As the name implies, their main function is to act as an agent, that is to say selling travel products and services on behalf of a supplier. Consequently, unlike other retail businesses, they do not keep a stock in hand. A package holiday or a ticket is not purchased from a supplier unless a customer requests that purchase.

    The holiday or ticket is supplied to them at a discount. The profit is therefore the difference between the advertised price which the customer pays and the discounted price at which it is supplied to the agent. This is known as the commission. A British travel agent would consider a  commission as a good arrangement.

    The majority of travel agents have felt the need to protect themselves and their clients against the possibilities of commercial failure, either their own or a supplier. They will advertise the fact that they are bonded .The average customer tends to think that these are the only holidays on offer, and are unaware of possible alternatives