Travel agents : Threatened intermediaries ?

Abstract

In the past five years, direct electronic communication with consumers has become possible through the Internet, online services, and the use of telephones to communicate directly with computers. The case has been made that it will be possible to bypass intermediaries, as they will no longer be necessary for the coordination and management of information. As the role of intermediaries declines, profit margins along the value chain will be handed on to producers and consumers. Travel agents represent an important example of an intermediary between producers (such as airlines, hotels, or rental car firms) and consumers (prospective travelers). This article deals with the relationships between travel agents and those carriers, although agencies also represent other providers such as railroads, hotels, cruise lines, and rental car firms.

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