Every major travel company needs to determine what type of travel company they want. Below we discussed the various ways of traveling and the name / description of the related business.
1.) Tour operator – A traditional company that includes hotel rooms, transportation and other excursions / events. Tour operators sell the market directly to their guests and allow travel agents to resell their travel packages for a commission. The tour operator is the seller and travel agent selling to the general public. Initial capital required – minimum $ 20,000.00
2. Traditional travel agency – The traditional travel agency organizes travel arrangements for its guests and sells travel agency products. An example of a travel agency business model is Liberty Travel Prepaid hotel and flight packages arranged by tour operators. Traditional travel agents usually sell their customers through their customers, by telephone or via email. Initial capital required – minimum $ 6,000.00
3. Online travel agency and / or OTA – These agencies are 100% online. You contract directly through a wholesaler of a third party. They will then establish direct links with airlines to jointly package flights and hotels. In general, they offer a contact / call center to help online bookings, but in most cases 75% of them are booked online. Examples of this model are: Expedia.com, Booking.com & CheapCaribbean.com. These companies have become very small and mass corporations, and it seems to be the largest sales of travel products worldwide. Initial capital required – minimum $ 100,000.00
4. Travel Affiliate Programs – This is the latest model for which the smallest capital is needed and there is no direct customer interaction. Online travel agents and tour operators pay affiliate websites to advertise our travel offers and when a potential customer visits the affiliate travel website and clicks on the offer, the tour operator or online travel agency travels to the travel subsidiary 0.10 and 4.00 you pay a "click" button when a potential guest leaves the affiliate site to the tour operator or the online travel agencies website. Some tour operators and online travel agencies can offer up to 10% commission if a guest through their website comes through an ad found on the travel affiliate website and on which the reservation is made. Startup Costs – $ 0 – $ 4000.00
We are not part of one of the models like any other. At the same time, we must point out that the association model is the most appropriate way for those with limited resources who do not want customer service responsibility, simple (almost downgraded) approach, and the fastest way to earn money. If money is a motivator and you want to quickly look for it, then the affiliate model is the way.
In our next article, we are talking about developing a travel business idea, and which of the four models can work best for you.
Learn more at at http://www.yourtravelstartup.com/travel-start-up-blog
Source by sbobet