Travel Agent Defined: Functions, Products, and Required Skills

What is a Travel Agent?

Travel agents are retailers; they sell tourism products to the public in a shop that is called a travel agency. They are part of the chain of distribution and connect tour operators (the wholesalers) to customers.

Products and Services Offered

Products Sold by Travel Agencies

Products can be thought of as items created by other companies which the travel agent sells for commission. Typical products include:

• Package Holidays
• Air, Train, and Coach Tickets
• Traveller’s Cheques
• Insurance

Essential Services Provided

Travel agents provide crucial services to their clients, such as:

• Guiding and advising customers as to the best product.
• Giving advice on visa and passport applications.
• Planning travel itineraries and working out costs.
• Representing a client in a complaint procedure after an unsatisfactory holiday.

Core Functions of a Travel Agency

The primary functions of a travel agency include:

• Providing information and expertise.
• Recommending destinations, products, and services best suited to the needs of the client.
• Providing assistance in securing travel documents.
• Processing travel arrangements.
• Assisting in cases of refunds and cancellations.

Understanding Travel Agent Commission

The amount of commission varies significantly depending on the product:

• 1% for traveler’s cheques.
• 40% for travel insurance.
• Commission on package holidays is often around 10%.

Commission on air tickets is now lower than it used to be as major airlines turn to the Internet for their ticket sales. To counter this, travel agents are increasingly charging a set fee for issuing air, train, coach tickets, obtaining visas, or booking a hotel room.

Skills and Qualities Required for Travel Agents

Working as a travel agent is a demanding job, requiring a wide range of different skills and qualities:

• A very wide knowledge of geography.
• Detailed knowledge of the products the agency offers.
• High-level computer skills, especially for:
  • Using the Internet to research destinations.
  • Using computer reservation systems (CRS) to put together airfares or make other bookings.
• Excellent personal skills, especially good listening skills.
• The ability to determine a client’s needs accurately.

The Travel Agency Sales Process

Travel agency sales follow a clearly structured procedure known as the sales process. Some sources show this with fewer stages, others as many as eight, but all models of sales contain the following four main stages:

1. Establishing rapport with the client.
2. Investigating the client’s needs.
3. Presenting the product.
4. Getting the client to commit themselves to the purchase.