Issues in the Travel Agency Business

Travel agents provide a service that most Americans take for granted. Unlike many other businesses, most Americans do not have daily contact with travel agents. We often forget that travel agents play a vital role in ensuring that Americans reach their intended destinations. They are a critical small business in many American communities. This Congressional hearing exams issues that are affecting the financial viability of the travel agency business. Technology has progressed to the point where many consumers are no longer using travel agents to purchase tickets or plan their holidays; rather they are using the Internet to investigate fares, see pictures of resorts and make reservations. New companies such as OneTravel.com and Orbitz were formed to take advantage of this new technology. This new technology even has affected how the federal government contracts for the provision of travel agency services. If there are cheaper and better ways for businesses to provide services than through travel agents, then the market has spoken. Travel agents will have to adapt to the changing economy just as many other small businesses have in the information age.