Retail Travel Agencies

1. Retail Travel Agencies There are many different types of retail travel agencies.

2. Independent Agents • Independent businesses that are not part of a chain. • Often managed by the owner and a small team of staff. • Free to offer their clients a wide range of holiday companies as they don’t have links with own tour operating companies like multiples. • Rely on their ability to give customers a very personal service and word of mouth recommendations from satisfied clients for extra business. • Often can’t afford high rent and rates of town centre locations. • Sometimes located on outskirts of town-easier parking when compared to high street agencies. • Many independent agents join consortia such as Advantage Travel in order to have their views heard, benefit from supplier discounts and make useful business contacts. • Eg, Stourbridge Travel.

3. Multiples • Operate chains of retail outlets under a single brand name and are some of the most familiar companies in the UK. • They rely on having large numbers of clients and advertise widely in newspapers, magazines, internet and TV. • Because of their size and buying power they can negotiate the best deals with tour operators, airlines, hotels and ferry operators (principles). • They benefit from the highest commission rates. • Can afford high rental locations on high streets etc. • Eg. Thomas Cook, TUI

4. E-Agents • Growth in the use of the internet has led to the development of E-Agents. • Kind of a virtual travel agent as it has no branches and usually operate from a single base with the latest IT systems. • Benefit from speed and flexibility of the internet but must generate high sales volumes to remain profitable. • E-agents are also tour operators since their websites allow the packaging of accommodation and flights. • Eg, Expedia, E-bookers

5. Homeworkers • Developments in technology mean that travel agents no longer have to be located in a branch to carry out their work. • Particularly suitable to people with previous selling experience and a high degree of motivation. • Offers flexibility to staff and lower overhead costs to travel agencies. • Eg. Future Travel, Travel Counsellors

6. Call Centres • Make financial sense for companies as all operations and staff can be centred in one location so reducing overhead costs. • Call centres are used by tour operators, travel agencies, tourist boards, airlines, car hire companies etc. • They free up sales staff in branches and allow them to concentrate more on selling products and services. • Offer a more consistent level of customer service.

7. Holiday Hypermarkets • Large scale travel agencies offering a wide choice of holidays and travel products in a single, convenient, themed setting. • Often located in large retail parks such as the Trafford Centre. • Eg. First Choice Holiday Hypermarket

8. Miniples • Has a small number of branches, often in a particular geographical area. • Pride themselves on giving independent advice on holiday choices and personal services to clients. • Having a branch network gives Miniples the chance to negotiate better terms with principals. • Eg.BarrheadTravel, Althams Travel

9. Consortia • As well as being part of ABTA travel agencies often decide to join other trade bodies known as consortia. • Often groups of independents who come together to increase their buying power and be able to compete with big multiple chains. • Allows agents to retain it’s independence while at the same time reaping the benefits of extra buying power that the consortium can offer. • Eg. Freedom Travel, Worldchoice, Advantage Travel