How do travel agencies make money?

On the one hand, travel agencies earn the difference, and travel agencies concentrate on buying air tickets and hotels for the next year every year.

Most of these flights are red-eye flights, the frequency is not good, the wholesale price taken by travel agencies is relatively low, and the hotels taken by travel agencies are not very easy to sell. Although many of them are nominally four-star or five-star hotels, the benefits are not very good, and the wholesale price taken by travel agencies is cheaper.

After the wholesale price of the travel agency is bought, it is also risky. It needs to sell these flights and hotels, because the price is low, so it is still very attractive. This is the root of the low price of travel agencies. Travel agencies can't make much money just through hotels and flights.

On the other hand, when traveling and shopping, all tour guides will take you to buy hungry things, and the travel agency will also take the commission of the projects it visits, which is the main profit of the travel agency.

Of course, there are many quality tours now. Travel agencies rely on high-quality services and provide high-quality routes to obtain reasonable profits. This should be the main profit model of future travel agencies. The job of travel agencies is to integrate resources, package and distribute them to all levels, such as a 35-seat bus. If the one-way fare is 60 to a certain place, it may not be enough for 35 people to fill in one trip, so it will be chartered 1000 yuan, but the number of people will be full when the travel agency arranges it. The average fare of a person is less than that of 30 yuan, so you can save half the cost of going back and forth. Similarly, when you live in a hotel, when you give it to the travel agency at the wholesale price, the travel cost will come down, and at the same time, by comparing the price of individual travel, a profit space will be formed. Travel is like this, and it will look brand-new when it is packaged.