The Functions Of Travel Agencies

There are two types of functions in such agencies, which are as follows:

External:

Agencies are intermediaries between the client and the service provider and perform three
fundamental functions:

1. Adviser: advise the client on the needs that they expose. You must have good sources of
information, an adequate business infrastructure and a competitive professional team.
2. Mediator or Manager: they manage, negotiate or mediate in the reservation. Before
they were not charged for these procedures, but due to the drop in commissions, they are
currently charged under the name of management expenses.
3. Production Company: designing, marketing and distributing the different tourist
products, generated by the combination of various individual services.

Internal:

1. Front office: functions related to the public face by the counter agents.
2. Back office: administrative or internal management functions.

Retailers play the advisory and mediating role, rarely the producer. And the functions carried out
by wholesalers are the measurer and producer. The advisor is fulfilled if we consider retailers as
their clients.

Specific Functions a Travel Agency:

Advisory role

- This function implies clearly informing the traveler about the characteristics of the
destinations, the services they will obtain as well as who will provide them and the existing
trips.
- The client must be assisted in the selection of the most suitable trip according to their specific
needs.
- To fulfill this first function it is necessary to have ample sources of information; for which it
is necessary to have several systems:
a) Computerized reservation systems (SCR) or global reservation systems (SGR).
b) Have connections via the Internet, this to be in contact with their customers, as well as for
their relationships with tourism service providers.
c) Have a compilation of maps, technical manuals, guides and specialized libraries of brochures.
d) It is also necessary for the agency to create its own data bank, with this it will be able to offer
exclusive and personalized information and save information about clients, which is very
valuable when carrying out certain marketing campaigns.

Broker role

It refers to managing and mediating the reservation, distribution and sale of tourism products. If
the travel agency performs this function very well, this will allow it to bring the product closer to
the client and multiply the points of sale.

This function is commonly exercised by retail agencies, since they are the ones who will make
the reservation, rent or sale of the following groups of services:

- Isolated services such as:

- Tickets for a specific means of transport.

- Accommodation in establishments within the hotel.
- Accommodation in non-hotel establishments.
- Tickets for certain cultural or sports shows.
- Car rental or meeting rooms for parties and congresses.
- Travel insurance policies.
- Sale of tourist guides.

Organizational function

This refers to the fact that the agency can design, organize, sell and operate trips and tourism
products combining different services at an established global price, this is what are called
combined trips or packages (standard trips programmed to the offer).

Another type of trip that the agency can implement are the forfaits (trips programmed according
to demand and adapted to each client).
The organizational function is managed by tour operators and wholesale agencies. To carry it
out, some points must be met:

- You have to do a permanent investigation of the markets to know the trends and needs of
the customers, as well as the offers of the competition.
- The agency must be creative to design new products that allow it to differentiate itself
from the competition.
- Offer quality service, this refers from the proper choice of suppliers to the treatment of
customers.
- Adequate and accessible costs.
- Go one step ahead and not limit yourself to organizing trips, but constantly expand your
activities, so you can also organize congresses, fairs, cruises, sporting events, etc.

Technical function

It refers to the agency projecting, developing and implementing tourism products, for which it is
necessary to carry out the following activities:

- Plan the program that is intended to be carried out, for example if the client wishes to
travel to a certain place, the agency has to investigate everything that refers to the place:
how to get there, in how much time, the best option to stay, what places of interest it has,
the cost of the trip, etc.
- Design trips, for this you have to investigate with suppliers, have several alternatives and
make the necessary contracts.
- Organization and distribution of places, making sure to sell only those that come.
- Have control of operations, be aware of how the trip is developing.

Financial anointing

It refers to the good administration of the economic resources of the agency, to achieve this it is
necessary:

- Knowledge and analysis of the economic-financial structure of the company.

- Prepare and analyze budgets.
 - Devise a suitable method to generate income, organize and monitor expenses, as well as
collections and payments so that they are made in a timely manner.

Accounting function

This function is related to keeping an adequate control of the accounting records of the agencies,
which are very useful and mandatory, since they serve to know the financial status of the
company, in addition to being information that suppliers request, potential investors, employees,
and even public opinion.

Social function

This function is very important, since the good relationship and attention of the agency towards
its employees and from the latter with the people, derives the good functioning of the company,
its stability and why not until its expansion.

Commercial function

In this regard, the intention is to connect the agency with the outside world, both through
suppliers and consumers and thereby improve the sales and purchasing conditions of the
company.

Administrative function

This function includes the planning, organization, command and control of all the activities
carried out in the agency; Some, especially large companies, have departments that carry out
these functions, while for small ones, the director is the one who performs them.

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