What does a travel agent do?

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What is a Travel Agent?

A travel agent assists individuals or groups in planning, organizing, and booking various aspects of their travel arrangements. They act as intermediaries between travelers and travel suppliers, such as airlines, hotels, car rental companies, and tour operators. Travel agents have in-depth knowledge of different destinations, travel options, and industry trends, which they leverage to provide personalized recommendations and advice to their clients.

One of the primary roles of a travel agent is to help clients navigate the complex world of travel. They listen to their clients' preferences, budget constraints, and desired experiences, and then work towards creating a tailored itinerary that meets their needs. Travel agents handle tasks such as booking flights, accommodations, ground transportation, and excursions, ensuring that all the necessary arrangements are made smoothly. They can also provide valuable insights on visa requirements, travel insurance, and local customs, helping travelers make informed decisions and avoid potential pitfalls.

What does a Travel Agent do?

A travel agent with two clients.

Travel agents possess extensive knowledge and expertise in the travel industry, including destinations, transportation options, accommodations, and activities. This expertise allows them to provide valuable advice and guidance to travelers, helping them make informed decisions and create well-planned itineraries that meet their specific needs and preferences. They also have access to a wide range of resources and tools that enable them to efficiently search for the best deals, discounts, and promotions available. They can often secure exclusive rates and packages, saving their clients both time and money.

Duties and Responsibilities Here are some common tasks and responsibilities associated with being a travel agent:

  • Client Consultation: Travel agents engage in thorough consultations with clients to understand their travel preferences, requirements, and budget. They ask relevant questions to gather necessary information and provide personalized recommendations based on the client's needs.
  • Itinerary Planning: Based on client preferences, travel agents create detailed travel itineraries that include destinations, transportation options, accommodations, and activities. They consider factors like travel dates, budget constraints, and any specific requests from clients.
  • Reservation and Booking: Travel agents handle the booking process for flights, hotels, rental cars, and other travel-related services. They ensure that all bookings are made accurately and efficiently, securing the best available rates and deals for their clients.
  • Travel Documentation and Logistics: Travel agents assist clients in obtaining necessary travel documents such as passports, visas, and travel insurance. They provide guidance on the documentation process and ensure that clients have all the required paperwork in order. Agents also handle logistical aspects like seat assignments, baggage allowances, and transportation arrangements.
  • Knowledge of Destinations: Travel agents possess extensive knowledge about various destinations, including popular attractions, local customs, weather conditions, and safety considerations. They provide valuable information and recommendations to clients, enabling them to make well-informed decisions about their travel plans.
  • Customer Service: Travel agents offer exceptional customer service throughout the entire travel process. They address client inquiries, resolve any issues or concerns that may arise, and provide support during the trip. Agents act as a point of contact for emergencies and assist clients in making alternative arrangements if necessary.
  • Stay Up-to-Date with Industry Trends: To provide the best service to clients, travel agents stay updated with the latest industry trends, travel regulations, and changes in travel technology. They attend industry conferences, participate in training programs, and conduct research to ensure their knowledge is current.
  • Sales and Marketing: Some travel agents engage in sales and marketing activities to attract new clients and promote travel packages and services. They may participate in trade shows, develop promotional materials, and utilize online platforms to reach a wider audience.
  • Financial Management: Travel agents handle financial transactions related to travel bookings, including processing payments, issuing refunds, and managing invoices. They maintain accurate records of financial transactions and ensure compliance with accounting procedures.
  • Continuous Learning: Travel agents continuously enhance their skills and knowledge by staying updated on travel industry trends, new destinations, and emerging technologies. They actively seek opportunities for professional development to provide the best possible service to their clients.

Types of Travel Agents There are various types of travel agents, each specializing in different aspects of travel and catering to specific clientele. Here are some common types of travel agents and what they do:

  • Leisure Travel Agents: Leisure travel agents focus on organizing vacations and leisure trips for individuals, families, or groups. They assist clients in planning and booking all aspects of their leisure travel, including flights, accommodations, tours, and activities. Leisure travel agents may specialize in specific types of travel, such as beach vacations, cruises, adventure travel, or luxury travel.
  • Corporate Travel Agents: Corporate travel agents primarily cater to business travelers and companies. They handle the complex travel needs of corporate clients, including booking flights, arranging accommodations, managing itineraries, and coordinating travel logistics. Corporate travel agents are familiar with business travel policies, negotiated rates, and preferred vendors to ensure cost-effective and efficient travel arrangements for their clients.
  • Group Travel Agents: Group travel agents specialize in organizing travel for large groups, such as family reunions, weddings, school trips, or corporate retreats. They handle group bookings for flights, accommodations, transportation, and activities, negotiating group rates and coordinating logistics to accommodate the specific needs and preferences of the group.
  • Tour Operators: Tour operators design and operate pre-packaged tours and travel itineraries. They create comprehensive tour packages that include transportation, accommodations, guided tours, and activities. Tour operators often work with travel agents to sell their tour packages, providing them with a ready-made product to offer their clients.
  • Destination Specialists: Destination specialists focus on specific regions, countries, or cities. They have in-depth knowledge of the destination's culture, attractions, local experiences, and logistical considerations. Destination specialists provide expert advice and create customized itineraries for travelers seeking in-depth exploration of a particular destination.
  • Online Travel Agents (OTAs): Online travel agents operate through internet platforms and websites, offering a wide range of travel services. They allow customers to search, compare, and book flights, hotels, rental cars, and other travel services online. Online travel agents may also provide customer support and assistance through online chat or call centers.
  • Niche Travel Agents: Niche travel agents specialize in specific types of travel, catering to niche markets or specialized interests. Examples include adventure travel agents, luxury travel agents, honeymoon specialists, culinary travel agents, or eco-tourism experts. These agents have extensive knowledge and expertise in their niche area, curating unique experiences and tailored itineraries for clients with specific interests.

Are you suited to be a travel agent?

Travel agents have distinct personalities . They tend to be enterprising individuals, which means they’re adventurous, ambitious, assertive, extroverted, energetic, enthusiastic, confident, and optimistic. They are dominant, persuasive, and motivational. Some of them are also conventional, meaning they’re conscientious and conservative.

Does this sound like you? Take our free career test to find out if travel agent is one of your top career matches.

What is the workplace of a Travel Agent like?

The workplace of a travel agent can vary depending on their specific employment arrangement. Some travel agents work in traditional brick-and-mortar travel agencies, which may be part of a larger travel company or operate independently. In these settings, travel agents typically have a physical office space with workstations, computers, and travel industry resources such as brochures, destination guides, and reservation systems. They may have a reception area to welcome clients and conduct in-person consultations.

With the increasing prevalence of remote work and online booking platforms, many travel agents now have the flexibility to work from home or in virtual offices. They utilize technology, such as laptops, smartphones, and high-speed internet, to communicate with clients, access travel resources, and make online bookings. Virtual travel agents often communicate with clients via phone, email, or video conferencing, offering the convenience of remote consultations.

Travel agents also frequently visit destinations, attend industry conferences, and participate in familiarization trips organized by travel suppliers. These opportunities allow them to gain firsthand experience, build relationships with suppliers, and stay updated on the latest travel trends. While travel agents spend a significant amount of time working at their desks, they also have the chance to explore and experience the destinations they recommend to their clients.

In terms of work hours, travel agents may have a standard office schedule, working weekdays during regular business hours. However, they may also need to be flexible, accommodating clients in different time zones or assisting with emergency situations outside of regular office hours. The workload of travel agents can vary throughout the year, with peak periods during holiday seasons or when there are significant events or festivals happening in popular destinations.

Frequently Asked Questions

Pros and cons of being a travel agent.

Being a travel agent can be an exciting and rewarding career for individuals who are passionate about travel and enjoy helping others create memorable experiences. However, like any profession, there are pros and cons to consider.

  • Travel Opportunities: One of the major advantages of being a travel agent is the exposure to diverse travel opportunities. Travel agents often have the chance to visit destinations, experience different cultures, and explore new places as part of their job. This firsthand experience not only enhances their knowledge but also allows them to provide valuable insights and recommendations to clients.
  • Personal Satisfaction: For individuals who are passionate about travel and helping others, being a travel agent can be personally fulfilling. The ability to create personalized itineraries and witness the joy and excitement of clients as they embark on their dream trips can be highly rewarding.
  • Knowledge and Expertise: Travel agents develop a deep understanding of destinations, travel products, and industry trends. They stay up-to-date with the latest information, including visa requirements, safety advisories, and emerging travel destinations. This expertise allows them to provide valuable advice and recommendations to clients, ensuring they have well-planned and memorable travel experiences.
  • Building Relationships: Travel agents have the opportunity to build strong relationships with clients, travel suppliers, and industry professionals. They can establish a network of contacts that can enhance their business and open doors for collaboration and future opportunities.
  • Industry Changes and Competition: The travel industry is constantly evolving, with new technologies, online booking platforms, and dynamic pricing models. Travel agents must stay updated with these changes and adapt their business practices accordingly. The rise of online travel agencies and self-booking options has increased competition, requiring travel agents to differentiate themselves and provide added value to their clients.
  • Workload and Time Management: The travel industry can be demanding, especially during peak travel seasons. Travel agents may need to work long hours, including evenings and weekends, to accommodate client needs and handle emergencies. Proper time management skills are essential to balance the workload and maintain a healthy work-life balance.
  • Pressure for Exceptional Customer Service: Travel agents are expected to deliver outstanding customer service consistently. They must handle client inquiries, resolve issues, and manage expectations throughout the travel process. This level of customer service can be challenging, particularly when dealing with unforeseen circumstances or dissatisfied clients.
  • Commission-Based Income: While some travel agents receive a salary or hourly wage, others rely on commission-based income. This means their earnings are directly tied to the bookings they secure for clients. It can take time to build a client base and establish a steady income stream, especially in the early stages of a travel agent's career.

Travel Agents are also known as: Travel Consultant

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travel agent in business meaning

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Travel Agent Career

What is a travel agent.

A travel agent is a highly organized professional who is passionate about travel and helping others. They are focused on creating the best possible experiences, directly catered to their clients. They work with hotels, airlines, and other vendors to create travel packages and experiences that their clients will love. Travel agents can work with large groups, individuals, families, professional organizations, and others to help create seamless travel experiences that help create memories.

travel agent in business meaning

RESPONSIBILITIES

What Does a Travel Agent Do?

The primary role of a travel agent is to help people make travel arrangements, which might include booking flights, hotels, sightseeing tours, and making dining recommendations. A travel agent assesses each customer’s unique needs, preferences, and budget to ensure their trip goes as smoothly as possible. 

Here are the core day-to-day responsibilities you’ll typically find yourself performing as a travel agent:

  • Meeting with clients to discuss upcoming travel plans and gather information regarding travel dates, transportation, and budget. This may be done face-to-face in a brick-and-mortar setting or online.
  • Planning the travel itineraries for clients and arranging transportation, lodging, and activities throughout the trip.
  • Advising clients on important aspects of their travel plans. This may include providing information on passports, visas, customs, insurance, vaccinations, and trip cancellation policies.
  • Keeping accurate records of client bookings, such as payments, travel dates, flight numbers, and hotel check-in and check-out dates
  • Handling any travel issues that arise, including flight or hotel cancellations, delays, conflicts, and refunds.

Due to the customer-focused nature of travel agent jobs, it’s ideal to be passionate about and/or have experience in hospitality. Those who make the best travel agents tend to be versatile and have a friendly personality where they’re concerned with keeping clients happy, comfortable, and safe. 

EDUCATION & BEST DEGREES

How do i become a travel agent.

Travel agents are key professionals dedicated to helping individuals and families create memories that will last a lifetime. Through their expertise, research, and services, individuals can plan vacations or trips that are directly catered to their wants and needs. Planning a dream vacation can be stressful for an individual or a family, and having a travel agent can make the process much easier.

If you’re passionate about travel, organization, and helping others, a career as a travel agent can be a great fit.

travel agent in business meaning

What Education Does a Travel Agent Need?

A bachelor’s degree in business management  is a great starting place for those interested in becoming a travel agent. This type of degree will give you experience and knowledge in finances, marketing, organization, and strategy. This is key for those who are working with multiple clients, vendors, handling budgets, and marketing themselves to clients. A bachelor’s degree can help you stand out from other candidates in working for larger companies and organizations as well.

Best Degrees for a Travel Agent

Hone your business acumen and garner added respect:...

Hone your business acumen and garner added respect:

  • Time: 61% of graduates finish within 19 months
  • Tuition:  $3,755 per 6-month term
  • Courses : 40 total courses in this program

Skills for your résumé this program will teach you include: 

  • Business communication
  • Product development
  • Decision making models
  • Project management strategies
  • Budgeting for business

This online degree program is an excellent choice for kick-starting your organizational management career.

Leadership Certificate – School of Business

Enhance your résumé and take a step in your educational journey with the...

Enhance your résumé and take a step in your educational journey with the help of a leadership certificate from the School of Business.

  • Time: 4 months from start to finish.
  • Cost:  $2,250 for the certificate.
  • Courses: 3 courses total in this program.

This program is for emerging leaders, however this program does not require a bachelor’s degree, and provides transferable credit towards a WGU degree program.

Whether you aspire to work for a Fortune 500 organization, a government agency, a non-profit organization, or a fast-paced start-up, this certificate can give you the keys to success in a variety of industries, including:

  • Finance and Banking
  • Manufacturing

travel agent in business meaning

How Much Does a Travel Agent Make?

Several factors determine travel agent salary, including location, level of education, certifications, years of experience, and the specific company they’re working for. Top earners in this industry, according to ZipRecruiter, make as much as  $64,500 per year , while the lowest earners make closer to $20,500. In terms of median pay, recent data from the U.S. Bureau of Labor Statistics (BLS) put it at  $42,350 in 2020 , which comes out to $20.36 per hour. 

travel agent in business meaning

What Is the Projected Job Growth?

Admittedly, the job outlook in the near future is lower than in other industries. Research from the BLS states that from 2020-2029, there’s  expected to be a 26% decline  in the job outlook, which translates into a drop of 21,300 jobs. This is largely due to the rising popularity of travel booking sites like Priceline and Kayak, where a growing number of people are booking trips online themselves. However, according to the BLS, the growth in business management is expected to grow 4% in the next 10 years.

What Skills Does a Travel Agent Need?

A career in this industry requires a travel agent to have a definitive skill set, with some of the key skills being:

  • Interpersonal skills.  Travel agents will constantly be interacting with clients in-person, over the phone, and through email. In turn, they need to be strong verbal and written communicators, empathetic, and understanding of the individual needs of each client.
  • Organization.  Because they may be juggling trips for several clients at a time, travel agents must be highly organized and capable of effectively managing a high volume of booking information.
  • Problem-solving.  Travel logistics are inherently complex where issues can pop up at any given time. Great travel agents have a knack for handling incidents and quickly resolving problems while maintaining their poise.
  • Attention to detail.  It’s easy to mix-up things like flight departure and arrival times, hotel check-ins, and transportation rentals, which is why travel agents need to be detail-oriented.
  • A firm understanding of technology.  This career is heavily reliant on technology like travel booking platforms and appointment scheduling software. Travel agents not only need to have a firm grasp of this technology but be willing to continually learn about new developments and iterations. 

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What is a corporate travel agent? Business travel management

  • What is a corporate travel agent?

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When it comes to business travel, most companies quickly learn that planning, booking and making sure that business trips go smoothly can involve a large amount of administrative work. This often falls on the individual employee to deal with, raising a number of issues, from making sure that travel is booked correctly to monitoring travel cost effectiveness.

Having a centralized travel booking platform aligned with a corporate travel agent not only meets these challenges head-on, but also improves any inefficiencies in your business’s corporate travel program. Throughout this post, we’ll address:

  • The challenges of decentralized business travel management programs
  • The role of a corporate travel agent

Combining corporate travel agents and travel management

The challenges of having a decentralized travel management program  , some key problems of decentralized travel management strategy include:.

  • Solution: A corporate travel agent’s job includes helping to book travel compliant travel and education on a TMC’s online booking tool.
  • Solution : Booking through a centralized platform, with a reliable agent for escalation or support can avoid the headache of reimbursement forms, as well as unlock significant cost savings for businesses.
  • Solution : A one-stop shop prevents your travelers from acting as part-time accountants and lets them focus on their travel and main duties while traveling. With a corporate travel agent’s support, traveler bookings are compliant, easy to approve and more cost-effective than other booking methods.

These are just some of the reasons why organizations often turn to a business travel agent to help with the travel booking process.  

So, what is a corporate travel agent?

Corporate travel agents, or business travel consultants can be described as business travel curators; working full-time to create customized and bespoke itineraries that fit the bill for travel needs and the specific trip while aligning with the company’s travel policy and restrictions. Like traditional travel advisors, corporate travel agents have the travel experience and knowledge to make sure that travel is seamless, regardless of travel services used.

When placed at a corporate travel management company (or TMC) , like Egencia, the job of a corporate travel agent is to support individual and group travel itineraries, and answer questions about travel management tools. With years of experience in travel, a good corporate travel agent is an indispensable component of business travel.

What does a corporate travel agent do?

Corporate travel agents connect organizations with resources and providers in the travel industry. They hire corporate travel consultants who are experts in their field and who are trained in arranging business travel on behalf of their customers. An arranged travel plan provides traveler safety as well as risk management and duty of care adherence.

Some of the benefits you can expect from using a corporate travel agent are:

Reduction in travel spend.

You can get better rates for your business travel when you use a corporate travel agent. Over time, these travel savings can have a big impact on your travel spend and make hiring a professional company quite cost effective. 

 Dedicated corporate travel agencies have access to a network of travel providers they can use. This means you can save money, since you avoid the higher or premium rates charged when going directly.

Professional travel itineraries

Another great benefit is professional travel itineraries. If you need travel visas for international travel, a business travel agent will provide the essential documentation and take care of all the administrative work and complex details. Or, if you have a complex journey and need to book connecting flights, a business travel consultant will have the expertise to complete these travel bookings easily and effectively – simple! 

Provide recommendations and business travel advice

It can be difficult to know what a hotel is going to be like until you’ve stayed there yourself. Online reviews aren’t always accurate, and personal preferences can vary while still searching for the best rates, so booking accommodation can be stressful. Corporate travel agents understand which hotels are recommended and which are best avoided. This expertise comes from experience in booking, arranging and speaking directly to travelers and customers about their stay and overall experience. If a hotel room wasn’t up to scratch, you can be sure a customer will provide that feedback to their corporate travel agency to make sure that future travel arrangements are up to par while within the corporate travel policy.

Corporate travel agents are becoming less popular since companies want more management over their travel management and have gained important benefits through centralizing their travel booking process internally.

However, modern travel management companies such as Egencia offer the best of both worlds. With Egencia, you can get all the latest technology, automation, and modern travel and travel expense integration, while enjoying all the benefits of speaking to a business travel consultant if you need additional help.

Graphic: The TMC Difference

Combining the benefits of a traditional corporate travel agency with a modern travel management company provides a comprehensive travel solution. A business will be able to get travel consultancy and advice when needed, as well as automation, efficiency and cost savings on their business travel.

Request a Demo Today to learn how you can implement an effective corporate travel solution into your business.

Learn more about the benefits of a corporate booking platform by downloading the toolkit here .

Looking for better business travel solutions? Get in touch with us.

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Sustainable Corporate Travel

Travel Agency

A travel agent is a person who has full knowledge of tourist product – destinations, modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of product providers/principles and in return gets a commission. Technically, a travel agent is an owner or manage r of an agency, but other employees are responsible for advising tourists and selling packages tours/individual components of travel products.

A travel agent may be an individual /firm or corporation which is commonly known as a travel agency . An agency means the office of travel agent or organization where all travel goods and services are assembled and coordinated for the smooth conduct of travel agency business.

Travel agency is one of the most important organizations in the tourism private sector which plays a significant and crucial role in the entire process of developing and promoting tourism in the country or at a destination. It is a travel agency which packages and processes all the attractions, accesses, amenities and ancillary services of a country and present them to tourists. That’s why travel agency is known as ‘ image builder ‘ of a country.

A prospective travel agency is one which makes arrangements of travel tickets (air, rail, road, and sea); travel documents (passports, visa and other documents required to travel); accommodation, entertainment, and other travel-related services from principle suppliers. It may also secure travel insurance, foreign currency for traveling people.

History of Travel Agency

The first Travel Agency of the world was established by Thomas Cook in 1845 in England. The use of the term travel trade dates back from the early years of the 19th century, but this should not obscure the fact that what we today describe as travel trade (travel agency and tour operation business) was taking place much earlier in history.

Throughout history, there was travel middleman who helped the merchants traveling for trade and others who traveled for religious purposes.

In 1841 a fortunate day comes in the history of travel trade when Thomas Cook , as secretary of South Midland Temperance Association, organized a trip by a train for 570 members for his association to the distance of 22 miles. He bought railway tickets in bulk to sell them to people.

The experiment was successful and everybody was exultant. Mr. Cook had done his job on a no-profit basis. But, incidentally, It gave him a new idea and turned it into a tour business.

Four years later in 1845 , he set up a ‘ World’s First Travel Agency ‘ to organize excursions.  Due to this innovative approach, Mr. Thomas Cook is known as the Father of Travel Agency Business . He co-ordinated railway and steamship excursions throughout England, Scotland and Europe.

However, the railways only gave him a 5% commission which was not enough to meet his overheads, so he decided to diversify this business into tour operation .

In 1855 Mr. Cook started operating package tours . He conducted the world’s first international tour from England to Paris.

Types of Travel Agency

Travel agencies are basically categorized into two types-: Retail Travel Agenc y and Wholesale Travel Agency .

Retail Travel Agency

A retail travel agency sells tourists products directly to the public on the behalf of the products suppliers and in return get commissions. Some package tour is sold in two ways i.e., on a commission basis and mark up the price.

When a travel agency sells a tour on the marked-up price it means that first, it markup the cost of the tour and then sell it at a higher rate. The markup price is the difference between retail price and wholesale cost.

Definitions of Retail Travel Agency

According to Airlines Reporting Corporation (ARC) a retail travel agency is defined as ” a business that performs the following functions: quotes fares, rates, make reservations, arrange travel tickets and accommodation, arrange travel insurance, foreign currency, documents and accepts payments.”

According to SARC (1967), ” retail travel agency business consists of the activities involved in selling tourism products/services directly to the tourists and performs normal functions such as issuing air tickets, making accommodation and transportation reservation, providing specialized services, and accepting and making payments.”

The main source of the revenue for the travel agency is the commission received from the vendors. However, the rate of the commission differs from organization to organization an travel component to the travel component.

A travel agency receives appx. 95% of their revenue from the commission, and the remaining 5% from consultancy services and others.

Wholesale Travel Agency

These agencies are specialized in organizing package tours, which are marketed to the customers/tourists through the network of a retail travel agency or directly to the prospective clients ( if wholesale travel agency has a retail division). A wholesale travel agency purchases tourists’ product components in the bulk and designs tour packages.

Sometimes, a wholesale travel agency buys travel components from the vendor in bulk and resell them to other travel business originations.

Wholesale travel agencies assemble package holidays and sell them to clients through retail travel agencies. A typical package tour includes – air tickets, accommodation, and something other services may also be included in it such as entertainment, sightseeing, and sports activities, etc.

These packages are referred to as ‘package tours’ most of these tours include the services of escorts but a few are sold to people who wish to travel independently.

Now a question arises – How a wholesale travel agency generates profits?

Generally, a wholesaler receives volume discounts from the principal suppliers because a wholesaler might agree to purchase a large number of seats from a particular airline or reserve a large number of rooms at a particular hotel or resort.

Practically, a wholesaler who sells package vacations/tours is called a Tour Operator .  However, technically there is a difference between a wholesaler and a tour operator. A wholesaler who sells tourists products individually without assembling them into a package tour is called a Consolidator .

Mostly, these are specialized in particular product components such as air tickets, accommodation, and conferences, and conventions, etc.

Difference between Wholesale Travel Agencies and Tour operators

The wholesale travel agencies may offer or operate the package tours or may specialize in developing tours for inbound as well as outbound travelers. They are often referred to as tour operators , but these two essentially different:

  • Wholesale travel agency does not sell directly to the public, while tour operators do sell directly to clients.
  • A wholesale travel agency usually combines, assembles and contacts for existing travel services to formulate a new travel product she has his own one or more components of travel product i.e. ‘ inclusive tours.’
  • Wholesale travel agencies are less inclined than tour operators to perform ground services i.e. handling agency or ground operators.
  • A wholesale travel agency may deal with one component of travel product while a tour operator offers a variety of tour programmes.
  • The size of the business is large in the case of tour operators in comparison to a wholesale travel agency.

Features and Importance of the Travel Agency

Travel agency plays an important role in the travel sector business. Some most important features and importance of the travel agency business are following as:-

  • An important link between the clients and principal suppliers.
  • Image-Builder.
  • Ensures rapid travel services.
  • Provider of authentic and reliable travel information.
  • A social a continuous process.
  • Establishes a good relationship with clients and vendors.

These are the most important features of the Travel Agency Business.

Functions and Services of Travel Agency

Today, Travel Agencies have been recognized as a vital component of travel and tourism and have become an integral part of the travel and tourism industry at globally. They account for more than 90% of international and 70% of domestic tourist traffic

Further, more than 60%  of all travel agency revenues are derived from business travel. Most travel agencies sell both commercial and leisure travel but there are many travel agencies that only specialized in one sector or the other.

The operation of each travel agency is based on the scope of its activities and organizational size. Here we discuss the functions of a large scale travel agency that performs all types of activities such as Retail travel agency, wholesaling and tour operations, etc. The main function of a large-scale travel agency are:

Travel Information

Whatever the size of a travel agency, it has to provide necessary travel information to tourists. A travel agency must give up-to-date, accurate, and timely information regarding destinations mode of travel, accommodation, sight-seeing, shopping, immigration, passport, visa, customs clearance and procedure, health and security rules, and various permits required to travel in particular areas, etc.

Itinerary Preparation

The term tourists itinerary is used to identify the origin, destination and all the stopping points in a traveler’s tours. It is a composition of various elements and designed after a detailed study of the market. Travel agencies prepare an itinerary for tour packages.

Airline Ticketing and Reservation

A travel agency sells a variety of tourism products. Airline ticketing and reservation is still a major source of revenue. Travel agencies perform a function of airline ticketing and reservation on behalf of various airlines.

Tour Packaging and Costing

Travel agencies prepare a tour package and sell them to tourists. The coasting and pricing of tour packages depend to a large extent on the ability of travel agents as to how effectively he is able to negotiate with the principal suppliers.

Reservation

It is a very important function of all types of travel agencies. A travel agency consistently makes linkage with the accommodation sector, transport sector and other entertainment organizations to reserve rooms, and seats in the cultural programs and transportation.

Travel Insurance

Some large-scale travel agencies perform additional functions to serve their clients. Travel insurance protects travelers against the person as well as baggage losses resulting from a wide range of travel-related happenings and problems.

Currency Services

Approved travel agency authorized by Govt. body provides currency exchange services to tourists.

Organization of Conference/Conventions

Large-scale travel agencies offer a complete convention/conference package which includes registration of the participants at the venue to be picked up for dropped to the airport/hotel, overhead projectors, slide projectors, TV, VCR, information counter, sightseeing, etc.

Travel Agency Linkages and Integration

Basically, a travel agency serves two types of clients: business travelers and leisure travelers. Incidentally, the requirements of these tourists are different and an agency has to assemble or purchase-related components from the principal suppliers to cater to their needs.

Essentially, travel agencies maintain close ties with Airlines, hotels, car rentals, banks, insurance companies, railways, government, trade associations, foreign tour operators and travel agents, ground operators, cruise companies, and tourism educational institutes.

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What does a travel agency do?

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What does a travel agency do? You will almost definitely have heard of travel agencies if you have ever booked a holiday or have an interest in the tourism industry. But what exactly is a travel agency, and what do they do?

What is a travel agency?

Independent travel agents, online travel agencies , visitor information centres, other types of travel agency, what can a travel agency book, big names in the travel agency industry, travel agency business model, a brief timeline of travel agencies, further reading.

A travel agency is essentially the ‘middle man’ between travel companies and the general public i.e consumers. They book all sorts of travel-related experiences for customers on behalf of larger companies.

The main aim of a travel agency is to make the booking process simpler for the public, who might lack the time or confidence to book trips themselves.

Types of travel agencies

So what does a travel agency do? It mostly depends on what type of travel agency you’re looking at. This can be broken down into the following types…

Jobs in travel and tourism

An independent travel agent is the type you’ll see on Instagram or with their own Facebook pages, their feeds full of snaps from Amsterdam, Bali , or New York City. They tend to partner with a ‘host agency’, who will take a portion of the agents’ commission themselves in exchange for letting them use the company software and access their commission. Travel agents are also able to recruit other people, and in turn get a cut of their commission too. In this way, independent travel agencies tend to be a type of multi-level marketing scheme.

Online travel agencies are much more consumer-focused. They allow individual customers to book their own travel, but as a package or with the added protection from ATOL and ABTA. They act as a broker, allowing you to input your dates, desired destination(s), what board basis you wish to travel and so on. The site then pulls together a package deal, allowing you to book everything in one go with access to booking details so you can make amendments and keep up to date with any changes.

While these don’t offer flights and hotels generally, visitor or tourist information centres are found within cities or tourist destinations. They provide advice, maps, discounts and booking services for tours and excursions such as open top bus tours. These are usually run by local or national governments, or specific tourist boards. They are great for recommendations when travelling somewhere new!

Hotel concierge services work in this same way, often getting commission for booking trips for guests.

I won’t go into too much detail here, but there are other types of travel agencies too. You can learn more in this post about the different types of travel agents .

Overall, what does a travel agency do?

A travel agency does a multitude of things. During non-peak times, they will mostly spend their days researching new or upcoming tourist destinations and what makes them so great, advertising them as somewhere people can book future holidays to.

Travel agencies are also required to keep up to date with safety information for various destinations. They do plenty of research meaning they can tell customers about the best places to go, what they can do while they’re there, what documents they need and so on. This is particularly important now, as travel advice is ever-changing with regards to political conflicts and public health.

But during peak times and in the run-up to these times, travel agents will be busy actually booking trips. Nowadays they mostly do everything via the computer, using the internet to put holiday packages together which include at least the basics – flights and accommodation – for one price. However, they also call travel companies directly in order to get better deals or to see if there are rooms or seats available which might not be showing online for whatever reason. Because of this, travel agencies and agents tend to have great relationships with particular brands.

What does a travel agency do?

Travel agents can book much more than just flights and accommodation. Not all of them can book all of these experiences or features, but it is definitely worth asking if you are using a travel agency to book your next vacation.

  • Flights – short haul, long haul, & various classes
  • Accommodation – hotels, apartments, and villas
  • Airport transfers
  • Executive airport lounges
  • Airport parking
  • Cruises – river and ocean
  • Car rentals
  • Travel insurance
  • Excursions and tours
  • Taxi services
  • Currency exchange
  • Train tickets
  • Theme park & water park tickets e.g Disneyworld and Universal in Orlando, Florida

They will also advise on public transport services and timetables, as well as arranging for medical items to be delivered and any access requests you have.

Most travel agencies are actually online, and many of us use them regularly. There are still some in-store travel agencies, but with the impact of both modernisation and the Covid-19 pandemic the majority are online now. Below are some big names within the industry which you will likely recognise.

Expedia – founded by Microsoft in 2001

Cruise.com – specifically for booking cruises

American Express Travel – allows you to earn & use points when booking

Audley Travel – the largest operator in tailor-made travel

loveholidays – a British company founded in 2012

Lastminute.com – offering cheaper travel when you book last minute

Kiwi.com – specifically for booking air and ground transport

Booking Holdings – these are a travel technology company who own Booking.com, Cheapflights, OpenTable and more

Now we’ve looked at the question of ‘ what is a travel agency’, let’s take a look at the generic business model. Generally, travel agencies work in one of two ways. The first way is by receiving commission from the companies they book experiences with for customers. For example, if you were to use a travel agency to book your next holiday which included flights, a hotel stay and a transfer to and from the airport this is three separate components which will be booked through three different companies. The travel agency will receive commission from each of the three companies. There may be other benefits and incentives offered by the travel companies. Commission rates and these benefits mean that travel agencies are more likely to use some companies more so than others who might offer them less in exchange.

Alternatively, travel agencies will charge a fee for their services. This makes it more expensive for consumers to book trips through travel agents and agencies than it would to book themselves. However, as some people don’t feel confident booking themselves, many are happy to pay this additional cost. Holidays booked through travel agencies often come with the added benefit of being ATOL and ABTA protected.

  • Cox & Kings were the first travel agency, was established in 1758
  • Abreu Agency was the first public travel agency, was established in 1840
  • Thomas Cook , one of the most famous travel agencies, was founded in 1841
  • Brownwell Travel, the first travel agency in the US, was established in 1895
  • Nippon Travel Agency was the first travel agency in Japan, established in 1905
  • Intourist became the official state travel agency of the Soviet Union in 1929
  • The first travel agency in Australia which went on to become Helloworld Travel, was established in 1951
  • Henderson Travel Service became the first Black-owned travel agency, taking Black tourists to various African countries, in 1955
  • American Airlines’ Sabre unit created a direct-to=consumer booking tool for flights, hotels and cars in the early 1980s
  • Mode Tour became the first travel agency in South Korea, established in 1989
  • Hotel Reservations Network, which went on to become Hotels.com, was established in 1991 – at this point, hotels didn’t pay a lot of commission so it didn’t take off
  • Travelweb.com, the first online hotel directory, launched in 1994
  • The Internet Travel Network sold the first airline ticket online in 1995
  • Expedia launched in 1996, funded by Microsoft, and are now one of the biggest travel agencies 
  • In 2007, as the iPhone was released, more bookings were made online because mobile apps were now in use
  • Airbnb was established in 2008
  • HotelTonight, specifically for instant same-day hotel room bookings, was launched in 2011

If you enjoyed this article explaining what does a travel agency do, then I am sure you will enjoy these articles too-

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  • The 3 types of travel and tourism organisations
  • 150 types of tourism! The ultimate tourism glossary
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How to Become a Travel Agent—Because, Believe It or Not, the Industry Is on the Rise

By Scott Bay

How to Become a Travel Agent—Because Believe It or Not the Industry Is on the Rise

There’s a reason “how to become a travel agent” has been a continuously trending search phrase on Google—it is a career path that offers a flexible work environment and schedule, ample travel opportunities, and an immersion into a supportive world-wide industry. It's a surprise to some in 2023: Once the internet became widely available, it was largely believed that needing a travel agent was obsolete. However, even though the brick-and-mortar agencies with punny names in strip malls have vanished, the career is on-the-rise .

New software options are making it easier than ever for people to make money planning trips, either as a side hustle or as a full-time business. That’s why Cherikonda, India-based stay-at-home mother, Maya Kapoor-Miller, decided to enter the professional world as a travel agent this year, at 31. “I knew nothing about the travel industry prior to signing up,” says Kapoor-Miller, who decided to use San Francisco-based booking platform Dreamport to establish her online travel advisor business. “It is my first business in life, and the only one that you can start with no investment.”

But there's also a rise in demand. When people ventured back into the world after the pandemic, travel agents saw an overwhelming amount of business . And that momentum hasn’t stopped—when travel is complicated, like it was in 2020 and 2021, travelers turned to professional trip planners to create a seamless vacation. For better or worse, traveling has remained complicated and chaotic, with new rules being implemented (like Americans needing to pay a fee to visit Europe in 2024 ) and airline strikes and staffing issues. Offloading all of the nitty-gritty details to someone else is more appealing than ever.

For those entering the field, there's also the age-old motivator: a love of travel. 

Shelton Ellis, who is based in North Carolina, recently saw these opportunities and left behind more than 20 years in public relations and global advertising to turn his passion into a career. “I was born with a wanderlust that would wear Rick Steves out,” Ellis says. “I decided to take the leap and follow that lifelong yearning. Transitioning into this role was really about learning how to monetize what I'm passionate about.”

Whether you are looking for a new career path or a lucrative side-hustle—or simply curious about those taking the plunge—here’s how to become a travel agent, from the qualifications and education required, to anticipated earnings, according to those who have made the shift in the past year. 

What exactly does a travel agent do?

Travel agents, or travel advisors (the term is mostly interchangeable), manage everything that goes into a trip for their clients: the flights, car transfers, accommodations, restaurant reservations, and more—they even inspire the itinerary. The reason people turn to travel agents, aside from having a helping hand during any travel chaos , is also to tap into the travel agent’s first-hand knowledge of destinations, and their industry partnerships, which often lead to perks such as hotel upgrades, ideal airplane seats, and experiences that can’t be found on a search engine.

“You have to remember that as a travel agent, you will be a guide for people during their happiest moments—family reunions, weddings , baptisms, and once-in-a-lifetime experiences that people have dreamt of,” says Kapoor-Miller. “It has been one of the most rewarding aspects of being a travel agent. You navigate people, inform them, and help them choose.”

So, how do you become a travel agent?

There are many ways to become a travel agent, from joining an existing travel agency , to starting an independent business from the ground up. Others are opting for one of the buzziest start-ups in the travel industry, Fora . When it launched in 2021, the software company, which trains and provides search engine-optimized profile pages to advisors—at one point had a waitlist of over 30,000 people eager to begin a part-time gig. Travel photographer and Condé Nast Traveler contributor Amanda Villarosa is currently in the process of joining.

“I'm the person that friends and family come to for travel recommendations, tips and tricks, and general travel advice,” says Villarosa. “After discovering Fora and looking into it, I realized that it could be the perfect side-hustle, considering I'm already so involved in the industry.”

With additional flexibility, Villarosa was able to move from New York City to splitting her time between Denver and Los Angeles . She says that the sign-up was quite straightforward. “You're given a dedicated Fora email and have access to advising tools and fellow Fora advisors,” she says. “The training is in the form of Zoom meetings and videos, which you have the option to watch at your own pace. Once completed, you take a certification quiz and you're on your way to advising.”

The other ways in are slightly more involved. To begin an independent practice, you go about it like many other businesses. You will have to create an LLC, establish a business name, cultivate marketing materials, build a website, find clientele, and more.

Ellis found something in the middle, choosing to connect with an established travel agency. “Don't be afraid to reach out to an agency looking to take on new advisors and is willing to mentor," says Ellis. "I was fortunate to learn so much from Annie Chambers, the owner of Crafted Escapes , who has seven years in the business.” He now knows the ropes on everything from using itinerary-building software to destination-specific training, to the sales and marketing aspects of the trade.

Is there required education or qualifications?

Ellis says that there's no certification, per se, required to become a travel advisor, but there are countless training courses available like Departure Lounge ’s classes on navigating the industry through hotels and tour operators. He said it’s also important to stay on top of travel trends. Ellis recently completed travel agent training programs provided by premier cruise lines such as Virgin Voyages , Ritz-Carlton Yachts , and Cunard to help agents sell their products more accurately.

How much does a travel agent make?

What a travel agent earns depends on how many trips they successfully book for their clients. The entire model is commission-based, meaning agents earn a percentage of the total cost of the vacation they orchestrate. Many travel advisors choose to charge a flat-rate planning fee in addition to their commission, but balance is key—if you charge a high planning fee, it could lead to potential clients going elsewhere.

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Fora ’s website states that “some of our full-time, expert advisors earn well into the six figures (or beyond).” So a lucrative career may be on the horizon, for those who are able to build a robust client base and excellent industry connections.

How much you make can also depend on where you live around the world. “I am being paid in dollars,” says India-based Kapoor-Miller. “So the currency fluctuations of the local exchange rate are not something I am worried about.”

What are the key skills required to become a travel agent?

“Travel agents need a mix of customer service, communication, destination knowledge, organizational, and problem-solving skills,” says Kapoor-Miller. “But I would say that adaptability, flexibility, curiosity, and cultural sensitivity top them all—you have to put yourself in other's shoes, and understand the requirements, hopes, and expectations of your clients along with any worries and questions they may have.”

It’s vital to have a passion for traveling, even the aspects of the process that aren’t as exciting, such as learning about new airline routes, train schedule updates, and industry news. “It can be an information-heavy hustle, and I believe it's important to be excited about it as that energy definitely transfers to your clients and partners,” Villarosa says.

Should travel advisors choose a specialization?

Many travel advisors have found success through becoming an expert in a few types of travel and destinations. “It's important to become an authority and learn as much as you can through personal experiences and continuing education,” says Ellis. “As a proud member of the LGBTQIA+ community , an avid snow skier, and scuba diver, I know not only the popular destinations but others that are off the beaten path, equally safe and adventurous for all travelers.” This helps travel agents establish a competitive edge, and hopefully convince potential clients to choose them for their expertise.

What are the benefits of being a travel agent?

“Flexibility tops them all,” says Kapoor-Miller. “And the ability to start without industry knowledge. If you worry that you are too old for this job, the good news is that this is a job you can enter and enjoy at any age.”

Another great perk is the "Familiarization trip,” says Ellis. “Tourism boards and hotels invite agents to visit and familiarize themselves with a particular country and its properties. After all, any accomplished salesperson should learn everything they can about their products first-hand...even if they're in Bora Bora.” It's hard work, but someone's got to do it. 

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travel agent

Definition of travel agent

Examples of travel agent in a sentence.

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'travel agent.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1885, in the meaning defined above

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Cite this Entry

“Travel agent.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/travel%20agent. Accessed 3 May. 2024.

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Starting a Travel Business: How to Become a Travel Agent

Briana Morgaine

Briana Morgaine

17 min. read

Updated March 18, 2024

Free Download:  Sample Travel Agency Business Plan Templates

If you’re someone who loves travel, meticulous planning, and helping others have great experiences, consider starting a travel business and becoming a travel agent.

After a sharp drop in international and domestic travel during the COVID-19 pandemic, air travel demand has returned to pre-pandemic levels.

Pent-up demand from families who put off trips is driving tourism activity even as fewer travelers cite the pandemic as a major concern. Those tourists are forecast to drive solid long-term growth in the worldwide travel and tourism industry – and plenty of business opportunities for those who can make vacation planning less stressful.

Becoming a travel agent can be fairly inexpensive, as business ventures go, and you can often get away with limited staff and little upfront cost.

That being said, success largely depends on finding the right niche in a fiercely competitive market, given the rise in online direct-to-consumer travel booking sites. So, if you want to be successful, you’ll want to focus a lot of your effort on your market research , branding, and marketing. You’ll need to know who needs your services—your target market—and what they’ll be willing to pay. 

If this sounds right up your alley, keep reading. I’ve interviewed several founders of successful travel agencies for their advice on everything you need to get started, and I’ve also included plenty of links and resources to help you work through the process of starting your own travel business.

  • 1. Create a plan for your travel business

Make no mistake: No matter what industry you’re in, a business plan is essential. You may not need a formal business plan if you’re not seeking a loan or investment funding for your business, but don’t skip it. Write a one-page business plan instead.

You can do it in less than an hour. Writing a business plan is scientifically proven to help you grow faster , so don’t skip this step. 

What kind of travel agent are you interested in becoming? If you’re planning to be a home-based travel agent, you’ll want to look into finding a host travel agency where you’ll essentially be an independent contractor. If this is the type of travel business you’d like to start, the business planning process should be fairly straightforward.

However, if you’re looking into starting your own travel business from the ground up, you’ll be looking at a much more lengthy planning process—but you’ll also have more flexibility to build a business that’s all your own.

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A case for starting early

“In starting ADDISON Yacht Charters , we began market analysis and business planning efforts a full year before we launched the company in November 2013,” says owner Scott Bessette.

“During that period, we attended industry events such as regional yacht shows in the Virgin Islands, Antigua, Florida, and Monaco to acquire as full an understanding as possible with regards to what products and services were being delivered to the market, who was delivering those products and services, and who was purchasing those products and services,” he explains.

Starting the planning process early helped Scott hone in on his vision for his business. “In this manner, we determined what our market niche could be, and established whether or not we could compete in the existing market, and what it would take to succeed,” he says.

Scott was able to get a clear sense of where he wanted to take it, and how to tailor his business to best suit the market needs.

What kind of travel agent business plan will you need?

The kind of travel agency business plan you’ll need will vary depending on what kind of funding you’re looking for.

Are you hoping to eventually run a large travel agency, and interested in seeking a loan, or maybe investment from angel investors? You’ll want a formal business plan for a travel agency that contains all the necessary information on your business. Are you more interested in becoming a travel agent using your own savings, without seeking outside investment or loans? A more lightweight one-page plan might be a perfect fit for your business.

Even if you do intend to pitch your business idea to lenders and investors, you can start with a Lean Plan, and flesh out the rest of the info later on.

Whatever your specific reason for writing a business plan for your travel business, the most important thing is that you write one, period. The travel industry is fragmented , and having a clearly defined niche and a plan will help you stand out. Writing a business plan for your travel agency will help you narrow in on what your goals are, and establish a clear, focused vision going forward.

We’ve covered nearly every aspect of writing a business plan here on Bplans, so be sure to check out the links below when you’re ready to get started. We also have several travel industry business sample plans, which will give you an idea of what your business plan should look like.

Resources to help you create a business plan for a travel agency:

  • How to Write a Business Plan
  • Travel Agency Sample Business Plan
  • 2. Conduct market research and find your niche

What kind of travel agency do you plan on starting? Moreover, what kind of travel business does the industry or your local community actually need?

“When you launch a travel business, the most important thing to do is to provide a valuable service,” says Jacquie Whitt, owner of Adios Adventure Travel .

This means doing some market research to find out what kind of travel agent or travel business the market really needs. Is there a niche you can fill? Maybe there’s an opening in the travel market to provide destination adventure honeymoons for young couples who would rather go backpacking than relax on the beach. Think about the people in your local community too—do they need something specific?

“In a saturated luxury travel market, Urbane Nomads had to distinguish itself from more seasoned players from the get-go,” says founder Hajar Ali. “The dual elements of adventure and luxury was an unexplored niche which we filled very well.”

Hajar says of Urbane Nomads: “It was conceived as the kind of travel company that would remain relevant in the age where most travel-related bookings are made online. We specialize in the sort of experiences that can’t be booked online—adventurous trips to non-mainstream destinations, lodges that can’t be booked online—or indeed, by non-travel professionals—and special experiences and access to personalities that would have been impossible without the personal connections.”

What niche are you filling? Start by researching the travel market in general. Find out who the major players are that you’ll be competing against, determine who your ideal customer is, and define what they want.

Resources to help you do market research and determine your niche:

  • Practical Market Research Resources for Entrepreneurs
  • How to Do Market Research
  • How to Create a Unique Value Proposition
  • How a Buyer (or User) Persona Can Improve Your Business
  • What Is Target Marketing?
  • 3. Develop a brand as a travel agent

Once you’ve determined what the market looks like and what specific niche you’ll be filling, it’s important to get down to the nitty-gritty of creating a strong brand image .

As the travel industry is so competitive, having a well-developed brand will help your business stand out. How do you want your customers to feel when they visit your website, view your advertising, or use your services?

Lorne Blyth, Founder and Director of Flavours Holidays, had a very specific vision for her brand. “[At Flavours Holidays], we have been specializing in cooking, Pilates, painting, photography, and language holidays in Italy since 1998,” she says. Lorne’s vision was to create a brand that “gave guests a true taste of Italy.”

“I use that as part of my branding, as we would like to perceive ourselves as being experts on all things Italy,” says Lorne. “That is why our tagline is ‘Passionate, Inspiring, Authentic.’”

Why should customers use your services, rather than just book a trip themselves? What experience can you provide that others can’t?

Do you offer unique services, such as partnerships with the locals of your travel destinations, that customers wouldn’t have access to otherwise? Is your selling point the ease of having someone else plan your trip for you, down to the last detail? Are you all about personal touches and a great customer service experience?

This is the first step to determining your travel business’s brand strategy— determining who you are. We’ve gone in-depth on how to build a memorable brand for your business, so check out the articles below for more information on branding.

Resources to help you brand your travel business:

  • The Definitive Guide to Building a Brand
  • Your Brand’s Tone of Voice: Why It Matters and How to Craft It
  • 4. Deal with the legal side

A travel business is, for the most part, a fairly simple one to set up. Unlike starting a brewery or starting a dispensary , there isn’t a lot of legal red tape when it comes to becoming a travel agent and starting a travel business. 

Determining if you’ll require licensing

In most locations, you won’t need any specific licenses or certifications, but licensing requirements will vary by state and country.

For the U.S. in general, there is no specific license needed to start a travel business; however, state laws vary . In California, Washington, Hawaii, Iowa, and Florida, you’ll need a Seller of Travel license. Canada also has licensing requirements that vary by location, and in the U.K., you’ll need an Air Travel Organiser’s License .

Choosing the structure of your travel business

Beyond specific licenses, there are general licenses that you’ll need before you start any type of business.

First off, choose your business structure . Scott Bessette, owner of ADDISON Yacht Charters, started his travel agency as an LLC , which he says suited his business needs. “Before we considered starting our agency, we determined that a Limited Liability Company was the appropriate structure for what we were trying to achieve.”

Why was an LLC the best choice? “We had no intention of going public, or having to secure formal investment,” he says. “Further, we had a very simple organization structure, so ease of governance and compliance drove our choice of corporate structure.”

However, the business structure you choose will depend largely on your plans for your business, and how you intend to fund it. If for example, you plan to seek outside investment, you may want to look into starting your business as a corporation .

Naming your business and applying for a Federal Tax ID number

You’ll also want to formally name your business (even if it’s just you, becoming a travel agent!), which involves filing a DBA , or a “doing business as.” You’ll also need to apply for a Federal Tax ID number , otherwise known as a Federal Employer Identification Number (EIN or FEIN). We’ve covered these topics in plenty of detail, so be sure to check out the links.

Scott also adds that setting up the legal end of things was fairly simple.

“Establishing the legal and licensing requirements was one of the easiest aspects of starting the business,” he explains. “All said, conception and gestation of ADDISON Yacht Charters was long-term, but she was born after only two days of hard labor.”

Resources to help you determine the legal structure and name for your business, as well as other legal considerations:

  • The Complete Guide to Choosing Your Business Structure
  • The Complete Guide to Registering Your Business Name
  • Resources and Tools to Help You Name Your Business
  • How to Apply for a Federal Tax ID Number
  • How and Where to Obtain Business Licenses and Permits
  • Keep Your Startup Safe from Legal Trouble
  • 5. Determine your funding strategy

How do you plan to fund your new travel business?

Luckily, your starting costs should be fairly low: You won’t have expensive equipment to buy, and you probably won’t need extensive space in the beginning. If you’re hoping to become a travel agent working out of your own home, you may not even need office space at all. 

However, be sure to have a plan in place for how you will obtain funding. You’ll need funds for marketing materials at the very least; both online, such as your business website , and offline, such as flyers, posters, business cards, and more . Your initial funding budget will also likely go toward any branding or advertising, and you may eventually also decide to rent office space and hire employees, which is a fairly large expense.

Unlike many businesses, there isn’t one tried-and-true path for funding a travel business. From personal funds to venture capital funding, it’s all a possibility.

Many travel agencies are self-funded since they have low initial overhead and can be started fairly easily (though face stiff competition to stand out). “I didn’t get any funding at all, apart from $2,000 borrowed from my dad for the website,” says Brady Hedlund, founder of Life Before Work.

Looking into loans and a line of credit is also a good first move. “We developed banking and relationships with firm lines of credit and support, to ensure that as we started to deliver, funds were available to spend before the client paid the bill,” says Scott of ADDISON Yacht Charters. “ Cash flow is critical to the appearance of a business’s success.”

However, when it comes to financing your travel business, angel investment, and even venture capital funding isn’t completely out of the question. “We formed an LLC to start Project Expedition and closed a $300k seed round in January 2015 to help drive the development of our MVP (minimum viable product),” explains founder Jeremy Clement.

Don Halbert, owner of Costa Rica Vacations , also funded his travel agency through venture capital. “Funding for this venture came from a venture capital company which would later become one of our primary partners,” he explains.

Resources to help you with the funding process:

  • How to Get Your Business Funded
  • 35 Great Ways to Fund A Small Business
  • What Do Venture Capital Firms Want?
  • 10 Tips for Finding Venture Funding
  • 6. Choose a location and hire employees

Next, you’ll want to make a plan for the logistics of opening your travel business to the public. If you’re starting a travel agency and require office space, this section will likely be more relevant than if you plan to work as a travel agent out of your home. 

How many employees will you need to hire? You may not need any to start, until you decide to expand your operations.

You might also want to look into remote employees , suggests Mike Liverton, CEO and founder of Leavetown Vacations . “While many company employees live and work as home-based ‘Destination Experts,’ our main headquarters are downtown Vancouver,” he says.

Additionally, you’ll want to determine your business location . While foot traffic will likely not be a primary motivator in choosing a business location, you’ll want to pick somewhere that accommodates your space needs as well as reflects your desired brand image.

However, as with employees, you’ll find that a physical location isn’t always an absolute necessity. “We have never booked a client from our hometown,” says Scott.

“We’re a 24/7 business, that cannot be limited to when I am in the office, or more importantly, marginalized when I am not,” he explains. “The ADDISON staff has families, conflicts, and important events in their lives. We constructed and positioned our business to be virtual in nature; to be operational anywhere, anytime. I’ve conducted business from Europe, the Caribbean, from multiple states, and during my children’s sporting events.”

“We didn’t choose our business location, we chose a virtual location,” he adds. Whether or not you choose to go this route will depend on your specific niche and brand; however, it’s certainly an option to consider.

Resources to help you set up your travel business and hire employees:

  • How to Choose a Business Location
  • 13 Out of the Ordinary Ways to Find the Perfect Business Location
  • How to Hire Your First Employee
  • A Comprehensive Guide to Creating a Business Website
  • 7. Market and launch your travel business

Marketing will likely be where the majority of your initial funding budget goes, as it’s an important area to focus on when becoming a travel agent and starting a travel business. In fact, it’s a good idea to come up with a marketing plan as soon as possible.

For Don, the idea that you must spend money to make money drove the marketing strategy behind Costa Rica Vacations.

“Our ‘lesson learned’ in starting up our agency was primarily the realization that your Google Adwords budget can single-handedly determine your success when starting out in this normally competitive market,” he says.

Don’t make the mistake of thinking that all your advertising efforts should revolve around paid advertising, however. Plenty of your focus should go into social media marketing and guerrilla marketing tactics.

“I started out eight years ago running backpacking trips to Thailand, advertising using only lean, guerrilla marketing tactics,” says Brady Hedlund of Life Before Work. “I created an itinerary and website and hit the streets of western Canada to promote my new company.” Since his target demographic was 18-30-year-olds looking for an ‘adventure party tour,’ he went to university campuses and handed out flyers and posted signs advertising his travel agency.

“I didn’t get a single call for over a year,” he explains. “I honestly had no idea what I was doing at the time, but eventually, the business picked up and began to grow at an exponential rate. Flash forward eight years, and we now have a team of 35 full-time staff operating in 18 countries.”

Your marketing strategy will, as with all aspects of starting a travel business, be largely dependent on your specific niche, the demographic you are after, your budget, and your bandwidth as a business. That being said, combining both paid advertising with other guerrilla tactics (both online and offline) will likely serve you well.

Resources to help you market and launch your travel business:

  • How to Write an Effective Marketing Plan
  • 20 Marketing Tools Every Small Business Owner Should Try
  • A Beginner’s Guide to Google AdWords for Small Business
  • How to Have the Best Opening Day Ever
  • Words of advice: Final tips from entrepreneurs who have started successful travel businesses
  • “We searched for quite some time to find an underwriter that would provide us with general liability insurance, due to the amount of risks involved in adventure travel…This is a tricky product when it comes to insurance, but it’s obviously a very important piece of the pie.” – Brady Hedlund, Life Before Work
  • “From the beginning, I have built up relationships with various individuals in Italy to help recruit staff for the villas used during our vacations. This varies from local cooks to tour guides to drivers. The little touches along the way, from booking flights for guests to getting the transport back to the airport, all adds up as every little bit helps to create the perfect experience for my guests.” – Lorne Blyth, Flavours Holidays
  • “It’s important that your business partners share your values. I work with people in South America who are now my friends. We’re not in it for the money; we enjoy our jobs and if we can ‘eke’ out a living, all the better.” – Jacquie Whitt, Adios Adventure Travel

Business plan template and travel agency resources 

By now it should be clear that starting a travel agency requires a strategic approach and lots of planning. But don’t worry if it feels overwhelming. At Bplans, we have a full library of business planning resources to help you get started. You can browse through our free collection of over 500 real business plan examples , or download our free business plan template to help your travel business take flight. 

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Briana Morgaine

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

Start stronger by writing a quick business plan. Check out LivePlan

Table of Contents

  • Business plan template and travel agency resources 

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  • Travel Agent

What is the meaning / definition of Travel Agent in the hospitality industry ?

Travel Agent is a person whose job it is to arrange travel for end clients (individuals, groups, corporations) on behalf of suppliers (hotels, airlines, car rentals, cruise lines, railways, travel insurance, package tours). His task is to simplify the travel planning process for their customers in addition to providing consultation services and entire travel packages.

An Agent can be self-employed, work for an independent travel agency, or be part of a Travel Agency Consortia . Travel agents may specialize in leisure, business and/ or other niche travel markets. They may be generalists or specialists (i.e. specialise in cruises, adventure travel, conventions and meetings.). The agents typically receive a 10 to 15% commission from accommodations, transportation companies and attractions for coordinating the booking of travel.

Although booking a hotel / a trip etc. through a Travel Agent saves time, nowadays the number of Travel Agencies is decreasing due to the strong online presence of the suppliers (hotels, airlines…) themselves. OTAs are the (new) online form of a Travel Agency.

Using a Travel Agent is beneficial for customers who plan multi-destination and/ or international trips. Booking through an agent saves time and ‘headaches’. The experience and consultancy comes from ‘one hand’ – the agent who combines all the travel components and services for the client/ traveler. Often agents also dispose of unpublished deals and activities which is beneficial for the traveler.

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What is a corporate travel agent?

What does a corporate travel agent do.

  • Arranging travel visas
  • Making flight bookings and other transport bookings, such as car rentals
  • Ensuring duty of care responsibilities are met
  • Creating travel itineraries
  • Making hotel bookings
  • Working finance departments to align on travel expense processes
  • Providing assistance for business travelers

What are the advantages of using a corporate travel agent?

  • Corporate travel agents understand travel costs: Their job is to ensure that your travel budgets are respected, by making sure they obtain the best deals possible on transportation, accommodation, etc. They have established relationships with suppliers to get better deals and discounts.
  • They manage complex expense processes: Handing over travel expense duties to corporate travel agents relieves businesses of time spent poring over paperwork and reimbursement submissions.
  • All of your business travel needs are accounted for: Corporate travel agents are trained in understanding each business and each traveler’s specific needs and adapting business travel for them.
  • Provides traveler support: Employees can contact the corporate travel agent directly when they run into issues during business trips. Agents can easily rearrange transportation, advise on safety measures specific to each country, and facilitate changes to itineraries.

What are the disadvantages of using a corporate travel agent?

  • Businesses can rack up costs when using corporate travel agents: Each corporate travel agent or agency is different, but most charge businesses an annual fee, plus transactional fees every time you use their service. This alone can eat up a large chunk of businesses’ travel budgets.
  • They’re working for them, not for you: Since they have established relationships with suppliers, you can’t always be sure that the deal they’ve obtained is the best one for you, or the best one for them.
  • Less transparency into travel processes: Whenever you outsource a business process, you automatically have less insight into how and why decisions are made. This gives you less opportunity to keep an eye on your travel management KPIs .
  • They may not be available when you need them: Generally speaking, corporate travel agents only work during standard business hours. If your employees face issues after working hours or during the weekends, they’ll be left unable to contact someone for assistance.

Should you use a travel management platform to manage your business travel?

  • Searching, booking, and managing flight expenses all from within the TravelPerk platform. Plus, you’ll have access to an industry-leading inventory for booking corporate flights to help you find competitive rates.
  • Booking accommodation from within one platform, by giving you access to an extensive inventory for booking corporate accommodation , such as hotel rooms.
  • Defining and automating your travel policy guidelines and approval workflow for better compliance.

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What is business travel? Definition and examples

If you fly somewhere on behalf of your company, you are one of the millions of people involved in Business Travel each year worldwide. The term business travel refers to traveling for work purposes. We call each journey a business trip . If you drive across town to visit a client, that is not business travel. Business travel is longer.

Business Travel - image for article - business trip 409390499

If I say: “John is on a business trip,” we imagine he will be away for more than one day.

Wikipedia.org has the following definition of the term :

“Business travel is travel undertaken for work or business purposes, as opposed to other types of travel, such as for leisure purposes or regularly commuting between one’s home and workplace.”

Why go on a business trip?

There are literally dozens of reasons for business travel. Even if your employer is not a commercial entity, your trips may still be classed as business ones.

What about military personnel who specialize in purchasing defense equipment, missiles, vehicles, and airplanes who are flying to a military air show? Is this an example of business travel? Yes, it is.

So, rather than saying that business travel relates to journeys that are business related, we should say that they are work related.

Below is a list of types of trips people can make for work purposes:

  • Attending a conference, convention, or trade show.
  • Considering, examining, inspecting, or assessing new markets.
  • Evaluating a project site.
  • Going for a job interview far away (especially if your are an executive or specialized professional).
  • Installing equipment for a customer.
  • Meeting with colleagues (from the same company) at a faraway location.
  • Motivating your staff to boost employee loyalty.
  • Negotiating with suppliers.
  • Networking.
  • Promoting a product or service.
  • Seeing a demonstration of something you may buy.
  • Visiting customers.
  • Meeting prospects (contacts who could turn into a customers).
  • Apologizing to somebody.

Business travel and COVID-19

COVID-19 has decimated the business travel market - business trips - 498398398938938

The market for business travel globally is huge. The World Health Organization says that approximately thirty percent of international trips are business-related. Until the coronavirus (COVID) pandemic hit at the beginning of 2020, the market had been forecast to expand rapidly over the next decade.

However, COVID-19 changed all that. The year 2020 saw a dramatic decline in all types of travel, including by air, ship, and land. Business traveler numbers are no exception. As businesses embrace modern telecommunication tools to communicate with employees, clients, suppliers, and other stakeholders, a new trend has evolved – the trend of replacing business travel with online meetings and events.

In August 2020, in the middle of the coronavirus pandemic, Alexander Joe wrote the following in an article we published :

“Business travel has been hit hard during the pandemic. Before you make travel arrangements, make sure that you are permitted to enter your country of destination by checking the latest government guidelines. If possible, it is wise to avoid travel, and if possible, to conduct meetings with colleagues and clients digitally for the time being.”

A permanent trend?

Many conference organizers and airline executives wonder whether this new online trend will prevail after the pandemic is over. Companies have not only found that modern technology is suitable for their needs, but also that communicating online with faraway people is considerably cheaper than face-to-face.

Anything that saves money and helps boost the bottom line is an attractive prospect for CEOs and board members. Bottom line , in this context , means net profit, net earnings, net income, or net EPS (earnings per share).

In a BBC article, Natasha Frost wrote :

“Since the Covid-19 pandemic hit, business travel has ground to a halt. We’ve moved critical client meetings to Zoom, allowed our frequent-flier cards to gather dust and learned how to communicate with colleagues around the world without jumping on a plane.”

“But is this the start of a new normal for business travel?”

Pros and cons of business travel

Traveling is great for broadening the mind and learning new things. However, if somebody has a family, there is definitely a price to pay. Missing family events may contribute to relationship difficulties.

It is also difficult if you don’t have any children but have a partner at home that you like to be with as much as possible.

Many people who travel frequently on business say that they feel lonely while away. Healthcare professionals, for example, have commented that several of their patients who regularly go on business trips show signs of declining mental health, and in some cases, depression.

Time zones - jet lag - business travel - business trip

Jet lag or jet lag disorder is common for people who travel across time zones. Jet lag is primarily a temporary sleep disorder which can make you feel unwell and cause daytime fatigue. Sufferers often find it hard to stay alert and may also have gastrointestinal problems.

If you suffer from jet lag, you have a greater risk of being involved in a road accident. Try to get somebody else to drive if you feel drowsy when you get back from your trip.

If your business travel is successful, i.e., good for your employer, your opportunities for promotion may improve. If you visit branches of your company, you will make new face-to-face contacts. In fact, one of them may offer you an interesting position in the future. Without your trips, this opportunity may never arise.

On a personal note, if you like learning about different cultures and how people abroad go about their lives, business travel is great. Not only do you learn a lot, but you also do it on the company’s expense.

If you accumulate lots of airmiles or reward points, you can use them for big discounts when you take your family on vacation. You may get special concessions from airlines, airports (VIP lounges), hotel chains, restaurants, currency exchange agencies, and car rental companies.

With the advancement of smart technology, business travel is becoming more efficient as travelers can check in, navigate airports, and manage itineraries using their smartphones.

Man and a woman on a business trip, plus info about size of business travel market.

Terms related to business travel

There are many words and expressions in the English language that are related to business travel. Let’s look at six compound phrases that contain the words “business travel,” understand their meanings, and see how they are used in a sentence:

Business travel expenses

The costs incurred while traveling for work purposes. Example: “The finance department requires all receipts to accurately reimburse business travel expenses.”

Business travel policy

A set of guidelines a company establishes for employees to follow when traveling on business. Example: “Before booking your flight, please review the business travel policy for approved airlines and accommodation.”

Business travel insurance

Insurance coverage designed to protect travelers from risks associated with traveling for work. Example: “Given the unpredictability of international trips, our company always recommends purchasing business travel insurance.”

Business travel management

The process or practice of managing and organizing corporate travel. Example: “Our agency specializes in business travel management, ensuring clients have a seamless experience.”

Business travel consultant

A professional who advises on and arranges all aspects of travel for businesses and their employees. Example: “To optimize our travel budget, we hired a business travel consultant.”

Business travel planner

A tool or service used to organize the details of travel for work. Example: “The business travel planner app was instrumental in coordinating the complex itinerary for our sales team’s roadshow.”

Video – What is Business Travel?

This video, from our YouTube partner channel – Marketing Business Network – explains what ‘Business Travel’ is using simple and easy-to-understand language and examples.

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How to Start a Travel Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 13, 2021 Updated on April 11, 2024

How to Start a Travel Agency

Investment range

$2,150 - $10,600

Revenue potential

$78,000 - $300,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $90,000 p.a.

Industry trend

Who doesn’t love to travel? But most of us do not love the endless research, planning, and booking required, which sometimes feels like it takes more time than the vacation itself. This is precisely why the $35 billion US travel agency industry has been booming of late, and why it offers a real opportunity for the travel-minded entrepreneur.

By starting your own online travel agency, you can shoulder travelers’ burden and ease their anxiety, allowing them to enjoy their holiday while you make a healthy profit. And thanks to the post-pandemic boost, now is a great time to get in on travel.

Of course, starting a travel agency will not be a vacation – it will take diligence, patience, and strong guidance. Thankfully, you’ve come to the right place, as this step-by-step provides all the information you need to develop and launch your new travel agency and give you a head-start on your entrepreneurial journey.

Step by Step Business values real-life experience above all. Through our  Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

Uncover the secrets to building a thriving travel agency with our interview with Casey Halloran of Costa Rican Vacations .

Aspiring travel entrepreneurs will find valuable insights in our interview with Augustin Ndikuriyo on building a thriving African wildlife tour business .

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its pros and cons, and a travel agency is no exception. You should weigh these carefully to decide if the business is right for you.

  • Flexibility – Work from anywhere, even while traveling!
  • Minimal Training – Get accredited for free online
  • Travel Discounts – Travel agents get top deals and reduced prices
  • Demanding Work – With clients around the world you’re on call 24/7
  • Fierce competition – Top sites like Expedia, travel networks, advisors, and more

Travel agency industry trends

The US travel agency industry expanded an impressive 75% in the decade leading up to 2020, which saw a massive pandemic-driven downturn. 

In 2021, many travel agents saw a surge in business as travelers unsure of all the constantly changing Covid-19 rules and restrictions turn to them for help, rather than booking their own trips. Global travel advisor InteleTravel experienced a 35% increase in business, not from the disaster year of 2020, but from 2019, which had set records.(( https://www.nytimes.com/2021/04/14/travel/summer-vacation-travel-agents.html ))

Consumers are also turning more and more to online travel agencies, with a study by Expedia showing a 25% increase in the use of online agencies in 2020 alone. Brick-and-mortar agencies seem to be a dying breed, with British travel icon Thomas Cook closing in 2019.(( https://advertising.expedia.com ))

Industry size and growth

  • Industry size and past growth – Market research firm IBISWorld values the industry at nearly $48 billion in 2022.(( https://www.ibisworld.com/industry-statistics/market-size/travel-agencies-united-states/ ))  
  • Growth forecast – The industry is expected to grow further as the Bureau of Labor Statistics predicted a 5% annual growth through 2030 in the employment of travel agents.(( https://www.bls.gov/ooh/sales/travel-agents.htm )) 
  • Number of businesses – More than 73,000 travel agencies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/travel-agencies-united-states/ ))
  • Number of people employed – The industry employs more than 250,000 people.(( https://www.ibisworld.com/industry-statistics/employment/travel-agencies-united-states/ ))

travel agency industry size and growth

Trends and challenges

Trends in travel agency industry include:

  • Home-stay rentals like Airbnb(( https://stepbystepbusiness.com/business-ideas/start-an-airbnb-business/ )) outperformed hotels in 27 top markets during the pandemic
  • Book-now-pay-later options, such as those offered by Expedia and Booking.com, are gaining popularity
  • Travel agencies undergoing digital transformation in response to the growing demand for online services

Challenges in travel agency industry include:

  • Rising gas prices are impacting travel behavior
  • Compliance with global Covid-19 protocols
  • Keeping up with digital marketing opportunities

travel agency industry Trends and Challenges

What kind of people work in a travel agency?

  • Gender – 76% of travel agency managers in the US are female, while 24% are male. (( https://www.zippia.com/travel-agency-manager-jobs/demographics/#gender-statistics ))
  • Average level of education – 64% of travel agency managers hold a bachelor’s degree.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#degree-level-types ))
  • Average age – The average age of a travel agency manager is 51 years old.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#age-statistics ))

travel agency industry demographics

How much does it cost to start a travel agency?

The startup costs for a travel agency range from about $2,000 to $10,000, with an average of around $6,000. The high-end includes the rental of office space and a larger marketing budget, but you could easily run your online travel agency from home to cut costs.

How much can you earn from a travel agency?

The commission paid to a travel agency by travel vendors such as airlines and hotels is generally about 10%. Some travel agents also charge a nominal consultation fee for each booking, typically between $30 and $50. Those will be your two revenue streams.

The average cost of a one-week domestic vacation is $1,500 per person. The profit margin for a home-based travel agency is usually about 80%. With an office and staff, your margin will likely drop to about 30%.

In your first year or two, you could work from home and sell five two-person vacations each week. At a 10% commission, this would mean $78,000 in annual revenue. You’d have about $62,000 in profit, assuming an 80% margin.

As your brand gains recognition, sales could climb to 1,000 two-person vacations a year. At this stage, you would rent an office and hire staff, reducing your profit margin to 30%. With expected annual revenue of $300,000, you would make about $90,000.

travel agency business earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a travel agency. Your biggest challenges will be:

  • Competition – Big and small online firms; self-booking travelers
  • Client Acquisition – Time and marketing will be required to build a reputation

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Step 2: hone your idea.

Now that you know what’s involved in starting a travel agency, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

As a travel agency, you need to find a way to differentiate yourself from the competition. Research online travel agents and booking platforms to see their offerings and prices, while keeping an eye out for something that might be missing.

Perhaps you could specialize in travel to an under-appreciated region, such as Southeast Asia, and build a network of relevant contacts and vendors. Or you could focus on finding travelers the most incredible home-stay rentals at the best prices.

travel agent in business meaning

You could specialize in family vacations, corporate retreats, or honeymoons. The potential niche options in the travel industry are nearly endless.

What? Determine your products or services

Travel can involve many facets, and you can handle some or all of them, in addition to flights, lodgings, and car rentals. These might include:

  • Booking tours and excursions
  • Dining recommendations/reservation
  • Travel insurance
  • Visa and emergency services

How much should you charge for travel agency services?

Travel vendors, such as hotels, airlines, and car rental firms, pay a commission to travel agents that’s generally about 10% of the booking. For instance, if you book a $1,200 flight on Turkish Airlines for your client, Turkish Airlines will give you, the travel agent, a $120 commission.

As a result, booking flights with a travel agent sometimes costs the traveler slightly more than booking directly with the airlines or through a travel site like Expedia or Orbitz. Thus, to attract customers and boost sales travel agents rely on discounted travel packages.

For instance, a return flight from Chicago to Cancun and a 6-day stay at a four-star all-inclusive resort, plus ground transport, might cost a traveler $1,000 or more to book directly. But travel agents get significant discounts from vendors because they place volume orders, so you’d be able to offer this trip as a $599 package deal.

Even after paying your commission, the traveler still saves a chunk of money by using your services, rather than booking themselves. And keep in mind, the discounts offered by vendors are likely to increase as you become a more established agent. You may be able to negotiate commissions from tour operators and excursion companies as well.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the concept you’ve chosen for your agency. If you’ve decided to specialize in family vacations, you’ll be targeting parents. You might find them on sites like Facebook or LinkedIn, rather than Instagram or TikTok.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your travel agency grows, you’ll likely need to hire workers and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

  • Central location accessible via public transport
  • Ventilated and spacious, with good natural light
  • Flexible lease that can be extended as your business grows
  • Ready-to-use space with no major renovations or repairs needed

travel agency business idea rating

Step 3: Brainstorm a Travel Agency Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better
  • The name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “travel” or “bookings”, boosts SEO
  • Choose a name that allows for expansion: “Wanderlust Adventures” over “Beach Bum Vacations” or “Honeymoon Haven Agency”
  • Avoid location-based names that might hinder future expansion
  • Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Travel Agency Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: Present an overview of your travel agency, highlighting its focus on providing personalized travel planning and booking services for various types of travelers.
  • Business Overview: Describe the services of your travel agency, including custom travel itinerary planning, booking accommodations, flights, and special experiences.
  • Product and Services: Detail the range of travel packages offered, such as luxury vacations, adventure tours, and corporate travel services.
  • Market Analysis: Assess the current travel market, identifying target customer segments like families, honeymooners, or business travelers.
  • Competitive Analysis: Compare your agency to others, focusing on your unique offerings like specialized destinations, personalized service, or exclusive deals.
  • Sales and Marketing: Outline your strategy for attracting clients, using methods like online marketing, partnerships with travel providers, or attending travel expos.
  • Management Team: Highlight the experience and expertise of your team in travel planning, customer service, and business management.
  • Operations Plan: Describe the process of service delivery, from client consultation to trip execution and post-travel follow-up.
  • Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and anticipated income.
  • Appendix: Include supplementary documents such as travel industry certifications, partnership agreements, or detailed client testimonials to support your business plan.

what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to travel agencies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your travel agency will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

travel agent in business meaning

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

travel agent in business meaning

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
  • Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
  • Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a travel agency. You might also try crowdfunding if you have an innovative concept.

types of business funding

Step 8: Apply for Travel Agency Licenses and Permits

Starting a travel agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your travel agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software to manage bookings and scheduling, such as TravelPerk , TravelCEO , and TravelOperations .

  • Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your website should showcase your offerings, customer testimonials, and detailed information about destinations.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

  • Leverage Social Media : Use platforms like Instagram, Facebook, and Pinterest to share stunning travel imagery, customer stories, and travel tips. Engage with your audience through regular posts, stories, and responses to comments.
  • Content Marketing : Start a blog or a YouTube channel providing valuable content like travel guides, tips, destination reviews, and travel trends. This not only helps in SEO but also establishes you as an expert in the field.
  • Build Partnerships : Collaborate with local businesses in your chosen travel destinations, such as hotels, tour operators, and local attractions. This can lead to exclusive deals or packages that you can offer to your clients.
  • Email Marketing : Collect emails through your website and social media channels and send out regular newsletters with travel tips, special offers, and new package announcements.
  • Customer Reviews and Referrals : Encourage your clients to leave reviews on platforms like TripAdvisor or Google. Word-of-mouth referrals are powerful, so consider offering incentives for referrals.
  • Attend Travel Expos and Events : Participate in travel expos, seminars, and networking events to build contacts and stay updated on the latest industry trends.
  • Offer Personalized Services : Tailor your services to meet individual client needs. Personal touches can make a big difference in the travel industry.
  • Utilize Paid Advertising : Invest in targeted ads on social media and Google to reach potential clients. This can be particularly effective when you have special offers or new packages to promote.
  • Stay Informed and Flexible : The travel industry is dynamic, so it’s important to stay informed about global travel trends, destination updates, and customer preferences.
  • Sustainable and Responsible Travel : With growing awareness about environmental and cultural impacts, promoting sustainable and responsible travel practices can set your agency apart.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your travel agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your travel agency could be:

  • Travel to Asia’s best secret destinations
  • The best local insights and insider adventures
  • Vacations for the whole family, from grandma to the baby!

unique selling proposition

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a travel agency, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in travel agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in travel. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a travel agency would include:

  • Travel Agents – sales and bookings
  • General Manager – scheduling, accounting, staff management
  • Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Travel Agency – Start Making Money!

Owning a travel agency means sharing the joy of travel for a living. What could be more fun? It’s also a huge, high-growth industry that you could tap into and grow a profitable business. Startup costs are low, and all you need is a simple accreditation — there’s no real training required. You just need a good concept for your agency and a great marketing plan. Having a strong online presence in this digital age is also an absolute must.

You’ve started off on the right foot by reading this guide, and now you’re ready to begin your trip to entrepreneurial success!

  • Travel Agency Business FAQs

If you run your online travel agency from home, you could have profit margins of up to 80%. Costs to run your travel agency are very low, and you’re paid around a 10% commission on everything that you book. As a home-based, one-person show, you could make $60,000 per year to start, and much more once you’re established.

Consumers are turning to online travel agencies more and more, which you could easily run from home. If your business grows fast and you need to add staff, you may want to have an office.

Some consumers prefer the personal service of a smaller online agency that can offer more local, personal insights about travel destinations. The key is to differentiate yourself in some way. You could specialize in certain locations, a specific type of lodgings, such as cabins, or in a type of vacation such as corporate retreats.

Travel agencies engage in activities such as providing travel advice, booking travel arrangements, managing logistics, and offering specialized services tailored to clients’ needs.

Effective marketing strategies for a travel agency include building a strong online presence, targeted advertising, content marketing, collaborations and partnerships, and leveraging customer referrals and reviews.

Running a travel agency can have challenges due to intense competition, evolving industry dynamics, regulatory considerations, seasonal fluctuations, and the need for customer satisfaction and crisis management. 

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  • Decide if the Business Is Right for You
  • Hone Your Idea
  • Brainstorm a Travel Agency Name
  • Create a Travel Agency Business Plan
  • Register Your Business
  • Register for Taxes
  • Fund your Business
  • Apply for Travel Agency Licenses and Permits
  • Open a Business Bank Account
  • Get Business Insurance
  • Prepare to Launch
  • Build Your Team
  • Run a Travel Agency - Start Making Money!

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What Are Business Travel Agents?

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James Beagrie

Over the years I have been asked many times what I do for a living. Almost always I diligently explain that I work for a Travel Management Company (TMC) and trying not to be too boring I explain what we do.

Nearly always I am met with a blank look. I am then asked where is good to go on holiday that year.

For those of you reading this that work in the industry, I am sure this sounds familiar. For those reading who don’t, this blog will highlight some of the key differences between the role a travel agent plays in the holiday industry (leisure agents) and what it takes to manage business travel clients (business travel agents).

Booking a Trip

Whilst leisure agents may typically book packages through tour operators for their customers, business travel agents work in a completely different way.

Using a Global Distribution System (GDS), business travel agents will be using a myriad of strange computer entries to book flights, hotels, trains, etc. as separate items within an individual booking to effectively build a trip. Their knowledge of these suppliers and business travel destinations, some of which can be a little dull, needs to be second to none.

When making bookings they will need to ensure the trip adheres to the client’s travel policy and that any approval procedures are followed before the trip is confirmed. Business Travellers can’t just go where, or do what, they want!

Business Travel Agents will also ensure that any preferred airline or hotel rates are used unless a further cost saving can be obtained. Making sure the lowest fares and rates are offered to generate savings is a big part of the job.

Finally, they will need to be mindful of any special requirements, such as meal and seating requests, that the traveller may have detailed in their travel profile.

ourteambusinesstravel

Managing a Trip

Once a trip has been booked, plans will frequently change. Sometimes at a moment’s notice.

Business Travel Agents therefore need to be adept managing changes, processing ticket reissues, and submitting refund requests, often last minute when availability can be very tight, if not non-existent!

Unlike Holiday agencies, TMC’s tend to operate on 24/7 to ensure that the client’s duty of care requirements are met. Some Business Travel Agents choose to work through the night or at weekends as part of an Out of Hours team, to assist with any last-minute changes or emergencies that may occur.

Post Trip Support

Even when a trip has been completed the agents’ job may still not be done!

In most instances, travellers will need to submit an expense claim for their trip, or finance teams will need to reconcile their account, business travel agents are always on hand to provide copy invoices or to assist with any queries that may arise.

If a traveller has encountered any issues whilst travelling, for example, they were moved from their preferred seat on a flight, a business travel agent will usually pick up on this, reporting the issue to the supplier in question. The agent will then manage the issue through to an amicable resolution.

travel agent in business meaning

Helping Travel Managers

Aside from booking and managing actual trips, business travel agents may also assist with ad hoc tasks. Often, they will assist with operational matters relating to the overall travel programme.

It is not uncommon for business travel agents to help audit the rates that preferred hotels have loaded into the reservation system to check they are correct or to spot-check airfares on certain routes to assist with future budgeting for projects.

You can Ask!

Whilst this article is not definitive, there are many things both leisure and business travel agents do that aren’t included, hopefully, this quick read has given you a better understanding of a business travel agent’s role.

Having read this post, if you still want to ask where is good to go on holiday, please do. I promise not to be offended. Our sister division, Meon Valley Holidays, will be delighted to help!

Need help organising your business travel?  Get in touch with our travel experts

You may also like:

  • Benefits of using a corporate travel agency
  • How to be a responsible business traveller
  • The Evolving Requirements To Travel During The Pandemic

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Business Structure 101 for Independent Travel Agents and Entrepreneurs

As a new entrepreneur and independent travel agent, you need to register your business. However, before you get started, you have to figure out how you want to structure it. There are many different options so it can be hard to figure out what is best for you and your business.

Different Ways to Structure Your Business

Before you register your business, you need to decide what type of business you are going to have. Your options include:

Sole proprietor

Corporation

Partnership

Limited liability company, otherwise known as an LLC

So, how can you choose? It is going to depend on the type of business you have, as well as your assets and the liability risk that you face.

Reasons to start a sole proprietorship

Here are some reasons why you may want to start a sole proprietorship:

Easy to get started. Starting a sole proprietorship is really easy. You can use your own name and Social Security number to get started. You can use this information to get the permits and licenses that you need to start your business.

You alone are in charge of your business. When you are a sole proprietor, you can decide how you want to run your business. You can choose the jobs that you want to take and pass on the ones that aren't going to be worth it.

And you get the income that comes with it. When you are a sole proprietor, you get all of the income that you make (after paying taxes). You don't have to split your income with anyone else. 

Reasons to start a corporation

Here are some reasons why you may want to start a corporation:

Credibility. As soon as your business becomes a corporation, you gain credibility. People are more likely to work with businesses that are a corporation than those that are not.

Best way to get financing. If you are going to need help financing your business, you may need to start a corporation. You can sell non-voting shares, which allows you to raise money, without giving over control to everyone who helps you. You also can sell stock to help raise money when needed.

Have different types of owners. When you start a corporation, you can have silent partners, who will help with financing (and get a part of the profit), as well as partners who can help you run your business.  

Ability to offer benefits for employees. Corporations are able to offer benefits for their employees, such as health insurance, and deduct it as an expense. LLCs and other businesses aren't able to do so.  

Reasons to start a partnership

Here are some reasons why you may want to start a partnership:

Started privately, between partners. It is easy to set up a partnership because it is formed with an agreement between the partners. You won't have to register your business partnership with the state.

The partnership is not taxed. Instead, partners are taxed individually on their personal tax returns, depending on their actual profits and losses that they occur from the business. You won't be required to create a tax return for the business.

Easy to end the partnership. Just like it is easy to get started, it is easy to dissolve a partnership. As long as one partner is ready to stop, the partnership can change or dissolve, depending on what everyone wants.

Reasons to start an LLC

Here are some reasons why you may want to start a limited liability corporation:

Cheaper than forming a corporation. It is much cheaper to start an LLC than a corporation and it still gives you plenty of the same benefits.

Liability protection. If you have a business that has plenty of risk, you may want to start an LLC in order to protect your personal assets. You won't be held liable for any debts and losses that your company incurs.

You are still in control of your business. You are able to control your business, the way that you want while protecting yourself legally.

More official. Many believe that having an LLC behind your business name can make your business seem more official. People may be more likely to work with you because your business looks more legitimate or serious.

 So, How Do You Decide Which Will Work Best for Your Business?

The best way to decide how to structure your business is to talk to a professional. An accountant will be able to discuss your business ideas so that you can see what your different options are. They will help you figure out what will work best so that you know you are doing it correctly.

Your tax professional will also be able to help you throughout the entire process of registering your business so that it is protected fully.

How to Register Your Business

travel agent in business meaning

Once you decide how you want to register your business, it is time to do so. Here are some tips to help you get started.

Register your business name. If you aren't operating under your own name (and using your Social Security number), you are going to need to file a DBA. This stands for doing business as.

Then, you need to register with the IRS. You will receive an Employer Identification Number (EIN), which you will use like a Social Security number for your business. You need it in order to file your taxes for your business.

After that is done, you will need to register your business with the state and local agencies.

Make sure that you have the necessary licenses and permits that you will need. The U.S. Small Business Administration has a website so you can easily find out what permits and licenses that you may need.

Once you have gone through all of the steps above, it is time to get started! You can open your doors and start making money. You are on your way to running a successful business and working for yourself. If you’ve already been working as a solopreneur for a while, it’s never too late to meet with a tax professional and decide how to register your business.

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Meaning of travel agency in English

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  • air corridor
  • amenity kit
  • caravanning
  • high season
  • package tour
  • phrase book
  • post-holiday
  • put something up
  • ranger station
  • tourist trap

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  • Travel Terms Glossary

We have provided a glossary for your use.  The travel industry is replete with jargon and acronyms and we hope you find this glossary/dictionary of travel terms useful when you run across a term you are not familiar with.  We encourage our clients to submit any words or concepts they would like defined or clarified to us on the Contact Us page and we will be happy to reply by email with a definition and include the term or clarification in our glossary/dictionary of travel terms for other clients benefit as well.

A la carte – referring to meals, an indication that each dish is priced separately; also that a choice of meals may be vailable, such as on a tour.

A la Carte Bar – Also known as a “Cash Bar,” a bar located within one’s hotel room that is pre-stocked with an assortment of snacks and beverages.

ABC – a reference to the Caribbean islands of Aruba, Bonaire, and Curacao, in the Netherlands Antilles, just off the northern coast of South America (Venezuela). Fabulous for diving, snorkeling and all manner of watersports.

Abeam – A directional term, used on ships and aircraft, which describes something off to the side of the vessel, such as the wings.

Accessible Tourism – Travel that ensures that there is high availability in destinations, accommodations, attractions, products, and services to all people.

Accessible Travel – Travel that ensures that there is high availability in destinations, accommodations, attractions, products, and services to all people.

Actual Time of Arrival – Literally, the actual time of arrival. As opposed to the ETA (Estimated Time of Arrival).

Add-on – an option, usually at extra cost, added to travel arrangements.

Adjoining rooms – Two hotel or accommodation rooms that have a door connecting them from the inside, allowing the guests to combine the two rooms into one larger room.

Adoption Rate – the percentage of tickets issued through an online booking system compared to the traditional booking channel of agent-assisted reservations.

ADT – Atlantic Daylight Time; Alaska Daylight Time. Advance Purchase Fare – airfare that requires the traveler to purchase the ticket a minimum number of days prior to departure.

Advance Purchase Requirement – APR, or Advance Purchase Requirement, is the requirement that a ticket must be purchased a minimum number of days before the flight departs.

Adventure tour – A tour designed around an adventurous activity such as rafting, hiking, or mountain climbing.

Adventure travel – adventure travel is category of travel involving exploration or travel with perceived (and possibly actual) risk, and potentially requiring specialized skills and physical exertion.

Adventure Traveler – Adventure travelers travel to destinations with the specific purpose of active physical participation and exploration of new experiences.

Affinity Card – These are credit or debit cards issued by a banking institution in partnership and co-branded with a particular frequent traveler program.

Affinity group – A group of people that share a common hobby, interest, or activity, or that are united through regular participation in shared outings. Also see preformed group.

Aft – toward the rear of a ship.

After-departure charge – Charges that do not appear on the guest’s bill at checkout such as telephone or dining charges.

Agent – A person who has the power to act as the representative for another person.  Most frequently in travel, a specific kind of agent such as a travel agent.

AIO variables – Activities, interests, and opinions-used to measure and categorize customer lifestyles.

Air mile – a distance of approx. 6076 feet.

Air Traffic Control – Usually refers to the control tower at the airport, but may also be a control center somewhere else in charge of controlling a large area of sky.

Air Travel Card – a credit card sponsored by the airlines, for the purchase of air travel only.

Air Travel – air travel is the action or process of making a journey by aircraft.

Air/sea – a term referring to tickets, trips, fares, etc. that include both air and land-based travel arrangements, such as a cruise package with air included.

Aircraft – Generally speaking, any machine capable of flight. However, in the travel industry, these often mean airplanes.

Airline Alliance – These are agreements of cooperation between groups of airlines. Alliances offer airlines more flexibility and larger networks.

Airline fare – Price charged for an airline ticket. Several types of fares exist and can change with market conditions.

Airlines Reporting Corporation (ARC) – An organization that provides a method of approving authorized agency locations for the sale of transportation and cost-effective procedures for processing records and funds of such sales to carrier customers.

Airport access fee – a fee paid by the car rental companies to the airport authority, for the use of shuttle vehicles, etc. – usually passed on to the consumer.

Airport transfer – a transport service to/from an airport to hotel, etc., normally prepaid as part of a package tour, but available separately as well.

Air-Sea – A cruise or travel package in which one or more transportation elements are provided by air and one or more by sea. The package is usually combined with local lodging.

All Inclusive – sold for one price that includes charges and fees that are often added separately.

All-inclusive package – A tour package in which most travel elements are purchased for set price. Also called an all-expense package.

Alternative Tourism – Travel that is not conventional in nature, though that is hard to define. It can be a niche kind of tourism.

Alternative Travel – Travel that is not conventional in nature, though that is hard to define. It can be a niche kind of tourism.

Alumni tour – A tour created for customers who have previously traveled with a tour operator. Also called a reunion tour.

Ambassador – The head of a state’s diplomatic mission in another state, usually with offices inside the main embassy.

Amenities – a desirable or useful feature or facility of a building or place

Amenity package – A cluster of special features, such as complimentary shore excursions, bar or boutique credit, or wine at dinner offered to clients on a given tour or cruise, usually as a bonus or extra feature. Usually used to induce clients to book through a particular travel agency or organization.

Amenity – The facilities and features of a property, usually cruise ship, airline or destination accommodation.

American plan – a hotel’s meal plan that usually includes all three meals each day.

AMEX – American Express (AX).

Amidships – toward the middle of a ship – usually the most stable part of the vessel.

Anniversary travel – a type of milestone travel celebrating a date that is remembered or celebrated because a special or notable event occurred on that date in a previous year, such as a wedding anniversary.

Antebellum – describes a building and/or period of time prior to the Civil War, such as an antebellum mansion on a cotton plantation in the southern US.

APEX – an airline term meaning “advance purchase excursion fare” – normally the least expensive fares.

Apron – The area surrounding the gate areas of a terminal, generally used for parking and maintenance of planes.

ARC – Airline Reporting Corporation- the agency that regulates ticket sales and reports to the airlines for travel agencies.

Archipelago – An archipelago is a grouping of islands, essentially. Indonesia and Japan are both archipelago countries.

ARTA – Association of Retail Travel Agents – professional trade group of travel agents only.

ASC Fee – Administrative Service Charge.  Usually it’s the same as the change fee, or the fee to exchange the ticket for future travel.

AST – Atlantic (or Alaska) Standard Time.

ASTA – American Society of Travel Agents – trade group consisting of travel agencies, travel agents, and allied members (suppliers, etc.).

ATO – Airline Ticket Office – becoming rarer these days, as carriers continue to reduce customer service.

Attractions – An item or specific interest to travelers, such as natural wonders, manmade facilities and structures, entertainment, and activities.

Autobahn – high-speed equivalent to the US interstate highway system, in Germany and a few other European countries.

Availability – The total number of seats allowed to be sold at a particular rate.

Average room rate – The total guest room revenue for a given period divided by the number of rooms occupied for the same period.

B&B – A bed and breakfast home or guest house that a proprietor has converted into accommodation(s) for the public. Each room becomes a separate unit for rent and typically breakfast and/or other meals are served as part of the fare.

Babymoon – A relaxing and romantic vacation or getaway taken by parents-to-be before their baby is born.

Back to back – A term used to describe tours operating on a consistent, continuing basis. For instance, a motor coach arriving in a city from a cross-country tour may conclude the first tour upon arrival, then transport a second group back along the same route to the origination city of the first tour.

Back-to-back ticket(ing) – an against-the-rules practice whereby an air ticket is issued round-trip with only one portion to be used. Another is then issued roundtrip, again with only one portion to be used. In effect, this amounts to using one ticket for the outbound part of a trip, and the other for the return. The normal Saturday night stay requirement is then avoided – useful only when two roundtrip tickets are less than the cost of a single ticket with no Saturday night stayover.

Baggage Allowance – The amount of baggage a passenger may transport without having to pay extra charges, determined by carrier.

Baggage handler – See porter.

Baggage master – The person who controls baggage handling on a ship.

Balcony – sometimes called a verandah – an outside “porch ” that is usually private, just outside your ship’s cabin. Great for relaxing and port arrivals!

Barge cruising – pleasure cruising along a canal system, such as in upstate New York or in Europe, in converted barges or new ships that resemble them.

Base fare – the basic price of an airline ticket, before ANY taxes, surcharges, airport fees, etc.

Base – Flight crew term for their home airport; where the flights originate from and terminate at.

Beam – a ship’s width at its widest point; determines whether or not a vessel can pass through the Panama Canal.

Bed and breakfast (B&B) – Overnight accommodations usually in a private home or boarding house, often with a full American-style or Continental breakfast included in one rate.

Bell captain – The person in charge of luggage at a hotel.

Bellboy – Also called “Bellboy” or “Bellman,” a person that is hired by the hotel to assist guests, such as with luggage, running errands, etc.

Bellman – a person who carries one’s luggage to a hotel room.

Benelux – term for the countries of Belgium, the Netherlands, and Luxembourg.

Berth – usually refers to the bed in a ship’s cabin; also the space at which a ship is docked.

Bespoke tour – a tour that is customized, personalized and tailor-made for the traveler.

Biking Trips and tours – Bicycle trips and touring means self-contained cycling trips or pleasure, adventure and autonomy rather than sport, commuting or exercise. Touring can range from single to multi-day trips, getaways or vacations.

Birthday travel – a type of milestone travel celebrating a birthday, quite often marking decade birthday milestones such as 40 th , 50 th , 60 th , 70 th etc. birthdays.

Blackout dates – Specific dates in which special fares or promotions do not apply. Typically exist around holidays or special events.

Block – A number of rooms, seats, or space reserved in advance, usually by wholesalers, tour operators, or receptive operators who intend to sell them as components of tour packages.

Blocked space – seats, rooms, and/or cabins held on airlines, in hotels, or aboard ships. Usually held speculatively and made available at reduced rates.

Boarding pass – a receipt with a seat number, now issued only at check-in at the airport. A ticket is not valid unless a boarding pass has been issued. A Boarding Pass is not a ticket, but allows you to board a plane or ship or other mode of transportation.

Boarding Pass – Bonded – protected or guaranteed by a bond, usually referring to the protection of passenger’s funds.

Booking form – A document which purchasers of tours must complete to give the operator full particulars about who is buying the tour. It states exactly what is being purchased (including options) and must be signed as acknowledgment that the liability clause has been read and understood.

Boutique Hotel – A boutique hotel is a type of hotel, usually smaller and more intimate than a chain hotel, which conforms to a niche.

Bow – Bow is a directional term. Front of a ship or the nose of an aircraft; specifically, the foremost point of the hull of the craft.

Breakage – Expenses budgeted for a tour but not used or expended, thus resulting in additional profit to the tour operator. Examples include meals budgeted but not consumed, currency fluctuations in favor of the tour operator, or the tour selling to much larger numbers of passengers than expected.

Break-even point (BEP) – The point at which revenues and expenses are the same. For example, the BEP is the number of products (or seats, cabins, tickets, etc.) that must be sold for a company to break even. The BEP is calculated as fixed costs divided by the selling price less variable costs. See reasonable number.

Break-even pricing – Pricing a product based on a forecast of the break-even point and the cost of achieving the break-even point.

Bridge – the navigational center of a ship.

Bucket list destinations – Bucket list travel is a list of destinations a person wants to travel to and experience before reaching a certain age or dying.

Bulk contract – An agreement whereby an airline sells large blocks of seats at a discount for resale by a third party.

Bulk fare – A reduced fare for purchases of a large number of tickets.

Bulkhead Seat – Seats located directly behind a bulkhead wall separator. As these seats don’t have the benefit of a seatback in front of them.

Bulkhead – A partitioning wall, usually referring to one within the cabin of an aircraft, or perhaps on another mode of transportation.

Bumping – the airline practice of denying boarding to confirmed passengers who hold tickets on a specific flight, due to an oversold condition. The carrier will ask for volunteers to take later flights, and will normally provide some sort of compensation in the form of vouchers or tickets for future travel. Rules for when compensation must be provided are complicated; ask the ticket agent for a copy of that carrier’s rules, as each has their own set of guidelines.

Business class – While amenities vary based on the airline, business class generally falls between first class and coach.

Cabin – the passenger area on an aircraft; the stateroom aboard a cruise ship.

Cabin Crew – The collective group of flight attendants and the purser as a whole. The cabin crew is responsible primarily for handling the duties within the cabin.

Cabin steward – the person responsible for maintaining/cleaning the cabins aboard ship.

Cabin-(Aircraft) – The section of the aircraft in which passengers travel.

Cabin – A sleeping room on a ship.

Cancellation penalty – the monetary penalty due when travel plans are cancelled, usually after final payment has been made.

Cape – A small version of a peninsula, usually long and narrow, that juts far out into a body of water.

Captain – (Aircraft-The captain is the pilot in command (PIC), which is the person in the cockpit sitting on the left with 4 stripes on their shoulder.

Card mill – a “business “that sells potentially fake travel agent ID cards, usually in a sort of pyramid scheme, whereby the buyer intends only to partake of any legitimate agent benefits.

Carrier – generic term for any company that transports passengers and/or freight.

Carry-on – currently, there are no uniformly enforced airline restrictions concerning carry-on luggage.

Cashless cruising – a term that applies to the system of onboard payment used for most all cruises; the final bill for any such purchases is presented against a credit card or cash deposit given upon check-in. The final statement itemizes the purchases of all passengers in a cabin, such as drinks, shore tours, etc.

Casual research – A form of marketing research that is used to test cause-and-effect relationships between a marketing program and customers.

Cay – pronounced “key” – term for a small island, used primarily in the Caribbean, such as Princess Cay.

Celebrity Travel – celebrity and high net worth travel is an ultra-luxurious travel category describing the highly demanding travel requirements of celebrity and high net worth travelers characterized by the ultra-luxurious travel modalities and destinations with attention to privacy, security and confidentiality.

Certified Tour Professional (CTP) – A designation conferred upon tour professionals who have completed a prescribed course of academic study, professional service, tour employment, and evaluation requirements. The CTP program is administered by the National Tour Association (Lexington, KY) and is open to individuals employed in any segment of the tourism industry.

Certified Travel Associate – (CTA) – a travel professional certified by the Institute of Certified Travel Agents, who has passed a series of rigorous tests, assuring the traveling public of professional competence.

Certified Travel Counselor (CTC) – A designation attesting to professional competence as a travel agent. It is conferred upon travel professionals with five or more years of industry experience who compete a two-year graduate-level travel management program administered by the Institute of Certified Travel Agents (Wellesley, MA).

Certified Travel Industry Specialist (CTIS) – A designation conferred upon American Bus Association member company employees who successfully complete five correspondence courses (three) required and two electives and written evaluation of eight marketplace seminars.

Chain-ratio method – A method for forecasting market demand by multiplying a base market figure by a series of consumption constraints.

Chamber of commerce – A DMO that operates at the local level and is comprised of businesses that are not necessarily associated with the tourism industry.

Chancery – The physical building that houses an embassy and its diplomatic delegation.

Change of equipment – when a flight, with a single flight number, lands and changes the type of airplane used before continuing on to its destination.  Sometimes referred to as a change of gauge.

Charter service – The transportation of preformed groups (organized by someone other than the carrier), which have the exclusive use of the vehicle.

Charter – To hire the exclusive use of any aircraft, motorcoach, or other vehicle.

Chauffer driven tours – a chauffeur tour is a tour driven by a chauffeur employed to drive a passenger motor vehicle, especially a luxury vehicle such as a large sedan or limousine.

Chunnel – slang for the tunnel beneath the English Channel, from England to France, through which the Eurostar train passes.

Circle itinerary – A travel routing design that overnights in different locations and returns to the point of departure without retracing the travel route.

Circle trip – any trip that involves more than a single destination, but which returns to the initial point of departure.

City guide – A tour guide who points out and comments on the highlights of a city, usually from a motor coach or van.

City Pair – The departure and destination points of an air or rail journey.

City tour – A sightseeing trip through a city, usually lasting a half day or a full day, during which a guide points out the city’s highlights.

Class of Service – The inventory in which a passenger is booked according to the fare purchased. (E.g. a full fare coach class cabin is usually Y class of service)

CLIA – Cruise Lines International Association, located in New York City, NY.

Client list – A printout of the names of all tour participants.

Client mix – Objectives set by companies to achieve percentages of customers from different market segments.

Closed-end question – A question for which the answers are provided for the respondent, who chooses only from those answers.

Closeout – Finalization of a tour, cruise, or similar group travel project after which time no further clients are accepted. Any unsold air or hotel space is released, and final lists and payments are sent to all suppliers.

Coach – the “economy ” section of an aircraft, which may have literally scores of different fares for the same flight.

Collision damage waiver-(CDW) – Optional insurance provided by car rental companies that eliminates all responsibility of the driver in case of an accident. Car rental insurance covering any damage to a rental vehicle (CDW) many credit card companies cover their clients in this area if they use that card to pay for the rental. Check with you credit card company to see if you are covered and to what extent.

Commission – Money paid to a travel agency or ARC number by suppliers for generating bookings.

Commission cap – The limit placed on commissions paid to travel agents for the sale of air tickets, regardless of their price; designed to allow airlines to increase their profits at the expense of their primary distribution system – the travel agents.

Commissionable tour – A tour available through retail and wholesale travel agencies which provides for a payment of an agreed-upon sales commission to the retailer or wholesale seller.

Common carrier – Any person or organization that offers transportation for a fee.

Commuter – term referring to the small, regional airlines, sometimes called puddle-jumpers.

Comp policy – Arrangements for free tickets, rooms, meals, etc.

Complimentaries (comps) – Items provided free of charge, such as rooms, meals, tickets, airfare, gifts, souvenirs, etc.

Computerized reservation system (CRS) – An automated system used by travel agents that contains pricing, availability and product descriptions for hotels, car rentals, cruises, and air transportation.

Concierge – a hotel employee who provides additional advice, recommendations, and other services to guests, such as restaurant reservations. An employee of the hotel whose primary task is to serve as the liaison between the hotel and non-hotel attractions, facilities, services, and the guest.

Concierge Level – special service level normally offered at higher grade hotels that provide the guest additional amenities and information, typically at a higher rate.

Conditions – The section or clause of a transportation or tour contract that specifies what is not offered and that may spell out the circumstances under which the contract may be invalidated (in whole or in part).

Configuration – The interior arrangement of a vehicle, particularly an airplane. The same airplane, for example, may be configured for 190 coach-class passengers, or it may hold 12 first-class passengers and 170 coach passengers, or any other combination within its capacity.

Confirmed reservation – An oral or written statement by a supplier that he has received and will honor a reservation. Oral confirmation have virtually no legal weight. Even written or faxed confirmations have specified or implied limitations. For example, a hotel is usually not obliged to honor a reservation if a guest arrives after 6 p.m., unless late arrival has been guaranteed.

Confluence – A confluence, also known as a conflux, is the meeting point of two flowing bodies of water, such as streams or rivers; the place where they come together.

Conflux – A confluence, also known as a conflux, is the meeting point of two flowing bodies of water, such as streams or rivers; the place where they come together.

Connecting Flight – A flight that makes a stop at an intermediate point where travelers must change planes in order to connect to another flight to reach their destination. (I.e. San Francisco to Chicago and Chicago to New York).

Connecting room – Two rooms that are connected to each other by a door.

Consolidation – Cancellation by a charter tour operator of one more flights associated with a specific charter departure or departure period, with the transfer of passengers to another charter flight or flights to depart on or near the same day. Also, selling the same tour with identical departure dates through a number of wholesalers, cooperatives, or other outlets in order to increase sales and reduce the possibility of tour cancellations.

Consolidator – A wholesaler who purchases airline tickets in bulk and re-sells them to individuals and travel agencies at a discounted rate. These fares tend to have complex restrictions, but can be cheaper than buying direct from the airline. Consolidator fares are found to have the most savings on international flights.

Consortium – A collection of organizations made up of independently owned and managed agencies who band together to increase their buying power.

Consulate – Essentially a satellite office of the embassy, but its roles are limited in scope.

Consul – Head diplomat of the consulate.

Consumer protection plan – A plan offered by a company and/or association that protects the customer’s deposits and payments from loss in the event of company bankruptcy.

Consumer – The actual user of a product or service. See also customer.

Consumption constraints – Issues that limit the number of people in a market who will purchase a product.

Continental breakfast – At a minimum, a beverage (coffee, tea, or milk) and rolls and toast, with fruit juice sometimes included.

Continent – Large landmasses that the world is divided into, by convention, although it is generally-accepted that there are seven.

Contract – A legally enforceable agreement between two or more parties.

Control Tower – Often referred to as simply the tower, the people in the Control Tower oversee aircraft movements at the airport, including ground traffic.

Convenience sample – A collection of research subjects who are the easiest for the researcher to select.

Convention and Visitors Bureau (CVB) – A nonprofit DMO that operates at the county and city level. A CVB typically encourages groups to hold meetings, conventions, and trade shows in its city.

Co-op tour – Selling a tour through a number of wholesalers, cooperatives, or other outlets in order to increase sales and reduce the possibility of tour cancellations.

Cooperative (co-op) advertising – An agreement between two parties to share the cost of placing an advertisement.

Corporate agency – A travel agency that usually caters to medium-large sized businesses.

Corporate Rate – a hotel rate that is designed to appeal to the needs of the business traveler. It is not necessarily a discounted rate or the minimum rate offered by the hotel. Corporate rates normally guarantee the best available room at a fixed cost for a specific period of time, typically outlined in a contract between the hotel and company.

Corporate Travel – Corporate Travel is travel arranged by a business for business purposes. A division or department of a travel agency devoted to such travel.

Costing – The process of itemizing and calculating all the costs the tour operator will pay on a given tour.

Cost-plus pricing – See markup pricing.

Couchette – the sleeping compartment of a train that can contain up to 6 beds.

Coupon – See voucher.

Cruise Tour – A land and sea vacation, which combines a cruise with a multi-night land tour to inland destinations that the ship can’t reach.

Cruise – A cruise is a voyage on a ship or boat taken for pleasure or as a vacation and usually docking at several port destinations.

CST – Central Standard Time.

CTA – Certified Travel Associate.

CTC – Certified Travel Counselor – the ultimate in travel professionals, CTC certification can be compared to the “Master’s Degree “of the industry.

Cuisin e – a style of cooking characterized by distinctive ingredients, techniques and dishes associated with a specific culture or geographic region.

Culinary Tourism – Culinary tourism is defined as the pursuit of unique and memorable eating and drinking experiences. By combining travel with these edible experiences, culinary tourism offers both locals and tourists alike an authentic taste of a specific culture or geographic region.

Cultural Tourism – Cultural tourism is the category or tourism concerned with a country or region’s culture, specifically the lifestyle of the people in those geographical areas, the history of those people, their art, architecture, religion(s), and other elements that helped shape their way of life.

Cultural Travel – This is travel with regard to a region’s culture and history.

Culture – Similar shared traits or characteristics unique to an ethnic group, region, or nation.

Custom tour – A travel package created specifically for a preformed group or niche market.

Customer – The buyer of a product or service. See consumer.

Customized tours – a customized tour is a tour category where an independent travel plan is designed and arranged just for the traveler’s needs, goals and desires. This type of travel includes private airport/hotel transfers, hotels, internal airfare, trains, cruises, performances, events, activities and privately guided tours.

Customs – The common term for U.S. Customs Service, the federal agency charged with collecting duty on specified items imported into the country. The agency also restricts the entry of forbidden items.

CVB – Convention and Visitor’s Bureau (generic term).

Database – A computerized, organized collection of individual customer information.

Day rate – Also called a day room. A reduced rate granted for the use of a guest room during the daytime, not overnight occupancy. Usually provided on a tour when a very late-night departure is scheduled.

Day tour – An escorted or unescorted tour that lasts less than 24 hours and usually departs and returns on the same day. See sightseeing tour.

Deadheading – Making a trip or a segment of a trip without passengers, such as driving an empty motor coach somewhere.

Debark – to get off an airplane or passenger ship.

Deck – the floor area of a ship. Some cruise liners have as many as 11 to 14 decks or more.

Deck plan – the drawing representing the location of the decks, public rooms, cabins, etc. of a cruise ship.

Demand generators – Strategies and programs developed by DMOs and suppliers to generate destination demand. Examples include festivals, events, cultural tours, and consumer promotion.

Demands – A consumer’s wants backed by the ability to purchase.

Demographics – Population measures, such as age, gender, income, education, race/ethnicity, religion, marital status, household size, and occupation.

Denied-boarding compensation – that payment and/or voucher given those bumped from a flight; may be somewhat negotiable – always ask! See “bumping”.

Department of State – the US government agency that, among other things, issues cautions and warnings concerning travel to many points worldwide. Connect to the Department of State for the latest updates for the areas you are interested in.

Departure point – The location or destination from which a tour officially begins.

Departure tax – Fee collected from a traveler by the host country at the time of departure.

Deplane -To disembark, or get off, a plane.

Deposit policy – A specified amount or a percentage of the total bill due on a specified date prior to arrival.

Deposit – An advance payment required to obtain and confirm space.

Descriptive research – a form of marketing research that is used to provide detailed answers about customer markets.

Destination alliance – A DMO that operates as a for-profit association of select suppliers who form a paid-membership network to promote their services to travelers.

Destination management company (DMC) – A for-profit company that operates similar to a CVB by providing planning and execution services for the convention and meeting market.

Destination marketing organization (DMO) – An organization that promotes a location (city, region, state province, country) as a travel destination.

Destination Weddings – a destination wedding a category of travel where couples celebrate their marriage at a destination of their choosing away from home.

Destination – The geographic place to which a traveler is going.

Dine-around-plan – A meal plan, usually prepaid, that allows one to dine at various restaurants in an area.

Direct access – Refers to a travel agent’s ability to get directly into an airlines database to get true last-seat availability and correct pricing – a big difference between internet fare ” quotes ” and an agent’s CRS ( Computer Reservations System ).

Direct Flight – A flight that goes from a traveler’s origin to their final destination with one or more intermediate stops. No change in aircraft occurs. (I.e. San Francisco to New York with a stop in Chicago)

Direct marketing – Sales and marketing communication that feature direct interaction between a company and its customers without any distribution intermediaries.

Disaster Tourism – Travel when tourists go to an area that may be or may have been affected by natural disasters, civil strife, or warfare.

Disclaimer – a legal document that advises clients that a travel agent acts only as a middleman in the sale of travel products; any liability ultimately lies with the supplier, i.e. airline, hotel, car rental company, tour operator, railway, etc.

DMC – Destination Management Company

Docent – A tour guide who works free of charge at a museum.

Domestic fare – a fare charged for travel within a country.

Double booking – a not-nice practice of holding reservations to the same destination for the same times/days, on the same carriers but through different travel agencies, when only one reservation will ultimately be used.

Double Double – A room with two double beds.

Double occupancy – the way in which almost all cruise fares and tour packages are quoted, that is, based on two people traveling together. Most hotel rooms are quoted based on two adults to a room.

Double-occupancy rate – The price per person for a room to be shared with another person; the rate most frequently quoted in tour brochures.

Double-room rate – The full price of a room for two people (twice the double-occupancy rate.)

Downgrade – To move to a lesser level of accommodations or a lower class of service.

Driver guided tours – A driver guided tour is a tour guided by an individual that operates a vehicle while providing commentary in a front-line position who leads participants (individual or groups) on tours, ensures that itineraries are followed, provides commentary in an informative and entertaining manner, and creates positive experiences for tour participants.

Driver-guide – A tour guide who does double duty by driving a vehicle while narrating.

Drop-off charge – the fee added to a car rental when the vehicle is returned to a city other than where it was originally rented. In some states, there is no drop off fee most of the time, such as in Florida.

Duty-free imports – Item amounts and categories specified by a government that are fee of tax or duty charges when brought into the country.

Early Check-In – A perk that allows a guest to check in at an earlier time than the standard check-in time.

Eco/Sustainable Tourism – Eco or Sustainable Tourism is tourism directed toward exotic, often threatened, natural environments, especially to support conservation efforts and observe wildlife.

Eco-Conscious Travel – Though often interchangeable, being “eco-conscious” literally means that one is simply aware of their environmental impact.

Eco-Friendly Travel – Though often interchangeable, being “eco-conscious” literally means that one is simply aware of their environmental impact.

Economic impact study – Research into the dollars generated by an industry and how these dollars impact the economy through direct spending and the indirect impact of additional job creation and the generation of income and tax revenue.

Ecotour – A tour designed to focus on preserving the environment, or to environmentally sensitive areas.

Ecotourism – Tourism directed at exotic and/or endangered destinations while fostering an environmental understanding and conservation.

Educational tour – A tour designed around an educational activity, such as studying art.

Elder hostel – hostel catering to seniors – see “hostel”.

Electronic ticket – a “paperless” airline ticket allowing one to check-in and fly with just proper photo ID. What may look like a ticket is actually just a paper passenger receipt. E-tickets cannot be lost, or used by anyone else, so they are safer than standard paper tickets, which may soon become extinct. One drawback is that e-tickets on one carrier cannot be honored by another, so in a cancelled-flight snafu, the original carrier must print hard copy tickets before another airline can accept them. This presents major paperwork problems for the affected carrier.

Embark – to board a plane or cruise ship.

End suite – in the hotel industry, indicates that a certain feature(s) is directly in the room, or adjacent to that room.

English breakfast – basic meal of cereal, juice, eggs, meats, and other beverages. Common with most hotels in the UK/Great Britain.

Environmental scanning – The process of monitoring important forces in the business environment for trends and changes that may impact a company.

Errors and Omissions Insurance – Insurance coverage equivalent to malpractice insurance, protecting an agent’s or operator’s staff if an act of negligence, an error, or an omission occurs that causes a client great hardship or expense.

Escort – See tour director.

Escorted group tour – A group tour that features a tour director who travels with the group throughout the trip to provide sightseeing commentary and coordinate all group movement and activities.

Escrow accounts – Funds placed in the custody of licensed financial institutions for safekeeping. Many contracts in travel require that agents and tour operators maintain customers’ deposits and prepayments in escrow accounts.

ES T – Eastern Standard Time.

Estimated Time of Arrival – Literally, the estimated time of the transport’s arrival. As opposed to the ATA (Actual Time of Arrival), the ETA is the time that the flight or transport arrives.

Estuary – A body of water connecting a flowing river and a larger body, such as a sea or ocean. Because it is the transition point.

ETA – estimated time of arrival.

ETD – estimated time of departure.

Ethnicity – A term that groups people together with a similar cultural identity; unlike terms such as nationality, ethnicity is more ambiguous.

Ethno-Tourism – Focusing on exploration of indigenous populations and their respective culture and traditions.

E-Ticket – Regarding transportation, especially on airlines, an electronic ticket, or e-ticket, is the digital version of a paper ticket, issued via email.

Eurailpass – a special fare ticket that allows either unlimited train travel, or travel for a certain number of days/weeks, in many European countries (except in Britain, where the Britrailpass offers similar travel in England, Scotland, and Wales).

European pla n – a rate at a hotel that includes no meals.

Exchange order – See voucher.

Exclusive fare – Discounted airfares offered by travel consolidators.

Excursion – a side trip from a main destination, usually at added cost and optional.

Excursion Fare – special airline fares with restrictions such as minimum and maximum stays.

Exotic Travel – Exotic travel refers to a category of travel that is strikingly, excitingly and mysteriously different or unusual.  Exotic travel is travel that is completely different than what a traveler is accustomed to and is highly subjective in nature.

Experiential Travel – Experiential travel is also known as immersion travel and is a form of tourism in which people focus on experiencing a country, city or particular place by connecting to its history, people and culture.

Exploratory research – A form of marketing research that’s used to obtain preliminary information and clues. It is most often used when the marketing problem is ambiguous.

Extension – A fully arranged sub-tour offered optionally at extra cost to buyers of a tour or cruise.

Extensions may occur before, during, or after the basic travel program.

FAM (familiarization) tour – A free or reduced-rate trip offered to travel professionals to acquaint them with what a destination, attraction, or supplier has to offer.

Familiarity Tour – A familiarity tour as used in the travel industry it is a tour of a travel destination, travel accommodation, travel activity or travel mode (airline, cruise, ground transportation) to familiarize a travel advisor and provide knowledge and direct experience with the product or service so they can better serve their clients.

Family plan – offered by most hotels, allow children to stay in the same room as parents, at no additional charge. Age requirements vary between hotels.

Family Vacation – a family vacation is a travel category referring to travel involving family members. It is also commonly referred to as multi-generational travel.

Familymoon – A neologism term used to describe a type of honeymoon a newlywed couple can make along with their children from previous relationships.

Fare Aggregator – Fare aggregators’ redirect the users to an airline, cruise, hotel, or car rental site or online travel agent for the final purchase of a ticket. Aggregators’ business models include getting feeds from major OTAs, then displaying to the users all of the results on one screen. The OTA then fulfills the ticket. Aggregators generate revenues through advertising and charging OTAs for referring clients.

Fare Basis – the letters and numbers assigned to a specific fare like an identification number.

Fare basis (code) – The code that determines the price of an airline ticket.

Final Boarding Call – Last call to board before the jet bridge closes and the flight departs, leaving late passengers stranded.

First class – The class which offers the most premium service. Enhanced seating, meal selection, and drink offerings staples of this services.

First Officer – Pilot who is second in command. The pilot in the cockpit sitting on the right with 3 stripes.

Fishing Trips and tours – a fishing trip or fishing tour is a travel tour category where groups of fisherman are provided guided tours and typically lodging with the overall purpose of catching fish.

FIT – foreign independent tour – actually used generically now for a travel package put together by a travel agent from separate components such as car, hotel and airfare, adjusted exactly as the traveler wishes. May include city tours, theater tickets, and other “independent ” options, and may also include custom mapping/routing to accomplish the client’s goals. It now is more commonly used as an acronym for Flexible Independent Travel.  It describes a type of travel or tourism that does not incorporate a packaged tour but is nonetheless customized by a travel-selling professional.

Fjord – a narrow inlet from the ocean, usually bounded by cliffs, and with spectacular scenery. Most are located in Alaska, Norway, and New Zealand.

Flight Attendant – Commonly referred to as stewards/stewardesses and air hosts/hostesses, flight attendants are available to ensure the safety and comfort of the passengers of an aircraft.

Flight Crew – Sometimes called the aircrew, the flight crew consists of everyone hired by the airlines on a flight, including pilots, pursers, and flight attendants.

Fly/drive tour – An F.I.T. package that always includes air travel and a rental car and sometimes other travel components.

Fly-drive package – a travel package featuring airfare, rental car, and perhaps hotels. Usually less expensive than booking each separately.

Folio – An itemized record of a guest’s charges and credits which is maintained in the front office until departure. Also referred to as a guest bill or guest statement.

Fore – Directional term. Towards the front of the craft, lengthwise, such as the bow of a ship or the nose of a plane. Opposite of aft.

Frequent Flier Program – A program that a traveler can enroll in that earns them rewards such as free flights on a particular airline for being a loyal customer of that airline.

Frequent Flier – One who flies frequently.

Frequent Independent travel (F.I.T.) – A custom-designed, prepaid travel package with many

Full house – A hotel with all guest rooms occupied.

Full service hotel – a hotel with restaurant facilities.

Function room – A special room that is used primarily for private parties, banquets, and meetings. Also called banquet rooms.

Funnel flight – a flight, such as on a regional or commuter carrier that “feeds “larger planes which continue on to other destinations. Also, the use of a single flight number for an itinerary that really involves a connection with two separate flight numbers, thus making the itinerary appear to be a direct flight with a change of aircraft as opposed to a connection. Just call it a connection and be done with it.

Fuselage – The aircraft’s main body section, the cylindrical, central piece that contains the cabin and holds the crew and cargo.

Galley – The kitchen/kitchenette area of a plane or train or ship. On a plane, the galley may be a small affair with a simple arrangement and a few carts.

Gate-Airport – The specific area in an airport where passengers board a plane for a flight. Gates are located in concourses.

Gateway – City, airport, or area from which a flight or tour departs.

GDS – Global Distribution Systems – A system containing information about availability, prices, and related services for Airlines, Car Companies, Hotel Companies, Rail Companies, etc. and through which reservations can be made and tickets can be issued. A GDS also makes some or all of these functions available to subscribing travel agents, booking engines, and airlines. The GDS leaders are Amadeus, Apollo/Galileo/Worldspan, Sabre.

Geotourism – this is “tourism that sustains or enhances the distinctive geographical character of a place.

Global distribution system (GDS) – An international computer reservation system that accesses many databases of suppliers, airlines, etc. in different countries, such as Sabre.

Graduation travel – graduation travel is a milestone category of travel which refers to travel celebrating a graduation typically from high school or college.

Greenwich Mean Time (GMT) – solar based time in Greenwich, England, fun which time in all other time zones in the world is based.

Gross Registered Tonnage (GRT) – a measurement of the enclosed space in a ship. Cruise ships in the 70,000 ton range are considered “superliners”.

Ground operator – See receptive operator.

Group – several persons, usually 10 or more, traveling together. Group travel is often available at discounted rates.

Group leader – An individual who has been given the responsibility of coordinating tour and travel arrangements for a group. The group leader may act as a liaison to a tour operator or may develop a tour independently (and sometimes serve as the tour director).

Group Rate – A negotiated rate on travel, perhaps a stay or vacation plan, that incentivizes for a large crowd or group that books together.

Group tour – A travel package for an assembly of travelers that has a common itinerary, travel date, and transportation. Group tours are usually prearranged, prepaid, and include transportation, lodging, dining, and attraction admissions. See also escorted group tour.

Group Travel – group travel refers to a category of travel with a group arranged by an outside company or organization or travel with a group of friends and family that you have organized yourself. Some groups are small, private and escorted, while others large.

GST – Goods and Services Tax, such as levied in Canadian Provinces.

Guaranteed share – a cruise term that promises that a companion will be found for a single passenger, at a special rate. That rate will be honored even if the cruise line is unable to find a cabin mate. The rate is usually the going double-rate at that time, and is much less than the single person rate for that cabin.

Guaranteed tour – A tour guaranteed to operate unless canceled before an established cutoff date (usually 60 days prior to departure).

Guest account – See folio.

Guest houses – a guest house is a private house offering accommodations to paying guests.

Guest ranch – a guest ranch, also known as a dude ranch, is a type of ranch oriented towards visitors or tourism. It is considered a form of agritourism.

Guide or guide service – A person or company qualified to conduct tours of specific localities or attractions.

Guided tour – A local sightseeing trip conducted by a guide.

Half pension – a hotel rate that includes breakfast and one other meal, usually dinner. Sometimes called Modified American Plan (MAP) or demi-pension.

Hard-copy – a printed version of a document, such as an airline ticket or hotel voucher.

Head tax – Fee charged for arriving and departing passengers in some foreign countries.

Hidden-city ticketing – another airline no-no; buying a ticket from A to C with a stop in B. The passenger gets off at B, which was the intended destination anyway. The ticket is purchased because the fare from A to C is LESS than A to B.

High season – the time of year when a destination gets the greatest crowds, and thus can increase hotel and rental car rates, etc. As an example, summertime is high season for travel to Europe (just check the airfares!).

High season – See peak season.

Hiking Trips and tours – a hiking trip or hiking tour is a category of travel vacation or getaway where the traveler is walking or hiking as the major mode of transportation.

Honeymoon Travel – Honeymoon travel is a category of travel where a newly married couple travels while celebrating their marriage.

Hosted group tour – A group tour that features a representative (the host) of the tour operator, destination, or other tour provider, who interacts with the group only for a few hours a day to provide information and arrange for transportation. The host usually does not accompany the group as it travels.

Hostel – an inexpensive accommodation, usually dormitory style, popular with the student crowd – thus the term “youth hostel”.

Hotel – a hotel is an establishment providing accommodations, meals, and other services for travelers and tourists.

House – A synonym used for hotel.

Hub – an airport or city in which an airline has a major presence and many flights to other destinations. As an example, Delta has a hub in Atlanta. Many carriers use the hub-and-spoke system to maximize profits by keeping the aircraft in the air as much as possible. Flights to the hub are many, and from there flights too many other destinations are scheduled.

Hub-and-spoke itinerary – A travel routing design that uses a central destination as the departure and return point for day trips to outlying destinations and attractions.

Hurricane season – in the Caribbean primarily, and the Southeastern US, a period from June through October during which such storms are likely to occur.

IATA – International airline industry trade group, headquartered in Montreal, Canada, with executive offices in Geneva, Switzerland.

IATAN – International Airlines Travel Agent Network – administers the IATAN card, the only widely accepted form of legitimate travel agent identification.

In season – meaning only available at certain times of the year.

In transit – en route; in the process of traveling.

Inbound operator – A receptive operator that usually serves groups arriving from another country.

Inbound tour – A tour for groups of travelers whose trip originates in another location, usually another country.

Incentive or incentive commission – See override.

Incentive tour – A trip offered as a prize, particularly to stimulate the productivity of employees or sales agents.

Incentive trave l – travel as a reward for an employee’s outstanding performance.

Incidental Charge – Items and services billed to a room after their use, such as movies, phone calls, etc.

Incidentals – Charges incurred by the participants of a tour, but which are not included in the tour price.

Inclusive tour – a package tour that bundles transportation, accommodations, transfers, sightseeing, possibly some meals, etc.

Inclusive tour – See all-inclusive package.

Independent tour – A travel package in which a tour operator is involved only with the planning, marketing, and selling of the package, but is not involved with the passengers while the tour is in progress.

In-flight Service – Entertainment (movies, television, etc.), meals, beverages and other items made available during a flight for the convenience of the passenger.

Inside cabin – a stateroom aboard ship that has no window. Sometimes smaller, but at times the same size as an outside cabin.

Intercontinental – Having to do with two continents. In travel, transit from one continent to another. Not to be confused with transcontinental.

interline connection – a flight on one airline that connects to a flight on another carrier – these tickets are usually more expensive than flying all on one carrier but may be the only way to get to a destination in some cases.

Intermodal tour – A tour that uses several forms of transportation, such as a plane, motorcoach, cruise ship, and train.

International Air Transport Association – International airline industry trade group, headquartered in Montreal, Canada, with executive offices in Geneva, Switzerland.

International Date Line – at 180 degrees longitude, the date on one side of this imaginary line, running from the north to the South Pole, is different from the other. The line runs through the Pacific Ocean, and because of it, it is possible to leave one destination on one day, and arrive in another the day before

International Rate Desk – Utilizes all available resources to ensure the lowest fare for your selected itinerary, including splitting tickets, consolidator fares, and available discounts.

Involvement device – An element of direct mail that gets the reader involved in the process of evaluating and/or responding to the solicitation.

Itinerary – A list of a tour’s or entire trip’s schedule and major travel elements.

Jet Bridge – An enclosed, movable connector which extends from a terminal gate to a plane, allowing passengers to board and disembark without having to go outside.

Jet lag – an upset of one’s biological clock, due to travel across many time zones; not all folks are affected by it.

Jones Act – a law dating back to 1886, that forbids foreign-flagged ships from carrying passengers between US ports with no foreign port stops in-between.

Judgment sample – A sample based on the researcher’s choice of subjects for a study.

Jump Seat – A flight term referring to an auxiliary (extra) seat for persons who are not operating the aircraft, such as the cabin crew or perhaps a trainee.

Kilometer – a measure of distance used in almost all other countries, at about 5/8 mile.

King room – a hotel room with a king bed.

Knot – a nautical measure of speed equaling approx. 1.5 mph. A ship traveling at 15 knots is traveling at about 22 mph.

Kph – kilometers-per-hour – land speed measurement in most other countries. 60 kph equals approx. 36 miles-per-hour.

Land arrangements – all the details of a land portion of a trip (hotel, car, tours, sightseeing, etc.).

Land Destinations – A land destination or travel destination is a place to which one is journeying, typically for its inherent or exhibited natural or cultural value, historical significance, natural or built beauty, offering leisure, adventure and amusement.

Land operator – See receptive operator.

Land Transfers – travel by train, bus, limo or taxi to and from an accommodation, plane or cruise ship.

Land-only – a rate that does NOT include airfare; usually includes most other land-based charges such as accommodations, transfers, taxes, and perhaps other optional items like theme park tickets, rental care, etc.

Last-seat availability – the ability of a travel agent to get, literally, the ” last seat ” for you on a particular flight, either at a certain fare or actually the last remaining seat on an aircraft. See “direct access”.

Late booking fee – a fee due if travel arrangement are made at the last minute. Normally covers express delivery of documents and other last-minute arrangements that may have to be made by a tour operator.

Late Checkout – A more exclusive perk for some guests that allow a few extra hours to check out from the normal hours.

Latitude – imaginary horizontal lines of angular distance, measured in degrees north or south of the equator.

Layover – a period of time spent during a trip, sometimes overnight, while waiting for a transportation connection – usually a change of planes.

Layover – The period of time spent between connecting flights.

LDW – loss damage waiver – additional insurance pertaining to car rentals, covering theft and vandalism in addition to accident damage.

Lead-in price – the lowest available price for a travel product, often pertaining to cabins on a cruise ship. Usually, there are only a few staterooms available on board each cruise liner in this category, but often better accommodations are only slightly higher in price. Rock-bottom price shoppers normally insist on these rates, though they sell out quickly.

Leeward – the side of a ship or an island that is located opposite from the direction of the prevailing wind -the “Leeward Islands” in the Caribbean for example.

Leg – Portion of a journey between two scheduled stops.

Leisure travel – Usually signifies traveling for relaxation, vacation, or to visit friends/family. Travel for pleasure as opposed to business.

Letter of agreement – A letter from the buyer to the supplier accepting the terms of the proposal. This may also be the supplier’s first proposal that has been initialed by the buyer.

Lido deck – usually the deck on a cruise ship that surrounds the pool area.

Limited service hotel – a hotel property without a restaurant.

List broker – A seller of mail lists for direct marketing.

Load factor – The number of passengers traveling on a vehicle, vessel, or aircraft compared to the number of available seats or cabins.

Locater map – A map of an area or a city, showing locations of attractions and hotels.

Lodging – Any establishment that provides shelter and overnight accommodations to travelers.

Logistics – Management of the details of an operation.

Low season – the period when a destination experiences its lowest prices and the fewest number of guests.

Low season – See off peak.

Lower (bed) – in a cruise stateroom, the bed(s) on the floor as opposed to the higher bunks (uppers), if any. On many ships, two lowers can be arranged to make a king or queen bed.

Lowest available fare – the current, lowest airfare available for purchase right then.

Lowest available fare – The most inexpensive flight currently available.

Lowest fare – the lowest published airfare between two cities; may not have seats available at that fare, as the airlines usually have a limited number of those seats on any given flight.

Luxury class – the most expensive, high-class accommodations or category of fare.

Luxury Cruise – Luxury cruises are the most comfortable and convenient way to see the world. Ships are usually smaller in size so the ratio of crew and staff to guests is generally higher than other cruise ships offering that premium service and attention to detail to be expected of exquisite vacations.

Luxury Ocean Cruise – a luxury ocean cruise is an ocean cruise on a luxury cruise ship or luxury cruise liner or passenger ship used for pleasure voyages, where the voyage itself and the ship’s amenities are a part of the experience, as well as the different destinations along the way.

Luxury River Cruise – a luxury river cruise is a river cruise on a luxury cruise ship or luxury passenger ship used for pleasure voyages, where the voyage itself and the ship’s amenities are a part of the experience, as well as the different destinations along the way.

Luxury travel – while luxury travel is completely subjective to the traveler, it can be loosely defined at travel that constitutes the state of great comfort and extravagant living.

Luxury vacations – a luxury vacation is a vacation that encompasses a state of great comfort and extravagant living.

Macro-environment – The broad forces in society and the business world that impact most companies.

Management Company – A firm that owns several lodging properties.

Manifest – Final official listing of all passengers and/or cargo aboard a transportation vehicle or vessel.

Market demand – The amount of a specific product or service that may be purchased during a certain period of time in a particular geographic area.

Market forecast – The realistic demand within a given time period for the products produced by all companies within a certain industry or product category.

Market – All existing and potential customers for a product or service.

Marketing mix – The 4 Ps of marketing- product, price, promotion, place (distribution).

Marketing plan – A written report that details marketing objectives for a product or service, and recommends strategies for achieving these objectives.

Marketing research – The function that links the consumer, customer, and public to the marketer through the systematic gathering and analyzing of information.

Markup pricing – Pricing a product by adding a standard markup to costs. Also called cost-plus pricing.

Markup – A percentage added to the cost of a product to achieve a selling price.

Master account – The guest account for a particular group or function that will be paid by the sponsoring organization. See folio.

Maximum stay – The longest period of time a traveler can stay at a particular destination and still qualify for the promotion or discounted fare.

Media – Communications channel such as broadcast (radio, TV), print (newspapers, magazines, direct mail), outdoor (billboards), and multimedia (Internet).

Meet-and-greet service – A pre-purchased service for meeting and greeting clients upon arrival in a city, usually at the airport, pier, or rail station, and assisting clients with entrance formalities, collecting baggage, and obtaining transportation.

Meeting/conference tour – A tour designed around a specific meeting or conference for the participants.

Microenvironment – Those forces close to a company that impact operations and marketing programs.

Midships – Directional term. Amidships, sometimes termed midships, is the center of the vessel or aircraft.

Minimum connect time – defined as the minimum time necessary between connecting flights – 30 minutes domestically, usually – ideally, at least an hour. The shortest time required in order to successfully transfer to a connecting flight. It is recommended to select a connecting flight that exceeds the minimum connection time.

Mission statement – The concise description of what an organization is, its purpose, and what it intends to accomplish.

Modified American plan (MAP) – meal plan that includes two daily meals, usually breakfast and dinner.

Motorcoach tour operators – Tour operators that own their own motorcoaches.

Motorcoach Tour – A tour that features the motorcoach as the form of transportation to and from destinations.

Motorcoach – A large, comfortable bus that can transport travelers and their luggage long distances.

MST – Mountain Standard Time.

Multi-day tour – A travel package of two or more days. Most multi-day tours are escorted, all-inclusive packages.

Multigenerational Travel – multigenerational travel is a travel category referring to travel with parents, siblings, kids, grandkids, and assorted family members with the goal to broaden horizons, provide opportunities to reconnect and provide an enriching assortment of shared experiences.

Murder-mystery tour – A tour that features a staged “murder” and involves travelers in solving the crime.

Mystery tour – A journey to unpublicized destinations in which tour takers aren’t told where they will be going until en route or upon arrival.

NACTA – National Association of Career Travel Agents – trade group representing primarily independent and home-based agents, now part of ASTA.

National tourism organization (NTO) – A federal-government-level DMO that promotes country as a travel destination.

Nautical Mile – Unit of length that is about one minute of arc of latitude along any meridian, but is approximately one minute of arc of longitude. Air-Sea distance measurement of approx. 1.1 statute miles.

Negotiated Rate – A discounted rate offered to a company based on the volume of business you agree to provide the selected vendor.

Net fare, net rate – Implies the commission has already been added to the price of the fare.

Net wholesale rate – A rate usually slightly lower than the wholesale rate, applicable to groups of individuals when a hotel is specifically mentioned in a tour brochure. The rate is marked up by wholesale sellers of tours to cover distribution and promotion costs.

Niche market – A highly specialized segment of the travel market, such as an affinity group with a unique special interest.

No show – a passenger who doesn’t show for a flight, hotel, or rental car booking. A guest with confirmed reservations who does not arrive and whose reservation was not canceled.

Non Stop Flight – Do not land in between your departure and arrival destinations. (I.e. San Francisco to New York)

Non-Changeable Ticket – A ticket that cannot be exchanged for a different route or flight once it’s been purchased.

Non-refundable – a fare that cannot be refunded either in cash or via a credit card credit; very seldom is there an exception.

Non-Refundable Ticket – A ticket that cannot be returned for cash or credit once it’s been purchased, but may be changeable for a fee.

Nonstop – A flight that travels directly to its destination without connections or layovers.

Non-transferable – A ticket that can only be used by the person who was originally scheduled to fly at the time of purchase.

NTSB – National Transportation Safety Board; investigates accidents and other incidents related to public transportation.

Objective and task method – A process for creating a promotion budget that sets objectives first, then defines the tasks needed to achieve those objectives, and then commits funds necessary to perform the tasks.

Occupancy rate – the percent of hotel rooms expected to be filled during a specific time period.

Occupancy – The percentage of available rooms occupied for a given period. It is computed by dividing the number of rooms occupied for a period by the number of rooms available for the same period.

Ocean view cabin – a cabin aboard a cruise ship with a window, such as a porthole or picture-window, and perhaps a balcony/verandah.

OCV – ocean view, usually in reference to a hotel room.

Offline connection – a change of aircraft also involving a change of carriers.

Off-peak – A less expensive time to travel as result of lower consumer volume during these periods.

On-site guide – A tour guide who conducts tours of one or several hours’ duration at a specific building, attraction, or site.

Onsite – An on-site is an expert travel provider that lives in the country they serve and has firsthand knowledge and long-standing relationships with all aspect of travel in their country.

Open jaw – a trip in during which there is no travel by air between two cities, such as a flight to Washington DC, then travel by rental car to Charlotte, NC, then a return by air from Charlotte back to the original departure city.

Open return – an air ticket with no return date specified. Rarely done these days, usually quite expensive and not allowed on most discounted fares.

Open-end question – A question that allows the respondent to provide a free-response answer.

Open-jaw itinerary – A travel routing design that departs from one location and returns to another. For example, travelers may fly into one city and depart from another one. Or a traveler may purchase round-trip transportation from the point of origin to one destination, at which another form of transportation is used to reach a second destination, where the traveler resumes the initial form of transportation to return to the point of origin.

Operations – Performing the practical work of operating a tour or travel program.

Operator – a company providing transportation or travel related services (airline, cruise line, railway, hotel, car Rental Company, etc.).

Operator – See Tour Operator.

Option date – drop dead date on which a reservation must be deposited or cancellation will result.

Optionals – Optional tour features that are not included in the base tour price, such as sightseeing excursions or special activities.

OTA – Online travel agencies, examples include Priceline, Expedia and Orbitz

Outbound – the departure leg of a journey.

Outbound operator – A company that takes groups from a given city or country to another city or country.

Outbound tour – A tour that takes travelers out of the area, usually from a domestic city to another country.

Outside cabin – see “ocean view ” cabin.

Outside salesperson – job description of a travel agency employee who sells travel but is not based primarily in the agency location most of the time.

Overbook – Accepting reservations for more space than is available.

Overbooking – the practice of selling more airline seats than are available on a specific flight, to make up for no-shows. Usually backfires on the carrier and at times can create much consumer ill-will. Requires passengers to be “bumped” – not always voluntarily. To some extent, happens in the hotel industry as well.

Overhead – Those fixed costs involved in regular operations, such as rent, insurance, management salaries, and utilities.

Override – A commission over and above the normal base commission percentage.

Packaged travel – A package in combination of two or more types of tour components into a product which is produced, assembled, promoted and sold as a package by a tour operator for an all-inclusive price.

Passenger facility charge (PFC) – a fee for the use of many airports, added in to the cost of an air ticket – another name for an additional tax on travelers.

Passenger name record (PNR) – The official name of one’s reservation in a computer reservation system (CRS).

Passenger vessel – Ships, yachts, ferries, boats, etc.

Passport/visa service – a service that will take your passport and hand carry, if necessary, to the appropriate embassy in order to expedite a visa. Can be expensive if you have waited until the last minute to obtain a travel visa.

Patronage Program – A program that rewards the customer for loyalty and repeat purchase, such as frequent-flyer programs.

Peak season – A destination’s high season when demand is strong. Also called the high season.

Peninsula – A piece of land that is connected to a mainland or larger piece of land on only one side, while the other sides are surrounded by water.

Per Diem – “by the day;” in the cruise industry, the per-day cost of a cruise, per person.

Per-capita costs – Per-person costs.

Per-capita tour – See scheduled tour.

Perceived value – The ratio of perceived benefits to perceived price.

Personal effects coverage – Additional car rental insurance covering loss of personal property from the rented vehicle.

Point-to-point – refers to the fares between two cities; the service between two cities without additional segments or any continuation.

Port – the place where a ship docks; a place visited by cruise ship; the left side of a vessel.

Port charges/taxes – fees levied by local authorities upon the cruise lines for each passenger visiting a port of call, normally added to the total cruise fare.

Port of Debarkation – Port of Debarkation is the geographic point where personnel arrive on a cruise vessel

Port of Embarkation – Port of Embarkation is the geographic point where personnel depart on a cruise vessel

Port of entry – Destination providing customs and immigration services.

Port-Directional – When facing forward, the side of the ship or aircraft that is on the left.

Porter – A person who handles luggage at an airport, train station, etc.; also called skycap or baggage handler.

Porthole – usually a round, sealed window in a shipboard stateroom.

Posada – a small country hotel (Spanish).

Positioning strategy – The development of a clear, unique, and attractive image for a company and/or product in the minds of target customers.

Positive space – space aboard a ship or aircraft that can be confirmed ahead of time.

Post-Cruise Vacation – a post-cruise vacation is a vacation or getaway prior to a cruise in the town or region of the port of debarkation of the cruise.

PPDO – per person, double occupancy. Most tours and cruises are quoted this way; the average cost to stay in a particular location per day.

Pre- and post-trip tour – An optional extension or side trip package before and/or after a meeting, gathering, or convention.

Pre-Cruise Vacation – a vacation or getaway prior to a cruise in the town or region of the port of embarkation of the cruise.

Pre-deduct commission – When a distributor such as a travel agent takes up front the commission on a sale and sends the supplier the balance of the sales price.

Preferred Supplier – The selection of specific supplier(s) for priority promotion to customers and/or integration in travel packages in exchange for reduced rates and/or higher commission.

Preferred Vendor – The vendor(s) a company specifies as their first choice for travelers.

Preformed group – A pre-existing collection of travelers, such as affinity groups and travel clubs, whose members share a common interest or organizational affiliation.

Prepaid ticket advice – a form used when purchasing an air ticket to be picked up and used by someone else at another airport. E-tickets have reduced the need for this greatly.

Primary research – The collection of data specifically to solve the marketing problem at hand.

Prix fixe – meals offered at a fixed price, usually fairly low, consisting of several courses with no substitutions allowed. Common in Europe.

Profit margin – A dollar value that represents the markup of a product’s price over its costs.

Promotion mix – Promotion tools including advertising, direct marketing, sales promotion, and public relations.

Promotional group tour – A travel package composed of tour elements that match the specific needs and wants of niche customers who aren’t part of an organized or preformed group.

Promotional partnership – The combination of two or more companies to offer special incentives to customers.

Prop – referring to propeller-driven aircraft.

Property – A specific lodging structure, such as a hotel, and the ground on which it is built.

Property – A general term that may be used by a place of accommodation that denotes the facility.

Protection overbooking – The practice of blocking space that will likely be in excess of what will actually be needed.

Pseudo-agent – someone claiming to be a travel agent who really isn’t.  They often produce bogus ID cards, and can disappear when problems arise!

PST – Pacific Standard Time.

Psychographics – Measures of a person’s lifestyle. See also AIO variables.

Public relations (PR) – A management function that determines the attitudes and opinions of an organization’s publics, identifies its policies with the interests of its publics, and formulates and executes a program of action to earn public understanding and goodwill.

Public tours – See scheduled tour.

Published fare – an airfare that is listed in the carrier’s tariff.

Pull strategy – A marketing approach that creates demand at the customer level by generating awareness, interest, and desire so customers pull a product through a distribution channel by demanding it.

Purser – aboard ship, the person responsible for providing a wide array of services such as information, making change, stamps, etc. Found at the purser’s desk.

Purser-(Airline) – On a flight, the purser is the head flight attendant, responsible for overseeing the attendants and making sure travelers’ needs are met.

Push strategy – A marketing approach that creates demand at the distributor level by providing resellers with an incentive to push (sell) a product to end consumers.

Quad – a room suitable for four persons.

Quay – a pier – pronounced the same as “key”.

Query – The process of sorting and retrieving information from a database.

Quid – a monetary term for a British pound sterling.

Quota sample – A research sample that involves forming groups based on certain characteristics. A random sample can then be selected form the quota segments.

Rack rate – The published (brochure) rate for a travel component. The price of a hotel prior to discount.

Rate desk – the office of an air carrier that calculates fares for passengers and travel agents.

Reach – The measure of how many people in a market will be exposed to a certain advertisement via a specific medium.

Reasonable number – A forecast of the break-even point for a tour.

Rebate (ing) – the practice of returning part of an agency’s commission on a scale back to the client in the form of a rebate or “discount.” The trade-off is usually little or no personal/customer service. This is practiced often by “800 ” number travel sellers and others who deal in huge volume.

Receptive operator – A local tour company that specializes in services for incoming visitors, often for tour operator groups.

Reconfirm – to double-check a reservation.

Record locator – The number assigned to a reservation in the airlines number. This number is unique, as it will never be assigned again.

Record locator – the number assigned to one’s reservation in an airline’s computer system.

Red-eye flight – An overnight flight that leaves at night and arrives early the next morning.

Referral agent/agency – an ” agent ” that refers business to a travel agency in return for a commission or fee – often as part of a card mill operation

Registry – the formal registration of a ship’s ownership, and the country it is registered in (such as Panama, Liberia, Norway, etc.).

Reissue – the generation of a new ticket that is exchanged for another, due to a change of plans, dates, flights, etc. May involve additional fare, penalties and fees.

Relationship marketing – The process of building and nurturing ongoing, solid relationship with customers.

Repositionin g – the moving of a cruise ship to another home port for all of part of a season, such as the repositioning of ships to Alaska for the summer. Often these cruises are excellent bargains, but will involve one-way airfare home from the port of debarkation.

Res – short for “reservation”.

Research constraints – Those issues, such as cost and timing that will limit the scope of marketing research.

Reseller – See retailer and wholesaler.

Reservation fee – A customer payment for a certain percentage of the travel package price that’s made immediately after booking.

Responsible Tourism – Travel that extends beyond being merely environmentally responsible, to being culturally-conscious and economically-aware, locally.

Retail price – The actual price a customer pays for a travel element or tour.

Retail tour – See scheduled tour.

Retailer – A middleman, such as a travel agent, who sells directly to the customer.

Retirement travel – retirement travel is a category of travel referring to when a traveler is has retired from a career and commences to travel.  Travel done after retirement age.

Rollaway – a cot or other bedding that can be added to a hotel room to accommodate another guest. There is often an extra charge for this.

Romantic Destinations – romance destination and romance travel is a category of travel that involves travel involving a feeling of excitement and mystery associated with love and often refers to travel associated with a wedding, honeymoon, wedding anniversary, babymoon or another type of romantic getaway.

Room Night – In the hotel (hospitality) industry, a room night, room/night occupancy, is a measure of occupancy where a room is the unit of measure.

Room Occupancy – In the hotel (hospitality) industry, a room night, room/night occupancy, is a measure of occupancy where a room is the unit of measure.

Room rates – The various rates used by lodging properties to price rooms. These include- day rate (usually one half the regular rate for a room used by a guest during the day up to 5 p.m.-sometimes called a use rate), flat rate (a specific room rate for a group agreed upon by the hotel and group in advance), group rate (same as flat rate), net group rate ( a wholesale rate for group business to which an operator may add a markup if desired), net wholesale rate ( a rate usually lower than the group rate and applicable to groups or individuals when a hotel is specifically mentioned in a tour folder), and published rate ( a full rate available to or advertised to the public-also called the rack rate.)

Rooming list – A printout of the names of all tour participants that also lists special lodging requests and provides a spot for the hotel or cruise ship to fill in the passenger’s room number.

Round trip – A flight to a single destination and a return.

Run-of-house (ROH) – refers to a hotel room, the type of which is assigned at the discretion of the hotel shortly before you arrive. Usually, the rates are lower.

Run-of-ship – cabin is assigned at the last moment, giving the cruise line the ability to shift accommodations as needed. Usually, you are guaranteed a minimum category of cabin, and sometimes get an upgraded stateroom at no additional cost. Most upgrades are from inside-to-inside cabins, or from outside-to-outside but occasionally an inside-to-ocean view upgrade will occur. It is not always worth the gamble though.

Run-of-the-house rate – A flat rate for which a lodging property agrees to offer any of its available rooms to a group. Final assignment of the rooms is at the discretion of lodging management.

Sabre® – A computerized travel reservation system.

Safaris – Today the negative hunting connotations of the word ‘safari’ are being rapidly replaced by more modern associations with socially and environmentally responsible travel. Safari travel typically implies that the journey will include game viewing and some time spent in wilderness areas (game reserves and national parks). A traditional is usually focused on seeing wildlife, but safaris are definitely not limited to game viewing.  Safaris are now for admiring wildlife and birds in the wild, along with a host of other adventures. Safaris have largely developed into vacation trips that actually benefit the wildlife by supporting local conservation efforts and wildlife sanctuaries. As opposed to hunting the animals, visitors get to encounter them and help make a difference in protecting the species. Safari companies either actively contribute towards conservation projects or help generate tourism revenue which is used to manage wildlife projects and game reserves. The modern safari is also a socially responsible journey designed to interact ethically with local communities and have a positive impact on local economies. The cultural interactions offered by reputable safari operators do not exploit local people. The local communities benefit from sustainable tourism through employment and financial gains from selling goods and services.

Sales margin – A term used by resellers to describe profit as a percentage of sales revenue.

Sample – The portion of a population chosen to represent the population being studied for research.

Saturday night stay – A requirement by the airlines that your travel must involve a Saturday night stay over in order to obtain our lowest fare.

Saturday night stay – In order to receive a specialty fare, a Saturday stay over is sometimes required.

Scandals tour – A light-hearted history tour that shows locations where interesting scandals took place.

Scheduled carrier – An airline that offers regularly scheduled flights between destinations.

Scheduled flights – Air flights that are publicly scheduled and promoted by major airlines.

Scheduled tour – A tour that’s set in a tour operator’s regular schedule of tour departures and that’s often sold to the general public. Also called public tour or retail tour.

Sea bands – a product resembling a bracelet that is worn on the wrists and operates via acupressure.

Wearers claim that seasickness can be avoided by their use, thus eliminating the need for drugs such as Dramamine, etc.

Sea legs – the ability to move around on a ship without losing balance and without sea sickness.

Secondary information – Research data that was collected by another company or person and usually for a purpose that’s different than the research objectives and tasks at hand.

Sectioning system (GPS) – system of satellites that allows miniature radio receivers on earth to pinpoint one’s location within a few feet. Most cruise ships make use of this system to navigate the world’s oceans.

Segment – a “leg” or part of a journey, usually in reference to an air itinerary. One take-off and landing during air travel constitutes a “segment”.

Segment – One leg or portion of a trip. The segment begins when you board the plane and ends when you de-board the plane. (I.e. A connecting flight from San Francisco to New York through Chicago equals 2 segments)

Self-drive – a rental car (British term).

Service non comprise – in French, meaning “service not included”.

Shells – Preprinted brochures with photos, illustrations, and graphics but no text; also called slicks.

Shore excursio n – tours that are purchased as an option when visiting ports of call while on a cruise; can sometimes be bought before you cruise.

Shore excursion – A land tour, usually available at ports of call, sold by cruise lines or tour operators to cruise passengers.

Shoulder season – a period of time between high and low seasons, where prices at a destination are between their highest and lowest, and the crowds are thinner.

Shoulder season – Those periods between the peak and off season when destination demand is moderate.

Sightseeing companies – Organizations that provide local guided tours.

Sightseeing guide – See driver/guide.

Sightseeing tour – Short excursions of usually a few hours that focus on sightseeing and/or attraction visits.

Simple random sample – A sample that draws a group of respondents randomly from all members of the population.

Single Room – A room that is only guaranteed to comfortably accommodate one guest. May also be called a “Standard Room.”

Single Supplement – An additional charge added to a solo traveler, when prices were originally quoted for dual occupancy.

Sleeper – the sleeping compartment aboard a train.

Soft adventure – an outdoor travel experience that is not especially physically demanding, such as a canyon horseback trail ride or a hot-air balloon flight.

Sommelier – A wine professional, usually hired by the most upscale restaurants and establishments, on staff to primarily suggest wine and food pairing to patrons.

Spa – a resort area centered around a mineral springs, hot springs and the like, typically where one can find massage, hydrotherapy, exercise, steam baths, etc.

Special event tour – A travel package that features major happenings, such as concerts or sporting events, as the reason for the journey.

Special fare – Any fare that deviates from normal pricing (typically discounted).

Special interest tour – a tour catering to the needs of a specific interest, such as bird-watching, whale-watching, river rafting, mountain biking, rain forest exploration among many others.

Split itinerary – An itinerary in which part of the group does one thing while the other part does something else.

Split Ticket – Issuing multiple tickets for one round-trip journey. This is done to reduce the total cost of the entire reservation.

Sports Tourism – sports tourism refers to travel which involves either observing or participating in a sporting event staying apart from their usual environment.

Stabilizer – a device on most all cruise vessels, to reduce pitch and roll when at sea – the movement that can cause seasickness. Stabilizers are often pulled in at night in order to allow faster speeds when traveling between ports of call.

Standby – Referring to a passenger who does not have a confirmed seat on the intended flight.

Star Service – a critical guide describing in detail many hotel and cruise ship properties. Can be subjective, as it is based on someone’s opinion, but provides a travel agent with a non-commercial point-of-view.

Starboard – the right side of a ship.

Stateroom – A private cabin or compartment with sleeping accommodations on a ship or train.

Step-on guide – A tour guide who boards a motorcoach to give detailed, expert commentary about the city or area being visited.

Stern – the rear of a ship.

Stopover – a planned stayover in a city for a day or more, while enrooted to another destination. Sometimes adds significantly to the cost of an air ticket.

Strategic plan – A report that describes a company’s mission statement, goals, objectives and strategic actions.

Student visa – permission to enter a country, issued to a student, normally for the purpose of attending school in that country.

Subcontractor – A local operator who provides services for a wholesaler.

Suite – a hotel accommodation with more than one room, or sometimes a single room with distinct sleeping and living areas and often a kitchenette. A suite in a hotel or other public accommodation denotes a class of accommodations with more space and amenities than a typical accommodation room. Luxury or upscale accommodations often have a scaled range of suites progressively increasing in size, luxury and amenities starting with a junior suite and culminating in the largest and most luxurious suite which is often called a presidential or royal suite.

Supplier – any company that supplies travel and/or related services to the traveling public. The actual producer and seller of travel components.

Surface – travel over land that does not involve an aircraft.

SWOT analysis – A summary of a company’s strengths and weaknesses, and the environmental opportunities and threats that will most influence it.

T&E – Travel and Entertainment expenses.

Target market – The group of customers who will be the focus of a company’s marketing efforts.

Tariff – a schedule of prices/fares.

Telemarketing – Direct marketing via the telephone.

Tender – a small boat or ferry that carries passengers from an anchored cruise ship to the pier at a port of call. Many ships are too large for existing port facilities at some destinations, and so they anchor just off shore and “tender “their passengers in for their visit.

Terminal – A building where clients report for trips via train, plane, etc.; also called a depot or a station.

TGV – the term applied to the French high-speed train system.

Theme cruise – a cruise devoted to a specific interest, such as big bands, country western, Star Trek, exercise and weight-loss, cooking and cuisine, and many more. There is usually a theme cruise to suit just about any interest.

Theme tour – A tour that’s designed around a concept of specific interest to the tour takers, such as history or sports.

Through passenger – a passenger who is not disembarking at a particular stop while enrooted to the final destination.

Ticket stock – Blank airline tickets.

Tickler system – A method for monitoring reservations and payments that’s arranged by date and points out late payments so customers can be contacted.

Tiered override pla n – When commissions rise proportionately with a corresponding increase in sales.

Tiered pricing – When suppliers offer different prices to receptive operators, tour operators, and group leaders, so each party can earn a profit by marking up the supplier’s price while still offering a fair price to customers.

Tour broker – See tour operator.

Tour catalog – A publication by tour wholesalers listing their tour offerings. Catalogs are distributed to retail agents who make them available to their customers. Bookings by retail agents are commissionable.

Tour Company – A tour company or tour operator typically combines tour and travel components to create a packaged vacation. They advertise and produce brochures to promote their products, vacation and itineraries.

Tour conductor – the person who accompanies and is in charge of a tour, often on a motor coach tour. See tour director.

Tour departure – The date of the start by any individual or group of a tour program or, by extension, the entire operation of that single tour.

Tour director – Also called tour manager, tour conductor, and tour escort. The person who is responsible for a group on tour and for most aspects of a tour’s execution.

Tour escort – See tour director.

Tour guide – A person qualified (and often certified) to conduct tours of specific locations or attractions.

See also step-on guide, city guide, on-site guide, and docent.

Tour manager – See tour director.

Tour manual – A compendium of facts about a destination, tour procedures, forms, and other information that a tour operator gives to its tour directors.

Tour menu – A menu that limits group clients to two or three choices.

Tour operator – A person or company that contracts with suppliers to create and/or market a tour and/or subcontract their performance.

Tour order – A voucher given to the purchaser of a tour package that identifies the tour, the seller, and the fact that the tour is prepaid. The purchaser then uses this form as proof of payment and receives vouchers for meals, porterage, transfers, entrance fees, and other expenses. See also voucher.

Tour planner – A person who researches destinations and suppliers, negotiates contracts, and creates itineraries for travel packages.

Tour rate – See group rate.

Tour series – Multiple departures to the same destination throughout the year.

Tour – A prearranged, prepaid journey to one or more destinations that generally returns to the point of origin, is usually arranged with an itinerary of leisure activities, and includes at least two travel elements.

Tourism – The business of providing marketing services and facilities for leisure travelers.

Tourist card – a card issued to a visitor in lieu of a visa, usually for a short duration visit.

Tourist – This is the majority of adult travelers, when not vacationing. Tourists may be couples, families, or just a person or two who visit locations.

Tours – a tour is a journey for pleasure which includes the visiting of a number of places in sequence, especially with an organized group often led by a guide.

Tracking study – A survey of customers before and after implementing a promotion campaign to assess changes in consumer behavior.

Trans-canal – passing through the Panama Canal.

Transcon – Having to do with crossing a continent. For example, travel of this sort would be from one end of a continent to another.

Transcontinental – Having to do with crossing a continent. For example, travel of this sort would be from one end of a continent to another.

Transfer – Local transportation and porterage from one carrier terminal to another, from a terminal to a hotel, or from a hotel to an attraction.

Transient Occupancy Tax – Also known as a Bed Tax, it is a City or County tax added to the price of the room.

Transient – A person who stays in a place for just a short while; not a permanent resident, such as a visitor or tourist.

Transit visa – A visa allowing the holder to stop over in a country or make a travel connection or a brief visit.

Transportation – Any method of moving travelers from one point in a journey to another, such as air, ship, rail, and motor coach travel.

Travel advisor – a travel advisor simplifies the time-consuming and complicated process of planning travel for their customers in addition to providing consultation services and entire travel packages. They may book flights, cruises, rental cars and hotels, as well as resort stays and events. Agents cater to a wide demographic, serving both individuals and corporations. They may also concentrate in a special segment of travel; many advisors specialize in leisure, business or group travel, or destination-specific journeys.

Travel advisory – a travel warning issued by the US Department of State, indicating a special caution should be taken in a country due to political unrest, natural disaster, or other special situation. These can be obtained from any good travel agent, on any area you are considering visiting.

Travel agency – Usually used in the travel industry to refer to an ARC-appointed storefront retailer.

Travel agent – A person or firm qualified to arrange for lodging, meals, transportation, cruises, tours, and other travel elements, typically on a commission basis. A travel agent simplifies the time-consuming and complicated process of planning travel for their customers in addition to providing consultation services and entire travel packages. They may book flights, cruises, rental cars and hotels, as well as resort stays and events. Agents cater to a wide demographic, serving both individuals and corporations. They may also concentrate in a special segment of travel; many agents specialize in leisure, business or group travel, or destination-specific journeys.

Travel component – Transportation, lodging, dining, attractions, entertainment, guide services, and other travel elements offered as part of a travel package.

Travel Destination – a place to which one is journeying.

Travel Experience – A travel experience or experiential travel (also known as immersion travel) as it is commonly referred to, is a form of tourism in which people focus on experiencing a country, city or particular place by connecting to its history, people and culture.

Travel Institute – the primary educational and certification arm of the travel industry. Was formerly the “Institute of Certified Travel Agents” (ICTA), located in Wellesley, Mass.

Travel Insurance – Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while traveling, either internationally or within one’s own country.

Travel Itinerary – a travel itinerary is a travel plan or organization of your travel and involves all of the details, times and dates concerning things like airline, cruises and train transportation confirmations, hotel, villa and accommodation reservations, rental car information, restaurant reservations and much more.

Travel Policy – A fluid internal document, pertinent to the company’s culture that outlines the guidelines for business travel and expenses within a company.

Travel rewards – Travel reward programs are often referred to as a loyalty rewards program, and they are generally a campaign devised to generate repeat customers for a particular company by offering a point gratification system for the customers’ business. They are also meant to provide customers with a “thank you” for their loyalty to a company’s product or service. That benefit is typically some sort of discount on certain items or services. Travel specialist – a travel specialist is a travel agent or travel advisor that concentrates in a special segment of travel; many travel agents or travel advisors specialize in leisure, group or business travel, or destination specific travel.

Travel Tours – a travel tour is a journey for pleasure which includes the visiting of a number of places in sequence, especially with an organized group often led by a guide.

Traveler – One who travels.

Travelogues – Many travel websites are online travelogues or travel journals, usually created by individual travelers and hosted by companies that generally provide their information to consumers for free. These companies generate revenue through advertising or by providing services to other businesses. This medium produces a wide variety of styles, often incorporating graphics, photography, maps, and other unique content.

Trip director – An escort for an incentive company. Larger companies reserve this title for the person who directs all personnel and activities for a particular incentive trip.

Trundle Bed – Bed that stores itself under another bed, usually on casters. Often found in smaller hotel rooms or in cramped transport accommodations.

Turn – Airline parlance. A flight that leaves base and returns back to base in the same day. Also known as a turnaround.

Turnaway – A potential reservation that couldn’t be satisfied because the tour (or hotel, ship, etc.) was fully booked.

Twenty-four hour time – used extensively in Europe and other countries, 1pm becomes 1300 hours, 4pm is 1500 hours, etc., up to 2359 ( 1159pm ). Midnight is then considered 2400 or “zero ” hours. 1-20am is then 0120 or “one hour, twenty minutes “and so on. Most schedules and timetables in the majority of other countries are listed in the 24-hour format.

UNESCO World Heritage Sites – a UNESCO World Heritage Site is a place (such as a building, city, complex, desert, forest, island, lake, monument, or mountain) that is listed by the United Nations Educational, Scientific and Cultural Organization (UNESCO) as being of special cultural or physical significance.

Unlimited mileage – No mileage restriction when renting a car.

Unrestricted fare – an airfare that has no special advance purchase, Saturday stay or certain days to travel requirements, and is usually refundable. Many full coach and most first-class fares are unrestricted. An airfare with no limitations. It is typically refundable and has no blackout days.

Upgrade – To move to a better accommodation or class of service.

USTOA – United States Tour Operators Association – a trade association which requires its members to be very financially stable and to have a million dollars or more in funds set aside for consumer protection against defaults. Visit www.ustoa.com for more information.

Value added tax (VAT) – a tax on goods in Europe, which under certain circumstances can be refunded.

Value season – similar to shoulder or low season, when pricing is lower. See off season.

Value – The relationship between the benefits associated with a product or service and the costs of obtaining the product or service. See also perceived value.

Value-added tax (VAT) – A type of tax system which adds a fixed percentage of taxation on products and services at each step of production or service delivery.

Value-based pricing – Pricing a product based on buyer perceptions of value rather than actual product costs.

Variable costs – Costs that change with sales or production levels.

Variance report – A summary of how much a company has gone above or below budget.

Verandah – a roofed-porch, such as connected to a cruise ship stateroom.

VIA rail – the Canadian railway system.

Villas – a large and luxurious country residence. A villa is a fancy vacation home. The word has been around ever since ancient Roman times to mean “country house for the elite.” In Italian, villa means “country house or farm.” Most villas include a large amount of land and often barns, garages, or other outbuildings as well.

VIP experiences – a VIP Experience is the most exclusive way to go behind the scenes or experience a travel destination, accommodation or mode of transportation.

Visa – usually a stamp in a passport allowing entry into a country for a specific purpose and a finite amount of time.

Visa service – a service that can expedite the processing of a visa, sometimes even at the last minute. A fee is charged that varies, depending on the nature of the service needed. Visas are usually stamped into the pages of a valid passport and are issued for varying reasons and periods of time. Not all countries require them, especially for United States Citizens.

Volume incentive – See override.

Volume purchase – The purchase of large quantities of a product or service.

Voucher – Documents that are exchanged for goods and service to substantiate payment that will be or already has been made.

Voyage – a voyage is a long journey involving travel by sea or in space.

Waitlist – A list of clients awaiting transportation or accommodations at times when they are not available. Waitlisted clients are confirmed as a result of subsequent cancellations.

Waiver – a written acknowledgement that a passenger has declined something, such as insurance coverage for a trip, for example. Also, the formal acknowledgement of the waiving or dismissal of a requirement, such as a waiver of a penalty for late booking, etc.

Waiver – A written acknowledgement that a passenger has declined something.

Walk-up – one who purchases an air ticket at the last moment, usually at the airport ticket counter.

Wants – Ways in which a person satisfies a basic need.

Wellness Travel – wellness travel is a category of travel for the purpose of promoting health and well-being through physical, psychological, or spiritual activities

Wet bar – the area of a hotel room that has a bar or other counter space with running water, used for the preparation of drinks.

Wholesale – Sale of travel products through an intermediary in exchange for a commission or fee generally at reduced tariffs.

Word-of-mouth promotion – Personal communication about a product or service from one customer to another.

World Travel Guide – a yearly publication that provides detailed information on most every country in the world, with entries on currency, transportation, climate, visa and passport requirements, sightseeing opportunities, etc. A primary book of knowledge for the professional travel agent.

Yield management – Calculating and analyzing the profits earned per customer.

travel agent in business meaning

World Travel Agency, LLC is owned and operated by Michael and Cheryl LaBaw. We are a husband and wife team dedicated to working together with our clients to insure they travel well. World Travel Agency, LLC is an independent affiliate of Andavo Travel, a Virtuoso® Member. Travel should be more than just a journey, it should be a series of unforgettable experiences. We work hard to ensure our clients’ trips are always stimulating, authentic and – above all else – fun... READ MORE

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Here’s How To Become a Travel Agent and Earn $3,000 Monthly

Caitlyn Moorhead

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No matter the type of travel you enjoy doing travel planning takes attention to detail mixed with a bit of the spirit of adventure. Every once in a while when the stars align you can take what you love to do and turn it into a living. It’s time to pack your go bag and explore the travel agency world .

See Also: 6 Unusual Ways To Make Extra Money (That Actually Work)

How To Become a Travel Agent

Just because someone has travel experience does not mean they can automatically become a travel agent. However, if you are interested in becoming a travel agent there are many programs you can take to help you become one, or even start your own business. Skills you will learn include how to organize travel arrangements, business ethics, customer service, itinerary planning and the ins and outs of travel insurance.

No matter your career goals, whether you want to focus on luxury travel or more of a local tour operation, the following programs and certifications, which can be done in person or remotely, can get you started on the right path.

  • Departure Lounge: Learn how to navigate the hotel industry as an independent contractor as well as get tips on tour operating.
  • Premier Cruise Lines: Many lines such as Virgin Voyages, Cunard or Ritz-Carlton Yachts provide training programs for travel agents to help them sell their products and services more efficiently.
  • Get Certified: When your training and coursework are complete a certification helps distinguish you in the field with these designations. Some popular ones include the International Air Transport Association, Cruise Line International Association or Travel Industry Designator Service. Be sure to research which certification makes the most sense for you as it will imply different things for your business.

How Much Do Travel Agents Make?

The median pay for what travel agents get paid in the United States is estimated to be about $46,400 annually which is over $3,000 monthly. This may seem underwhelming, but this is an estimate by the U.S. Bureau of Labor Statistics which means is only based on what full-time employees make and not self-employed people. In other words, you can make a lot more money as an independent travel advisor as opposed to working for a host agency. 

Travel agents make money by earning commissions on trips they book as well as charging fees such as booking or service fees. This is a great way to also set your own schedule and only choose the gigs you like. 

Final Take To GO: Love To Travel?

When it comes to starting as a travel agent, a good rule to follow is to try to sell and book trips you yourself would want to take. If you already love to travel this could be a natural next step in your career or a budding side business. 

A great way to sell yourself as a travel agent is to define your unique selling point. Essentially what is it about you that will make people want to book trips with you? It also helps to optimize your website, create high-quality content from trips you’ve booked or been on and leverage your social media platforms. Once you have your foundation firmly established, everything else is booking a day at the beach. 

  • Full-time travel agents make roughly $46,400 a year which is over $3,000 a month. However, there is a chance to make more money than this estimate by starting your own travel agency and working for yourself. This way you can set your own schedule and don't have to worry about splitting your commissions.
  • You don't need a specific degree to get started as a travel agent, but finding a training program and getting certified with varying destinations does help distinguish you as a trusted travel agent to your potential clients.
  • Selling yourself as a travel agent, much like with any job or small business, starts with defining your unique selling point. Essentially what is it about you that will make people want to book trips with you? It also helps to optimize your website, create high-quality content from trips you've booked or been on and leverage your social media platforms.
  • Get Certified: When your training and coursework are complete a certification helps distinguish you in the field with these designations. Some popular ones include the International Air Transport Association, Cruise Line International Association or Travel Industry Designator Service. Research which certification makes the most sense for you as it will imply different things for your business.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy .

  • Condé Nast Traveler. 2023. "How to Become a Travel Agent—Because, Believe It or Not, the Industry Is on the Rise."
  • U.S. Bureau of Labor Statistics. 2024. "Travel Agents: Occupational Outlook Handbook."
  • Host Agency Reviews®. 2024. "How Much Do Travel Agents Make? | 2024 Travel Agent Salary."

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Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees

Rule makes it easy to get money back for cancelled or significantly changed flights, significantly delayed checked bags, and additional services not provided  

WASHINGTON – The Biden-Harris Administration today announced that the U.S. Department of Transportation (DOT) has issued a final rule that requires airlines to promptly provide passengers with automatic cash refunds when owed. The new rule makes it easy for passengers to obtain refunds when airlines cancel or significantly change their flights, significantly delay their checked bags, or fail to provide the extra services they purchased.

“Passengers deserve to get their money back when an airline owes them - without headaches or haggling,” said U.S. Transportation Secretary Pete Buttigieg . “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”  

The final rule creates certainty for consumers by defining the specific circumstances in which airlines must provide refunds. Prior to this rule, airlines were permitted to set their own standards for what kind of flight changes warranted a refund. As a result, refund policies differed from airline to airline, which made it difficult for passengers to know or assert their refund rights. DOT also received complaints of some airlines revising and applying less consumer-friendly refund policies during spikes in flight cancellations and changes. 

Under the rule, passengers are entitled to a refund for:

  • Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability.  
  • Significantly delayed baggage return: Passengers who file a mishandled baggage report will be entitled to a refund of their checked bag fee if it is not delivered within 12 hours of their domestic flight arriving at the gate, or 15-30 hours of their international flight arriving at the gate, depending on the length of the flight.  
  • Extra services not provided: Passengers will be entitled to a refund for the fee they paid for an extra service — such as Wi-Fi, seat selection, or inflight entertainment — if an airline fails to provide this service.

DOT’s final rule also makes it simple and straightforward for passengers to receive the money they are owed. Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. In addition, passengers would receive a travel credit or voucher by default from some airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.  

The final rule improves the passenger experience by requiring refunds to be:

  • Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.   
  • Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.  
  • Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.    
  • Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines.

The final rule also requires airlines to provide prompt notifications to consumers affected by a cancelled or significantly changed flight of their right to a refund of the ticket and extra service fees, as well as any related policies.

In addition, in instances where consumers are restricted by a government or advised by a medical professional not to travel to, from, or within the United States due to a serious communicable disease, the final rule requires that airlines must provide travel credits or vouchers. Consumers may be required to provide documentary evidence to support their request. Travel vouchers or credits provided by airlines must be transferrable and valid for at least five years from the date of issuance.

The Department received a significant number of complaints against airlines and ticket agents for refusing to provide a refund or for delaying processing of refunds during and after the COVID-19 pandemic. At the height of the pandemic in 2020, refund complaints peaked at 87 percent of all air travel service complaints received by DOT. Refund problems continue to make up a substantial share of the complaints that DOT receives.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration

Under the Biden-Harris Administration and Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history.

  • Thanks to pressure from Secretary Buttigieg and DOT’s flightrights.gov dashboard, all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov .  
  • Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.   
  • Under Secretary Buttigieg, DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.  
  • DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.  
  • In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.  
  • DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs.

In addition to finalizing the rules to require automatic refunds and protect against surprise fees, DOT is also pursuing rulemakings that would:

  • Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, and the Department is working on its family seating junk fee ban proposal.  
  • Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.   
  • Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity . The comment period on this proposed rule closes on May 13, 2024.

The final rule on refunds can be found at https://www.transportation.gov/airconsumer/latest-news and at regulations.gov , docket number DOT-OST-2022-0089. There are different implementation periods in this final rule ranging from six months for airlines to provide automatic refunds when owed to 12 months for airlines to provide transferable travel vouchers or credits when consumers are unable to travel for reasons related to a serious communicable disease. 

Information about airline passenger rights, as well as DOT’s rules, guidance and orders, can be found at   https://www.transportation.gov/airconsumer .

DEA’s big marijuana shift could be a lifeline for California’s troubled pot industry

 Leaves are shown of marijuana plants.

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If the U.S. Drug Enforcement Administration reclassified marijuana as a less dangerous drug, it wouldn’t eliminate the conflicts between the feds and states such as California that have legalized many uses of the substance.

But it would bring one significant shift that could give California’s licensed pot companies a badly needed boost: a lighter tax burden.

The Associated Press reported Tuesday that the Drug Enforcement Administration will propose moving marijuana from the list of Schedule I drugs, which includes heroin and cocaine, to Schedule III drugs, which include ketamine and anabolic steroids. The proposal would still have to be reviewed and endorsed by the White House as well as be made available for public comment.

Industry insiders say the move, if approved, could become a lifeline to California’s struggling cannabis industry. “We’ve been anticipating this,” said Meital Manzuri, an attorney whose firm specializes in the cannabis industry. “This is big for the industry.”

Lawful in California but illegal under federal law, the state’s cannabis industry has operated in a difficult legal limbo. Stores and farms operate in the open, but they’re cut off from benefits that other businesses enjoy, such as access to out-of-state markets.

FILE - In this Friday, March 22, 2019, file photo, a marijuana plant is visible at Compassionate Care Foundation's medical marijuana dispensary in Egg Harbor Township, N.J. The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, a historic shift to generations of American drug policy that could have wide ripple-effects across the country. The DEA’s proposal still must be reviewed by the White House Office of Management and Budget. (AP Photo/Julio Cortez, File)

World & Nation

U.S. drug control agency will move to reclassify marijuana in a historic shift

The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, a historic shift to generations of American drug policy.

April 30, 2024

Their murky legal standing has also meant that banking, credit card processing, insurance and other vital business services are out of reach for many marijuana businesses.

The tax burden, though, has been particularly onerous. Section 280E of the federal tax code bars businesses involved in “trafficking” of Schedule I or II substances from deducting the expenses they incur. As a result, they are taxed on every dollar they collect, not just their profits.

But if marijuana is reclassified as a Schedule III drug, “players in that industry for the first time will be able to take standard tax deductions that other businesses take,” said Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws, also known as NORML, which advocates for cannabis consumers. “The biggest change is going to be how the industry does business.”

“The industry in California especially has been faltering in the last couple of years and this offers them a future,” Manzuri said. “It might be a lifeline that they need to continue operating.”

According to the California Department of Tax and Fee Administration , legal marijuana shops reported about $5.1 billion in revenue in 2023, less than the previous year and 11% less than in 2021.

For years, licensed businesses have struggled to compete with a burgeoning black market that, while avoiding licensing, fees and taxes, can sell its wares at a fraction of the price charged by legal outfits.

But Armentano hopes those in the industry don’t “jump the gun” and that, if marijuana is reclassified, it may still take some time for changes to become tangible.

If cannabis is reclassified, he said, it would nevertheless remain illegal under federal law for recreational uses. States that have legalized marijuana, he said, don’t operate under the federal standards.

VENICE, CA - MARCH 20, 2024 - - Pedestrians walk past the now closed MedMen cannabis store on Abbot Kinney on March 20, 2024. A pair of signs on the front windows says that the store is closing temporarily. In the summer of 2018, cannabis retailer MedMen opened a boutique shop on Abbot Kinney Boulevard in Venice - "the coolest block in America," as the company hyped in a press release at the time. But, in the years that followed, the once rapidly expanding company began to unravel. Their stock plummeted to zero and recently they abruptly closed most of their California locations, including the one on Abbot Kinney, at least temporarily. (Genaro Molina/Los Angeles Times)

MedMen’s fall shows the difficulties of the legal weed business

Once hailed as the Apple store of cannabis, MedMen has shuttered many of its locations. What does that say about shopping for pot in California?

March 26, 2024

Thirty-seven states have legalized cannabis for medicinal use, seven others have legalized CBD oil for medicinal use and 24 states have legalized cannabis for recreational use, according to DISA Global Solutions, a company that administers drug tests.

Some organizations that oppose marijuana legalization, including Smart Approaches to Marijuana, have announced their intent to challenge the final rescheduling decision.

“Crude marijuana has never passed safety and efficacy protocols,” said Dr. Kevin Sabet, president of Smart Approaches to Marijuana, calling it a political decision in an election year. “Politics and industry influence have loomed over this decision from the very beginning.”

If the reclassification is ultimately approved, it would recognize medicinal uses for marijuana and require the drug be sold and regulated on the federal level similar to how ketamine, some anabolic steroids and Tylenol with codeine are regulated. Products would need federal approval — which no cannabis product currently has.

“The majority of the states regulate cannabis in a way that’s inconsistent with federal law,” Armentano said.

That means other financial benefits, such as banking and insurance, would still be out of reach for many businesses, Manzuri said, especially for dispensaries that operate for recreational use.

That has remained an ongoing issue for dispensaries, which typically operate as cash-only businesses. Many of them are unable to obtain banking services for what has grown to be a billion-dollar industry, although the California Department of Cannabis Control has sought to help marijuana businesses set up bank accounts .

Kratom capsules are displayed in Albany, N.Y., by federal health authorities in 2017.

Kratom products have gone unregulated in California, unnerving both fans and critics

In California, where the herbal substance kratom has become a common fixture in vape-and-smoke shops, lawmakers are now aiming to reel in an unregulated market.

April 29, 2024

The major credit card companies, though, won’t process marijuana-related payments, and reclassifying the drug to Schedule III wouldn’t change this, experts said.

“The payments industry only processes legal products, and reclassification does not make cannabis legal,” said Scott Talbott, executive vice president of the Electronic Transactions Assn. “Reclassification moves the needle but doesn’t cross the goal line to making cannabis legal and thus acceptable to banks and the credit and debit card industry.”

Yet reclassifying could help address some of the stigma that has been associated with marijuana and the cannabis business, Armentano said. It will be part of a long process, especially for a service as important to the industry as banking.

“My presumption is that marijuana could be made legal tomorrow, and your Chases, JP Morgans, and Wells Fargos would still say, at least at first, that it doesn’t change our bottom line,” Armentano said.

But those who have been navigating the legal waters of the weed industry still welcome the potential benefits of reclassification.

“Rescheduling won’t legalize cannabis or let a doctor prescribe it, but it will allow existing marijuana companies to be taxed like any other business — essentially a huge investment in the overall sector by the way of tax relief,” said Adam Terry, chief executive of Cantrip, a THC-infused drink company based in Massachusetts. “[Reclassification] improves the overall economic health of the industry and continues to inch towards legitimization in the eyes of the public.”

East Los Angeles, CA - August 22 Site of an illegal marijuana dispensary at 4728 Whittier Blvd. on Monday, Aug. 22, 2022 in East Los Angeles, CA. (Brian van der Brug / Los Angeles Times)

Pot shops owed millions in taxes. So, California sold their bongs and pipes, and made $2,075

The state auctioned off 10 dispensaries’ TVs and furniture as well as water pipes and bongs. It didn’t make much of a dent in the taxes they owed.

Feb. 27, 2024

“The California cannabis industry needs that right now,” said Amy Jenkins, legislative advocate for the California Cannabis Industry Assn. “The industry has a significant number of challenges with our existing taxation framework.”

Whitney Economics, a cannabis-focused research company, estimated last year that legal cannabis operators in the U.S. overpaid more than $1.8 billion in taxes in 2022 when compared with other businesses.

Reclassification, Jenkins said, “would provide greater stability to the legal cannabis industry.”

It could also allow more entities to conduct research, possibly opening the doors to industry innovation and greater medicinal benefits. “No one has been able to research it on a wide scale for a long time,” Manzuri said.

For Armentano, whose organization wants states to be allowed to regulate marijuana the way they can regulate alcohol, the possibility of reclassification doesn’t go far enough.

“It’s going to be a very long time after the fact before regulators at the FDA and DEA and other agencies acknowledge that this change isn’t sufficient,” he said.

More to Read

A marijuana leaf on a plant at a cannabis grow in Gardena, Calif., in 2019.

Editorial: Reclassifying marijuana is not decriminalization, but is a welcome step in that direction

May 1, 2024

WHISKEY FALLS, CALIF. - AUGUST 20: A marijuana plant at an illegal Marijuana cultivation site in the Sierra National Forest on Tuesday, Aug. 20, 2019 in Whiskey Falls, Calif. (Kent Nishimura / Los Angeles Times)

What do a snow cone maker and a glass bong have in common? Unpaid pot shop taxes

Feb. 9, 2024

Yucca Valley, CA, Thursday, May 13, 2021 - Illegal pot farms are multiplying throughout the high desert. Juvenile marijuana plants grow in a backyard residential plot. (Robert Gauthier/Los Angeles Times)

Letters to the Editor: Cannabis legalization isn’t enough. Rewrite all drug laws based on science

Feb. 7, 2024

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travel agent in business meaning

Salvador Hernandez is a reporter on the Fast Break Desk, the Los Angeles Times’ breaking news team. Before joining the newsroom in 2022, he was a senior reporter for BuzzFeed News, where he covered criminal justice issues, the growing militia movement and breaking news. He also covered crime as a reporter at the Orange County Register. He is a Los Angeles native.

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FILE - Signs asking people to respect locals and that "Lahaina is not for sale" are seen on the side of the Lahaina Bypass, Wednesday, Dec. 6, 2023, in Lahaina, Hawaii. An acute housing shortage hitting fire survivors on the Hawaiian island of Maui is squeezing out residents even as they try to overcome the loss of loved ones, their homes and their community. (AP Photo/Lindsey Wasson, File)

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Huntington Beach, CA - April 20: The sunset illuminates one of thousands of creatures known as by-the-wind-sailors that have been washing ashore Southern California beaches, including Dog Beach in Huntington Beach Thursday, April 20, 2023. The oval-shaped, flat creatures with tiny blue tentacles may look like little jellyfish but are in fact hydroids called Velella velella, more commonly known as "by-the-wind sailors." The invertebrates have been washing ashore at Crystal Cove in Newport Beach, and the sailing bodies have been spotted as far north as Point Reyes National Seashore, north of San Francisco. They've also been spotted in San Clemente, Manhattan Beach and along other Southern California beaches.(Allen J. Schaben / Los Angeles Times)

Climate & Environment

What are the blue blobs washing up on SoCal beaches? Welcome to Velella velella Valhalla

Seventeen year old María José Calles was killed in her home in Mexico Ci

‘Someone stole her dreams’: An alleged serial killer in Mexico killed her niece, Orange County woman says

Money latest: The best breakfast to keep you full until lunch - without paying a fortune

Our series on how to eat more healthily for less is back - and we're looking at breakfast. Read this and all the latest consumer and personal finance news below, plus leave a comment in the box.

Friday 3 May 2024 11:30, UK

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Mango plans to open 20 new stores this year as it continues to strengthen its UK presence.

The Spanish fashion retailer, which arrived in the UK in 1999, will be opening stores in several cities in Northern Ireland and central and southern England, as well as Scotland.

There are also plans to open four stores in London. 

Daniel Lopez, Mango director of expansion and franchising, told Retail Gazette the expansion "will consolidate the Mango brand" and help "strengthen it internationally".

The retailer recently unveiled a spring/summer collection in collaboration with Victoria Beckham.

Lidl has rushed to remove old references to so-called fake farm branding on its website after being questioned by MPs.

The retail chain told MPs yesterday that a picture of its "Strathvale farm chicken" was a "mistake" after telling them they did not use so-called fake farms.

Appearing in front of the Environment, Food and Rural Affairs Committee on fairness in the food supply chain, Lidl GB's chief commercial officer Richard Bourns was questioned on the fairness of supermarkets using fake farms to market their food.

Mr Bourns, who was questioned by committee member Rosie Duffield on using "Strathvale farm" branding for meat products, replied: "We don't use Strathvale farms, we use Strathvale.

"We do not use farm brands, just to be absolutely clear."

Committee chairman Robert Goodwill, who had access to the internet, said: "Oh wait a minute, we have here a Strathvale farm Scottish large chicken, for £3.85. Gosh that's cheap.

"So there is on the website at least, a reference to Strathvale farm."

Mr Bourns replied: "If there is a reference to Strathvale farms on our website I'd want to take that away and correct it.

"It could be the case that our website is not up to date.

"We do not have an online offering but I can categorically tell you we do not have farms brands in our business, just to be absolutely clear."

Following the committee hearing a Lidl spokesperson said: "Any historic web pages featuring old packaging that appear via a search engine are in the process of being removed to ensure complete accuracy."

By James Sillars , business reporter

A fairly tepid but positive start for shares in London this morning.

The FTSE 100 was 0.3% up at 8,196 in early deals.

Industrial stocks led the way after a quiet morning for companies reporting on their progress.

Sentiment will be driven later by reaction to the latest US employment report.

An above-forecast number for net new hiring would be likely to spark further market concern that the prospects for an interest rate cut by the Federal Reserve are even further away.

The Fed is concerned by headline inflation numbers in the world's biggest economy and strong figures for new jobs and wages could prove spooky for equity investors.

Elsewhere, oil prices remain on course to end the week sharply lower.

Brent crude is trading at $83 a barrel - down from $88 levels seen on Monday.

It's mostly a consequence of easing tensions in the Middle East and, if sustained, could help fuel pump costs come down a bit in the coming weeks.

It can be hard to balance getting nutritious foods that make you feel good without spending a lot.

In this series, we try to find the healthiest options in the supermarket for the best value - and have enlisted the help of  Sunna Van Kampen,  founder of Tonic Health ,  who went viral on social media for reviewing food in the search of healthier choices.

The series does not aim to identify the outright healthiest option, but to help you get better nutritional value for as little money as possible.

Today, we're looking at the breakfast staple - cereal. 

A sugar trap?

"Protein and good fats are what fill you up and satiate you to get your day going," Sunna says.

"Cereal unfortunately is a sugar and carb-heavy start which causes your blood sugar to spike and as a result you feel hungry way before lunch time."

A glance at the nutrition labels and you'll see the problem. 

"Some popular brands contain 35% sugar or up to 12g of sugar per 30g serving - that's already half of the daily recommended intake for children," Sunna says. 

That's before accounting for the fact that most people double up on recommended portion sizes. 

"According to research the average bowl weighs 73g rather than 30g suggested portion size - that means your child could be having their daily sugar quota for breakfast before school," Sunna says.

Healthier cereal choices

"The key to healthier cereal bowls is to ensure minimal sugar and maximum fibre - which is where options like Weetabix come to the forefront as a better option - at 4.2% sugar and 10% fibre," Sunna says. 

Among the main brands, this is hard to beat.

Frosties and Crunchy Nut don't fare well at 35% and 37% sugar respectively. Cornflakes at 8% and Coco Pops at 17% are better - but still high.

Alternative breakfasts

Greek yogurt:  "High in protein and packed with probiotics, Greek yogurt is my breakfast go to. Top it with some fresh berries and a sprinkle of seeds for an antioxidant boost."

Porridge:  "Oats are a great breakfast staple, offering a good dose of fibre, but context matters.

"It's great before a run or the gym but if you are just sitting at your desk all day it will spike your blood sugar and may be best to add more protein and fats to it. 

"Try adding peanut butter or protein powder for a more filling breakfast with more stable blood sugar."

Eggs:  "Boiled, poached, or scrambled, eggs are a protein-rich option that can keep you fuelled till lunch. Pair them with sourdough toast and you have possibly the most well-rounded value breakfast."

"Switching to these alternatives can drastically cut down your sugar intake and increase your energy levels."

We know cereal is a value-for-money and easy breakfast option, but let's have a closer look at the numbers. 

If we take the average cereal bowl at 73g, a cost per bowl looks like 50p for Crunchy Nut cereal and about 25p for the 250ml of milk that goes with it. 

"So, your daily breakfast is costing you 75p per day or £273.75 per year for the privilege of 9.3kg of sugar per year," Sunna says. 

In contrast, a typical medium free-range egg is 25p. 

Put three on a slice of sourdough (15p per slice) and an optimal breakfast has only cost you 90p a day or £328.5 a year. 

"So, you can swap over 18g of sugar every morning for over 18g of protein for just £54.75 extra per year," Sunna says. 

"A health investment, well worth the money."

However, if you want to stick with cereal - supermarket own-label brands are usually 60% cheaper than branded versions. 

Read more from this series... 

With the mortgage market proving more volatile than expected this year, and rates rising again, we're launching a feature providing an overview of the market at the end of each week - and outlining the best deals.

The independent experts at  Moneyfactscompare.co.uk  will be here every Friday. Commentary this week comes from their finance expert Rachel Springall, who has focused on the first-time buyer market...

Fixed-rate mortgages are once again on the rise, with many of the UK's biggest high-street lenders upping rates this week, including Santander, Halifax, Nationwide and NatWest. Lenders have been reacting to growing speculation that interest rates will remain higher for longer. 

Economists predict that the Bank of England will hold interest rates next Thursday but might cut base rate in the summer. Week on week, the overall average two- and five-year fixed rates rose to 5.91% and 5.49%.

This week the lowest two-year fix for first-time buyers with a 5% deposit comes from Loughborough Building Society, priced at 5.49%, which comes with a free valuation incentive and carries a £999 product fee.

First-time buyers with a 10% deposit will find the lowest two-year fixed rate offered by Clydesdale Bank, priced at 5.19%, which does not carry any incentives and charges a £1,499 product fee.

Those new buyers with a 5% deposit who want to fix for longer will find the lowest five-year fixed mortgage comes from The Co-operative Bank this week. Priced at 5.21%, this deal carries a £999 fee but borrowers get £250 in cashback and a free-valuation incentive.

Borrowers with a 10% deposit who wish to fix for five-years will find Clydesdale Bank offering the lowest rate this week priced at 4.64%, which charges a £1,499 fee but does not carry any incentives. 

As a first-time buyer, it's possible you have exhausted your savings on building up a 5% deposit and will use surplus cash to cover removal costs and legal fees. 

If you are looking to save on the upfront cost of your loan, then a Best Buy mortgage could be the most cost-effective choice.

This week one of the top packages on a two-year fixed mortgage comes from Coventry Building Society priced at 5.74% and HSBC priced at 5.79%, both of which come with a free valuation, but HSBC will also pay you £750 as cashback and Coventry Building Society will pay £500 in cashback.

A five-year fixed mortgage may be more appealing for you to guarantee your monthly repayments for longer. 

HSBC has a deal priced at 5.30% which carries a free valuation and £1,000 cashback, but if you want a lower rate, then Coventry Building Society is priced at 5.27%, and offers a free valuation and £500 cashback.

All data timestamped to 9am on 2 May

If you live in Wales, Scotland or Northern Ireland you don't have to pay for your NHS prescriptions - but in England they now cost £9.90 after a 25p rise this week.

Fee-free options remain in place for some, such as those who are pregnant, have certain disabilities, students or the elderly.

But if you're not exempt, there are still some means of cutting the costs of treatments.

Prepayment certificates

Prescription prepayment certificates (PPC) cover NHS prescriptions over a given time period, no matter how many medicines you need.

There are two options: A three-month PPC (£32.05), which will start to save you money if you buy four or more prescriptions in that period, or a 12-month PPC (£114.50), which pays off if you buy 12 or more in a year.

Ask for a larger prescription

Doctors may agree to prescribe a longer course of medicine - such as two months' worth instead of one, halving the cost.

Just ask the question - they might say yes, especially if there's no danger of overuse.

Menopause medication

The NHS offers a particular PPC for hormone replacement therapy.

It lasts for 12 months and costs £19.80.

Women can use the PCC as many times as they need within the year.

You might not need a prescription

For some ailments, there are over-the-counter options sold cheaper than their prescribed alternative. You can ask your doctor or pharmacist for advice.

Pint-sized bottles of wine will be allowed on UK shelves from autumn under new post-Brexit trade rules - although doubts have been raised over their demand.

Seven changes to pre-packaged wine sizes are due to come into force on 19 September.

The move to introduce the 568ml size of wine, to sit alongside 200ml and 500ml measures already available, was announced in December and hailed by ministers as a Brexit "freedom".

Pint bottles of Champagne were sold in the UK before Britain joined the European Common Market and were on shelves until 1973.

Read more here ...

JD Sports has told head office staff they must return to the office at least four days a week .

The new amendment to the hybrid working policy will be effective from 1 July and will impact employees at the retail chain's head office in Bury, Retail Gazette reports.

However, the chain will still allow flexibly depending on individual roles.

Pubs could stay open late during the Euros this summer, according to The Sun .

Home Secretary James Cleverly hinted he was looking into extending pub opening hours for the tournament on The Sun show Never Mind The Ballots.

He said: "I will certainly look into it."

We've been bringing you news of plenty of bank switch deals offering free cash these past few months, but Virgin Money has a different kind of incentive for switchers - a 12% interest rate. 

People who switch to its M Account, M Plus Account or Club M Account will be able to get bonus interest rates of 10% gross/10.47% AER (fixed). 

This is on top of the 2% gross/2.02% AER (variable) interest rate already offered on current account balances up to £1,000 - meaning customers can get an interest rate of 12%. 

No other savings accounts offer interest rates this high, and the bonus applies for a year.

TikTok will restore millions of songs to its app after settling a royalty dispute with Universal Music Group. 

Users had been unable to make videos featuring songs from the likes of Billie Eilish and Ariana Grande due to a row over how much TikTok was paying. 

The fight had led to Universal withdrawing music from some of the world's most famous singers. 

The dispute appears to have been settled as the companies announced "improved remuneration" for artists.

More than 10,500 black cab drivers in London have launched a £250m legal case against Uber. 

They accuse the app of breaking the capital's taxi booking rules and deliberately misleading authorities to secure a licence. 

Transport for London (TfL) rules state drivers cannot take bookings directly from customers and must instead use a centralised system. 

The drivers, who are being advised by law firm Mishcon de Reya, argue they have faced unfair competition from Uber and that it knowingly broke these rules. 

Uber has denied these allegations and said the claims are unfounded.

The company has faced numerous challenges in London, including refusals from TfL to renew its licence which were later successfully appealed. 

Billie Eilish fans are complaining about "outrageous" ticket prices for her Hit Me Hard and Soft tour.

The 22-year-old singer unveiled an 81-date tour programme this week, sending fans rushing to secure tickets.

But some expressed disbelief on social media at the prices.

"I know I moan about this all the time, but look at the price of Billie Eilish tickets," one fan called Marianne wrote on X, sharing a screenshot of seated tickets priced at £398.50. 

"Something seriously needs to be done about ticket prices, it's f*****g outrageous!" 

Another complained they had paid less for Taylor Swift's Eras Tour, which was also criticised for high ticket prices.

A fan called Liv tagged Eilish, Live Nation and Ticketmaster, writing: "Are you ok? £145 for standing tickets is atrocious."

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travel agent in business meaning

IMAGES

  1. What is a corporate travel agent?

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  2. Travel Agent Job Description: Salary, Skills, & More

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  3. What does a Travel Agent do and How to Become a Travel Agent

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COMMENTS

  1. What Does a Travel Agent Do? (Job Description and Duties)

    Communication: Travel agents frequently communicate with clients and vendors by phone and email. They need strong writing, speaking, reading and listening skills to do their jobs well. Customer service: To satisfy their clients and earn repeat business, travel agents need excellent customer service skills. They must anticipate, understand and ...

  2. What does a travel agent do?

    Salaries typically start from $28,280 and go up to $74,220. A travel agent assists individuals or groups in planning, organizing, and booking various aspects of their travel arrangements. They act as intermediaries between travelers and travel suppliers, such as airlines, hotels, car rental companies, and tour operators.

  3. What Does a Travel Agent Do?

    What Does a Travel Agent Do? The primary role of a travel agent is to help people make travel arrangements, which might include booking flights, hotels, sightseeing tours, and making dining recommendations. A travel agent assesses each customer's unique needs, preferences, and budget to ensure their trip goes as smoothly as possible.

  4. What is a corporate travel agent? Business travel management

    Corporate travel agents, or business travel consultants can be described as business travel curators; working full-time to create customized and bespoke itineraries that fit the bill for travel needs and the specific trip while aligning with the company's travel policy and restrictions. Like traditional travel advisors, corporate travel ...

  5. Travel Agency

    A travel agent is a person who has full knowledge of tourist product - destinations, modes of travel, climate, accommodation, and other areas of the service sector. He acts on the behalf of product providers/principles and in return gets a commission. Technically, a travel agent is an owner or manager of an agency, but other employees are responsible for advising tourists and selling ...

  6. What Does A Travel Agency Do?

    A travel agency is essentially the 'middle man' between travel companies and the general public i.e consumers. They book all sorts of travel-related experiences for customers on behalf of larger companies. The main aim of a travel agency is to make the booking process simpler for the public, who might lack the time or confidence to book ...

  7. How to Become a Travel Agent—Because, Believe It or Not, the Industry

    There are many ways to become a travel agent, from joining an existing travel agency, to starting an independent business from the ground up. Others are opting for one of the buzziest start-ups in ...

  8. Travel agent Definition & Meaning

    travel agent: [noun] a person engaged in selling and arranging transportation, accommodations, tours, or trips for travelers.

  9. Travel agency

    Travel agency in Taiwan. A travel agency is a private retailer or public service that provides travel and tourism -related services to the general public on behalf of accommodation or travel suppliers to offer different kinds of travelling packages for each destination. Travel agencies can provide outdoor recreation, arranging logistics for ...

  10. TRAVEL AGENT

    TRAVEL AGENT definition: 1. a person or company that arranges tickets, hotel rooms, etc. for people going on holiday or…. Learn more.

  11. TRAVEL AGENT definition

    TRAVEL AGENT meaning: 1. a person or company that arranges tickets, hotel rooms, etc. for people going on holiday or…. Learn more.

  12. Starting a Travel Business: How to Become a Travel Agent

    1. Create a plan for your travel business. Make no mistake: No matter what industry you're in, a business plan is essential. You may not need a formal business plan if you're not seeking a loan or investment funding for your business, but don't skip it. Write a one-page business plan instead.

  13. Travel Agent Definition / Meaning

    Travel agents may specialize in leisure, business and/ or other niche travel markets. They may be generalists or specialists (i.e. specialise in cruises, adventure travel, conventions and meetings.). The agents typically receive a 10 to 15% commission from accommodations, transportation companies and attractions for coordinating the booking of ...

  14. What is a corporate travel agent?

    Corporate travel agents are travel professionals that work with companies to manage their corporate travel arrangements. They act as travel managers and take on tasks related to booking flights and accommodation, arranging travel visas, and providing travel support while employees travel for business. Their job is to ensure that all business ...

  15. Travel Agency: Definition, Types, and Business Model

    Business strategy for travel agencies. After discussing the definition of a travel agency, let's examine the general business model. Travel agents often operate in one of two ways. The first is ...

  16. What is business travel? Definition and examples

    Business travel management; The process or practice of managing and organizing corporate travel. Example: "Our agency specializes in business travel management, ensuring clients have a seamless experience." Business travel consultant; A professional who advises on and arranges all aspects of travel for businesses and their employees.

  17. How to Become a Travel Agent

    According to May 2020 data from the U.S. Bureau of Labor Statistics, the mean hourly wage for a travel agent is $22.43, and the mean annual wage for a travel agent is $46,650. The data also shows that Washington is the top paying state for travel agents, with a mean wage of $62,040. Prospective advisors should note that this data encompasses ...

  18. How to Start a Travel Agency

    Step 4: Create a Travel Agency Business Plan. Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  19. What Are Business Travel Agents?

    Helping Travel Managers. Aside from booking and managing actual trips, business travel agents may also assist with ad hoc tasks. Often, they will assist with operational matters relating to the overall travel programme. It is not uncommon for business travel agents to help audit the rates that preferred hotels have loaded into the reservation ...

  20. Business Structure 101 for Travel Agents

    Business Structure 101 for Independent Travel Agents and Entrepreneurs. Admin. As a new entrepreneur and independent travel agent, you need to register your business. However, before you get started, you have to figure out how you want to structure it. There are many different options so it can be hard to figure out what is best for you and ...

  21. TRAVEL AGENCY

    TRAVEL AGENCY definition: 1. a company or shop that makes travel arrangements for people 2. a company or shop that makes…. Learn more.

  22. Travel Industry Glossary: From Business to Leisure

    Traditional travel agent - A travel agent who operates from a physical location and is accessible locally to help travellers with their trip arrangements. Transit visa - A visa that enables the holder to transit through or pay a quick visit to a country. Transit - A method of switching aeroplanes without passing through customs or security.

  23. Travel Terms Glossary

    However, in the travel industry, these often mean airplanes. Airline Alliance - These are agreements of cooperation between groups of airlines. Alliances offer airlines more flexibility and larger networks. ... Referral agent/agency - an " agent " that refers business to a travel agency in return for a commission or fee ...

  24. TMC vs Corporate Travel Agency

    Choosing the right travel management solution is critical for supporting your business travel program and growing your business. To determine if corporate travel management or a corporate travel agency is right for your organization, evaluate your business trip travel needs carefully before making a decision.

  25. Here's How To Become a Travel Agent and Earn $3,000 Monthly

    No matter the type of travel you enjoy doing travel planning takes attention to detail mixed with a bit of the spirit of adventure. Every once in a while when the stars align you can take what you love to do and turn it into a living. It's time to pack your go bag and explore the travel agency world. See Also: 6 Unusual Ways To Make Extra Money (That Actually Work) How To Become a Travel Agent ...

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    Prompt: Airlines and ticket agents must issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods. Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase ...

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    According to the California Department of Tax and Fee Administration, legal marijuana shops reported about $5.1 billion in revenue in 2023, less than the previous year and 11% less than in 2021 ...

  30. Money latest: Which cereals have least sugar? Your guide to eating a

    This is on top of the 2% gross/2.02% AER (variable) interest rate already offered on current account balances up to £1,000 - meaning customers can get an interest rate of 12%.