Chapter1,2&3.Docx

Chapter 1

The Problem and Its Background

Introduction

A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located.

With general public access to the Internet, many airlines and other travel companies began to sell directly to passengers. As a consequence, airlines no longer needed to pay the commissions to travel agents on each ticket sold. Since 1997, travel agencies have gradually been disinterred mediated, by the reduction in costs caused by removing layers from the package holiday distribution network. However, travel agents remain dominant in some areas such as cruise vacations where they represent 77% of bookings and 73% of packaged travel. In 2009, the market size for travel agencies experienced a sharp decline, dropping from $17 billion the previous year to $14.5 billion.

In response, travel agencies have developed an internet presence of their own by creating travel websites, with detailed information and online booking capabilities. Major online travel agencies include: Expedia, Voyages-sncf.com, Travelocity, Orbitz, Cheap Tickets, Priceline, Cheap air, Web jet, and Hotwire.com. Travel agencies also use the services of the major computer reservations systems companies, also known as Global Distribution Systems (GDS), including: SABRE, Amadeus CRS, Galileo CRS and World span, which is a subsidiary of Travel port, allowing them to book and sell airline tickets, hotels, car rentals and...