wholesale and retail travel agency

What is the difference between a retail travel agent and a wholesale travel agent?

Faqs about the difference between a retail travel agent and a wholesale travel agent:, 1. what services can i expect from a retail travel agent, 2. what kind of customers do retail travel agents typically serve, 3. can a retail travel agent provide better deals compared to wholesale travel agents, 4. what benefits do wholesale travel agents offer, 5. can i contact a wholesale travel agent directly, 6. are there any disadvantages to using a retail travel agent, 7. how can i find a reliable retail travel agent, 8. do wholesale travel agents offer packages for specific destinations or types of travel, 9. can i negotiate prices with a retail travel agent, 10. do retail and wholesale travel agents have different access to deals and promotions, 11. can wholesale travel agents assist with complex travel itineraries, 12. are there any advantages to booking directly with travel suppliers instead of using a retail travel agent.

A retail travel agent and a wholesale travel agent are both professionals in the travel industry, but they serve different purposes and cater to different clienteles. Understanding the differences between these two types of agents is essential for travelers seeking assistance in planning their trips.

Retail travel agents, also known as leisure or traditional travel agents, provide travel-related services directly to individual customers. These agents are the ones you typically find in brick-and-mortar travel agencies or online platforms. They specialize in offering vacation packages, airline tickets, hotel reservations, and other travel-related services to individuals and families. Retail travel agents essentially act as intermediaries between travelers and travel service providers, helping their clients find the best deals and providing personalized advice based on their preferences. They offer a wide range of travel options and often have access to exclusive deals, ensuring that their clients have the best possible travel experience.

On the other hand, wholesale travel agents, also referred to as tour operators or travel wholesalers, primarily focus on providing travel services to travel agencies and other travel-related businesses. They negotiate and create travel packages, including accommodations, transportation, activities, and more, which they then market and sell to retail travel agents. Wholesale travel agents play a crucial role in the travel industry by curating and packaging various travel components, simplifying the process for retail agents and their clients. These packages often come at discounted rates, allowing retail travel agents to offer competitive prices to their customers. By partnering with multiple travel suppliers and consolidating services, wholesale travel agents can offer a wide range of options and more affordable travel experiences.

Retail travel agents can help you with various travel-related services, including booking flights, accommodations, car rentals, cruises, and vacation packages. They can also assist with visa applications, travel insurance, and provide valuable recommendations and advice based on your specific preferences and budget.

Retail travel agents cater to individual travelers and families who are seeking assistance in planning their vacations. They help clients choose destinations, find the best deals, and create customized itineraries to suit their unique needs and interests.

While wholesale travel agents often offer discounted rates to retail travel agents, retail agents have the advantage of providing personalized advice and customized itineraries tailored to the specific needs of individual travelers. By leveraging their knowledge and relationships with various travel suppliers, retail travel agents can often secure competitive deals for their clients.

Wholesale travel agents play a crucial role in the travel industry by consolidating various travel services into packages that can be sold to retail travel agents. This simplifies the booking process for retail agents, allowing them to offer a wide range of options at competitive prices to their clients. Wholesale travel agents also negotiate deals with suppliers, which can result in cost savings for retail travel agents and their customers.

Wholesale travel agents primarily work with retail travel agents and other travel-related businesses. As an individual traveler, it is more common to seek assistance from a retail travel agent who can access the packages and deals offered by wholesale agents. However, some wholesale travel agents may have services available for direct consumers as well.

One potential drawback of using a retail travel agent is the service fee they may charge for their assistance. While many agents do not charge fees for certain services, others may require a fee for more complex itineraries or specialized services. It is important to clarify any fees upfront to avoid surprises.

To find a trustworthy retail travel agent, consider asking for recommendations from friends or family who have used their services before. You can also read reviews or check for memberships with industry associations, such as the American Society of Travel Advisors (ASTA), to ensure professionalism and expertise.

Yes, wholesale travel agents often create packages for specific destinations or types of travel experiences. They may design packages for popular tourist destinations, adventure trips, luxury vacations, or niche travel markets. Retail travel agents can assist in finding and customizing these packages to suit individual preferences.

Retail travel agents have the expertise to negotiate prices with certain travel service providers, especially when it comes to group travel or tailored experiences. However, it is important to keep in mind that negotiations may not always be possible or successful, as prices are determined by various factors, including availability and market conditions.

Wholesale travel agents often have access to exclusive deals and promotions specifically designed for retail travel agents. Retail agents, in turn, offer these deals to their clients along with their expertise and personalized service. Both types of agents aim to provide the best possible travel experiences while offering competitive rates.

Wholesale travel agents primarily focus on creating and packaging travel components but may not provide the same level of assistance for complex itineraries as retail travel agents. Retail agents are better equipped to handle intricate plans and tailor-made experiences to ensure a seamless and personalized trip.

Booking directly with travel suppliers can be advantageous in certain situations, especially if you have a specific preference or loyalty to a particular supplier. However, using a retail travel agent offers the benefit of personalized service, expert advice, access to exclusive deals, and a streamlined experience when handling multiple travel components. Retail agents can save you time and effort by taking care of all the arrangements, ensuring a stress-free travel experience.

These frequently asked questions provide a deeper understanding of the key differences between retail and wholesale travel agents and how they can assist travelers in different ways. Whether you choose to work with a retail travel agent or take advantage of the packages offered by wholesale agents, the primary goal remains the same: to ensure you have a memorable and enjoyable travel experience without the stress of planning and organizing every aspect yourself.

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What is a Travel Agency? Types, Purpose, Function, Services

Home » Blog » What is a Travel Agency? Types, Purpose, Function, Services

The travel agency business is now something that most people want to do.

The main purpose of a travel agency is to make planning a trip easier and more useful for their customers by giving them information and making reservations .

Flights, hotels, transportation, trips, and other events can all be booked through the travel company.

If you learn about tour-related ideas and get knowledge from these articles, you’ll be able to start your travel agency in the travel industry. 

Table of contents

What is a travel agency, 1. traditional travel agencies, 2. online travel agencies, 3. corporate travel operators, 4. consolidators, 5. franchise travel services, 1. convenience, 2. expertise and advice, 3. access to deals and discounts, 4. risk management, 5. customer services, 1. travel planning, 2. booking services, 3. customized itineraries, 4. travel documentation, 5. emergency support, 6. customer services, services offered by travel agency, 1. booking services, 2. information and advice, 3. customer services, 4. negotiation and coordination, differences between travel agency and travel agent.

A travel agency is a business that helps people and groups choose, plan, and book travel-related services . Flights, hotels, rides, trips, sports, and other things can be a part of these services.

Most travel companies know about a lot of different trips that their clients can take that fit their wants and budgets.

A lot of travel and tour operators also hire people called tour agents who know a lot about important things like visa rules, places to visit, and travel trends. 

They plan and organize everything so that their clients’ trips are as easy, fun, and stress-free as possible.

Explore the beginner’s guide to launch your travel agency

Types of Travel Agency

Several types of travel agencies meet the wants and tastes of different travelers.

These are the most common travel agencies related to the travel industry:

These agencies are physical office companies where customers can go and talk to the tour planners. They give specialized services and often a wide range of trip needs.

Online Travel Agencies(OTAs) run the online trip business, where their websites or mobile apps provide tourists with book flights, rooms, rental cars, and other trip services. Expedia and Booking.com are some examples.

The corporate travel service makes trip plans for companies and groups. They take care of bookings for businesses, make deals, and offer services like keeping track of costs.

Consolidators buy a large number of plane tickets at a discount, they sell them at a lower price to travel companies or directly to customers.

Franchise companies work under a bigger brand name and use marketing, technology, and support systems in the travel industry that have already been set up. 

Within the franchise network, owners of travel companies get the training and tools they need to run their businesses.

Purposes of Travel Agency

The main purpose of travel agencies is to facilitate and enhance the tour experiences for individuals and groups. 

Travel companies try to make planning a trip easier by letting people book flights, hotels, transportation, events, and other services related to travel all in one place. 

Trip planners hire knowledgeable agents who can offer expert advice and recommendations based on their suggestions of different places or destinations.

Similarly, travel agents shared their experiences of various destinations, travel trends, visa requirements and more.

Airlines, hotels, ship lines, tour operators, and other travel companies often offer deals, discounts, and packages that only travel agencies can get.

They can help customers get the most for their money and save money on their trip costs by taking advantage of deals.

Travel agencies help mitigate risks associated with travel by giving travelers information or knowledge on safety, health issues, and security in different places.

Travel agencies or companies make sure their clients are happy by giving each one of them high-quality service and individual care.

Overall, the travel company’s main goal is to make planning a trip easier, more fun, and less stressful for their costumes by giving them advice, making things easier.

What does Travel Agency do?

Many services travel agencies offer to make it easier and better for people and groups to trip.

One of the things that a travel agency does is the following:

Travel agencies support the client in planning their trips by talking about their tastes, hobbies, income, and any special requirements they may have.  

These companies are called travel agents that help people book flights, hotels, rental cars, airport transfers, trips, events, and other services related to travel. 

They can use online tools and scheduling systems to get reservations for their clients.

Most tour operators make personalized trip plans based on what their clients want and what they’re interested in. 

It supports you on trip documents like passports, visas, travel insurance, and any other paperwork that is needed is available from travel companies. 

Before a client leaves on a trip, they make sure that all of their paperwork is in order.

Travel companies are there to help their customers in case of accidents or other problems that come up during their trip. 

In this case, they might rebook flights, arrange alternative accommodations, or give advice on medical help or legal issues.

Tour Operators prioritize customer happiness first by giving each client great services and individual care.

There are a lot of services travel agencies provide to meet the news and preferences of travelers. 

Trip planner aims to ease the trip planning process, provide expert advice and support, and ensure a smooth and enjoyable travel experience for their clients.

These are some common services provided by travel agencies.

• Flight Booking
• Accommodation Booking
• Transportation Services
• Tour Packages
• Cruise Booking 
• Travel Insurance
• Visa Assistance
• Destination Recommendations
• Emergency Assistance

Overall, the travel agency’s purpose is to ease the trip schedule process, deliver expert advice and support, and provide smooth and enjoyable trip experiences for their customers.

Let’s launch your travel booking website today

Functions of the Travel Agency

The main function of a travel agency revolves around assisting and arranging various parts of travel and people and groups. 

The purpose of a travel agency is to ease the trip planning process, provide expert advice and support, and improve the entire trip experience for their customers.

Here’s an overview of the key tasks of a travel agency:

Travel agencies handle the planning process for flights, lodgings, transportation, trips, events, and other travel-related services.

Most travel agency provides guidance and formation on different parts of the travel, visa requirements, and health and safety measures. 

Travel companies put customer happiness first by giving each client great service and individual care.

The travel agencies deal with tour operator suppliers, including airlines, trip suppliers, and hotel and tour operators to secure good terms and rates for their clients.

A trip agency is a business company that offers other-related services, while a trip agent is a person hired by or connected with a tour operator who helps clients with their trip planning and bookings. 

These are some key differences between a travel agency and a travel agent:

In summary, travel agencies may have multiple trip agents working under their umbrella to help the clients, while a tour agent may work separately as a part of a bigger company.

Travel companies are essential businesses in the travel industry, acting as intermediaries between tourists and travel providers. They offer a range of services to ease trip planning and booking.

These companies can take the form of standard brick-and-mortar businesses, or online-based platforms. 

Each type of service responds to different tastes and wants, providing accessibility to a wide range of travel-related customers. 

Regardless of their form, the primary goal of travel companies stays consistent: to provide ease, knowledge, and support throughout the trip process. 

They give personalized systems to help, access to exclusive deals, and 24/7 assistance before, during, and after the trip.

By offering personalized solutions and reducing travel risks, travel companies play a crucial role in allowing enjoyable and stress-free travel experiences for individuals and groups.

There are two types of agencies, retail tour operators and wholesale travel agencies.  These travel companies, as well as tour providers, operate as intermediaries. The main goal is the buying and selling process in the travel business.

The global market size of the travel agency industry is estimated at nearly 296 billion U.S. dollars as of January 2024. ( Source )

Overall, roughly 589 thousand travel companies operated in the tourism industry, with employment reaching approximately three million.

Yam Bahadur Chhetri is a content writer and vivid contributor to the WordPress community and a WordPress enthusiast with an experience of 7+ years in the relative field. He also loves to develop WordPress Themes, Plugins, and custom WordPress development for clients.

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Travel Agency

A travel agent is a person who has full knowledge of tourist product – destinations, modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of product providers/principles and in return gets a commission. Technically, a travel agent is an owner or manage r of an agency, but other employees are responsible for advising tourists and selling packages tours/individual components of travel products.

A travel agent may be an individual /firm or corporation which is commonly known as a travel agency . An agency means the office of travel agent or organization where all travel goods and services are assembled and coordinated for the smooth conduct of travel agency business.

Travel agency is one of the most important organizations in the tourism private sector which plays a significant and crucial role in the entire process of developing and promoting tourism in the country or at a destination. It is a travel agency which packages and processes all the attractions, accesses, amenities and ancillary services of a country and present them to tourists. That’s why travel agency is known as ‘ image builder ‘ of a country.

A prospective travel agency is one which makes arrangements of travel tickets (air, rail, road, and sea); travel documents (passports, visa and other documents required to travel); accommodation, entertainment, and other travel-related services from principle suppliers. It may also secure travel insurance, foreign currency for traveling people.

History of Travel Agency

The first Travel Agency of the world was established by Thomas Cook in 1845 in England. The use of the term travel trade dates back from the early years of the 19th century, but this should not obscure the fact that what we today describe as travel trade (travel agency and tour operation business) was taking place much earlier in history.

Throughout history, there was travel middleman who helped the merchants traveling for trade and others who traveled for religious purposes.

In 1841 a fortunate day comes in the history of travel trade when Thomas Cook , as secretary of South Midland Temperance Association, organized a trip by a train for 570 members for his association to the distance of 22 miles. He bought railway tickets in bulk to sell them to people.

The experiment was successful and everybody was exultant. Mr. Cook had done his job on a no-profit basis. But, incidentally, It gave him a new idea and turned it into a tour business.

Four years later in 1845 , he set up a ‘ World’s First Travel Agency ‘ to organize excursions.  Due to this innovative approach, Mr. Thomas Cook is known as the Father of Travel Agency Business . He co-ordinated railway and steamship excursions throughout England, Scotland and Europe.

However, the railways only gave him a 5% commission which was not enough to meet his overheads, so he decided to diversify this business into tour operation .

In 1855 Mr. Cook started operating package tours . He conducted the world’s first international tour from England to Paris.

Types of Travel Agency

Travel agencies are basically categorized into two types-: Retail Travel Agenc y and Wholesale Travel Agency .

Retail Travel Agency

A retail travel agency sells tourists products directly to the public on the behalf of the products suppliers and in return get commissions. Some package tour is sold in two ways i.e., on a commission basis and mark up the price.

When a travel agency sells a tour on the marked-up price it means that first, it markup the cost of the tour and then sell it at a higher rate. The markup price is the difference between retail price and wholesale cost.

Definitions of Retail Travel Agency

According to Airlines Reporting Corporation (ARC) a retail travel agency is defined as ” a business that performs the following functions: quotes fares, rates, make reservations, arrange travel tickets and accommodation, arrange travel insurance, foreign currency, documents and accepts payments.”

According to SARC (1967), ” retail travel agency business consists of the activities involved in selling tourism products/services directly to the tourists and performs normal functions such as issuing air tickets, making accommodation and transportation reservation, providing specialized services, and accepting and making payments.”

The main source of the revenue for the travel agency is the commission received from the vendors. However, the rate of the commission differs from organization to organization an travel component to the travel component.

A travel agency receives appx. 95% of their revenue from the commission, and the remaining 5% from consultancy services and others.

Wholesale Travel Agency

These agencies are specialized in organizing package tours, which are marketed to the customers/tourists through the network of a retail travel agency or directly to the prospective clients ( if wholesale travel agency has a retail division). A wholesale travel agency purchases tourists’ product components in the bulk and designs tour packages.

Sometimes, a wholesale travel agency buys travel components from the vendor in bulk and resell them to other travel business originations.

Wholesale travel agencies assemble package holidays and sell them to clients through retail travel agencies. A typical package tour includes – air tickets, accommodation, and something other services may also be included in it such as entertainment, sightseeing, and sports activities, etc.

These packages are referred to as ‘package tours’ most of these tours include the services of escorts but a few are sold to people who wish to travel independently.

Now a question arises – How a wholesale travel agency generates profits?

Generally, a wholesaler receives volume discounts from the principal suppliers because a wholesaler might agree to purchase a large number of seats from a particular airline or reserve a large number of rooms at a particular hotel or resort.

Practically, a wholesaler who sells package vacations/tours is called a Tour Operator .  However, technically there is a difference between a wholesaler and a tour operator. A wholesaler who sells tourists products individually without assembling them into a package tour is called a Consolidator .

Mostly, these are specialized in particular product components such as air tickets, accommodation, and conferences, and conventions, etc.

Difference between Wholesale Travel Agencies and Tour operators

The wholesale travel agencies may offer or operate the package tours or may specialize in developing tours for inbound as well as outbound travelers. They are often referred to as tour operators , but these two essentially different:

• Wholesale travel agency does not sell directly to the public, while tour operators do sell directly to clients.
• A wholesale travel agency usually combines, assembles and contacts for existing travel services to formulate a new travel product she has his own one or more components of travel product i.e. ‘ inclusive tours.’
• Wholesale travel agencies are less inclined than tour operators to perform ground services i.e. handling agency or ground operators.
• A wholesale travel agency may deal with one component of travel product while a tour operator offers a variety of tour programmes.
• The size of the business is large in the case of tour operators in comparison to a wholesale travel agency.

Features and Importance of the Travel Agency

Travel agency plays an important role in the travel sector business. Some most important features and importance of the travel agency business are following as:-

• An important link between the clients and principal suppliers.
• Image-Builder.
• Ensures rapid travel services.
• Provider of authentic and reliable travel information.
• A social a continuous process.
• Establishes a good relationship with clients and vendors.

These are the most important features of the Travel Agency Business.

Functions and Services of Travel Agency

Today, Travel Agencies have been recognized as a vital component of travel and tourism and have become an integral part of the travel and tourism industry at globally. They account for more than 90% of international and 70% of domestic tourist traffic

Further, more than 60%  of all travel agency revenues are derived from business travel. Most travel agencies sell both commercial and leisure travel but there are many travel agencies that only specialized in one sector or the other.

The operation of each travel agency is based on the scope of its activities and organizational size. Here we discuss the functions of a large scale travel agency that performs all types of activities such as Retail travel agency, wholesaling and tour operations, etc. The main function of a large-scale travel agency are:

Travel Information

Whatever the size of a travel agency, it has to provide necessary travel information to tourists. A travel agency must give up-to-date, accurate, and timely information regarding destinations mode of travel, accommodation, sight-seeing, shopping, immigration, passport, visa, customs clearance and procedure, health and security rules, and various permits required to travel in particular areas, etc.

Itinerary Preparation

The term tourists itinerary is used to identify the origin, destination and all the stopping points in a traveler’s tours. It is a composition of various elements and designed after a detailed study of the market. Travel agencies prepare an itinerary for tour packages.

Airline Ticketing and Reservation

A travel agency sells a variety of tourism products. Airline ticketing and reservation is still a major source of revenue. Travel agencies perform a function of airline ticketing and reservation on behalf of various airlines.

Tour Packaging and Costing

Travel agencies prepare a tour package and sell them to tourists. The coasting and pricing of tour packages depend to a large extent on the ability of travel agents as to how effectively he is able to negotiate with the principal suppliers.

Reservation

It is a very important function of all types of travel agencies. A travel agency consistently makes linkage with the accommodation sector, transport sector and other entertainment organizations to reserve rooms, and seats in the cultural programs and transportation.

Travel Insurance

Some large-scale travel agencies perform additional functions to serve their clients. Travel insurance protects travelers against the person as well as baggage losses resulting from a wide range of travel-related happenings and problems.

Currency Services

Approved travel agency authorized by Govt. body provides currency exchange services to tourists.

Organization of Conference/Conventions

Large-scale travel agencies offer a complete convention/conference package which includes registration of the participants at the venue to be picked up for dropped to the airport/hotel, overhead projectors, slide projectors, TV, VCR, information counter, sightseeing, etc.

Travel Agency Linkages and Integration

Basically, a travel agency serves two types of clients: business travelers and leisure travelers. Incidentally, the requirements of these tourists are different and an agency has to assemble or purchase-related components from the principal suppliers to cater to their needs.

Essentially, travel agencies maintain close ties with Airlines, hotels, car rentals, banks, insurance companies, railways, government, trade associations, foreign tour operators and travel agents, ground operators, cruise companies, and tourism educational institutes.

Unravelling the Realm of Travel: Different Types of Travel Agents and Their Unique Roles

• July 19, 2023

Travel agents play an instrumental role in shaping, guiding and enhancing travellers’ experiences. Acting as intermediaries, they connect travellers with many services and experiences that best suit their preferences, budgets and desires. While the digital age has revolutionised how we access travel information and book trips, the expertise and personalised touch offered by the different types of travel agent remain irreplaceable. With their knowledge and vast networks, they simplify complex travel arrangements, ensure value for money and often open doors to experiences we might overlook.

The evolution of travel agencies

Travel agencies have undergone a significant transformation over the past few decades. Their evolution reflects broader technological changes, consumer behaviour and the global economy. 

In the early days, travel agencies operated primarily from physical offices. They were the main point of contact for travellers looking to book train tickets, flights or hotel rooms. These agencies thrived because they held exclusive access to reservation systems and established relationships with service providers.

In an age without the internet, agents were seen as the encyclopaedias of travel. They provided invaluable advice, suggested itineraries and made complex international travel feasible. Their services were indispensable for both leisure and business travellers.

With the rise of the internet, the late 1990s and early 2000s saw the emergence of online travel agencies (OTA) like Expedia. These platforms enabled travellers to directly book flights, hotels and other services online, challenging the monopoly of traditional agencies.

As information became readily available, the traveller became more empowered. While many embraced the DIY approach to travel planning, traditional agencies faced the pressure of adapting to the digital model or becoming obsolete.

Recognising the changing landscape, many travel agents shifted to home-based operations. This allowed them to cut costs, offer more personalised services and cater to niche markets, from luxury travel to eco-tourism or adventure sports.

Types of travel agents

In an age where everything is going digital, travel agencies remain a blend of both online and offline realms, catering to travellers’ varied needs and preferences.

High street travel agencies

Retail travel agencies, traditionally known as high-street or brick-and-mortar agencies, have been the face of the travel industry for decades. You encounter these storefronts on bustling city streets, shopping centres or quaint town squares. They have witnessed the ebb and flow of the digital age but have managed to carve a niche for themselves amidst evolving times.

Services Offered

• Arranging transportation: Be it by air, sea or land, these agencies assist travellers in booking tickets, comparing fares and finding the best routes
• Accommodation reservations: From luxury hotels to cosy bed and breakfasts, retail travel agents provide options tailored to the traveller’s budget and preferences
• Tour packages: Many offer curated travel packages covering sightseeing, activities and meals, ensuring a hassle-free experience
• Travel insurance: They often assist in securing travel insurance, ensuring travellers are covered against unforeseen circumstances
• Visas and travel documentation: Some agencies even provide support in obtaining visas and other essential travel documents
• Refunds and cancellations: Should plans change or emergencies arise, these agents navigate the often-complicated process of obtaining refunds or making travel alterations

The rise of independent travel agencies

While many retail travel agencies are affiliated with larger companies, independent agents have seen noticeable growth. These professionals, often with years of industry experience, set up storefronts, bringing a personal touch and specialised knowledge.

Online travel agencies (OTAs)

Online travel agencies have transformed how people research, plan and book their trips. Seamlessly merging technology with travel, these platforms have capitalised on the digital era’s opportunities, offering travellers unprecedented convenience and choice. 

The benefits of OTAs

• Accessibility and convenience: Available 24/7, travellers can browse, compare and book their trips anytime, anywhere, whether it’s during a lunch break or in the middle of the night
• Vast selection: With access to a wide array of airlines, hotels, car rentals and more, OTAs present a one-stop-shop for travel needs
• Price comparisons: OTAs often aggregate data, allowing travellers to compare prices and options effortlessly, ensuring they get the best deal
• Reviews and recommendations: Holidaymakers can benefit from reviews and ratings provided by fellow travellers, aiding informed decision-making
• Flexible packages: Many OTAs allow travellers to customise their packages, combining flights, hotels and other services 

Their role as intermediaries

• Bridge between service providers and travellers: OTAs connect travellers with numerous service providers, acting as a digital marketplace for travel services
• Negotiating better rates: Leveraging their vast customer base, OTAs can often negotiate competitive prices, passing on savings to travellers
• Streamlined booking process: They simplify the booking procedure by consolidating information and providing a single platform for multiple services

Creating personalised customer experiences

• Tailored recommendations: Using data analytics, OTAs can suggest destinations, hotels or activities based on a user’s past behaviour and preferences
• Traveller profiles: Many OTAs offer personalised user profiles, storing preferences, loyalty points and past trips, making subsequent bookings even more seamless
• Custom alerts: Holidaymakers can receive alerts for price drops, special deals or new packages that align with their interests.

Wholesale travel agencies – the B2B giants

While retail and online travel agencies often dominate the limelight, wholesale travel agencies operate behind the scenes, orchestrating a symphony of logistics, partnerships and packages. These B2B behemoths play a pivotal role in the travel industry, connecting vendors with retailers and ensuring that the end customer receives a well-structured, valuable experience.

Examples of these wholesale agents include Tui, which covers the entire tourism value chain, from hotels and resorts to cruise lines, and Hays Travel. With its vast network and influence, Hays operates both in the retail and wholesale sectors. Their wholesale division ensures a continuous supply of competitive packages and offerings to their extensive retail network.

Wholesale travel agencies are the backbone of the travel industry, ensuring a smooth supply chain, competitive prices and diverse offerings. Though less visible to the average traveller, their operations are integral to the functioning and sustainability of the tourism ecosystem.

The role of wholesale travel agencies

• Intermediaries between providers and retailers: Wholesalers procure bulk services from providers, be it hotel rooms, flight seats or tour services. They then distribute these to retail travel agents, other wholesalers or even OTAs at negotiated prices
• Contract negotiations: They use their purchasing power to negotiate favourable contracts with service providers, securing better rates and conditions than smaller agencies might achieve independently
• Expertise in holiday packages: Wholesale agencies are adept at curating and combining individual travel services into cohesive, attractive holiday packages. These are then marketed to travellers via retail agents or direct channels
• Risk management: By buying in bulk, wholesalers take on risks such as unsold inventories. However, their large-scale operations often allow them to manage and distribute these risks more effectively than smaller entities
• Marketing and promotions: With their extensive reach and resources, these agencies play a significant role in promoting destinations, resorts, and packages, influencing travel trends and demand

Business travel agencies

Navigating the realm of corporate travel is a challenge that requires precision, efficiency and adaptability. Business travel agencies specialise in this niche, ensuring that the unique needs of businesses and their travelling employees are met seamlessly. Their services are tailored to suit the fast-paced nature of corporate life and the unpredictability that often accompanies business trips.

Business travel agencies include American Express Global Business Travel, which offers end-to-end solutions for corporate travel. From advanced booking tools and traveller tracking to robust reporting and insights, they cater to businesses of all sizes. TravelBank is another example that merges technology with service, offering businesses tools for booking, managing expenses and tracking budgets. 

Business travel agencies are the silent partners behind successful corporate trips. They bring a blend of expertise, technology, and service, ensuring that business travel, regardless of its inherent challenges, remains a smooth and efficient process for organisations and their employees.

The services offered by business travel agencies

• Quick booking: Recognising the often urgent nature of business trips, these agencies have systems in place for swift flight, hotel and transport bookings
• Discounted rates: With their vast networks and bulk booking capabilities, business travel agencies can secure competitive rates for flights, accommodations and other travel services
• Crisis management: Business travel can be unpredictable, with sudden changes, cancellations or emergencies. These agencies offer 24/7 support to handle such crises, ensuring minimal disruption and inconvenience
• Travel policy compliance: They assist companies in ensuring that all travel bookings and arrangements adhere to the organisation’s travel policy, streamlining approvals and reimbursements
• Detailed reporting: To aid budgeting and finance processes, business travel agencies provide comprehensive reports detailing travel expenses, trends, and savings
• Traveller safety and security: Offering services like real-time travel alerts, location tracking and assistance in geopolitical upheavals, these agencies prioritise the safety of travelling employees
• Visa and documentation support: Understanding the complexities of international business travel, they assist in procuring necessary visas and travel documents swiftly

READ MORE: What are the risks of starting a travel agency franchise?

Leisure travel agencies

Travelling for leisure is all about relaxation, discovery and memorable experiences. Leisure travel agencies dedicated to creating dream holidays are the artists behind these masterpieces. From idyllic beaches to adventurous treks, these agencies transform travel aspirations into tangible itineraries, ensuring every moment is cherished.

Not Just Travel ’s David Walker holds the esteemed title of the top leisure travel agent in the UK. David is a testament to the difference a dedicated and passionate agent can make. Professionals like him elevate the entire leisure travel industry by prioritising customer experiences, understanding individual needs and bringing extensive knowledge.

Leisure travel agencies play an instrumental role in transforming holiday dreams into reality. Focusing on personalisation, attention to detail and expertise ensures that leisure tourists can immerse themselves in their holidays, leaving the logistics and planning in capable hands.

The role of leisure travel agencies

• Customised holiday packages: Understanding that every traveller has a unique vision for their holiday, leisure agencies craft bespoke packages, catering to specific interests, budgets and preferences
• End-to-end itinerary planning: From the moment the holidaymaker leaves their home to the minute they return, leisure travel agencies meticulously plan each detail, ensuring a seamless travel experience
• Specialised experiences: Whether it’s a honeymoon, a culinary journey, a cultural exploration or an adventure expedition, these agencies specialise in curating experiences that resonate with travellers’ passions
• Accommodation and transportation: Leveraging partnerships with hotels, resorts, airlines and transport providers, leisure agencies ensure comfortable stays and smooth journeys, often at competitive prices
• Local expertise: Tapping into regional networks, they offer travellers authentic experiences, be it guided tours, cultural events, or local dining, helping them dive deep into the essence of a destination
• Continuous support: Holidaymakers can travel stress-free, knowing they have a reliable partner ready to assist, whether it’s a change in plans or unforeseen challenges during the trip

Niche travel agencies

The vastness of the travel industry has paved the way for niche travel agencies, specialists who cater to particular interests or demographics, crafting experiences that aren’t just holidays but lifelong memories. From ecotourism adventures in the Amazon to wellness retreats in Bali, these agencies delve deep into specific areas, ensuring authenticity and expertise.

Not Just Travel’s Rachel Tredwell specialises in the romantic sector of travel. She has carved a niche for herself in weddings and honeymoons where her expertise ensures that couples experience magical beginnings, whether it’s a beach wedding in the Maldives or a honeymoon amidst the vineyards of Tuscany.

In a world of diverse passions and interests, niche travel agencies have found their footing, dedicating themselves to cater to specific desires. By doing so, they don’t just create trips – they craft experiences that resonate deeply with travellers, making every journey genuinely unforgettable.

The roles and specialisations of niche travel agencies

• Ecotourism: Cater to travellers who wish to immerse themselves in pristine natural environments while minimising their environmental footprint. Agencies often collaborate with local communities, ensuring sustainable practices and benefits for indigenous people
• Wellness tourism: Providing experiences centred around health, relaxation and rejuvenation, popular packages often include yoga retreats, spa experiences, detox programmes and holistic healing sessions
• Cultural tourism: With the focus on connecting travellers with the rich tapestry of a region’s history, traditions, arts, and lifestyles, agencies specialising in this niche may organise immersive experiences such as local craft workshops, heritage tours and traditional performances
• Adventure tourism: Designed for thrill-seekers and offering experiences like mountaineering, white-water rafting or desert safaris, adventure agencies will ensure safety and logistical expertise for high-adrenaline adventurers
• Culinary tourism: Catering to food enthusiasts, these agencies curate gastronomic journeys, exploring local cuisines, culinary traditions, and even cooking workshops

The indispensable role of travel agents

As the intricate world of travel unfolds, the multifaceted roles of various travel agencies become evident. From traditional high street establishments maintaining their age-old charm to the digital dominance of online platforms – from the powerful B2B impact of wholesale agencies to the specific, personalised touch of niche specialists, each plays a unique part in weaving the vibrant tapestry of the travel industry.

The essence of success in the travel realm, and arguably any business, is individualised customer service. Recognising customer needs, anticipating their desires, and curating experiences that resonate with their dreams and aspirations will always set a business apart. This personal touch is the lighthouse guiding travellers towards memorable experiences in a competitive landscape.

Since The Travel Franchise launched its highly successful franchise operation, hundreds of people have started their own travel businesses under its umbrella. Nearly all of them – 99% – had no experience in the travel industry, and over three-quarters had never ventured into self-employment. 

Providing everything you need to start your travel agency, The Travel Franchise offers a range of membership rates. From an initial investment of £2,995, you’ll gain expert assistance, support training and resources.  

Choose The Travel Franchise and turn your travel agency dreams into reality.

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Working with tour wholesalers: 9 tips for tour operators

By Rezdy — 7 Feb 2019

agent bookings   distribution   tour operator   wholesaler

Updated April 2023 – Expanding your distribution network and improving your online distribution strategy can greatly benefit both outbound and inbound tour operators , but it’s key to remember that success in the travel industry is not solely based on the quality of your product. Partnering with travel wholesalers can provide a valuable channel for reaching a wider audience and increasing bookings, but it’s important to strike the right balance between working with wholesalers and maintaining your own tourism profit margins .

These tips will help you develop relationships with the top businesses in the wholesale travel industry.

What is a tour wholesaler?

If you want to target wholesalers as a distribution partner, then you need to know exactly what they do within the travel industry.

The role of the wholesaler is unique, in the sense that they don’t work directly with travelers in the marketplace. Rather, a wholesaler will sell your tour products to retail travel agencies. In addition, they work with inbound tour operators to manage the specific details of itineraries. Essentially, B2B travel wholesalers help create all-inclusive packages for travelers to book. More and more travelers are now searching for comprehensive travel packages that include all of their experiences. By engaging with tour operators and travel wholesalers, it will be a valuable distribution channel for you to focus on.

9 tips for tour operators working with wholesalers

Here are nine tips for successfully working with B2B travel wholesalers.

Learn how tour wholesalers work

Learning how tour wholesalers work is crucial for tour operators who want to effectively partner with them and grow their business. Wholesalers act as intermediaries between tour operators and travel agents, and they often have established relationships with a wide network of agents who can help promote and sell the tours. By understanding how wholesalers operate, tour operators can better navigate the process of negotiating commission with travel agents and setting competitive pricing for their tours. 

Additionally, understanding how much travel agents make can help tour operators tailor their offerings to meet the needs and expectations of their target audience, ultimately leading to increased sales and a more profitable business.

Highlight the unique selling point of your tours

Wholesale tour operators are frequently searching for tours and activities that are both unique and authentic. These are the types of experiences that travelers are craving, and they want to be able to customize the itineraries. Not only that but having unique experiences will also be appealing to retail travel agents to better market the activity. According to Arival’s Path to Purchase September 2021 edition, the demand for unique experiences in 2021 has increased at drastic levels. More travelers are now searching for an experience that stands out and they’re willing to spend more for it.

When working with travel wholesalers, use online marketing techniques to showcase your products. Be sure to emphasize any value-added features that you include with the booking rate. Building unique experiences can be as simple as adding extra elements that your competitors might not do. For example, Offering lunch or dinner options along with a tour maybe that extra bit that will seal the deal.

Streamline your bookings online

Given the nature of their job, wholesalers will almost exclusively work with tour and activity operators who offer online booking. They are not going to have the time available to make phone calls or wait for e-mail responses. To attract the best wholesalers in the wholesale travel industry, you should implement an online booking system that simplifies the booking process. In addition, your online booking system should allow them to automatically earn their commission. This is, understandably, a priority of wholesalers.

For instance, an online booking software like Rezdy allows you to integrate and connect with multiple distribution agents. Once connected, they’ll be able to see live rates and real-time availability that allows them to book instantly. This removes the need to get in touch with you in order to process the booking. Once a booking has been processed, the commission rate you set will be automatically distributed to the agent. 

With a system like Rezdy in place, it’ll help both you and the wholesaler save time spent on processing orders. As a result, it will allow you to allocate your resources to more important areas of your business.

Set consistent rates for your tours

It’s imperative that you set consistent rates for your tours and activities, regardless of who is selling or booking them. For example, you can’t charge OTAs (online travel agents) one rate for your tours while switching up the prices on your website. When working with wholesalers, it is important to note that the commission rate may vary from one wholesaler to another. This may impact your profit margins, but it is beneficial to work with a diverse range of distribution agents.

Approach each tour wholesaler individually

Each wholesaler is different and the services they provide may vary from one wholesaler to another. As a tour operator, you’ll be working with multiple wholesalers located in different countries and regions that provide different services to different types of travel communities.

It’s important that you treat each wholesaler individually and build a personalized partnership. By doing so, it will help maximize your bookings and give you ideas for future marketing strategies. Consider incorporating a cloud based phone system into your operations to enhance your collaboration during the initial stages of your partnership. With this system, you can easily communicate and coordinate no matter where these wholesalers may be located. Features like call forwarding, voicemail, and conference calling enable seamless communication allowing for quick responses and effective coordination.

Meet your tour wholesaler face to face

Building a strong relationship with your tour wholesalers is crucial in ensuring you continue to have a smooth ongoing partnership. Being able to build trust and likeability with them allows for a more personalized venture that benefits both parties.

To communicate with your wholesaler via email gets the job done, however meeting them in person or over video -call will add that personal element. You will see that communication and negotiations will flow much easier once you have met them face-to-face.

Connect with your tour wholesaler on social media

Social media is currently one of the strongest platforms many businesses use to communicate with their customers and followers. In this day and age, many businesses – big or small – have a social media page that they will use to promote their business or provide updates.

You can use social media to your advantage by engaging with your tour wholesalers on multiple platforms. When you’re able to show support and promote your partners on social media by following, sharing, and engaging with them, they will likely return the favor. 

When other businesses promote you on their social media page, this will open you up to a pool of viewers that may not be aware of your business. Consider it as free publicity.

Treat your tour wholesalers like your business

When you apply to partner up with a travel wholesaler, it’s best to do some research about the company and approach them personally. Partnering with a travel wholesaler is more than just signing up to become one of their suppliers, you need to treat them as if they’re your own business. After all, they are providing you with another stream of income.

When working with a travel wholesaler, make sure you inform them of the latest updates, promotions, and opportunities. This will ensure that their staff is up to speed on the latest information that they then can share with their customers.

Keep track of your bookings

It’s important to be able to measure the success of the partnership between your business and the travel wholesaler. After all, you want to know what’s working and what’s not in order to cater to and strategize for the best possible outcomes. 

Keeping track of the bookings that come through from each distribution agent will allow you to have a better understanding of each market. This can then help you create marketing strategies catered towards these markets in order to boost your bookings.

Key takeaways

Working with travel wholesalers can be a valuable strategy for tour operators looking to grow their business and reach a wider audience. By understanding how wholesaler tour operators work, negotiating fair commission rates, and developing strong relationships with their partners, tour operators can successfully navigate the complex landscape of the travel industry and maximize their profitability. 

One effective tool for achieving just that is an online booking software like Rezdy, which streamlines the process of partnering with distribution agents, including wholesalers. Rezdy’s innovative channel manager platform ensures that all partners have access to your live rates and availability, making it easier to manage your distribution network and maximize your profitability.

If you’re interested in trying Rezdy for yourself, you can sign up for a FREE 21-day trial or request a free demo from our friendly team.

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Wholesale travel agency.

Traveling is an exciting experience that many people enjoy. However, planning a trip can be stressful and time-consuming. This is where travel agencies come in handy. Travel agencies offer various services to make your trip planning easier, including booking flights, hotels, and transportation. One type of travel agency that has become increasingly popular is the wholesale travel agency. This article will discuss what a wholesale travel agency is, how it works, and the advantages of using one for your next trip.

What is a Wholesale Travel Agency?

A wholesale travel agency is a type of travel agency that provides services to other travel agencies, tour operators, and travel industry professionals. Unlike traditional travel agencies that offer services directly to consumers, wholesale travel agencies work behind the scenes to provide travel products and services to other businesses. They negotiate prices directly with travel suppliers (like airlines, hotels, and rental car companies) and then resell these products to their clients at a discounted rate.

How Does a Wholesale Travel Agency Work?

Wholesale travel agencies work by negotiating directly with suppliers to get the best possible rates on travel products and services. They then resell these products to other travel businesses (like retail travel agencies and tour operators) who then sell them to consumers. Wholesale travel agencies make money by marking up the price of these products and services to cover their operational costs and earn a profit.

Advantages of Using a Wholesale Travel Agency

There are several advantages to using a wholesale travel agency for your next trip. First, wholesale travel agencies can offer some of the best pricing on travel products and services. Since they negotiate directly with suppliers, they can often offer lower rates than traditional travel agencies. This can result in significant savings for consumers.

Second, wholesale travel agencies can offer a wider selection of travel products and services. Since they work with multiple suppliers, they can provide a variety of options to their clients. This can be especially beneficial for travel agents and tour operators who are looking to create custom travel packages for their clients.

Third, wholesale travel agencies can provide valuable support and resources to travel agents and tour operators. They often have dedicated support teams that can assist with booking, customer service, and other travel-related issues. This can help free up time for travel agents and tour operators to focus on other aspects of their business.

Wholesale travel agencies offer a variety of benefits for travel agents, tour operators, and other travel industry professionals. By working with a wholesale travel agency, these businesses can access some of the best pricing and selection in the travel industry. Consumers can also benefit from using a travel agent or tour operator who works with a wholesale travel agency, as they may be able to provide lower prices and more customized travel packages. If you’re planning a trip, consider working with a wholesale travel agency to get the most out of your travel experience.

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An Overview Of The Travel Industry Working As A Travel Agent Go Back Button

Introduction

The travel and tourism industry is formed by a variety of organizations and business that come together to provide a complete experience for consumers of travel products and services. These consumers range from leisure travel to business or personal travel. The travel industry is one of the biggest and the most dynamic industries in the world and travel Agents play a significant role in the promotion and selling of travel products. If you are looking to become a travel agent or start a travel agency, it is a requirement that you learn the industry and understand, the different types of travel agents there are and the roles that you will be required to fulfill.

The Role Of Travel Agents And Agencies

The number of people consuming travel products and services is growing at a rate that is extremely higher than the overall growth of our population. Due to this, there has been an increase in the number of accommodation types available to consumers, along with the number of ways in which a consumer can book travel. Even with the increasing popularity of customers booking travel themselves online or with the vendor direct, more than 50% of people booking travel still seek the assistance of a certified travel agent.

Customers look to travel agents to provide, insight, knowledge, advocacy and booking services for them in the travel booking process. A travel agent is a source of insurance, convenience, and peace-of-mind for nervous travelers, looking for a smooth and hassle-free experience from booking to traveling. Due to customers have these expectations, travel agents are required to be experts in the area of travel they specialize in, and that can only be obtained through product experience, product training and time spent in the industry.

Different Types Of Travel Products

There are several different travel product categories made up of a wide variety of product types.

Accommodations: Hotels, Resorts, Hostels, Villas, Shared Space, Bed & Breakfast, Inns, Chalets.

Cruises: Luxury Cruise, River Cruise, Family Cruise, Event Cruises

Flights: Commercial, Chartered, Private

Tours: Adventure Tours, Eco Tours, Special Interest

Other products include; travel insurance, local attractions, airport lounges, ferry tickets, train tickets, bus tickets, car rental services, hotel transfer services.

How A Does A Travel Agent Work

Travel agents are middlemen between the product owner or supplier and the consumer. When customers are interested in booking any travel product, they can contact a travel agent, and that agent will conduct the booking purpose on their behalf. Travel agents have access to special tools, relationships, and product knowledge that allows them to be more flexible in creating a vacation package. Consumers with complicated travel itineraries, special interest, lack of destination knowledge or those who are too busy to plan their own vacation, seek the services of a travel agent. Travel agents get paid when they sell travel packages. Some agents charge a service fee to the client, but most travel agents work on commissions paid to them by the product supplier for bringing them the customer. Travel agents can earn anywhere from 7% - 25% on a sale.

How Do You Become A Travel Agent

The trading of travel products and services is regulated by the International Association of Travel Agents (IATA). For anyone to trade in the travel industry, including travel agents, they must be associated with an IATA certified entity. To become a travel agent, you can get your IATA certification, or you can join a Host Agency and sell through their license. If you are new to the business, getting your IATA certification will almost be impossible as you will need to have years of experience plus referral letters from vendors and suppliers. Also, the fees and bonds are very substantial. The best approach for new travel agents is to align with a host agency, who already has the infrastructure in place for you to start selling right away and earn commissions. Your host agency will provide you with the vendor relationships, training, and tools you need to become a fully equipped travel professional. Joining a host agency will require a registration fee that ranges from a couple of hundred dollars to a few thousand. There are no set fees to join a host agency. Each agency set their own prices.

Depending on your current place of residence or the jurisdiction in which you decide to conduct business, you may be required to pass a certification exam before you can start selling travel. Your host agency will advise you on the necessary steps and procedures you need to take for you to start selling travel as quickly as possible.

Different Types Of Travel Agencies

Wholesale Travel Agencies

A wholesale travel agency works directly with vendors to put together packages, itineraries, and product pricing at reduced rates. Wholesalers negotiate bulk pricing from the suppliers and resell to retail travel agencies. Wholesalers do not make their wholesale prices available to the consumer. They exclusively work with travel agents. There are travel agents that work with Wholesale Travel Agencies. These travel agents are known as inside sales agents, who work on salary, not commissions.

Retail Travel Agencies

Retail travel agencies deal directly with the end user or consumer. A retail travel agency can either be your traditional storefront agency that operates out of a physical location or host agencies that support travel agents working remote, normally from home offices. Travel agents that work with retail travel agencies work on commission only or commission and small services fees. These travel agents spend their time creating packages and building itineraries for clients.

Online Travel Agencies

Online travel agencies, also known as OTA’s offer retail travel booking through a website. These sites aggregate a variety of travel products and services such as flights, accommodations, and tour packages, to make them available for access to customers via an Internet Booking Engine (IBE). Bookings made on these websites are managed by a reservation management software. Most travel agents today have some online presence, as it is an excellent way to promote their services, build their brand and generate consumer leads.

The Right Timing

In the early 2000’s when online travel agencies started to emerge, retail travel agencies struggled to keep up with this new phenomenon, which lead to the closure of almost half of the traditional storefront travel agencies. Becoming a travel agent no longer seemed a viable career option. The travel agent profession, once very fruitful for many and filled with a lot of amazing travel perks, no longer seemed like that. However, the roles of a travel agent are once again on the rise. Many consumers find the many options online to be overwhelming and time-consuming, and would now prefer to go to a travel expert to handle their travel plans for them. This is especially true for business professionals with busy lives and millennials with shorter attention span and less interest in shopping around online for deals and reading reviews. Ironically, the very same reason many left using a travel agent to book online, is the very same reason they are going back to travel agents. Using an agent now seems faster and more reliable as they have the resources and expertise to quickly build any itinerary. This is why if you are considering becoming a travel agent , the timing could not be more perfect, as the travel industry for travel agents is once again on the rise.

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What is the difference between retail travel agencies and wholesale travel agencies?

Table of Contents

• 1 What is the difference between retail travel agencies and wholesale travel agencies?
• 2 What is wholesale travel?
• 3 What does a TMC do?
• 4 Who are travel wholesalers?
• 5 What do retail travel agents do?
• 6 What is the difference between retail and wholesale travel agents?
• 7 Which is an example of a wholesale price?

A wholesale travel agency purchases tourists’ product components in the bulk and designs tour packages. Wholesale travel agencies assemble package holidays and sell them to clients through retail travel agencies.

What is wholesale travel?

They are the people that offer travel-related products and services to travel agencies that sell those services to customers. In other words, travel wholesalers provide all details that go into organizing a trip. That includes a place to stay, a list of activities and tours, and find the best offers on the market.

What is a retail travel?

Travel Retail is the business mainly revolving around airports, airplanes, cruise ships, and downtown duty free stores.

What are the different types of travel agency?

There are four main types of travel agents in the travel and tourism industry: high street, business, callcentre and Internet.

What does a TMC do?

A travel management company (TMC) is a travel agency that provides extensive business travel support to organizations of all sizes. A TMC can simplify your workload, help you manage travel risks, reduce travel spend, serve your travelers, and provide integrated and centralized data reporting.

Who are travel wholesalers?

Wholesalers: Operators that package products together and sell it through retail travel agency outlets for agreed commission levels. These commissions are generally a minimum of 20%.

Who are the retail travel agents provide an example?

Travel Agents: Retail – An example of a retail travel agent would be Travelsupermarket. Retail travel agents like this advise people about different hotels, the weather and the currency exchange.

How does travel retail work?

“Travel retail” is a term that commonly refers to sales made in travel environments where customers require proof of travel to access the commercial area, but which are subject to taxes and duties. Duty free & travel retail generates vital revenues for national aviation, travel and tourism industries.

What do retail travel agents do?

Retail travel agents offer advice to the general public. They provide travellers with timetables and travel literature, compute fare costs and make reservations, and sell tours developed by the wholesale travel organisations.

What is the difference between retail and wholesale travel agents?

What’s the difference between retail and wholesale trade?

What’s the difference between a tour operator and a wholesaler?

Which is an example of a wholesale price?

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What Is the Role of a Wholesaler in Tourism?

By Robert Palmer

Wholesalers are an essential part of the tourism industry. They play a crucial role in facilitating the distribution of travel products to retailers and consumers. In this article, we will explore the role of a wholesaler in tourism and how they contribute to the growth of the industry.

What is a Wholesaler?

A wholesaler is a company that buys travel products in bulk from suppliers such as airlines, hotels, car rental companies, and other travel service providers. They then sell these products to retailers such as travel agents or tour operators at a discounted price. The retailers then sell these products to consumers at a markup, making a profit in the process.

The Role of a Wholesaler in Tourism

Wholesalers are often referred to as intermediaries between suppliers and retailers. Their primary role is to purchase travel products in bulk from suppliers and resell them to retailers at a discounted price. This allows retailers to make a profit by selling these products at a markup to consumers.

Wholesalers also play an important role in facilitating inventory management for suppliers. By purchasing travel products in bulk, wholesalers help suppliers manage their inventory by providing them with a guaranteed market for their products.

Benefits of Working with Wholesalers

There are several benefits of working with wholesalers for both suppliers and retailers. For suppliers, working with wholesalers allows them to sell their products in bulk without having to manage individual sales themselves. This can save them time and resources while also ensuring that they have a consistent market for their products.

For retailers, working with wholesalers allows them to access discounted prices on travel products that they can then sell at a markup to consumers. This helps them make more profit while offering competitive prices to consumers.

Challenges Faced by Wholesalers

While wholesalers play an important role in the tourism industry, they face several challenges. One of the biggest challenges is the rise of online travel agencies (OTAs). These companies offer consumers direct access to travel products at competitive prices, cutting out the need for intermediaries such as wholesalers.

To stay competitive, wholesalers must continue to offer discounts and value-added services that cannot be found elsewhere. They must also maintain strong relationships with suppliers and retailers to ensure that they have a consistent market for their products.

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List of 18 Key Travel Agency Suppliers

What do we mean by travel agency suppliers?

Suppliers by type of agency, list of suppliers for travel agencies.

In a constantly evolving emerging industry, it is a good practice to periodically evaluate your agency’s suppliers. You can always make adjustments according to your criteria and market-facing strategy. Let’s analyze the requirements together, in the current market conditions.

Suppliers are defined as any entity that offers tourism or management products, i.e. that can be marketed, or used by travel agencies.

Examples include:

• Airlines 
• Hotels 
• Cruise companies 
• Car rental companies 
• Excursion providers 
• Travel insurance companies 
• Tour operators  
• Wholesale companies. 

It is also important to consider the software suppliers needed to promote, distribute and sell your tour packages.

Each type of agency has suppliers geared toward its target market. 

For retail travel agencies , their suppliers, in terms of products, will be mainly local wholesale agencies, located in their outbound market, that provide them with structured services. 

For wholesale travel agencies , dedicated to tour planning, their product suppliers will be destination tour operators, hotel chains and major outfitters, such as bed banks.

Which suppliers are used by a retail travel agency ?

In a market that requires an omnichannel presence, retail travel agencies must have suppliers dedicated to strengthening their outreach to the end customer with the best offers.

• Management tools : using travel agency software can reduce manual work, streamline administration and offer customers a more personalized experience. 
• CRM and Marketing Tools : a good CRM allows you to track the activity of your leads and customers and offer them the alternatives that best suit their preferences and needs. Marketing tools offer email marketing and enable actions to be automated to keep in close contact with travelers and retain their loyalty. 
• Integrations : connecting an agency’s systems with suppliers of flights, tours, hotels and activities will allow you to offer a better experience to your clients. You can see a list of examples of simple integration capabilities at the end of this article.
• Product suppliers: A selection of local or global wholesale agencies with tour planning and services in line with your agency’s business model.

Which suppliers are used by a wholesale travel agency?

Focusing on the organization of trips and tours and targeting the B2B business, wholesale agencies require suppliers that reinforce their outreach to other companies to achieve their objectives.

• Management systems to automate the processes and administration of the company. Managing and integrating suppliers is key to achieving this goal.
• Booking software to offer your agencies simple and streamlined access to your product portfolio. 
• CRM oriented toward market support and development. 
• Product suppliers : in this case these will be the hotels and chains directly or through Channel Managers, Tour Operators, bed banks, destinations and all the providers involved in running a tour.

Although it is impossible to make a list including all the options, the lists of exhibitors at the major travel fairs are an excellent source of contacts and supplier data. 

Suppliers aimed at wholesale agencies:

• Juniper or Travelgatex : These are tools that offer different modules depending on the scope of the company. They are designed to consolidate the sales flow, operation and supplier integration in a single platform. They also enable access to customers so that they can carry out their transactions. In this field we can also include Price Surfer and Booking Motor.
• Hotelbeds: the world’s largest bed bank following the acquisition of Tourico and GTA in 2017, Hotelbeds offers global coverage in its hotel and service offerings, and is easily integrated into your company’s internal systems.
• Omnibees: offering a solution that provides access to more than 5,000 hotels in Brazil and Latin America, it also allows you to negotiate direct agreements and simplifies international distribution .
• Trivago: a leading metasearch engine with global reach. Through FastConnect it streamlines distribution and allows customers to access your products as they search. 

Suppliers aimed at retail agencies:

In this day and age, it is more important than ever to place market staying power as a valuable asset when choosing a wholesaler for our passengers. Here are some examples:

• Bedsonline : a global supplier of the Hotelbeds group. It distributes services, hotels and car rentals worldwide.
• Fuerza Delta , in Colombia, is the wholesaler of Viajes Chapinero , a pioneer in the market with more than 40 years of experience.
• Cielos Abiertos , a wholesaler that is part of the Aviatur group, offers hotels and international services to all agencies in Colombia.
• Mega Travel is one of the leading companies in the Mexican market. Its strength is its wide range of products in the five major continents.
• OPESA is a company with several years of experience in the Mexican market. Through VIP access, agents can receive special training and other benefits.
• SALMOR , in Ecuador, has been offering products to travel agencies for more than 30 years. They are representatives of WDW and several cruise companies.

Suppliers aimed at both wholesale and retail travel agencies

The difference lies in the commissions and the level of connectivity.

• Expedia Travel Group : Founded in 1996, it shares 95% of the world market with Booking. 

Through EPS (Expedia Partner Solutions) it offers solutions to the industry, from integrations, to 100% customizable landing pages, to affiliations so that agencies can offer flights, hotels, cars and activities in exchange for a commission.

• Booking.com : A member of Booking Travel Holdings, Booking revolutionized the industry with its pay-at-destination model.  

It offers an affiliate program with access to its hotels, tours and services, along with various tools geared toward travel agencies.

• Best Day : Mexico’s largest travel agency. Acquired in 2020 by Despegar.com, it specializes in hotels and services in Latin America, through its wholesaler, Hoteldo.com .
• Civitatis : provides a wide range of tours and experiences around the world. You can access its affiliate program that allows you to earn commissions on sales.
• Grayline : with over 100 years of experience and 700 destinations worldwide, Grayline is a pioneer in transfers and city tours. It currently offers an extensive range of excursions and it is possible to become an affiliate , as well as to integrate its content.
• Ofran : founded in Israel, this company provides car rental solutions in more than 50 destinations around the world. You can integrate their product into your travel agency’s product range, or use their affiliate program and earn commissions on sales.

The options are endless. The important thing is that you can choose your suppliers by paying special attention to those that suit your company’s strategy.

• Hubspot : This is a global CRM tool that allows you to manage your contact and customer information, manage your sales actions and track the work of the different teams in your company. 
• CRM Travel : This system is specially designed for the travel industry, so it has specific adaptations related to the sector.

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Cristóbal Reali, VP of Global Sales at Mize, with over 20 years of experience, has led high-performance teams in major companies in the tourism industry, as well as in the public sector. He has successfully undertaken ventures, including a DMO and technology transformation consulting. In his role at Mize, he stands out not only for his analytical and strategic ability but also for effective leadership. He speaks English, Spanish, Portuguese, and Italian. He holds a degree in Economics from UBA, complementing his professional training at Harvard Business School Online.

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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Galkina Liudmila Anatolevna in the Register of Legal Entities and Individual Entrepreneurs

According to the Uniform State Register of Legal Entities published by the Russian Tax Service, Galkina Liudmila Anatolevna (Individual Taxpayer Identification Number 235300678739) is referenced in the following legal entities.

• 1. Company Head, CEO
• 2. Founder Galkina L. A.
• 3. Operating as a Sole Entrepreneur
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• 5. Galkina Liudmila Anatolevna and indirectly associated parties

This TIN was issued by the tax office of Krasnodar Krai .

• Moscow (wholesale non-specialized trade in food, beverages and tobacco products)
• Moscow Oblast (travel agency activities )

USRLE has the following linkages with this TIN 235300678739: Cherkasskaia Liudmila Anatolevna (v OOO "BEST-TUR" ).

Galkina L. A. is a sole proprietor

Company Head, CEO

Galkina L. A. has been the head of SMART IMPORT LLC since 28 April 2022 (a person entitled to act on behalf of a legal entity without a power of attorney).

Founder Galkina L. A.

Galkina L. A. has been the founder of OOO "BEST-TUR" since 19 May 2017.

Operating as a Sole Entrepreneur

Galkina Liudmila Anatolevna is registered in the registry as sole-proprietor, belongs to the category of micro-enterprises.

Sole Entrepreneur Galkina Liudmila Anatolevna

Main activity: Retail sale via mail order houses or via Internet (OKVED code 47.91).

Registrar at place of residence of the individual entrepreneur: Mezhraionnaia inspektsiia Federalnoi nalogovoi sluzhby №23 po Moskovskoi oblasti (tax office code – 5081). Tax authority with which is registered: Inspektsiia Federalnoi nalogovoi sluzhby po g. Mytishchi Moskovskoi oblasti (tax office code – 5029). Date of registration with the tax authority: 08/02/2021.

Registration number in the Pension Fund: 060029069573 from 3 August 2021.

Latest changes in the Unified State Register of Individual Entrepreneurs:

• 08/04/2021 . Providing information on registration as an insurer in the territorial body of the Pension Fund of the Russian Federation.
• 08/02/2021 . Representation of information about accounting with the tax authority.

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Galkina Liudmila Anatolevna has 1 registered trademark 935400 .

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PHL wholesale, NCR retail price growth slower in May

Wholesale price growth in the country and retail price growth in the National Capital Region (NCR) both eased to multiyear lows in May amid base effects, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary data from the PSA showed the country’s general wholesale price index (GWPI) inched up by 2.3% year on year that month, significantly lower than the 5% a year earlier and the 2.6% in April.

May’s reading was the slowest in almost three years or since the 2.2% recorded in June 2021.

Year to date, GWPI averaged 2.8%, lower than the 5.5% a year ago.

Meanwhile, in a separate release, the general retail price index (GRPI) in Metro Manila eased to 2%, lower than the 4.9% a year earlier and 2.1% in April.

The current level was the slowest in more than two years or since the 1.9% growth in January 2022.

In the five months to May, GRPI increased by an average of 2.1%, cooling down from 5.8% logged a year earlier.

“This year-on-year decrease likely reflects a high inflation base from 2023, potentially lower global commodity prices, and improving supply chain,” Robert Dan J. Roces, chief economist at Security Bank Corp. said in a Viber message.

The PSA attributed the downtrend of the GWPI in miscellaneous manufactured articles, which slowed to 0.3% year on year in May from 2% in April.

This was followed by beverages and tobacco (3.1% in May from 4.4% in April), crude materials inedible except fuels (4.2% from 8.4%) and chemicals including animal and vegetable oils and fats (2% from 2.3%).

Other commodities that logged slower growth were manufactured goods classified chiefly by materials (1.1% from 1.6%) and machinery and transport equipment (0.4% from 0.5%). Bulk prices growth in the three major island groups ended mixed in May.

Wholesale price growth in Luzon went up by 2.2%, easing from 2.4% in April and 4.9% in May last year.

In the Visayas, GWPI likewise slowed to 5.6% in May, significantly lower from 6.7% in April and 3.9% in May 2023.

On the other hand, price growth in Mindanao grew by 1.9% against 1.1% in April but still lower than the 5.7% a year earlier.

Meanwhile, the slowdown in GRPI in Metro Manila was primarily caused by the heavily weighted food index at 2.5% during the period from 2.6% in April, the PSA said.

The same following commodity groups dragged the retail price growth in NCR: beverages and tobacco (3% from 3.7%), crude materials inedible except fuels (0.6% from 0.8%), chemicals, including animal and vegetable oils and fats (2.2% from 2.5%) and manufactured goods classified chiefly by materials (1.3% from 1.4%).

Mr. Roces said that the slowdown is expected to persist in June with year year-on-year growth rates potentially even lower than the reported figures.

“Predicting the full year’s trend requires further data, but the current data suggests a significantly cooler pricing environment compared to 2023,” Mr. Roces said. — Abigail Marie P. Yraola

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