corporations in planning destination events in addition to travel. For example, they may assist a large corporation planning an annual conference in a city, using their local destination knowledge to coordinate venues, transportation, and itineraries.

4.2.2.3 Consolidators

Travel product consolidators, sometimes referred to as airline wholesalers or bed banks , negotiate net rates for travel products for resale to travel agents, OTAs, travel management companies, or tour operators. They are truly intermediaries, negotiating and distributing travel products behind the scenes. Consolidators have historically not sold to the public, however, with changing technology today, many consolidators have a public facing website as well, such as TravelHUB and Wholesaleflights.com.

Airline wholesalers are brokers that negotiate and sell blocks of airline seats at a steeply discounted rate of 30 – 60%. Airlines utilize consolidators to sell seats that they consider hard to fill. This practice came about in the 1970s when airlines had more seats on their planes than they could possibly sell at retail (Altexsoft, 2022). And while the airline companies need for consolidators has diminished since the rise in access to air travel and the airlines direct access to travelers, they continue to partner with consolidators to offload excess inventory.

Airline consolidators hold contracts with dozens of airlines, some specializing in certain destinations like Africa. In addition to the discounted rates for airfare, they often serve as travel consultants and tech providers for travel resellers, offering a call center and a booking tool. The booking tool allows for complex itinerary building, enabling resellers to book hotel rooms, car rentals, cruise passage, tours, and more. Examples of airline consolidators include Mondee, Picasso Travel, and Gateway Travel and Tours (GTT).

Bed banks are companies that negotiate for net rates for travel services, primarily hotel rooms, but also attractions, tours, car rental, transportation, and more. Bed banks will contract directly with hotels and other travel suppliers for the rate, which is then extended with a markup through its network of resellers, along with a portfolio of other travel services. The reseller then adds a markup or commission of its own for resale to the traveler. Examples of bed banks include Hotelbeds, WebBeds, and GRNconnect.

4.2.3 Retailers

Retailers consist of B2B tour operators, travel agents, destination management companies (DMCs), and online travel agents. They deal directly with the consumer such as the traveler, group leader, or corporation. Retailers often sell their own travel products, tours they have packaged themselves or travel products for which they have negotiated rates with travel suppliers, or they may resell travel products on behalf of wholesalers.

4.2.3.1 B2C Tour Operators

As stated above, tour operators package two or more elements of travel together into tour packages. These tour packages can be organized as escorted group tours, packaged holidays, or can be customized upon request for group leaders. B2C tour operators sell directly to the traveler through a website or tour brochure.

Tour operators come in all shapes and sizes, from individuals to large multinational corporations. Some tour operators specialize in specific target audiences, such as Women Traveling Together, a tour operator that arranges women-only group tours. Some tour operators specialize in particular types of travel, such as Bicycle Adventures who operate cycling tours around the world.

There are different types of B2C tour operators, each with their own nuance to packaging and reselling travel.

  • Inbound Tour Operator : An inbound tour operator packages travel to their home country and sells the packages to people internally. Inbound tourism can bring great economic benefit to a country because foreign tourists typically spend more than domestic tourists. Inbound tour operators have cultural and linguistic understanding to craft tours for international travelers. Inbound tour operators often work with travel agencies or other tour operators within the country they sell. RTOs, described under 5.2.2.1 B2B Tour Operators, are inbound tour operators.
  • Outbound Tour Operator : An outbound tour operator packages travel for international destinations and sells those packages to people that reside within their own country. Outbound tour operators work closely with ground operators in the countries that they travel to to facilitate tours.
  • Domestic Tour Operator : A domestic tour operator packages travel within their home country and sells the packages to people who also reside within their home country. Domestic travel is more common for most people than international travel, with over 60% of Americans traveling domestically one to two times annually (Mulliner, 2017).
4.2.3.2.1 Packaged Travel Products

Tour operators develop tour packages from travel products such as hotels, attraction tickets, restaurants, and more. From these travel products, the tour operator creates a new travel product; the packaged tour . Packaged tours can be developed for groups or individuals and are distinguished from other travel purchases in that they are sold as a bundle for a set price.

There are two types of packaged tours:

Packaged Group Tours

Group tours are escorted by a tour guide, typically utilizing a motorcoach to transport the tour group to itinerary locations. They are often referred to as escorted group tours or motorcoach tours .

Escorted group tours can be created and sold for retail or custom-designed for a specific group. Retail tours will have a fixed departure date or multiple departure dates, where individuals book “seats” on the tour. Or, tour operators will work with groups, such as schools, corporations, or reunion groups, to determine interest, budget, and travel goals. EDU Trips, for example, offers focused educational experiences and itineraries to complement classroom curriculum. Student band groups, also known as performance groups, also often utilize tour operators to arrange for tours that include multiple performance locations so that the students will gain experience performing.

Packaged Holidays

Packaged holidays are independent tours, sometimes known by the acronym, “FIT” travel . FIT used to stand for “foreign independent travel” and referred to leisure trips abroad without an escort. However, today FIT commonly refers to “flexible independent travel” or “fully independent travel” where an itinerary and the airfare, air transfer, accommodation, sightseeing, car rental, and other travel services are pre-arranged by the tour operator and sold to the individual as a package (Quinby, 2009). When the package includes car rental and a road trip itinerary, they are often referred to as “Fly-Drive” packages . Fly-drives are very popular in the United States with inbound travelers.

A great deal of research goes into the packages tour operators put together. Tour operators will determine their target audience, analyze which destinations will sell best to that audience, assess the suitability of the travel products such as accommodations, transportation, attractions, and restaurants, compare their products with other companies in the marketplace, and undertake other market research to ensure the profitability of each tour.

New tours will be planned two to three years in advance. The tour operator will develop an itinerary based on their research on the destination that will identify the starting and ending location for the tour, the activities, meals, accommodations, and rest stops. They may work with a DMO to understand the destination better and learn of suggested itineraries. They may appoint a ground operator to ensure the travel services run smoothly at the destination. Often, tour operators will conduct site visits of a destination and walk-through what their guests will experience on their tour.

Once the tour operator designed the itinerary and determined the dates, duration, and number of clients to be accommodated, the tour operator will then begin negotiations with the travel product suppliers to establish the rate for admission to attractions, rooms at hotels or on cruise ships, and meals at restaurants.

Tour operators contract with suppliers (hotels, airlines, attractions, etc.) usually a year or more in advance and contractually guarantee a certain level of sales. This is advantageous to the supplier because it provides them with an opportunity to sell their capacity in advance. In exchange, the supplier is expected to provide a discounted rate so that the tour operator can earn profit by reselling the package with a markup.

The price of the tour package is a tricky yet important element to tour operations. The tour operator must be able to offer a tour at a rate that is lower than or close to what a traveler could assemble on their own, especially nowadays when the internet has made the cost of tour products so transparent. If the total price of the tour is more than what a traveler would spend if they were to purchase the elements individually, then there must be something else that the traveler will receive to increase the value of the tour. From the travelers point of view, this could be security and the feeling that there is someone with more knowledge of a destination leading them. It could be the convenience of having a planned tour package so that the traveler does not have to spend time researching and putting plans together for their trip. Or, the tour could include an activity they cannot do on their own, such as a behind-the-scenes experience.

With the target audience segment in mind, many tour operators utilize multiple means of reaching potential customers, including distributing e-newsletters, placing ads in print, social, and digital media, or by mailing their tour catalog directly to potential customers and travel agents. Tour operator staff will also conduct group presentations to travel agents, school boards, senior groups, and other potential customers and exhibit at traveler and travel agent trade shows.

""
2024 Making Memories Tour Catalog/ Photo Credit: Making Memories Tours, CC BY 4.0

Tour operators typically market their tours by producing a catalog detailing their packaged trips. This practice began with Thomas Cook, whose printed catalog was introduced in 1953 to resemble a women’s magazine, taking advantage of the important role women play in decision making (Page, 2019). More and more, these physical printed catalogs are being replaced by or at least accompanied by online brochures and websites. Some tour operators have embraced technological advancements by providing more imagery, virtual tours, testimonials, and more storytelling on their websites to inspire travelers.

Historically, tour operators resold their packaged travel through travel agents solely. However, this relationship changed in the 1980s when tour operators began selling direct to the traveler and cutting out the middleman (Page, 2019). Reaching the traveler became increasingly accessible due to the internet, social media, and digital marketing opportunities. Many tour operators still sell through travel agents, but they prefer to sell direct due to the travel agent commission required for the sale.

Tour operators have been accused of being slow to accept emerging technology (Jorden & Dawes, 2023). Only recently has there been more widespread utilization of immersive technology, mobile applications, and other innovations. Softrip, a software program that automates and simplifies many aspects of the business of tour operating, was originally developed by tour operator, Gate 1 Travel. Gate 1 Travel has provided escorted tours, river cruises and vacation packages for over forty years and developed the software program to meet their own need to manage their tours. As the program developed, Gate 1 Travel began selling the previously internal technology to external tour operators. Tour operators can use the software to build travel packages, create reservations, manage bookings, take and make payments, manage customer information, confirm rooming lists and reservations with suppliers, and view data reports. The mobile application can be used by the tour guide to communicate with travel product suppliers and manage their guests.

""
A screenshot of a customer record in a Softrip database showing a group reservation with accommodation and passenger information./ Photo Credit: Softrip, CC BY 4.0

4.2.3.2 Destination Management Companies (DMCS)

DMCs are experts on their own destination. As discussed previously, DMCs plan travel, events, and coordinate experiences in their own market. They do not sell their services to individual travelers but instead they work within the retail travel trade segment, with B2B tour operators and travel agents, and the consumer segment, with group leaders and corporations. DMCs often offer a wide array of services and customize the travel and event experience based on their client’s needs.

A typical point of confusion is with the difference between a DMO and a DMC. DMCs are destination experts that specialize in local resources, much like DMOs, however, they function quite differently. While DMOs will often assist companies, travel agents, and tour operators in navigating travel and events within their destination, they will not typically negotiate rates or manage contracts like a DMC would. DMOs also are typically non-profit, not-for-profit, or governmental entities and most often do not charge the tourist or planner for their services. DMCs are for-profit enterprises and will charge a company for their assistance.

The Association of Destination Management Executives International (ADMEI), a membership association for DMCs, explains that a DMC “is a strategic partner to provide creative local experiences in event management, tours/activities, transportation, entertainment, and program logistics” (n.d., para. 8). A DMC can manage all aspects of a meeting or event and will have the relationships and knowledge within the destination to offer informed recommendations and advice. Many DMCs will find a venue to hold the event, provide marketing services to brand and promote an event to potential attendees, assist with ordering catering, order audiovisual equipment, and manage details such as gift sourcing, event security, and guest speaker coordination.

For companies and the travel trade planning travel to a location unfamiliar to them, an RTO, ground operator, or DMC can be invaluable resources. Their local knowledge of the destination means they know the best event venues, travel experiences, and vendors and can help make a memorable destination experience.

4.2.3.2 Travel Agencies

Travel agencies sell travel-related products, such as accommodation, airfare and other transportation, cruise passage, packaged tours, travel insurance, and attraction tickets, to the public on behalf of the travel product suppliers. Travel agents may also be referred to as travel professionals, travel counselors, travel designers, travel brokers, or travel advisors.

Travel agents are the brokers of travel. They are the middlemen between the buyers and sellers of travel products and a key step in the distribution chain for packaged travel products developed by tour operators. They do not carry inventory or purchase products themselves, unless under certain circumstances such as pre-booking rooms for a large group, but instead receive a commission on sales or add a fee to a client’s travel purchase. They are also not involved in the contract of sale, which is between the travel product supplier and the traveler themselves.

4.2.3.2.1 How Retail Travel Agents operate

Travel agencies range from independent, one-person businesses to large, full-service agencies with many storefronts and travel agent employees. Some travel agents are generalists, meaning they sell a wide variety of travel products, while other agents specialize in high-end travel, low-cost travel, or travel to certain destinations, such as African destinations or Carribean cruises. Some agencies are leisure-focused while others specialize in corporate travel (to be discussed in more detail below).

To comprehend how travel agencies operate today, an understanding of IATA/IATAN accreditation, the Global Distribution System (GDS), commissions, and the different agency affiliations is necessary.

4.2.3.2.1.1 IATA/IATAN Accreditation

IATA (International Air Transport Association) certification is required for travel agents to issue airline tickets on behalf of airline companies. IATA is the trade association for the world’s airlines, representing around 300 airlines and 83% of total air traffic (IATA, n.d). IATAN (International Airlines Travel Agent Network) is a department of IATA that services the US travel and tourism industry exclusively.

 

""
IATA/IATAN ID card with a person’s ID number, name, and headshot/ Photo Credit: IATA, Used with Permission.

With the increase in air travel in the mid-20th century, IATA was established to support the aviation industry. One of their initial objectives was to design and implement industry standards, one of which was to determine who could distribute air travel products (IATA, n.d.). The IATA/IATAN travel agent accreditation program was developed to protect the airlines and regulate the flow of revenue by certifying the travel agents that could access and sell airline inventory. Over the years, it has evolved to become the internationally recognized accreditation program that legitimizes travel agent industry credentials. An IATA/IATAN identification number is required in order to receive commission on bookings through the Global Distribution System (GDS) , access educational travel programs, participate in travel events, and receive discounts on air travel, cruise passage, accommodation, and more.

There are multiple levels of accreditation as shown in the chart below. Depending on the type of certification a travel agent is applying for, certain standards are required, including proof of general business operations and licenses, training and qualifications, adherence to a code of ethics, and financial viability.

""
A chart displaying the different options for IATA Accreditation, including IATA, TIDS, IATAN, and IATAN Non-ticketing. Details for each accreditation include Ticketing, Availability, Ease of Application, FInancial benchmarks, and cost./ Image Credit: by Ezra Leigh, for WA Open ProfTech, ©SBCTC, CC BY 4.0

In order for a travel agent to access the airline’s billing system and inventory to accept payments and issue tickets, a travel agent must be certified by IATA or IATAN. This prevents the airlines from having to do a background check with every booking and simplifies the booking process for both travel agents and airlines. A travel agent without an IATA/IATAN ID Card can still arrange for airline tickets for their clients, but they would need to work with a wholesaler/consolidator or a bigger agency, referred to as the host agency, to do so (Altexsoft, 2023).

In addition, holders of an IATA/IATAN Card are assigned a unique verification number that confirms their professional status within the industry globally, as well as entitles them to receive many concessionary benefits from industry suppliers, including premium travel deals, travel upgrades, VIP access across the hospitality industry, and even retail discounts on everyday shopping. Most travel agents travel often, experiencing first-hand the options available to their clients. Hotels, cruise lines, and other travel suppliers often invite travel agents to become familiar with their products by offering free or inexpensive rooms or by inviting them to participate in FAM (familiarization) trips, which only valid IATA/IATAN Card holders can participate. The ID also provides entry into industry conferences, discounts on select training courses, and social gatherings.

In addition to IATA/IATAN accreditation, travel agencies often obtain additional certifications and memberships to be recognized as travel professionals. For example, an Airlines Reporting Corporation (ARC) accreditation, much like IATA/IATAN, enables travel agents to sell airline tickets and handle financial transactions and is an additional requirement for travel agents booking airline tickets through GDS in the United States. Cruise Lines International Association (CLIA) membership offers a cruise-focused certification and exclusive travel agent perks and discounts. Each membership or certification requires fees, an application process, and proven business experience.

4.2.3.2.1.2 Global Distribution System (GDS)

Travel agents, as well as other travel retailers, often book travel products through Global Distribution Systems (GDS), which is a computer-based direct connection to the inventory and rates established by travel suppliers including;

  • Hotels
  • Airlines
  • Railways
  • Car Rentals
  • Cruises
  • Insurance
  • Ground Handlers
  • Tour Packages

Prior to the development of computer system technology in the mid-20th century, air and train seats were purchased from a ticketing counter or by calling a ticketing agent. When air travel became less exclusive and more people could fly than ever before, the manual nature of selling seats proved inefficient. Airlines soon began using a central reservation system for booking passengers on flights, which evolved into GDS (Altexsoft, 2019).

The first GDS, Sabre (Semi-Automatic Business Research Environment) was developed in the late 1950s after a happenstance meeting on a cross-country flight between the president of American Airlines and an IBM salesman who got into a discussion (IBM, 2015). The joint venture that followed led to the first central reservation system that connected computers throughout a network and allowed people from around the world to book business. The system revolutionized not only the travel industry, but also e-commerce technology.

Sabre proved a huge competitive advantage for American Airlines, forcing other airlines to commission their own system. While GDS began as a booking system for airlines, it soon expanded to include rail tickets, car rentals, and hotel rooms. Whichever GDS program is utilized, inventory can be researched and reservations can be made by travel agents in real time. There are three GDS platforms today, Sabre, TravelPort , and Amadeus , with 1.2 million travel agent terminals worldwide. All GDS booking systems combined book over 79 million annual hotel reservations with over 180 million annual hotel room nights and over 580 million annual air bookings (Amadeus, personal communication, October 5, 2023).

4.2.3.2.1.3 Commissions

Travel agencies earn commissions on travel products sold. Commission levels vary depending on a travel agency’s annual sales, how the booking was made, contractual agreements made between the supplier and the agency, and whether the agency is affiliated with a consortium, franchise, or host agency. Below is a representation of average commissions by industry.

Infographic showing typical commissions by supplier type. Hotels typical commission: 10%. Car rental typical commission: 10%. Tour operator typical commission: 10-16%. Boutique tour operator: 10-15%. Ocean cruise typical commission: 10-16%. River cruise typical commission: 10-17%. Insurance typical commission: 20-37%.
Travel Agent Commissions By Supplier Type/ Image Credit by Host Agency Reviews, Infographic reprinted with permission
4.2.3.2.1.4 Agency Affiliations

For independent travel agents, especially new agents, it is sometimes advantageous for maximizing sales and earnings to partner with a larger network that can provide increased buying power and business support. Aligning with a host agency , purchasing a travel agency franchise , or affiliating with a consortium offer benefits that help travel agents grow their business.

Host Agencies

A host travel agency is a well-established travel agency that contracts with smaller agencies, independent contractor agents, and home-based agents to provide the support they need to conduct business. In addition to providing accreditation numbers, they also provide access to GDS and training on how to use the sometimes complicated system. They may offer continuing education, bookkeeping services, insurance policies, marketing services, technological solutions such as customer relationship management (CRM) software, booking tools, accounting software, and email marketing software, and they may generate leads for travel agents. Working with a host travel agent can also provide access to better deals and higher commissions due to the volume of business that the host agency conducts. In return, the host travel agency charges a fee to the travel agent in addition to a split-commission model.

Travel Agency Franchises

A travel agency franchise is also an option for independent travel agents, especially those new to the industry. Purchasing a franchise is essentially buying a business in a box and comes with an established brand name, marketing materials and plans, GDS and CRM software, and business operations and procedures. Some travel agency franchises offer accreditation numbers and some do not. The franchise owner (aka. the independent travel agent) pays a license fee for the right to use the brand and branded materials and in turn receives credibility for their business. Popular franchises include publicly known names such as Cruise Holidays and Expedia Cruises. The initial startup costs of a franchise are higher, yet unlike a host agency, the franchise owner retains all of their commission.

Consortiums

In travel, a consortium is a network of independent travel agents and other travel agencies, including host travel agencies, that team up to enhance their buying power and commission rates. It is essentially a co-op where each agency is an independent business, but they pool resources to provide products, services, and resources to agencies that couldn’t necessarily have access on their own. A travel agency must reach a certain volume of sales in order to join the consortium and pay a membership fee. Travel consortia can help agents and agencies with marketing such as hosted websites and email marketing, training such as webinars and online courses, technology such as customer relations management systems or online booking software, and supplier negotiations by leveraging higher buying power. Consortia do not provide accreditation numbers or GDS platforms to agents. Travel Consortia include AAA, Virtuoso, Signature Travel Network, Travel Leaders Network, and Flight Centre Travel Group.

4.2.3.2.2 Leisure Travel Agencies

Even though many travel products can be purchased directly from a travel supplier, such as from the website or ticket desk of a hotel, cruise operator, airline, or attraction, or from an OTA like Expedia or Kayak, some travelers prefer to work with a travel agent to guide them toward the best travel options. A good travel agent is well-educated on travel destinations and can recommend options that will align with the traveler’s needs, preferences, and budget.

A travel agent will often meet with their client to gather information on their desired dates, destination, and budget. These meetings once took place in person at the travel agency’s office, but can now be conducted virtually. With technology increasing communication options, travel agencies can now be completely home-based or operate with a central business center. In fact, many travel agencies do not have a store front at all and provide travel counseling services strictly through a call center.

Agencies with store fronts open to the public are sometimes referred to as brick and mortar travel agencies because of their physical presence. These store fronts help drive business and visibility to the agency. Frequently these offices are situated on the primary business street of a city, town, or village, which, especially in Britain, is often called “High Street.” Therefore, another term for a brick and mortar travel agency is “High Street travel agency” , whether or not they are actually located on a street called “High Street.”

""
Two travel agent store fronts, Thomson and MIles Morgan Travel, situated adjacent to a street./ Photo Credit: Jaggery, CC BY-SA 2.0

Travel agents typically assist clients with a multitude of services. Besides listening to their clients and researching travel options that will meet their needs, travel agents may plan their travel itineraries, make their reservations, calculate their costs, arrange logistics, and produce their tickets. They may also act as intermediaries should their client’s travel become disrupted, they have a negative experience, or they have a complaint. They will advise their clients on necessary vaccinations, passport, visa, and customs requirements, and insurance options.

The internet has enabled the public to have immediate access to compare and purchase most travel elements. However, the magnitude of travel options available, combined with an increasing lack of trust in what is offered online can sometimes make it difficult to navigate the best travel options. Therefore, a good travel agent will attentively listen to their client and establish trust. This client and travel agent relationship is key to repeat business and word-of-mouth referrals.

The role of the travel agent has evolved immensely over the years and some have questioned their relevance in today’s digital age (van Rensburg, 2014; Sharma et al., 2020). Consumers can research travel destinations, hotel options, and flight schedules on their own. Social media, travel blogs, and online reviews provide a wealth of the knowledge that once were solely the specialty of travel agents. Nowadays, travel recommendations are available in hand to anyone within moments through a quick search on their smartphone.

While predictions of the demise of travel agencies have echoed for decades, their roles continue to have a place in the travel marketplace. One fundamental reason why is that many have embraced the changing landscape and evolved their business model to meet the needs of the traveling public. For example, some travel agencies and agents have differentiated themselves by specializing in specific destinations, types of travel, lifestyles, or industries. Examples include;

Destination niches – Italy experts, African safari pros, Iceland authorities

Types of travel – Family trips, adventure travel, Disney vacations

Lifestyles – LGBTQ vacations, religious pilgrimages, accessible travel

Industries – Corporate travel programs, sports team travel, university student trips

Specialization enhances credibility while allowing smaller agencies to thrive alongside large brands. Unique experiences and local insights add value competitors can’t replicate. Specialists also foster strong repeat business and referrals within their niche. DMOs, cruise lines, and others have supported this specialization by developing educational courses, usually online, that travel agents can take to achieve accreditation in the destination or cruise experience. For example, Disney has developed Disney College of Knowledge, a website that offers complete specialized training on Disney destinations.

Another trend toward modern-day relevance is that some agents have adjusted their business models and emphasize their consulting services over simply booking travel products. Some have adopted the terms “travel counselor,” “travel advisor,” or “travel designer” to highlight their service-oriented approach. These agents may charge a fee for their consultation services and downplay the role of commissions in revenue generation, although they will often still look for commissionable options. Some travel counselors and designers cater to tourists who wish to have a more unique and experiential travel experience and will put together travel programs that are more personalized to the tourist.

The travel trade realm, like the tourism industry at large, exemplifies a sector in flux. While predictions of the demise of travel agents and tour operators have echoed for decades, the roles continue evolving to deliver value and consultative services that empower today’s savvy travelers. By embracing key trends, from niche specialization to emerging technologies, the modern travel professional can continue to excel as curator, counselor and companion on the customer journey.

4.2.3.2.3 Corporate Travel Agencies

As stated above, some travel agencies offer corporate travel planning in addition to leisure travel services. The way corporate travel is negotiated, managed, and booked is very different from leisure travel and if a travel agency offers both, the corporate side is often a completely separate division.

Corporate travel agencies must understand the nuances of business travel. They will work with companies to manage their corporate travel arrangements, such as booking employee flights, car rentals, and hotel rooms, creating travel itineraries, arranging travel visas, and providing support to employees while traveling for business. In addition, they will ensure that the travel arrangements align with the corporate travel policy, that the costs fall within the allocated budget, and they will track and report on the volume of travel spend (the amount spent on travel elements).

The volume of business travel spend is important for corporate travel management because it enables the agents to negotiate discounted rates for travel products. There are often separate negotiated rates for travel products for leisure and corporate business due to the volume of business.

4.2.3.2.3.1 Corporate Travel Policies

Corporate travel policies tell employees how much they can spend, the rules and regulations of their travel activities, and outline a company’s Duty of Care . It mandates what types of accommodation they can book, how much they can spend daily, how travel is paid for, if airline miles and hotel points can be accrued by the employee or the company, and how they should make their travel arrangements (on their own or through the corporate travel agency exclusively).

An important factor facing companies who have traveling employees is Duty of Care. Duty of Care is the company’s legal obligation to ensure reasonable care has been taken to maintain the physical and emotional wellbeing of their employees. Companies with travel policies will have a Duty of Care plan that evaluates risks to employees and potential legal ramification for the company. There are a number of risks a corporate travel agent must be prepared for to ensure a company’s Duty of Care is upheld, such as an employee missing a flight, becoming ill or being involved in an accident, or being the victim of a crime. It is the employee’s company, with the assistance of the corporate travel agency, that is responsible for making sure the employee is safe while traveling on business.

4.2.3.2.3.2 Travel Management Companies

Large corporate travel agencies that specialize exclusively on business travel are called Travel Management Companies (TMCs) . TMCs offer additional services that smaller agencies do not, including more specialized tracking and booking technology, assistance with developing corporate travel policies, evaluating risk management, and extensive data collection and reporting (Christopherson Business Travel, 2023).

TMCs work closely with a company’s human resource, finance departments, and internal corporate travel managers to ensure all trips are in line with employee policies and budgets. They charge a monthly or annual fee to the company, manage the corporate account, and conduct regular business reviews to analyze total spend, patterns of spend and use, air, car, hotel, waivers and favors. Their role is not only to manage a company’s travel but also to evaluate and report on employee travel data to ensure a healthy travel program.

TMCs utilize online booking tools (OBTs) for employees to use to make their travel arrangements. OBTs are visually much like OTAs like Expedia or Kayak, but the travel products available on OBTs are curated based on negotiated rates and agreements that the TMC has made with the travel supplier. TMC can often negotiate better corporate rates with travel suppliers due to the large volume of business they conduct working with multiple companies. The employee can make their own travel arrangements based on the options available on the OBT and are usually rewarded, sometimes financially, for choosing the options that will save the company money.

TMCs can also provide other services related to travel, such as consultation, reporting, and risk management. They can see research and advice on complex visa requirements or pre-trip medical needs, and they can support an organization’s meetings and events. Sometimes the software they utilize can automate the company’s approval process to increase employee compliance, track travel expenses, and manage cancellations and refunds. And some TMCs will track a company’s carbon emissions and provide solutions to offset the company’s climate impact. TMCs have increased knowledge of working with visa services and will act as a liaison to seamlessly get employees visas. A TMC can act as an extension of a corporation’s staff and may even place their own employees onsite in the corporate business office due to the immense integration with leadership objectives.

About Ronda

Since the age of 10, Ronda Dean (personal communication, November 29, 2023) has been fascinated with the travel industry. She began her career after high school at a small, family-run travel agency where she booked leisure travel to Reno, Las Vegas, and Disney. She soon moved on to become a corporate travel agent on-site at Nike World Headquarters in Beaverton, Oregon.

“The Nike Travel team was managed by a travel management company. I was their employee but working on site at Nike. Being in this position, I was able to be part of the day-to-day development of a globally renowned company, it was very exciting!”

After a decade at Nike, Dean became an account manager with Cathay Pacific Airways, where she managed airline contracts between Cathay Pacific and companies throughout the Pacific Northwest.

“Learning the airline side of this business in this manner was fascinating. Cathay Pacific is based in Hong Kong and had routes throughout Asia so I became well versed in APAC both geographically as well as politically. I was also able to see how airline contracts were negotiated from the airline side as well as work closely with agency consultants.

After the Covid pandemic wreaked havoc on travel, Dean became the U.S. Travel Manager for F5 Technology. a global data security company based in Seattle. At F5, Ronda oversees management of key supplier relationships, contract negotiations, CVENT administration and traveler communications.

“My years of experience on the TMC side, exposure to suppliers and online booking tools, and managing other companies’ travel translated very well into this position managing travel for this global organization!”

Dean’s passion for helping people experience travel is apparent.

“Travel is not always easy and when you’re traveling for work, away from your family and the comforts of home, it can be especially difficult. If you’re not used to traveling it can be difficult, if you’re overwhelmed by people and change of any kind it can be difficult. I want to help anyone who is traveling, to make their travel experience efficient and most of all pleasant! It can be quite pleasant, productive, and even fun if you have a few tips and tricks up your sleeve and I am here to help with that!”

Dean’s career path has provided her with many rewarding experiences and she is passionate about sharing her story with future business travel leaders.

“I have had the great fortune to work with so many people around the world. I have been able to experience other cultures, ways of life and learn that the world is not as immense as one may think! It has given me such great exposure and insight to be able to relate to others! If you have a heart to help people, a love of travel, interest in global economies and business, I can’t think of a better career path for you than business travel.”

""
Ronda Dean, Corporate Travel Manager, F5. Used with Permission.

About Ronda Dean

Dean’s professional background includes experience in travel management company operations, account management and business development; international airline sales; travel program and policy consultation; booking tool assessment and implementation; and meetings and event planning. She has held numerous leadership positions with the GBTA (Global Business Travel Association) Oregon chapter as Director of Education, Director of Events, Vice-President and chapter President.

Business travel, especially, is affected by new and emerging technology solutions because of the power corporations yield with the travel industry. In order to remain relevant to their clients, corporate travel agencies must present modern solutions that solve corporations’ present-day problems.

There are multiple travel technologies in the marketplace today that support corporate travel management, ranging from existing OBTs and emerging iterations, meeting and event platforms, payment solutions, to AI data analytics. Some programs are meant to enhance and complement existing travel technology programs while others are designed to be complete end-to-end solutions (software that meets all travel management needs) for corporate travel programs. Here is a small sample of existing travel technologies, as provided by R. Dean (personal communication, September 22, 2023).

  • Traxo: Provides travel data aggregation and technology solutions. Traxo captures all travel booked through the TMC and other booking methods such as OTAs.
  • Spotnana: Offers an end to end solution for corporate travel reservations, incorporating New Distribution Capability (NDC) fares (described below under 5.4 Current Trends.
  • Dinova: Dining program that integrates with corporate credit cards and offers an annual rebate to the corporation based on purchases.
  • Conferma: Pre-payment solution providing the ability to pay for hotels, car rentals and other charges without a traveler having to present their own credit card.
  • Cerebri AI: Technology that sits on top of current programs and automatically applies analytical algorithms to data creating a live connection between human decisions and smart technology.
  • Deem, Concur, Expensify, Get There: OBTs and/or expense systems that integrate with OBTs.
  • Navan, Egencia: TMCs that only offer their own proprietary OBT.
  • TripBam: Technology that finds additional savings opportunities for currently booked hotel and airfare.
  • CVENT, Hubli, Planned: End-to-end meeting/event management systems.
  • Tripism: A one-stop shop for all business travel, managing travel and travel updates, consolidating intelligence from travel teams, travel suppliers and business travelers.

4.2.3.3 Online Travel Agents

With user-friendly online tools and inspirational marketing techniques, online travel agencies are huge players when it comes to reselling travel products such as hotels, transportation, and activities. In 2022, the global online travel marketplace totaled $475 billion U.S. Dollars and is expected to rise to over one trillion U.S. dollars by 2030 (Statista Research Department, 2023).

Most online travel agencies, such as Kayak, Expedia, Booking.com, etc. offer hotel rooms, airline reservations, car rentals, attraction tickets, and travel packages and allow travelers to search by destination and date of travel. They publish blog articles to heighten the anticipation of travel and offer deals to drive the urgency to purchase.

Worldwide, four companies control 95% of the market (Hollander, 2023). They offer multiple websites that allow independent booking solutions for hotels, airlines, restaurants, vacation rentals, and more.

Companies Controlling Online Travel

Company

Bookings Holdings

Expedia Group

Trip.com Group Limited

Airbnb

Websites

  • Booking.com
  • Priceline.com
  • Agoda.com
  • Kayak.com
  • Cheapflights
  • Rentalcars.com
  • Momondo
  • OpenTable
  • Expedia.com
  • Hotels.com
  • Hotwire.com
  • Orbitz
  • Travelocity
  • Trivago
  • Venere.com
  • VRBO
  • Egencia
  • CarRentals.com
  • eLong
  • Ctrip.com
  • Skyscanner.com
  • Trip.com
  • Qunar.com
  • Airbnb.com
  • Hotel2night.com
  • Urbandoor.com

Travel Booking App Worldwide Downloads 2018 to 2022 (mm)

App

2018

2019

2020

2021

2022

Booking

49.7

49.2

34.1

45.7

82.6

Airbnb

34.2

40.2

26.6

32.8

53.1

Trivago

22.7

19.5

8.7

9.3

12.6

Skyscanner

14.9

12.7

4.7

5.2

17

Expedia

12.2

13.5

8.4

10.1

27.7

TripAdvisor

11.4

11.2

6.5

5.8

6.5

Hotels.com

8.4

9.2

4.6

6.9

14.7

Hopper

7.8

6.6

5.2

16.2

20.3

KAYAK

4.7

4.8

2.1

2.8

7.1

Vrbo

3.5

4.9

10.1

10.9

20.7

Priceline

1.9

2.6

4.8

5.2

5.5

Note: (Travel planning apps, n.d.)

From a traveler’s point of view, OTAs allow for an element of independence, offering the opportunity for the traveler to do their own research, comparison shop, and make their own purchases. Much like with a live travel agent, the traveler can purchase the elements of their trip at one place instead of making multiple purchases. And even though the majority of the online travel marketplace is owned by four major companies (as referenced above), travelers are given the impression that they are comparison shopping rates to obtain the best deal.

From the travel product supplier point of view, OTAs are often seen as a necessary evil. Selling their products through OTAs allows them a massive reach to travelers but comes with a hefty commission payout of up to 30% of the room rate for a hotel. When a hotel contracts with an OTA, the OTA requires that the hotel not offer a rate lower than what is published on the OTA, restricting hotel revenue management. Many hotels actively encourage travelers to book directly with the hotel on the hotel’s own website so that they can avoid paying commission to OTAs and be more in control of their rate. The hotel may not recognize a traveler’s elite status if they book through an OTA, and any changes made to reservations can be difficult if booked through a third-party OTA.

The American Hotel and Lodging Association (AHLA) launched a consumer campaign in June of 2017, called “Search Smarter” to raise awareness of issues associated with OTAs in addition to fraudulent sites posing as hotels. Research supporting this campaign claimed that 55 million bookings worth nearly $4 billion were impacted each year by misleading marketing practices (AHLA, 2017). It is important to note that AHLA, an organization that works to support hotel and lodging companies, has a vested interest in travelers booking directly with the hotel instead of through an OTA, yet the message is still an important one for travelers to understand.

Concerns with monopolization, online privacy, and manipulative marketing practices has brought OTAs into controversy, leading to regulations in multiple countries and class action lawsuits. For example, Australia’s federal court found that Trivago was displaying hotel rates in a manipulative way, hiding lower rates and inflating claims on discounts. The UK implemented regulations in 2020 to combat pressure-selling tactics such as statements concerning popularity or availability (Schaal, 2020).

Despite the controversy, the business of booking online travel continues to expand. The immense presence of the four established companies (Bookings Holdings, Expedia Group, Trip.com Group Limited, and Airbnb) means it is challenging for newcomers to emerge onto the digital landscape. Regardless, some more niche OTAs are gaining global attention. Wheel the World, for example, is an OTA that specializes in accessible hotel rooms, transportation, and activities. The travel product listings are very detailed and include considerations that people with disabilities need to understand but are often illusive in the marketplace, including the width of the bathroom door or height of the bed in a hotel room. Each travel product listed on Wheel the World is vetted by staff to ensure its level of accessibility. This example supports the trend discussed above in relation to traditional travel agents, who specialize in a more niche audience in order to remain relevant to the traveling public.

4.2.4 Consumers

4.2.4.1 Traveler

The ultimate consumer is the traveler, who may be traveling domestically (within their own country) or internationally (outside of their own country) and they may be traveling for pleasure (leisure travel) or they may be traveling in association with their job (business travel) . The consumer may purchase travel directly from the travel product supplier, for example, by booking an airline seat on an airline company’s website, but they may instead purchase travel products from an intermediary, such as a travel agent, tour operator, or OTA, or they may be part of a group or the employee of a company and therefore purchase according to leadership direction. The reason behind their decision on how to purchase travel usually stems from the reason they are traveling, the complexity of their trip, or their familiarity with the destination they are visiting.

The term bleisure travel refers to travel activities that are primarily leisure pursuits while on a business trip. A business traveler may partake in a pleasurable tourist activity after their meeting or they may add a few nights onto the trip either before or after their professional duties to explore a city. They may invite family and friends to join them on their business trip to make the experience more fun. The global bleisure travel market was valued at $315.3 billion U.S. dollars in 2022 and is projected to reach $731.4 billion by 2032 (Allied Market Research, 2023).

4.2.4.2 Group Leaders

Group leaders can be anyone managing travel for a group, including the family member who is planning a family reunion, the pastor who is planning a church trip, or the teacher who is planning a student trip. There is endless variation in the types of groups that arrange to travel together, but here are a few of the most common:

  • Family and Friends : Groups of family members and/or friends who travel for reunions, ‘girls getaways’, destination weddings, or simply vacation.
  • Alumni : Groups of graduated college students who were members of a fraternity, sorority, club, or network.
  • Affinity : Groups of people with a shared interest or goal, such as hiking clubs, women’s clubs, art clubs, book clubs, etc.
  • Student : Groups of students can travel as band members who travel to perform, sports players who travel for tournaments, or learners of a specific curriculum seeking real-world education.
  • Military Reunion : Groups of retired people who served in the country’s armed forces, usually members of the same unit.
  • Bank Travel Clubs : Wealthier members of a bank, often retirees, who are invited by their bank to join in on tours to retain customer loyalty.
  • Chambers of Commerce : Members of a Chamber of Commerce who travel to form professional bonds with other members.

4.2.4.3 Corporations

Many corporations and other organizations require their employees to travel often, either for professional training, to develop business prospects, or to work at different locations. In fact, according to Zippia Research (Flynn, 2023), business travel accounts for about 12% of total U.S. air travel and they make up to 75% of airlines’ profits. Similarly, 40% of the average hotel’s guests are business travelers. Nearly 1.3 million business trips are taken in the U.S. daily, and 38% of all U.S. business travel is for meetings and events, which amounts to $139.3 billion of all business travel spending.

people inside an airport waiting for their flight. The sun is setting, creating shadows. Many people have suits on and have luggage.
Nearly 1.3 million business trips are taken in the U.S. daily./ Photo Credit: Magic K, Pexels License

Travel managers are employed at large corporations or organizations that have employees who travel often. Even if travel arrangements for professional business trips may be managed by a corporate travel agency, there is internal staff at the corporation who plays the role of liaison with the agency. The role of a travel manager varies widely depending on the scale of travel. With smaller programs, travel managers may also partake in other job duties such as meetings management, human resources, finance, or non-travel procurement. Larger travel programs are more likely to have travel managers who focus solely on travel management for their company. A company that spends less than $10 million annually on travel averaged 2.8 employees who focus on travel management full-time, while a company that has over a $30 million spend on travel annually averages 8.8 employees who focus on travel management and procurement full-time (Global Business Travel Association [GBTA] & Cvent, 2023).

A 2023 survey found that, of corporate travel managers who self-identified as being “involved in managing or procuring travel on behalf of [their] company” (as cited in GBTA, p. 3), only 2 in 5 travel managers deal with travel full-time in their role, while 61% spend some or most of their time on travel management or travel procurement, but also had other job duties unrelated to travel.

Travel managers perform activities such as negotiating with travel suppliers, communicating travel plans with the traveler and answering their questions, analyzing and reporting on data, implementing or managing technology, developing travel policies, and managing risk or tracking employee travelers.

An important aspect to the role of travel manager is to procure travel-related services. Travel procurement is the act of negotiation and securing rates at hotels, with airlines, rental car companies, transportation services, and other travel suppliers (Hernandez, 2002). A good travel manager will find good suppliers and then negotiate with them to secure a corporate rate , otherwise known as a commercial rate . These rates are discounted from the rate offered to the public and are based on the volume of business the travel supplier expects to receive from the company. A procurement management strategy can help businesses save money on travel by securing these corporate rates. Travel managers oversee the relationship with the travel suppliers, negotiate the rate and terms of the agreement between their company and the travel supplier, and evaluate and renew contracts regularly.

4.3 Careers in the Travel Trade

It is important to understand how travel is distributed to better understand how to work with or for travel trade companies. Each travel trade role is district in the marketplace, yet there are many commonalities amongst travel trade employees. People who work in travel trade typically love to travel and their employment often provides them with many opportunities to do so. These employees are often very service oriented and are enthusiastic about sharing their love of travel with others. And, due to the nature of travel distribution, employees of travel trade businesses are relationship-focused and place high value on mutually beneficial connections with their travel product suppliers, partners, and clients.

About Michael

Michael Cassis “has been a part of the Australian and New Zealand Travel Industry for over [20] years. Having worked as a front line retail agent, wholesale agent, and in product and marketing distribution roles, he has extensive experience across all facets of the travel trade landscape” (Linkd Tourism, n.d., para. 1).

As Cassis stated (personal communication, November 29, 2023), “I think my greatest success in tourism stems from the varied roles I’ve been fortunate enough to have done over my career. Our industry is huge – arguably the largest globally – encompassing aviation, cruise, other transportation (trains, cars, etc.), hotels and accommodation, travel agencies…the list is endless. Think about it, even Rideshare drivers are part of our mammoth family. So this means there are lots of doors you could choose to open, depending on where your passion lies.

For me, I started as a retail travel agent who wanted to specialize in selling USA (and mostly Disney) holidays to Australian customers. I felt specialist travel agents were scarce, and given the complexity of travel to the USA from Australia (most Australians visit 2-3 States on an 18+ night trip, when visiting America), that this would be a strong business proposition. I still feel that speciality is necessary – and post COVID this seems to be a trend more travel agents are pursuing – but my career ended up taking a slightly different approach due to the doors that opened.

My role as an agent gave me the chance to see more of the world than I’d dreamed of, and I became excited by the notion of finding the key themes and products that would resonate with traveler demographics. So I ended up pursuing a role in sales and marketing which allowed me to not just sell a holiday to one traveler, but the aspiration of a destination and product to many.

My biggest learning over my career is that there is no one best and only way in tourism. Every company. Every destination. Every customer. They all behave differently. Tourism is about taking people away from their home for a period of time. Some choose to immerse themselves in local culture. But most bring with them their own presumptions and predispositions. So just because a local might think their local brewery is the best place to go, it doesn’t mean a tourist from Germany, with their multitude of beer gardens, will agree. So to succeed in travel, you need to put yourself in your visitors’ shoes, not force them into yours.”

Michael is currently the Strategic Director for Linkd Tourism, a leading Distribution, Sales, Marketing and PR Agency in Australia and New Zealand, but has worked for other major Tourism Boards and tourism products in his career including Flight Centre, the Walt Disney Company, and Destination Gold Coast.

""
Michael Cassis, Strategic Director, Linkd Tourism, Used with Permission.

According to the Bureau of Labor statistics (2023), there were 46,200 people working as travel agents in the United States in 2021, down from 82,000 in 2019, likely due to the Covid 19 pandemic that began in 2020 and drastically disrupted travel worldwide. However, the employment of travel agents is projected to grow 20% from 2021 to 2031. Worldwide, over 2 million people are employed as travel agents and the market size for the industry segment is $475 billion U.S. dollars (Statista Research Department, 2024).

For business travel, a 2023 global survey of travel managers found that 89% liked or loved their career choice; 81% also felt they had either great or decent work-life balance in their job (GBTA & Cvent, 2023). Below is the expected compensation in 2023 by U.S. and E.U. based travel managers.

Two pie charts displaying expected 2023 compensation for travel managers. One pie chart displays U.S. expected compensation with $100k to less than $150K being the most common (45%), and the second pie chart displays E.U. expected compensation, with the most common (47%) being €50k to less than €75k.
Expected 2023 Compensation for U.S. and E.U. Based Travel Managers/ Image Credit: Data from Cvent and GBTA. Used with Permission.

As corporate travel rebounds post-pandemic (Caputo et al., 2023), expanded specialty roles emerge:

  • Duty of Care Officers : Manage risks facing business travelers through training, tracking systems, and emergency protocols.
  • Supplier Diversity Managers : Ensure agencies and corporate clients support minority-owned vendors from airlines to hotels.
  • Sustainability Coordinators : Help travelers and companies minimize carbon footprints through eco-conscious booking choices.
  • Ancillary Sales Agents : Sell add-on products like extra leg room and travel insurance tailored specifically to company travel policies.
  • Data Analysts : Transform reams of corporate booking information into strategic insights using analytics tools.

Evolution in corporate and leisure priorities will continue to expand opportunities for careers in supporting travel management and distribution.

Careers in the travel trade require a love to travel, strong written and verbal skills, and interpersonal skills that lend to forming relationships with buyers and sellers alike. Skills and experience in sales and marketing, negotiating skills, computers and technology, budgetary oversight, organization, and time management are all essential to a successful career path in this industry.

4.4 Current Trends

The travel trade industry is constantly evolving based on societal change. At the helm of the current evolution is more personalized consumer travel, global sustainability issues, and rapid advancement in technology (IT-Online, 2023).

As discussed previously, the traveling public is looking for more unique and experiential travel experiences, which often require assistance to arrange. Many leisure travel agents are emphasizing their consulting services and focusing more and more on becoming experts in specific niche travel. Tour operators, as well, are specializing in particular audience market segments, types of travel, and travel destinations. By differentiating themselves from simple booking agents, retail travel trade businesses are providing something OTAs cannot: an understanding of specific types of travel and lifestyles that allow customers to relate and trust the advisor to fulfill their travel needs. This need is exemplified today with social emphasis on identity pride, especially with black and LGBTQIA+ people. For example, Up in the Air Life, a tour operator specializing in black travel promises black travelers that “founder and CEO, Claire Soares, built a multimillion-dollar boutique travel agency to create space for you to let your guard down and travel with confidence amongst other like-minded Black people” (n.d., para. 58).

Corporations and individual travelers are increasingly making buying decisions based on the urgent challenge of climate change. Business travel, especially, is affected by this initiative. In fact, 92% of respondents to a 2023 Global Business Travel Association Foundation survey said that sustainability is a priority for their organization. What drives companies to focus on sustainable travel practices is reputation management along with genuine concern for the environment. Eighty-one percent of corporate travel planners have integrated or plan to integrate environmental sustainability into their travel programs. Travel managers are using their purchasing power to leverage change from their suppliers, with 63% of managers basing their buying decisions on sustainability criteria (GBTA Foundation, 2023).

The United Nations (n.d.) has reported that global carbon emissions need to be halved by 2030 in order to stay on track to reach net zero emissions by 2050 in accordance with the Paris Agreement, which was adopted in 2015 with the goal of keeping global warming to no more than 1.5 degrees centigrade. However, the growing population, affordable travel options, and increase in travel accessibility means that tourism is expected to almost double in size by 2050 (Peeters & Papp, 2023). Tourism’s direct emissions alone (not including indirect emissions from things like laundry service, food production, etc.) accounts for around 5% of global CO2 emissions. As detailed in the Travel Foundation report (Peeters & Papp, 2023), individual governments are taking action by:

  • Banning short haul flights were there is an alternative (France)
  • Capping airport capacity (Netherlands)
  • Introducing carbon pricing for aviation (European Union)
  • Encouraging greater use of rail (Germany & Spain)
  • Supporting adoption of Sustainable Aviation Fuels (Sweden, France, Brazil, Japan, and others)
  • Encouraging electric ferries (Norway, New Zealand, UK, and others)

Retail travel trade segments must be aware of changing government regulations to better advise their clients, especially those whose buying decisions are being influenced more and more by sustainability ethics.

Technological advancement is reshaping how the travel trade operates, offering an array of challenges and opportunities. Generative AI, for example, is being used in itinerary planning, customer support, travel assistance, self-service options, and with digital advancement for enhanced personalization. Adoption of new technologies allows travel trade businesses to enhance service through:

  • Artificial intelligence chatbots : Provide quick personalization and bookings 24/7.
  • Creative cloud collaboration tools : Smooth remote team and client interactions.
  • Centralized data analytics : Mine booking behaviors and traveler sentiment.
  • Digital security platforms : Protect client credit cards and secure company data from cyber threats.
  • Automation software : Handle repetitive tasks to boost agent productivity.
  • Mobile optimization : Apps and mobile sites ease bookings on the go.

A significant shift in travel distribution dynamics is expected as New Distribution Capability (NDC) is implemented. Developed by IATA, NDC is technology that integrates with existing technology and empowers airlines to present tailored offers, dynamic airfare, and richer details about flights and seat availability with wholesale and retail travel trade businesses. It is essentially an improvement on the way airfare is presented based on new technology, enabling airlines to change prices based on factors like availability and distribution channel in real time and provide more details about flights and additional add-ons (Rose, 2023).

NDC is set to redefine airline retailing by personalizing offers, streamlining the sharing of flight information, and allowing for additional services to be added to reservations through websites and apps. For the travel industry as a whole, widespread adoption of NDC will level the playing field by opening opportunities for smaller airlines to showcase offerings alongside larger carriers, enable airlines to offer a broader range of fares, and improve customer experience by personalizing offers and seamlessly booking air. Travel managers will see more flexibility in rates, more transparency with flight and fare details, and a wider range of options.

Some benefits of NDC include (Navan, 2024):

  • Richer Content: NDC enables airlines to present their offerings with more detailed descriptions, as well as more images, videos, and other multimedia elements.
  • Personalization: With NDC, airlines can tailor offers to individual travelers based on their preferences, travel history, and loyalty status.
  • Real-Time Updates: NDC gives airlines more flexibility to update their flight availability, pricing, and ancillary services in real time.
  • Ancillary Sales: Airlines can directly promote and sell ancillary services such as seat upgrades, baggage allowances, and lounge access to travelers.
  • Avoiding GDS Surcharges: Travel managers can avoid the additional fees or surcharges added by airlines to any bookings made via the GDS, resulting in cost savings and more control over travel arrangements.

By specializing services, leveraging technology, embracing sustainability, and diversifying offerings, today travel trade will remain relevant to the traveling public and the modern travel landscape.

Summary

The travel trade is important to understand because it permeates the buying and selling process for hospitality and tourism industries. Whether your role is a supplier, a consumer, or one of the travel trade businesses in between, travel product availability and price is affected by this distribution process.

The travel trade refers to the businesses involved in the buying and selling of travel products. They are often unseen by the consumer and misunderstood by the supplier. There are, in general, four links along the travel product distribution chain; suppliers, wholesalers, retailers, and consumers. Technological innovation has and will have the most influence on how these entities buy and sell to each other and, therefore, their business models.

Suppliers, such as accommodation, entertainment, and transportation providers, provide travel trade products to the marketplace, either directly to the consumer, through a wholesaler, or to a retail travel trade business. Wholesalers include B2B tour operators companies who package travel products together for resale and consolidators who use their buying power to secure net rates for airfare, hotel rooms, and more. Retailers sell directly to the consumer. They are B2B tour operators who combine travel products together for resale as packaged tours or packaged travel, travel agents who help consumers with making and booking their travel arrangements, destination management companies (DMCs) who assist companies and others with travel arrangements to a particular destination, and online travel agents who offer an online platform where the public can book travel products. The ultimate consumer, the traveler, group leader, or company, has a myriad of choices when it comes to purchasing their travel, which keeps the travel marketplace diverse.

Travel product distribution is often unseen by the consumer yet influences the rate, offerings, and options available to them. Each link in the chain and each business segment under those links are interconnected, relying on each other to succeed in order for their success. The travel trade industry is vital to travel as a whole, contributing to global economic growth, job creation, and the health of the travel and hospitality industries as a whole.

Review Questions

1. What is the primary role of travel trade businesses?

A) To provide transportation only

B) To sell travel insurance exclusively

C) To manage, package, and resell travel products

D) To offer guided tours only

2. What does a wholesaler in the travel trade do?

A) Sells travel products directly to consumers

B) Only provides transportation services

C) Resells travel products to retailers

D) Manages individual hotel properties

3. How do DMCs (Destination Management Companies) differ from travel agents?

A) DMCs specialize in packaging travel products together, while travel agents sell individual travel products.

B) DMCs negotiate net rates with travel product suppliers, while travel agents act as intermediaries between suppliers and consumers.

C) DMCs coordinate events and experiences within a specific destination, while travel agents provide travel advice and assistance to individuals.

D) DMCs work with wholesalers to resell travel products, while travel agents work directly with consumers.

4. What is a Global Distribution System (GDS)?

A) A marketing strategy for travel products

B) A security system for online transactions

C) A computerized network used to coordinate travel bookings

D) An international regulation for travel agencies

5. What trend has significantly affected the travel trade in recent years?

A) Decrease in travel due to technology

B) Growth of digital and online booking platforms

C) Less interest in international travel

D) Movement away from using travel agents

6. What challenges do travel retailers face when selling third-party products?

A) Too many product options

B) Lack of control over service quality

C) High costs of digital marketing

D) Regulations against selling foreign products

7. How do B2C tour operators differ from B2B tour operators?

A) B2C tour operators sell directly to consumers, while B2B tour operators sell to other companies in the travel trade.

B) B2C tour operators specialize in inbound tourism, while B2B tour operators focus on outbound tourism.

C) B2C tour operators package travel products together for resale, while B2B tour operators negotiate net rates for travel products.

D) B2C tour operators work with DMCs to plan events and coordinate experiences, while B2B tour operators work with wholesalers to resell travel products.

8. What are the primary responsibilities of travel agents?

A) To negotiate net rates for travel products and sell them directly to consumers.

B) To package travel products together and sell them to retailers or other tour operators.

C) To act as intermediaries between travel product suppliers and consumers, selling travel products at a discounted rate.

D) To sell travel-related products, such as accommodation and transportation, to the public on behalf of travel product suppliers.

9. What is the role of technology in the travel trade?

A) Technology has made the travel trade more complicated and less efficient.

B) Technology has simplified the travel distribution chain and improved the booking process.

C) Technology has increased the cost of travel products and reduced customer satisfaction.

D) Technology has had no impact on the travel trade.

10. What are some services that DMCs often offer?

A) Marketing services and event security

B) Transportation and entertainment

C) Gift sourcing and guest speaker coordination

D) All of the above

11. Who are intermediaries in the travel trade?

12. Explain the function of an Online Travel Agent (OTA).

13. What are Receptive Tour Operators (RTOs) known for?

14. Describe the role of consolidators in the travel trade.

15. What is the significance of ‘FIT’ travel?

16. Discuss how the rise of online booking platforms has impacted traditional travel agents. Consider both negative effects, such as decreased demand for in-person services, and positive effects, such as the ability to offer more personalized service.

17. Critically assess how sustainable practices are integrated into the operations of different players in the travel trade, such as DMCs and tour operators.

18. Predict future trends in the travel trade industry over the next decade. Consider technological advancements, consumer behavior changes, and global economic factors.

19. Evaluate the relevance of Global Distribution Systems in today’s travel market, given the rise of direct booking tools and platforms.

20. Analyze the specific needs of corporate travel management and how they differ from leisure travel services.

References

Allied Market Research. (2023, May). Bleisure travel market size, share, competitive landscape and trend analysis report by employee, by age group, by industries: Global opportunity analysis and industry forecast, 2023-2032. https://www.alliedmarketresearch.com/bleisure-travel-market-A06357

Altexsoft. (2019, April 11). History of flight booking: CRSs, GDS distribution, travel agencies, and online reservations.  Retrieved May 12, 2024, from https://www.altexsoft.com/blog/history-of-flight-booking-crss-gds-distribution-travel-agencies-and-online-reservations/

Altexsoft. (2022, September 21). Airline consolidators overview: Their role, advantages, and key players. Retrieved May 12, 2024, from https://www.altexsoft.com/blog/airline-consolidator/

Altexsoft. (2023, July 26). How to get IATA accreditation for travel business: Options, steps, IATA certification cost. Retrieved May 12, 2024, from https://www.altexsoft.com/blog/iata-accreditation/

American Hotel & Lodging Association. (2017, July 12). New research shows consolidation In online travel agency market harms consumers. https://www.ahla.com/news/new-research-shows-consolidation-online-travel-agency-market-harms-consumers

Association of Destination Management Executives International. (n.d.). Membership. Retrieved April 2, 2024, from https://www.admei.org/join/

Berry, S. D. (2018, April 12). Tourism industry terms: Receptive operator. Groups Today. https://groupstoday.com/blog/tourism-industry-terms-receptive-operators

Brand USA. (n.d.). Receptive tour operators. Visit the USA. Retrieved April 2, 2024, from https://www.visittheusa.com/info/receptive-tour-operators

Bureau of Labor Statistics. (2023, September 6). Travel agents. Occupational Outlook Handbook. U.S. Department of Labor. Retrieved April 3, 2024, from https://www.bls.gov/ooh/Sales/Travel-agents.htm

Caputo, P., Crowley, E., Rauch, M., Rosenberger, S. A., Soderberg, M., Daher, M., Terry, B., & Naik, U. (2023, April 10). Navigating toward a new normal: 2023 Deloitte corporate travel study. Deloitte. https://www2.deloitte.com/us/en/insights/focus/transportation/corporate-travel-study-2023.html

Christopherson Business Travel. (2023, April 14). Why you should consider a travel management company instead of a travel agency. https://www.cbtravel.com/difference-between-travel-management-company-and-travel-agency/

Curry, D. (2024, January 8). Travel app revenue and usage statistics (2024). Business of Apps. Retrieved April 2, 2024, from https://www.businessofapps.com/data/travel-app-market/

Flynn, J. (2023, March 29). 25 essential business travel statistics [2023]: How much do companies spend on business travel. Zippia: The Career Expert. https://www.zippia.com/advice/business-travel-statistics/

Global Business Travel Association (GBTA) & Cvent. (2023, June). The life and times of a corporate travel manager: Travel manager reflections on their career and the evolving role. Cvent. https://rb.gy/sdbqw1

Global Business Travel Association (GBTA) Foundation. (2023, June). The state of climate action in business travel: Global industry barometer 2023https://gbtafoundation.org/wp-content/uploads/2023/07/The-State-of-Climate-Action-in-Business-Travel-Industry-Barometer-2023_Final.pdf

HelloWorld Travel. (2022, May). Partner newsletter. http://partners.helloworld.com.au/

Hernandez, B. (2022, September 1). What Is procurement and how does it apply to corporate travel? Rocketrip. https://rocketrip.com/what-is-procurement-and-how-does-it-apply-to-corporate-travel/

Hernandez, V. (2020, January 16). The collapse of Thomas Cook: What happened and why. International Banker. https://internationalbanker.com/brokerage/the-collapse-of-thomas-cook-what-happened-and-why/

IBM. (2015, October 1). Das ist die Entdeckung [That is the discovery]. https://de.newsroom.ibm.com/das-ist-ibm?item=30591

International Air Transport Association (IATA). (n.d.). About us. Retrieved April 4, 2024, from https://www.iata.org/en/about/

IT-Online. (2023, June 21). Emerging industries redefine the blueprint for business travel. https://it-online.co.za/2023/06/21/emerging-industries-redefine-the-blueprint-for-business-travel/

Hollander, J. (2023, August 31). The evolution of OTAs in the hotel industry. Hotel Tech Report. https://hoteltechreport.com/news/otas-problems

Jorden, R., & Dawes, J. (2023, January 10). Tour operators embrace the long-elusive software solution. Skift. https://skift.com/2023/01/10/tour-operators-embrace-the-long-elusive-software-solution/

Linkd Tourism. (n.d.). Our team: Michael Cassis. Retrieved April 8, 2024, from https://www.linkdtourism.com/michael-cassis/

Mulliner, C. (2017, October 9). American travel habits revealed. Explore by Expedia. https://www.expedia.com/stories/american-travel-habits-revealed/

National Air and Space Museum. (n.d.). The evolution of the commercial flying experience: 1914-today. Smithsonian. https://airandspace.si.edu/explore/stories/evolution-commercial-flying-experience

Navan. (2024, March 6). Navan enhances direct connection with United Airlines as TMC introduces NextGen corporate booking experience. Retrieved May 24, 2024, from https://navan.com/about/press/navan-enhances-ndc-direct-connection-with-united-airlines#

Page, S. J. (2019). Tourism management (6th ed.). Routledge.

Peeters, P., & Papp, B. (2023, January). Envisioning tourism in 2030 and beyond: The changing shape of tourism in a decarbonising world. The Travel Foundation. https://www.thetravelfoundation.org.uk/wp-content/uploads/2023/02/Envision2030_SummaryFINAL.pdf

Travel planning apps. (n.d.). Pruvo. Retrieved June 26, 2024, from https://www.pruvo.com/blog/travel-planning-apps/

Quinby, D. (2009, June). Package, tour or FIT: Defining the packaged travel market. Phocuswright. https://www.phocuswright.com/Travel-Research/Research-Updates/2009/Package-Tour-or-FIT-Defining-the-Packaged-Travel-Market

Rose, N. (2023, September 1). Are dynamic bundles for air travel personalization? PhocusWire. https://www.phocuswire.com/are-dynamic-bundles-personalization

Schaal, D. (2020, January 29). Regulatory scrutiny of online travel platforms could shed new light on business practice. Skift. https://skift.com/2020/01/29/regulatory-scrutiny-of-online-travel-platforms-could-shed-new-light-on-business-practices/

Sharma, A., Sharma, S., & Chaudhary, M. (2020). Are small travel agencies ready for digital marketing? Views of travel agency managers. Tourism Management, 79, 104078. https://doi.org/10.1016/j.tourman.2020.104078

Statista Research Department. (2023, December). Online travel market size worldwide from 2017 to 2023, with a forecast until 2028. Statista. Retrieved April 3, 2024, from https://www.statista.com/statistics/1179020/online-travel-agent-market-size-worldwide/

Statista Research Department. (2024, January). Key data on the travel agency industry worldwide as of January 2024. Statista. Retrieved April 3, 2024, from https://www.statista.com/statistics/1179124/global-travel-agency-sector-key-data/

United Nations. (n.d.). For a livable climate: Net-zero commitments must be backed by credible action. Retrieved May 24, 2024, from https://www.un.org/en/climatechange/net-zero-coalition

Up in the Air Life. (n.d.). Meet the G.O.A.T. of luxury travel. https://upintheairlife.com/meet-claire-soares-conde-nast-travel-specialist/

van Rensburg, M. J. (2014). Relevance of travel agencies in the digital age. African Journal of Hospitality, Tourism and Leisure, 3(2), 1-9. https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_37_vol_3_1.pdf CC BY.

Media Attributions

  • 2024-08-14_16-03-30

License

Icon for the Creative Commons Attribution 4.0 International License

Introduction to Hospitality Copyright © by SBCTC is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

Share This Book