Agency business model
The agency business model entails creating a team of specialized experts who can solve clients’ issues. Agencies do not sell products; instead, they provide services and charge a fee for them.
In the B2B scenario, clients hire an agency to outsource non-core business activities such as marketing, advertising, HR, branding, etc. In the case of a B2C operation, agencies offer individuals services in the fields of finance, real estate, taxes, etc.
In the travel industry, multiple business types operate on the agency model, including
- both brick-and-mortar and online travel agencies,
- destination management companies,
- tour operators,
- travel management companies, etc.
The agency business model falls into the category of service business models, as opposed to manufacturing, retail, eCommerce, and franchise.