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.