There are an overwhelming number of options and market segments to the travel industry that you can participate in. Before you conclude that being a travel agent is the right career move for you, it is important that you understand the different market segments, know who the key players are in each segment, and identify where you will fit in. Let’s look at the key areas that will directly affect your career as a travel agent, and evaluate the roles they play.
Regulatory Bodies
Every industry needs guidelines and rules to maintain its integrity and make it safe for everyone to comfortably participate. The people who set and uphold these guidelines are called Regulatory Bodies. In the travel industry, the organization sitting at the head of the table is the International Association Of Travel Agents (IATA). They make and uphold the rules that guide the honest trading of travel related products and services. To legally sell travel, you must do so under a registered IATA entity. The cruising industry has their own governing body, Cruise Line International Association (CLIA). Then there are the local regulatory bodies that are put in place by local governments to guide the trading of travel products and services by those doing so in the various local jurisdictions. Not all areas have separate regulatory bodies that govern the trading of travel products and services. It is important that you do your research to find out if there are any such body in your current jurisdiction of permanent residence.
Products
Products are the different items available to be sold by those trading in the travel industry. The industry is made up of a variety of products and services, and as a travel agent, it’s almost impossible for you to participate in all of them, so it’s important for you to identify the ones you will enjoy the most and can provide the best value in. The product services available for Travel Agents to sell and be commissioned includes; Hotels, Flights, Vacation Rentals, Cruises, Organized Tours, Car Rentals, Travel Insurance, Train Tickets, Excursions and Activities and a few other niche products.
Vendors
Vendors are the owners of the available products and services. These included Airlines, Hotel Owners, Hotel Chains, Cruise Owners, Cruise Lines, Vacation Rental Owners, Tour Operators, Insurance companies etc. When a travel agent sells a product or service, they are paid a commission percentage by the vendor for that sale.
Travel Agencies
Travel Agencies are entities certified by IATA as resellers of travel products and services. The different types of Travel Agencies include:
Online Travel Agencies – These are also known as IBE (internet booking engines).
Travel Agencies – When you talk about travel agencies, most people are referring to your traditional store front agencies, made up of a group of travel agents.
Host Agencies – Host agencies are hybrid travel agencies specially setup to support the population of travel agents that prefer to work remote, or from home.
Resources
There are certain organizations in the travel industry that provide tools and resources to make the lives of travel resellers easier. I put these organizations under the Technology & Resources category. The most significant contributors under this category are:
Global Distribution Systems (GDS): They connect travel agencies directly to hotel and airline availability as well as pricing making it easy for travel agents to get access to the information they need to service their clients.
Consortiums: These are formed by a group of travel agents and agencies that combine their sales to increase buying power and service availability. There are many vendors who only give agents access to their products and services exclusively through a consortium.
When you become a travel agent, these are the different entities that will impact your business on a daily basis in one form or another. Get to know them, so you are equipped with the right information when you are ready to take the next step.
