Every major travel company must determine the type of travel company that you want. Below we discuss the different ways in which travel is sold and the name of the business / description.
1.) Tour Operator – a traditional company that contracts hotel rooms, transportation and excursions / extra events for its guests. Tour operators directly market their guests and allow travel agents to resell their packages for a commission. The tour operator is the seller and the travel agent is the sales agent who sells to the public. Capital required for startup – minimum $ 20,000.00
2. Traditional Travel Agency – The traditional travel agency arranges travel for its guests and resells the products of tour operators. An example of a travel agency's business model is Liberty Travel, which resold flight packages and hotels arranged by tour operators. Traditional travel agencies usually sell face to face with their customers, by phone or by email. Startup capital – minimum $ 6,000.00
3. Online Travel Agency and / or OTA – These agencies are 100% online. They are contracting hotels directly or through a third party wholesaler. Then use direct contact with airlines to package flights and hotels together. They usually provide a call center to help people booking online, but in most cases they book 75% of their online business. Examples of this form are Outlook, Booking.com, and CheapCaribbean.com. These companies have started very small and have grown into huge companies, and they seem to be the biggest selling of travel-related products worldwide. Capital required to start – minimum $ 100,000.00
4. Travel Partner Programs – This is the latest model, with the least amount of capital required to start, and no direct customer interaction. Travel agencies and tour operators pay for travel / special offers websites. When a potential customer visits a travel site and clicks on a show, the travel agent or travel agency pays the affiliate travel company between $ 0.10 and $ 4.00 per click "When a potential guest leaves the affiliate site to take you to the tour operator or the travel agency website, some tour operators and travel agencies offer a commission of up to 10% if the visitor arrives at their website through a click ad located on your travel company website They shall pay and pay For start – up costs – $ 0 – $ 4000.00
We are not partially in one model on any other model. However, we must point out that the affiliate company model is the best way for a person with limited resources, does not want any responsibility for customer service, or a simple (almost) method, the fastest way to make money. If money is your incentive and you want to win it quickly, the affiliate model is the way to go.
In our next articles we will talk about developing your travel business idea and which of the four models might suit you.
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