Types of Indian Travel Agencies

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An Indian travel agency is a public service or a private retailer that delivers travel and tourism services on behalf of service providers such as travel insurance, airlines, car rentals, hotels, railways, cruise lines and package tours. In addition to dealing with the ordinary tourists, most Indian travel agencies have a dedicated department specialized to make travel and stay arrangements for business travellers,whereas some travel agencies specialize only in commercial and business travel. In India, all individuals or companies that sell tickets are required to be licensed travel agency.

Any travel agency’s main purpose is to work as an agent to sell travel services and products on behalf of a supplier. The travel agencies do not purchase any holiday package or a ticket from the supplier unless it is requested by a customer. The holiday package or tickets are supplied to the travel agencies at a discount by the suppliers. Therefore, the profit is the difference between the marketed price paid by the customer and the discounted price supplied to the agent. This is also known as commission. In some countries, the airlines do not givecommissions to travel agencies;therefore,travel agencies charge a standard flat fee or a percentage premium, per sale. Travel agencies also get paid by several companies, a set percentage for selling their product. All major travel agencies can afford this as, if they sell a thousand packages at a discounted rate then they would still earnmore, than if they sell a hundred packages at a higher price. This method benefits both the parties. It is also very cheap to offer commissions to travel agents as compared to than advertising and distribution campaigns.

Other commercial operations undertaken by Indian travel agencies include the sale of travel guide books, car rentals, in-house insurance, providing public transport timetables, the services of on-site bureau de change and dealing in the holiday currencies.

A travel agent should offer an impartial travel information to the customer, also in coordinating travel details and to assist the customer in making bookings.

Types of Indian Travel Agencies:

Travel agencies choose between two approaches:

Multi-destination, outbound travel agency: This type of travel agency is based in the traveller’s originating location

Destination focused, inbound travel agency:This type of travel agencyis based on the destination and this delivers an expertise on that location.

Independent agencies generally cater to a niche market including the requirements of residents in the upmarket commuter town.

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