Traditional Culture Encyclopedia - Tourist attractions - What is the agency relationship of a travel company?

What is the agency relationship of a travel company?

The agency relationship of a travel company means that the travel company signs a contract with an agent, allowing the agent to complete a series of tasks on behalf of the travel company, such as promoting products and receiving tourists. At this time, the travel company plays the role of the principal, and the agent plays the role of the agent. The principal-agent relationship refers to the contractual legal relationship reached in market transactions due to the mutual game between the principal at an information disadvantage and the agent at an information advantage due to information asymmetry.