Types of agencies
There are three different types of agencies: these are Multiples, Miniples and Independent Agencies. The former comprise a number of national chains, often owned by international conglomerates (Thomson Holidays is now a subsidiary of TUI, the German multinational). It is now quite common for the large mass-market tour companies to purchase a controlling interest in a chain of travel agencies, in order to control the distribution of their product. (This is an example of vertical integration.) In the United States there are four different types of agencies: Mega, Regional, Consortium, and Independent Agencies. American Express is an example of a Mega travel agency.The smaller chains are often based in particular regions or districts.
Independent Agencies usually cater for a special or niche market. Some cater to the needs of residents in an upmarket commuter town or suburb, or concentrate upon a particular area or group (catering to the travel needs of Polish expatriates, perhaps), or an activity such as sports(servicing the needs of football supporters).
There are 2 approaches of travel agents. One is the traditional multi-destination travel agent based in the originating location of the traveler and the other is the destination focused travel agent that is based in the destination and delivers an expertise on that location. At present, the former is usually a larger operator like Thomas Cook while the latter is a smaller, often independent operator.
Consolidators
Travel consolidators or wholesalers are high volume sales companies that are sometimes specialized in a niche. They may or may not offer various types of services at one single point of access. These can be for example hotel reservations, flights, or car-rental. Sometimes the services are combined into vacation packages that include transfer to the location and lodging. These companies do not usually sell directly to the public but act as fulfilment for retail companies. As the travel industry has changed we see more and more consolidators selling directly to the public. The sole purpose of wholesalers is to sell ethnic niches in the travel industry. There is no consolidator that offers everything. All travel companies can sell you whatever you may be looking for but they only have contracted rates to specific destinations. Today there are no domestic consolidators with some exceptions for business class contracts.
