Hotels and Travel Agents

Travel agents book more than 90 percent of airline tickets but are responsible for only 25 percent of hotel reservations. Although there is some negative history to overcome, hotel companies and travel agents are coming to recognize the advantages of collaboration over competition. With the advent of new computer-based distribution systems, travel agents can negotiate with hotel clients for volume contracts, recommend hotels to individual travelers, and consult with corporate travel planners. The partnership is mutually beneficial: travel agents constitute a large and relatively inexpensive labor force for the hotel industry, and booking hotel reservations helps to bolster travel agents' bottom lines as airline fare wars have meant lower commissions.