Travel Agencies

Travel Agencies

Overview

The 9,200 travel agencies in the US provide reservation and travel services to individuals and groups. Travel agencies generate revenue through two models: the merchant model and the retail/agency model. Under the retail/agency model, agencies earn commissions from suppliers based on bookings. Under the merchant model, agencies earn revenue by charging customers more than the negotiated amount paid to travel suppliers.

Competition From Alternative Sources

Travel agencies compete with a variety of alternative sources for business.

Sensitive To Economic Conditions

The travel industry is vulnerable to economic change and variability in corporate and consumer spending.