Are travel agencies profitable?

The profits of travel agencies are quite large, which is why most travel agencies can still survive despite their low prices.

The cost of a tourist route usually includes: air tickets, destination transportation, attraction tickets, hotels, catering, tour guide services, other expenses, etc. This is only the cost of tourist route planning and supply development, and does not count the travel company Office and personnel expenses, and product promotion and other costs.

The stores we often sign up for tour groups are retailers, and their products come from line suppliers. The suppliers will give the stores a settlement price, and then the travel agency will reasonably increase profits based on its own operating costs (generally there is a unified selling price) and then sell it to registered tourists. The operating costs of travel agency stores include: tourism bureau deposit, store rent, water and electricity, staff, and other miscellaneous expenses.

The division of labor in the tourism industry is very clear. Route suppliers are responsible for packaging travel products, and travel stores are responsible for selling travel products. Suppliers can join forces to charter flights and hotels. Before combining line products, they need to "step on the line" in advance to find out what the selling points are, whether there are any safety hazards, and estimate various risks and costs. Only then can they determine whether it can be established. This line!

So, the travel agency store’s income is basically to earn the price difference. For example, if the supplier gives 900 yuan, it can add 100 yuan in profit and sell it to 1,000 yuan.

With the development of the Internet in recent years, there are many travel products on Taobao and Ctrip Qunar. The transparency of their own prices makes it easy to compare prices, and the itineraries are almost the same. This is something that the travel products themselves cannot overcome. The hysteresis makes it impossible for tourists who finally join a group to distinguish the difference between groups.