Comparative Analysis: Travel Agents and Online Travel Agencies (OTAs)

This report, titled "Global Travel Professional," delves into a comparative analysis of travel agents and Online Travel Agencies (OTAs). It begins by defining the roles of travel agents and OTAs, highlighting how travel agents simplify travel planning and offer consultation services, while OTAs specialize in selling travel products online. The report then explores the advantages and disadvantages of each. Travel agents benefit from discounted stays, IATA numbers, and destination knowledge, but face challenges from time-consuming planning and competition from OTAs. OTAs offer widespread visibility, price comparison, and 24/7 availability, but require internet access and may lack personalized service. The report further discusses the optimal scenarios for using each, suggesting OTAs for flights and hotels, and travel agents for cruises. The conclusion emphasizes that the best choice depends on individual needs and preferences, with OTAs often suiting those seeking quick, cheap bookings and travel agents offering more personalized service. The report uses multiple sources to support its claims.

Running head: GLOBAL TRAVEL PROFESSIONAL
GLOBAL TRAVEL PROFESSIONAL
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Table of Contents
Introduction......................................................................................................................................2
Advantages of Travel Agents..........................................................................................................2
Disadvantages of Travel Agents......................................................................................................3
Advantages of Online Travel Agency.............................................................................................4
Disadvantages of Online Travel Agency.........................................................................................5
Travel Agent or OTA.......................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
Travel agent is person whose role is arranging job for the end clients. Role of travel agent
is simplifying planning process of travelling for the customers as well as providing overall travel
packages or consultation services. Online Travel Agency (OTA) is travel website which
specializes in travel products’ sale to the consumers. Few agencies sell several travel products,
which includes flights, hotels, packages, activities and car rentals (Raab et al. 2018). There is
agency agreement for travel agency with activity or tour providers for reselling the products
where payment is taken by agencies from consumers and net rates are paid by them to provider.
Advantages of Travel Agents
Heavily discounted and complimentary stays are received by the travel agents at the
hotels all over the world. Hospitality and hotels chain are happy in extending discounts to the
travel agents with hope that the travel agents would enjoy stay as well as recommend this to the
customers. Rates are based typically dependent on the season as well as availability and would
need few flexibility in the travel plans (Monteiro 2017). Chance for seeing world leads several
people in choosing career as travel agent.
Travel agent’s rates are always available for everyone with the IATA number. The IATA
numbers are the identification numbers that are provided by International Air Transport
Association for the travel agents, which grants discounted rates as well as special access for
promotion materials and deals. Discount amounts are provided to the travel agents for travel
expenses.

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Travel agents could apply their knowledge and skills to destination, a factor which makes
them totally mobile. Experience of world travel as well as time spent while travelling are assets
that increase travel agent’s value in eyes of customers and travel companies.
For few people using travel agent, this is all about convenience. Travel agent arranges
everything for the customers, as the travel agents could provide great deals for the customers
(Long and Shi 2017). As agents work over commission, commissions are offered by the hotels to
the travel agents.
Travel agents are offered familiarization trips in hopes to create personal relationship
with destinations and properties all over the world. Tourism boards of government, airlines, tour
operators and hotel companies provide specific amount of every expense paid trips to travel
agents per year.
Disadvantages of Travel Agents
Planning a trip is easy for some travel agents, however it is a major disadvantage to some
travel agents. Travel agents without experience find it quite difficult in planning a trip for the
customers.
Travel agents need to consider schedule of the customers and adapt to it. Travel agents
need to fulfill all needs of their customers (Huang, Chang and Chen 2017). Travel agents need to
inform every step of plan to their customers.
Like maximum sales positions, performance is a crucial factor for travel agents. When
the number of customers go down, job security of travel agents could be affected. Discounted
packages and online travel agencies entice the customers in planning and booking their trips

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without any kind of assistance of travel agent. Niche markets, as result, are to be found by travel
agents and offer specialties and services which aren’t attainable.
If a plan is proposed by the travel agent and the customer does not like the plan, the travel
agent needs to plan it once again as per needs of the customer, which could be frustration for the
travel agent (Lau, Zhao and Ko 2019).
The job of travel agent is all about the service as well as interaction with the customers.
Travel agent needs to be active all time while working in this profession.
Advantages of Online Travel Agency
Online travel agencies (OTAs) could be spread to the customers through the websites,
thousands of visitors could view the websites and know about all the details of the trips that are
offered by these OTAs.
By listing within OTAs, the accommodation businesses such as hotels reach huge set of
customers as well as find the services among several other reputable information sources
(Mäkinen 2017). OTAs give also opportunity to their customers with transfer of hotel, the
agencies are one with the responsibility to solve any issues which are faced by the customers.
Users could compare several accommodation costs easily between the online agencies at
a single place. Users could compare several packages of many agencies and choose the best one
for them which would them a lot of money.
OTA’s could be helpful for the customers to give information of great destinations all
over the world without seeing travel agent or going to office of travel agency (Kalbaska and

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Cantoni 2018). Such OTAs would surely give the customers every comfort in setting up the
destination plans sitting at home.
OTAs are available also at all times, hence bookings could be made at any time through
the websites of OTAs. With all OTAs, customer have option for choosing best deal as well as
right budget for them.
Disadvantages of Online Travel Agency
Internet access is required for making bookings through online travel agency. If activities
as well as tours are run within remote areas, bookings could not be done as lack of internet
within remote areas could be an issue. Reliable access to internet is needed for checking the
reservations and for adding bookings which are made with online.
OTA should be ready for the influx of the new customers. Software of online boking is
an effective way for attracting new customers, several of whom choose online booking from
mobile devices and computers (Dragomir, Todorescu and Stroe 2019). However, small operation
is run by OTA without not much resources or staff members for expanding the activities,
growing too fast might pose an issue.
If a provider is chosen who offers poor service to customers or few features only, online
solution could be frustrating, in case the business is ready for expansion. It is essential in
selecting system of online booking which is committed for supporting the business for long haul.
Few booking systems consist of distribution channels, however they might not attract the
quality customers giving great reviews as well as refer the business to the friends (Antara and
Astuti 2016). It is to be made sure in finding booking system which guarantees quality
customers’ consistent stream.

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Travel Agent or OTA
It is more beneficial in booking flights through OTA than travel agent as OTA offer
cheaper booking prices of flight when compared to travel agents. However, travel agent should
be used for booking cruises than OTA as pre and post cruise plans could be better organized than
OTA (Martin-Fuentes and Mellinas 2018). It is best for booking car rentals with the help of OTA
than travel agent as OTA provides best prices to the customers. It is also best to book hotels with
help of OTA than with travel agent as customers could compare different hotel prices through
websites of OTA.
Conclusion
Travel arrangements should be booked depending on the kind of planning. While few are
suited well to services of OTA could offer, it is preferred by others more direct services that are
provided by travel agents. Those who are looking for booking holiday as quickly and cheaply as
possible, without special requirements, often are going to look for travel agents offer little more
when compared with OTA with respect to price charged and service. If the customers are looking
spending little money, then travel agent is their best option, else OTA is best for a luxury trip.

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References
Antara, M. and Astuti, L.S., 2016. Perception of Villa Manager on Using the Online Travel
Agents as Marketing Media in North Kuta District, Badung, Bali, Indonesia. Journal of
Tourism and Hospitality Management, 4(2), pp.64-72.
Dragomir, G.M., Todorescu, L.L. and Stroe, I.G., 2019. The Work & Travel Program--Means of
Training and Integrating Youth for Adult Life. Romanian Journal for Multidimensional
Education/Revista Romaneasca pentru Educatie Multidimensionala, 11(2).
Huang, L., Chang, W. and Chen, C., 2017. Do switching Barriers exist in the online travel
agencies?. Journal of Tourism and Hospitality, 6(1).
Kalbaska, N. and Cantoni, L., 2018. The use of eLearning strategies among travel agents in the
United Kingdom, India and New Zealand. Journal of Teaching in Travel &
Tourism, 18(2), pp.138-158.
Lau, E.K.W., Zhao, A. and Ko, A., 2019, July. Hybrid Artificial Intelligence B2B2C Business
Application–Online Travel Services. In International Conference on Knowledge
Management in Organizations (pp. 515-524). Springer, Cham.
Long, Y. and Shi, P., 2017. Pricing strategies of tour operator and online travel agency based on
cooperation to achieve O2O model. Tourism Management, 62, pp.302-311.
Mäkinen, J., 2017. The Attractiveness of Online Travel Agencies–Cultural Differences in Online
Buying Behavior.
Martin-Fuentes, E. and Mellinas, J.P., 2018. Hotels that most rely on Booking. com–online travel
agencies (OTAs) and hotel distribution channels. Tourism Review.

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Monteiro, A.R.D.S., 2017. Viagens Abreu: how can traditional travel agencies develop new
strategies to become more competitive? (Doctoral dissertation).
Raab, C., Berezan, O., Christodoulidou, N., Jiang, L. and Shoemaker, S., 2018. Creating strategic
relationships with online travel agents to drive hotel room revenue. Journal of
Hospitality and Tourism Technology.