Definition of Referral Agent/Agency
A referral agent/agency is an individual or entity that refers potential clients or customers to a travel agency. This referral is made in exchange for a commission or fee, which is typically a percentage of the revenue generated from the referred business. Referral agents/agencies often operate as part of a “card mill” operation, which involves selling discount travel cards to consumers who can then use these cards to obtain discounted travel services from a partner travel agency.
Referral agents/agencies can be a valuable source of business for travel agencies, as they are able to reach a wider network of potential clients and customers who may not have been aware of the travel agency’s services otherwise. In addition to providing a source of new business, referral agents/agencies can also help to build a travel agency’s reputation and establish them as a trusted provider of travel services.
However, it is important for travel agencies to carefully vet referral agents/agencies to ensure that they are reputable and operate in a manner that is consistent with ethical business practices. This may involve conducting background checks, verifying references, and setting clear guidelines and expectations for the referral relationship.
Overall, referral agents/agencies play an important role in the travel industry by connecting potential clients and customers with travel agencies and helping to generate new business.
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