Answer: Travel trade intermediaries are businesses that operate between the travel suppliers (e.g., airlines, hotels, car rental companies) and the end consumers (e.g., travelers, tourists). There are six major travel trade intermediaries, and each plays a different role in the travel industry. Here are the functions of each:
Travel agencies: Travel agencies help travelers plan and book their trips. They provide a range of services, such as booking flights, accommodations, and tours. Travel agencies also offer advice and information about destinations, travel requirements, and travel insurance.
Tour operators: Tour operators specialize in creating and selling pre-packaged tours to travelers. They design tours that include transportation, accommodations, and activities. Tour operators may also provide guides, meals, and other services as part of the tour package.
Wholesalers: Wholesalers buy travel products in bulk from suppliers, such as hotels or airlines, and resell them to travel agencies or tour operators. Wholesalers negotiate prices and contracts with suppliers, which allows them to offer travel products at a discounted price.
Online travel agencies (OTAs): OTAs are online platforms that allow travelers to search and book travel products, such as flights, hotels, and car rentals. OTAs often offer user reviews and price comparisons, which make it easy for travelers to find the best deals.
Global distribution systems (GDSs): GDSs are computer systems that provide travel agents and other travel trade intermediaries with real-time access to travel suppliers' inventories. GDSs allow travel agents to search and book flights, hotels, and car rentals for their clients.
Incentive travel companies: Incentive travel companies specialize in creating and managing travel programs that reward employees, customers, or partners. These programs may include travel incentives, such as a trip to a luxurious resort, as part of an employee reward or recognition program.
Together, these travel trade intermediaries form a complex web of businesses that connect travel suppliers and consumers, making it easier for people to plan and book their trips.