Where do travel agencies make their profits and how do they operate

The main means of profitability is to join forces with travel agencies or scenic spots in tourist destinations to develop the source market, and its main responsibility is to recruit tourists. Then, the destination travel agency or scenic spot will have a peer-to-peer settlement price with the travel agency in the source. The travel agency of the source sells the sales price, and the difference is the profit.

Example: Shanghai's A travel agency has a line called Hainan double flight 5 days price is 2500 yuan.

Then the line is Hainan B travel agency to do. One of them is responsible for receiving guests, one is responsible for receiving guests, the terminology is called the organizing agency and ground receiving agency. One day there are 2 guests saw the advertisement to sign up. Shanghai A travel agency can not operate independently of Hainan line, need to be handed over to the B travel agency. Then the previously agreed settlement price between the two travel agencies is 2200, then if the business is successful, travel agency A can make a profit of 300 yuan a person.

The operating income of the ground receiving agency is by the organizing body according to the allocation of standards and regulations, its source is the allocation of comprehensive service fees, intercity transportation costs, additional services, accompanied by a full range of fees, etc.. The allocation of money for the organizing agency is part of the operating costs, for the ground receiving agency is the operating income.