Travel Agents

Travel agents are professionals who plan and book travel arrangements for individuals and groups, offering tailored advice, itinerary planning, and support. They are crucial for navigating complex travel options, securing competitive rates, and providing personalized service, making travel planning stress-free and optimized for clients’ needs and preferences. Their expertise and industry connections can enhance the travel experience, making them invaluable in today’s vast and variable travel landscape.

Key Takeaways

  • Diverse Reach: Travel agents connect hotels with a wider audience, including leisure and corporate guests, increasing occupancy rates.
  • Marketing and Distribution: They serve as an effective marketing tool, promoting hotels on platforms with high visitor traffic.
  • Incremental Bookings: Hotels gain bookings they might not otherwise receive, as some guests prefer the convenience of travel agents.
  • Booking.com: Offers extensive hotel listings worldwide, facilitating easy booking experiences.
  • Expedia: Provides a full range of travel services, including flights, hotels, and car rentals.
  • Agoda: Specializes in Asia, offering competitive rates on accommodations.
  • Airbnb: Expands lodging options with unique homestays and experiences.
  • Hotwire: Focuses on last-minute travel deals for hotels, flights, and car rentals.
  • American Express Global Business Travel: Offers comprehensive business travel services, emphasizing corporate needs and management.

Table of Contents:

Introduction

Travel agents represent a major distribution channel for those in the hotel industry, helping them connect with more leisure travelers and corporate guests. To capitalize, hotels need to list their properties with online travel agents and connect with the main global distribution systems so that a travel agent can view real-time inventory information. In this article, you will find out about eight key travel agents to work with.

What Are Travel Agents?

Travel agents or travel agencies are service providers specializing in selling travel-related products to customers. However, businesses operating within the sector offer these products and services, including airlines, hotels, tour operators, insurance providers, and car rental companies.

A travel agent will usually either receive a commission from the companies they sell on behalf of or they will charge customers a fee for their services. They may open their platform up for hotels to list their properties or use a global distribution system to access real-time information about availability. Popular examples of global distribution systems include Amadeus, Worldspan, Galileo, and Sabre, and these also allow for easy price comparisons.

Many travel agencies now operate in the online sphere, and these are referred to as online travel agents or OTAs. They will typically offer similar services, selling travel products on behalf of others, but will generally include an online booking system and allow for a greater amount of self-service than their offline counterparts.

Why Are Travel Agents So Useful?

Travel agents can be invaluable for hotels seeking leisure guests, as they connect their customers’ needs with what you have to offer. Additionally, online travel agents, in particular, serve a dual purpose when it comes to hotel management, functioning as both a distribution channel and a way of promoting or drawing attention to your hotel.

In some cases, this marketing effect can be particularly beneficial, as some customers may turn to a travel agent or OTA, become aware of a hotel, and then book their hotel room directly, resulting in your hotel keeping more of the revenue. However, even when a commission does need to be paid, this is far preferable to having an empty room.

Many companies turn to corporate travel agents to assist them with their travel management when it comes to business travel. By ensuring your hotel is listed with the major GDS systems in the business travel sector, you can help to increase the chances that these travel agents will send their customers to your hotel.

Additionally, it is important to understand that travel agents often provide hotels with incremental bookings. In other words, these are bookings that your hotel would otherwise go without. This is because some customers like the convenience of booking through a travel agent and will not take the time to explore their options independently.

5 Travel Agents to Gain More Leisure Guests

With so many travel agents operating within the current marketplace, it can be difficult for hotel industry employees to know where to start. However, some travel agents can be particularly helpful when it comes to attracting leisure guests, and the following four are good examples:

1. Booking.com

travel-agents-booking-com

An online travel agent and metasearch engine, Booking.com is based in Amsterdam, Netherlands, and offers close to 30 million listings in total, spread across 200 countries, while the website is available in more than 40 languages. Users can book hotels, flights, airport taxis, car rentals, and more. From the perspective of a hotel, it allows properties to reach a global audience, while 24/7 support is also available to these hotel listers.

To visit the website, click here.

2. Expedia

travel agents expedia

Expedia.com is an online travel agent based in Seattle, Washington, which offers its customer’s hotel bookings, flights, cruises, and car rental services, selling these products and services on behalf of suppliers. It offers localized websites in dozens of countries worldwide, and Expedia’s marketing efforts emphasize value, so connecting with this travel agent can be ideal for hotels looking to promote affordable accommodation.

To visit the website, click here.

3. Agoda

travel agents agoda

Based in Singapore, Agoda is owned by Booking Holdings, the parent company of Booking.com. It is an online travel agent with more than two million customers across more than 60 countries. Historically, Agoda has strongly emphasized the Asian market, which can make it ideal for hotels looking to attract guests from that part of the world. It is also notable for relying more heavily on a merchant model than Booking.com.

To visit the website, click here.

4. Airbnb

travel agents airbnb

Airbnb differs from the other online travel agents on this list as it is a hospitality marketplace that primarily deals with homestays and experiences. Recently, it has expanded to include listings for hotels, although its requirements are fairly strict, and these hotels need to show they meet the criteria. Nevertheless, it can be an especially useful platform for hotels with unique features, qualities, aesthetics, or services they wish to promote.

To visit the website, click here.

5. Hotwire

travel agents hotwire

Hotwire is a travel website, which is based out of San Francisco, California, and is owned by the Expedia Group. Unlike many other travel agents, Hotwire specializes in selling hotel rooms and other travel products that have gone unsold after being made available through other channels. Buyers can access cheaper, last-minute deals, hotels can sell off unsold inventory, and the opaque sales model means participating companies are not revealed until after the customer has paid for the travel product so that these sales do not influence pricing elsewhere.

To visit the website, click here.

More Travel Agents to Gain More Leisure Guests

Ultimately, travel agents can help your hotel to become visible to a greater number of customers. As a general rule, the more travel agents you connect with, the more visible your hotel will be, and the more visible your hotel is, the more leisure guests you are likely to attract. Of course, you also need to consider commission rates and other factors.

In the article “12 Online Travel Agents (OTAs) to Increase Your Hotel Bookings”, you will find more information about online travel agents, along with other examples of OTAs to work with in order to attract leisure guests.

What Commission Do These Online Travel Agents Charge?

In the vast majority of cases, online travel agents make money by booking travel products and services on behalf of their clients and then charging the suppliers a commission for generating that business for them. Effectively, this means they will charge a percentage of the amount the customer paid for their booking(s).

The precise commission rates can vary significantly from one OTA to another, but it is fairly typical for these rates to range from 10 percent to 25 percent. The calculation for hotels centers on OTAs generating bookings that may otherwise be impossible to attract, but the distribution channel itself is expensive.

5 Corporate Travel Agents to Gain More Corporate Guests

Those responsible for hotel marketing and distribution must draw a distinction between leisure guests and corporate travelers, as they have different habits and are looking for different things. The following four corporate travel agents can be particularly useful for increasing the number of business travelers you attract.

1. American Express Global Business Travel

travel agents american express business travel

American Express Global Business Travel is a leading corporate travel agent and management company that assists businesses and business travelers with their corporate travel requirements. Currently, it has operations in more than 100 countries worldwide. It makes bookings for its customers, including hotel reservations, using various global distribution systems, including the likes of Sabre, Travelport, and Amadeus.

To visit the website, click here.

2. Carlson Wagonlit

travel agents carlson wagonlit travel

Carlson Wagonlit Travel, or CWT, is a corporate travel agent and event management company. It serves more than 140 countries in total, representing an excellent opportunity for hotels to reach corporate travelers worldwide. CWT books travel products and services for its customers and access up-to-date information about hotel room availability through GDS systems, such as Amadeus, Sabre, Travelport, and Galileo.

To visit the website, click here.

3. BCD Travel

BCD Travel is a Dutch company specializing in corporate travel management, offering customers bookings for hotels, flights, and other travel products, along with policy compliance services. The company strongly emphasizes finding the best value for money for its clients, and it makes its bookings through global distribution services like Travelport and Amadeus. In total, BCD Travel is active in more than 100 countries worldwide.

To visit the website, click here.

4. HRG Worldwide

travel agents hrg worldwide

Hogg Robinson Group, better known as HRG Worldwide, is a global business travel agent based in the United Kingdom. The company is a subsidiary of American Express Global Business Travel and stresses its provision of 24/7 support for business clients. The HRG Worldwide network spans 120 countries, and the company makes its hotel and flight bookings through the Worldspan, Sabre, and Galileo global distribution systems.

To visit the website, click here.

5. TravelPerk

travel agents travelperk

Established in 2015, TravelPerk is a travel management company headquartered in Barcelona, London, and Berlin. TravelPerk sells travel products to businesses and allows those businesses to manage their travel through the platform. This can include, among other things, tracking expenses, viewing reports, accessing invoices, booking flights, trains, and hotels, and accessing deals from other travel agents. Customer support is delivered on a 24/7 basis, and users even have the option to offset their carbon emissions, resulting in greener business travel.

To visit the website, click here.

More Corporate Travel Agents

Many businesses and business travelers do not have the time, skills, or patience to manage their travel arrangements fully, so they outsource to corporate travel agents. For hotels, one of the key challenges when attempting to attract more business travelers is making sure these travel agents can access your hotel.

In the article “8 Corporate Travel Agents for Hotels to Gain More Business Travelers”, you will learn about the importance of corporate travel agents, along with more examples of some of the best travel agents to partner with.

How to Connect to Corporate Travel Agents

Generally speaking, corporate travel agents will compare the prices and check the availability of hotel rooms, flights, and other travel services simultaneously, using a global distribution system to do so. These GDS systems provide access to real-time information, allowing them to offer better travel management services to their clients.

With this in mind, hotels can attract more corporate travelers to their properties by connecting with all major global distribution systems. Doing so and properly setting up your listings in these systems can significantly increase the chances of a corporate travel agent choosing your hotel for their customers.

What Are the Costs Associated With Business Travel Agents?

Business travel agents generally rely on global distribution systems to make their bookings. For this reason, hotels do not generally connect with each travel agent individually. Instead, the costs associated with a corporate travel agent are linked to actually connecting with these global distribution systems.

A GDS will usually charge you a fee for each booking they generate for you, which may amount to around 10 percent of each booking. Additionally, there may be an initial set-up fee to contend with. Hotels sometimes charge slightly more for each room to offset the fees, but the balance keeps rates low enough to still attract bookings.

How to Manage Your Hotel Inventory With All Travel Agents

Working with as many travel agents and global distribution channels as possible is important for maximizing your reach. However, it can also present a real problem because inventory information must be available and updated across all platforms. Fortunately, hotel distribution channel management solutions can help.

These solutions will allow you to manage all your distribution channels, such as Expedia and Booking.com, and all major GDS systems, from a single place. In the article “Hotel Distribution Channel Manager: What Are the Advantages?” you will be able to find out more information about the positives associated with these solutions.

Do Not Neglect Your Most Important Distribution Channel

While travel agents are an important part of a hotel distribution strategy, you mustn’t rely on them exclusively and neglect your most important distribution channel – your own website. Direct bookings should always be the preference because they do not require you to pay a commission to another company. This means you will keep all of the money from the booking, and the more direct bookings you attract, the more revenue you will generate.

In the article “8 Tips To Gain More Bookings With Your Hotel Website”, you will learn to generate direct bookings.

Travel agents play an important role in hotels, serving as both a distribution channel and a way of advertising your property. Crucially, by making your hotel accessible to travel agents, you can attract leisure and business guests who may otherwise be unaware of your hotel and those who are unwilling or unable to book a room directly.

More Distribution Tips to Optimize Revenue

The distribution mix that hotels choose to use significantly impacts their marketing and revenue management strategy and their overall success. In the following articles, you will find more distribution strategies to optimize your revenue:

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

This article is written by:

Hi, I am Martijn Barten, founder of Revfine.com. I am specialized in optimizing revenue by combining revenue management with marketing strategies. I have over 15 years of experience developing, implementing, and managing revenue management and marketing strategies and processes for individual properties and multi-properties.