Travel agency strategies for managing the current dynamic environment

• Main Author: Abdul Hamid, Ibrahim
• Format: Article
• Language: English
• Published: SEGi Education Group 2011
• Subjects: GV Recreation Leisure
• Online Access: http://repo.uum.edu.my/3485/1/Ib.pdf; http://repo.uum.edu.my/3485/; http://www.segi.edu.my/onlinereview/chapters/vol4_sr1_art7.pdf
• Institution: Universiti Utara Malaysia

Over the last five years, the travel industry has experienced considerable changes.During the deregulation of the airlines industry, travel agents faced a more competitive and dynamic environment caused by the loss of control of airline ticket sales.The zero commission policy adopted by major airlines had reduced revenues for the travel agents.Creative strategies were initiated for the travel agents to survive.The national tourism promotional campaigns to attract tourists into the country only affected certain segments of the travel industry. Eticketing had further eroded the roles of the travel agents.Operating costs increased with insurance coverage and IATA’s requirements.The energy price hikes indirectly affected the livelihood of the travel agents.This paper gives particular attention to the travel agent as a primary intermediary of travel related product.Of particular interest is the agent’s experience of zero commission, insurance coverage, e-ticketing and changes of travel preferences.