Travel Agencies

Travel agencies are profit-making business firms set up for the purpose of organising trips. At present they act either as middlemen between their customers and the firm supplying the services required transport companies, hotels, firms offering excursions or entertainment or as actual tourist entrepreneurs. As a rule, a travel agency carries out two types of activities:

a. as a Middlemen, it charges a commission on individual services supplied by a hotel, a transport company, an impresario etc. and sold to the client by the trvel agency. in this case, the agency acts as a third party between the consumer and the producer, ie, between the tourist and the tourist enterprise such as hotel, transport company and guide as well as porters.

b. As an organiser, the travel agency organises on its own initiative and at its own risk tours for its customers. It chooses the means for transport, the hotels, the excursions and the entertainment, and plans the entire programme according to the fixed schedule and for a specific duration. It proposes the complete trip in a catalogue, at a net all in price. In this Case, besides the commission charged, the travel agency may add a profit margin to the cost.