Travel agents are an important part of the tourism industry. There are several different types of travel agents, which vary according to the services they provide, the products they sell and the way their business is structured. This article explains the main types of travel agents, with examples of each.
What’s a travel agent?
A travel agency is a private retailer that sells travel-related products and services to consumers. This includes package holidays as well as individual holiday elements such as hotel rooms, flight tickets and travel insurance.
Travel agents typically use global distribution systems (GDS). These systems enable travel agents to receive real-time updates on availability and prices and to make bookings.
Travel agencies typically take a percentage of the overall fee that a consumer pays, known as commission. Commission rates vary depending on the product and/or service that is sold. Prices booked through a travel agent are often the same as booking direct, and agents can add value through expert advice, support if something goes wrong and, for package holidays, financial protection such as ATOL in the UK.
Did you know that you can set up your own travel agency business and work from home? Find out how to become an independent travel agent.
The different types of travel agents
There are four main types of travel agents in the travel and tourism industry: high street, business, call centre and online (internet) travel agents. Each type is explained below.
High street travel agents
High street travel agents have been around for a long time, and until the rise of the internet they were the most common type of travel agent.
High street travel agents are typically found in major shopping areas, such as local high streets or in shopping malls.
High street travel agents typically have an area where holiday brochures are displayed and desks where customers can sit and talk to a travel agent. Staff are generally very knowledgeable about the products and services that they sell and offer high standards of customer service.
Many people continue to prefer high street travel agents because they enjoy face-to-face interaction and expert advice. The growth of online booking led to the closure of many high street shops, but some agencies have continued to grow; Hays Travel, for example, expanded significantly after taking over hundreds of former Thomas Cook stores in 2019.
High street travel agent examples: TUI, Hays Travel, Co-op Travel, Trailfinders
Business travel agents
Business travel agents specialise in planning and booking travel for business purposes. Business tourism is one of the largest types of tourism. As such, this is an important type of travel agent.
Business travel agents do not always have a visible high street presence. Instead, they may be tucked away in office blocks or in quiet locations.This is because they do not tend to have walk-in business.
Business travel agents (often known as travel management companies) typically work with companies to organise business travel. Trips tend to be shorter than holidays, and they often need to be changed at short notice. Business travel agents are popular because they save organisations time and money, managing travel policies, duty of care and costs, as well as booking flights and hotels at the best prices.
Business travel was hit hard by the COVID-19 pandemic and the rise of video calls, but it has since recovered strongly. The Global Business Travel Association (GBTA) forecast that global business travel spending would reach a record of around US$1.57 trillion in 2025.
Business travel agent examples: American Express Global Business Travel, BCD Travel, Clarity, Click Travel
Call centre travel agents
A call centre travel agent is a travel agent which is based in a call centre.
Call centre travel agents provide advice and guidance on booking your holiday via the telephone. Many major travel agencies have call centres as well as high street shops.
Call centres have lower overheads than high street retailers because they do not have to pay premium prices for their offices- they have the flexibility to be based anywhere.
Some companies choose to base their call centres in developing countries, where wages and overhead costs are lower. However, this has been known to have a detrimental impact on the service offered due to language barriers and cultural differences.
Call centre travel agent examples: Trailfinders, Flight Centre
Online (internet) travel agents
Online travel agents (OTAs) are travel agents that sell travel products through websites and apps. They include major global companies, as well as smaller businesses and independent travel agents who work from home.
Online travel agents are now the most widely used type of travel agent, as many people prefer to research and book online.
Like high street travel agents, online travel agents usually earn commission from the suppliers whose products they sell, or add a margin to the price.
The rise of the Internet travel agent has been so significant in recent years that there is now a lot of competition in the marketplace. This helps to drive down prices and to make holidays more affordable to customers.
Internet travel agent examples: Expedia, Booking.com, Agoda, loveholidays, On the Beach
Video: The types of travel agents explained
Types of travel agent businesses
Travel agents can also be classified by their business model. There are three major business models: independent, multiple and miniple.
Independent travel agents
An independent travel agent is a travel agency that is not part of a chain. Traditionally, this meant a single shop that was not associated with any other travel agency, and today it also includes the growing number of self-employed travel agents who work from home.
Thinking of becoming one? Read these 10 reasons to become an independent travel agent, the pros and cons of being a self-employed travel agent and this guide to how host agencies work.
Traditional independent travel agents are commonly found in small towns and villages and are usually locally run businesses. Because of economies of scale, they may not be able to match the prices of the largest travel companies, so they often compete on personal service, local knowledge and specialist expertise.
Independent travel agents do not need to have a physical shop. Many people now run successful travel agency businesses from home, often with the support of a host agency, which provides training, booking systems, supplier relationships and financial protection. Finding customers is one of the main challenges; see this guide on how to find clients as a travel agent. Be aware that some home-based travel ‘opportunities’ are run as travel MLMs, so it is important to research any company carefully before joining.
Multiple travel agents
A multiple travel agent is one which has a chain of branches. They are typically large organisations with a strong high street presence.
Multiple travel agents dominated the market for many years. However, they have struggled to compete with the Internet travel agents, who have fewer overheads and are more conveniently located- on a consumer’s computer or smartphone. Examples include TUI and Hays Travel in the UK.
Miniple travel agents
Miniple travel agents are travel agents with a small number of branches. These are usually medium-sized companies, and they are often regional.
Types of travel agents: To conclude
The travel agency market has changed a great deal in recent years, with a shift from high street shops towards online booking. However, travel agents remain an important part of the industry, and many travellers still value expert advice and personal service, particularly for complex trips such as cruises, tailor-made holidays and multi-centre trips. The rise of independent, home-based travel agents shows how the role of the travel agent continues to evolve.
Types of travel agents: FAQs
Below are answers to some of the most common questions about the different types of travel agents.
What are the main types of travel agents?
The main types of travel agents are high street travel agents, business travel agents, call centre travel agents and online (internet) travel agents. Travel agents can also be classified by business model as independent, multiple or miniple.
What is the difference between a travel agent and a tour operator?
A tour operator puts together holiday packages, while a travel agent sells holidays and other travel products to customers on behalf of tour operators and suppliers.
What is an independent travel agent?
An independent travel agent is a travel agency that is not part of a chain. Many independent travel agents are self-employed and work from home, often with the support of a host agency.
How do travel agents make money?
Travel agents usually earn commission from the suppliers whose products they sell, such as tour operators, cruise lines and hotels. Some also charge service fees or add a margin to the price.
What is a multiple travel agent?
A multiple travel agent is a large travel agency with a chain of branches, such as TUI or Hays Travel in the UK. A miniple has a smaller number of branches, often in one region.
Further reading
If you are studying travel and tourism, you may also find these articles useful:
- The 10 Major Types of Events
- The 8 Major Types of Cruise
- 150 types of tourism! The ultimate tourism glossary
- 20 Popular Types of Hotels Around The World
- 21 Types of Tourists Around The World
