2. OVERVIEW
Sr no particulars
1 Intro question
2 What is travel agency ? And examples
3 Types of travel agency and operations
4 Travel agency in the 21st century=E-portals
5 How did E-portals came into existence and
examples
6 Merits and demerits of E-portal
7 Market share and value chain analysis
conculsion
Nikit bhatia
4. • A travel agency is a private retailer
or public service that
provides tourism related services to
the public on behalf of suppliers such
as airlines, car rentals, cruise
lines, hotels, railways, and package tours.
• In addition to dealing with
ordinary tourists most travel agencies have
a separate department devoted to
making travel arrangements for business
travelers and some travel agencies
specialize in commercial and business
travel only.
What are travel agency ?
Nikit bhatia
6. • There are three different types of agencies:
multiples, miniples and independent agencies.
The former comprises a number of national
chains, often owned by international
conglomerates, like Thomson Holidays, now a
subsidiary of TUI AG, the German multinational.
• It is now quite common for the large mass-
market tour companies to purchase a
controlling interest in a chain of travel
agencies, in order to control the distribution of
their product. (This is an example of vertical
integration.) The smaller chains are often based
in particular regions or districts
Types Of Travel Agencies
Nikit bhatia
7. • A travel agency's main function is to act as an agent,
selling travel products and services on behalf of a
supplier. Consequently, unlike other retail businesses,
they do not keep a stock in hand. A package holiday
or a ticket is not purchased from a supplier unless a
customer requests that purchase. The holiday or ticket
is supplied to them at a discount. The profit is therefore
the difference between the advertised price which the
customer pays and the discounted price at which it is
supplied to the agent. This is known as the commission.
• Other commercial operations are undertaken,
especially by the larger chains. These can include the
sale of in-house insurance, travel guide
books and timetables, car rentals, and the services of
an on-site Bureau de change, dealing in the most
popular holiday currencies
Operations of the Travel
Agencies
Nikit bhatia
8. • With general public access to the Internet,
many airlines and other travel companies
began to sell directly to passengers. As a
consequence, airlines no longer needed to
pay the commissions to travel agents on
each ticket sold.
• In 2009, the market size for travel agencies
experienced a sharp decline, dropping
from $17 billion the previous year to $14.5
billion
Travel Agencies in the 21st
century = E Portals
Nikit bhatia
9. • With the advancement of the IT
sector in the industry and internet
becoming popular, e portals came
into existence
• Initially, when E Portals were not
popular, the travel agents adopted
them so as to make their work
easy, effective and fast.
How did E Portals came into
existence??
rajat jain
13. • As the IT sector progressed, so the hotels
started to advertise themselves on the web
because it became the largest medium to
marketing.
• And then with internet becoming popular
in every industry, people started browsing
through the websites and e portals and
making their own travel as per their
requirements…
E Portals becoming popular
with a very rapid pace…
Sagar batra
14. • We can plan our own travel as per our
requirements
• The commission of the travel agent is saved
• E Portals are very user friendly
• E Portals includes many processes such
as dynamic packaging which provide useful
new options for consumers.
• Today the tour guide can be a GPS tour guide,
and the guidebook could be an audio
guide, pod guide or I-Tours, such as City audio
guides. The biometric passport may also be
included as travel technology in the broad
sense.
Merits of E portals…
Sagar batra
15. • Travel agents remain dominant in some
areas such as cruise vacations where they
represent 77% of bookings and 73% of
packaged travel
• The people who doesn’t use internet
frequently are still dependent on travel
agencies on their travel
• The people who are planning their tour for
leisure still consult travel agencies rather
than e portals
Drawbacks of E Portals
Sagar batra
21. • With many people switching to self-service
internet websites, the number of available jobs
as travel agents is decreasing. Counteracting
the decrease in jobs due to internet services is
the increase in the number of people travelling.
• Since 1995, many travel agents have exited the
industry, and relatively few young people have
entered the field due to less competitive
salaries. However, others have abandoned the
'brick and mortar' agency for a home-based
business to reduce overheads and those who
remain have managed to survive by promoting
other travel products such as cruise lines and
train excursions
Careers in the industry…
Nikit bhatia
22. • Initially, when e portals came, travel
agencies adopted them to make their
work easier and fast
• But now as people have started using e
portals on their own to plan their travel, it
has become the major threat to travel
agencies as it has become very difficult for
them to survive in the market especially
independent travel agencies…
E Portals overcoming travel
agencies…
Nikit bhatia
