Travel agency is a business that helps people arrange trips by handling many travel arrangements. It makes reservations for hotel rooms and transportation and arranges sightseeing tours. It offers customers guidance in obtaining passports and visas, which travelers need for foreign travel. A travel agency also provides customers with information on the travel regulations of various governments. Travel agencies arrange tours for individuals and for groups.
A travel agency earns much of its income from commissions paid by businesses in various parts of the travel industry. These businesses pay a commission on each reservation an agency makes or on each ticket it sells. A travel agency also earns income through service fees it charges its customers. Travel agencies operate in most countries. Many agencies provide services through the Internet.
During the 1980’s, several U.S. states passed laws setting rules that travel agencies must follow to operate in that state. These rules, plus regulations instituted by travel agents’ professional associations, helped establish standards of ethical conduct for travel agents.