travel agent problem

Top Challenges Facing Travel Agencies

Travel Industry Analysis

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These are hard times for small-sized travel agencies. They are also pretty tough for those just beginning with a view to getting started in the travel industry. The traditional reasons you would approach an agency are growing less meaningful every year. Why go to your local agency to ask questions about some faraway destination when Google can answer those for you? Why rely on a third party agency when you can, through the internet, find the accommodation or service that you’re looking for and book directly? Any why remain loyal to a particular agent when there are thousands at your fingertips?

These are just a few of reasons why today’s travel agencies need to evolve to stay relevant. Travellers are getting smarter, so you need to be too.

Here are just a few of the challenges faced by modern day travel agencies…

• More Choice Than Ever

Potential travellers are certainly not short of options when it comes to researching and arranging their trips. With more deals, agencies and service offerings than you could ever fully consider, shopping for travel services has become about cutting through the noise rather than discovering something authentic.

• Increasing Price Transparency

Travellers aren’t naïve when it comes to pricing their trip. They’re sensible enough to shop around and find the best deal, and they certainly won’t be fooled into paying over the odds when they know how many potential options there are. This has made an already competitive market even more competitive, meaning that current agencies need to stand out in less obvious ways than just undercutting their rivals.

• Greater Traveller Independence

In certain parts of the world travellers are keen to get out and explore with a little independence. They are savvy enough to know what they want and how to get it, and no longer need to have everything arranged for them. Whilst this attitude can be leveraged to say, offer self-drive tours, the general reliance on travel services providers has lessened.

• Decreasing Customer Loyalty

With more holiday bargains on the internet than you can imagine, along with a host of small agencies and big hitters vying the attention of potential travellers, loyalty is a rare thing in today’s market. If you’re not offering something original, authentic and worth returning to, customers will have no problem taking their business elsewhere.

• The Rise of the Sharing Economy

The rise of the Sharing Economy has left many travel agencies in the lurch, wondering how they can tap into a trend that deliberately leaves them out of the equation. Huge competition in the travel industry has been the catalyst for many bold claims, and it may well be that travellers appreciate the authenticity of peer to peer services more.

• A Few Players Dominate the Market

A handful of companies which don’t need to be named here (they get enough publicity as it is!) have a stranglehold on the industry. They pull in more online traffic than anyone else, sucking the life out of smaller competitors and agencies only just getting started.

• Travel Isn’t as Mysterious as it Used to Be

Gone are the days when you would head down to your local travel agent to ask questions about an exotic land far away. We get our information from elsewhere now. Travel services companies need to adapt and offer something more insightful than the generic information which can be found all over the internet.

So there you have it - just a few of the challenges facing the industry at the moment. But if you’re keen on starting up in the world of travel services, don’t fear! Many of these challenges can be turned on their head and into opportunities.

For starters, the industry continues to grow, and that means an ever growing customer base for you to plug into. Second, whilst it’s certainly true that people know what they want more than ever, this has opened the door to many travel agencies becoming more specialised, offering tailored trips to customers keen on a something precisely to their tastes.

Technical Challenges

The way that tourists discover, book and organise trips is changing. In an increasingly digital world, travel agencies have to adapt to offer a seamless online experience. Fail to do that and you'll be quickly overlooked and left behind.

This means having the ability to modify product availability in real-time, to adjust your inventory with the touch of a button, and to edit pricing information to cater to market fluctuations, offers and promotions.

It also means having a database and platform that can give curious tourists what they want: comprehensive and curated search results. This is a vital step in retaining customers and keeping people on your platform.

Then there's the booking stage. If that isn't seamless, or if at any stage your platform is unconvincing, clumsy or confusing, alternatives are just a click away. You will lose business. Central to success is having an optimized booking management system.

All of these technical challenges are far removed from the traditional tourism industry. Efficiency, skill and software expertise are suddenly priorities for travel startups.

The Role of Travel Agencies is Changing

Traditionally, an agent would be a one-stop shop for tourist information and bookings. Everything would be sorted between the two parties. Now, agents still provide the information, but travellers are free to take that knowledge elsewhere. That relationship has shifted, but it doesn't mean that travel agents are obsolete.

The world is changing and the political landscape is uneasy at best. If you read  Skift,  you will have come across the term  Permanxiety.  What better setting for travel agents to flourish? The key to is adapt, join forces with others and play to your strengths. That's what we help our partners do. Read more in the links below...

Travelshift: How Our Unique Solution Helps You Face These Challenges

Keen to find out more about how Travelshift's marketplace software can help your travel business?

• Get in touch and book a demo

You can also check out the following articles for more information:

• How Travelshift Helps to Counter The Top Challenges Faced by Travel Agencies
• Changing Trends in Travel Industry Marketing
• How Travel Startups Can Compete with Established Marketplaces

We've also put together a range of features looking at how to build and grow a successful travel marketplace - which is something we know more than a little about :

• Travel Marketplace Pricing Strategy – Where to Start
• How to Choose a Travel Marketplace Niche
• How Travel Startups can Compete with Established Marketplaces

November 2, 2017

How Blockchain Could Transform the Travel Industry

December 21, 2016

Artificial Intelligence Will Change the Travel Industry Forever

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Complaints about travel

If you have a complaint about travel by air, land, or sea, find out where to share your complaint to get the problem resolved.

Complaints about an airline or TSA

The kind of complaint you have about an airline or an airport experience with the Transportation Security Administration (TSA) determines where to go with your complaint.

• Airline service or discrimination - First, attempt to resolve your complaint with the airline. If the airline does not fix the problem, file a complaint with the U.S. Department of Transportation (DOT) . 
• Airline safety - Contact the Federal Aviation Administration (FAA) hotline .
• Airline security - Contact the TSA through their security issue web form.
• Airport experience with TSA - Contact the TSA through their complaint web form.

Learn about your consumer rights as an air traveler and how to avoid problems.

Vacation rental scams

Vacation rental scammers may try to take your money by offering a vacation property that does not exist or that they do not have the right to rent to you.

Learn from the Federal Trade Commission (FTC) about vacation rental scams , including:

• How they work
• How to avoid them

If you have encountered a vacation rental scam, report it to:

• The website where you saw the listing
• The credit card or other service you used if you paid the scammer
• Your local law enforcement

Complaints about a hotel or motel 

• Begin by sharing your complaint with the front desk, manager, or customer service line.
• If you feel your issue was not resolved, contact the regional manager or another senior executive if the hotel or motel is part of a chain.
• Depending on the type of complaint, if it is not resolved, you may also contact the local health department or the state consumer protection office .

Complaints about travel agents and travel agencies

Begin by complaining to a local travel agency’s manager. If you are using an online booking service, complain to their customer service department. If your complaint is not resolved, you can contact:

• The state consumer protection office where you live or where the travel company is located
• Your local Better Business Bureau

Complaints about cruises

• If you have a complaint while you are on a cruise, contact the ship’s guest services office.
• To complain before or after a cruise, contact the cruise line’s customer service department.

If the problem is not resolved, contact the Federal Maritime Commission by email at [email protected] or download, fill out, and mail or fax their cruise dispute services request form .

Car rental complaints

If you have a complaint about a rental vehicle, try contacting the rental agency’s customer service department first. If you cannot get your complaint resolved with the rental agency, contact:

• Your state consumer protection office
• The Federal Trade Commission

LAST UPDATED: December 7, 2023

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The Morning

Travel troubles.

Two Times reporters answered your travel questions to help you navigate this hectic vacation season.

By Matthew Cullen

For many travelers, cancellations and other snags have made this summer especially frustrating. To help you understand how we got here and how to make the most of your own trips, two Times travel experts — Niraj Chokshi, who covers transportation, and Heather Murphy, who reports on how people travel — answered reader questions.

Why are so many flights getting canceled? — Anna, South Bend, Ind.

Niraj: It’s a confluence of issues. Demand is quite high. After two years when people were not able to travel or did not feel safe doing so because of Covid, summer travel is busy again. The other issue: Labor is in short supply. Both airlines and airports have been struggling to hire, which means that there haven’t been enough baggage handlers, wheelchair agents, ramp agents — all the way up to pilots.

To some extent, it is a problem of the airlines’ own creation. Early in the pandemic, when they were looking to trim costs, the airlines encouraged a lot of employees to leave through buyouts or early retirements. Ultimately, it looks as though that has come back to bite them.

Will the summer travel problems end by October for my destination wedding? — Martina Matheis, Stroudsburg, Pa.

Niraj: There is some hope. Major airlines have been staffing up aggressively, and those new employees should be fully trained soon. The industry should also get a bit of relief thanks to seasonality: The fall is traditionally less busy. Also, parts of the economy aren’t doing so great, which could mean that fewer people will be flying.

Do you think the price of airline tickets will ever go down? I’m broke, but need a vacation. — Cynthia Soegiharto, South Portland, Maine

Heather: Quite a few apps and websites — including Hopper, Kayak and Skyscanner — allow you, when you search your flight, to see what the prices will be at different time periods. I appreciate that the Hopper app will tell you if you should book right away because prices are likely to rise, or wait until they drop further.

Also, many airlines still allow people to change most flights without fees, so you can buy a flight and then, if you can find a cheaper flight on that same airline, you can change it and get a credit.

If an airline cancels your flight, what rights do you have as far as refunds or vouchers? — Susan, southern New Jersey

Heather: If your airline cancels your flight or significantly changes it, you are supposed to get your money back. It’s something that people don’t realize, and airlines sometimes instead offer people vouchers when they actually owe you that money. If you aren’t refunded automatically, you may have to call the airline or fill out an online form. If the money has not shown up in your bank account within several weeks of your request, you should tell your credit card company, and it can help you get your money back.

What steps should you take to plan for dealing with contracting Covid while you are on vacation? — Libby Bucholz, Cary, N.C.

Heather: It’s tempting to push it out of our minds, but you’re wise to come up with a plan in advance. Some, but not all, travel insurance policies will cover seven days of additional hotel costs as well as medical costs if you test positive. Particularly if you’re over 65 or medically compromised, you should check in with your primary care doctor and find out if he or she could prescribe you Paxlovid when you’re on the road.

You no longer have to test to return to the U.S. or travel to most countries, so it’s really on you to identify whether you have Covid before you fly home. C.D.C. guidance says that if you test positive, you should isolate yourself for five days and then wear a mask for the five days after that. (Heather gave more tips for post-restrictions travel here .)

What can I do to reduce the carbon footprint of my vacation? — Kevin Morooney, State College, Pa.

Niraj: The airlines I cover won’t appreciate me saying this, but: Fly less. Flying is a huge contributor to anyone’s carbon footprint and if it’s important to you, reconsidering how much and how far you travel is worth considering.

Should I ship my luggage overseas to avoid the chaos of losing it? — Carolyn Adams, Hilton Head Island, S.C.

Heather: If you need to travel with something that is so precious to you that if it is lost, it would destroy your life, then put it in a carry on. If it’s too big, it’s not a terrible idea to ship it. But I don’t think we are yet at the point where people need to stop checking their luggage.

For a big trip, is it better to use a travel agent or plan on my own? — June Sambrowski, Morris Plains, N.J.

Heather: Travel agents are great if you have the money to spend on them. With all of the travel chaos, and the horrible customer service offered by so many airlines, if you have a travel agent, they can be the one to wait on the phone for four hours instead of you.

Before working in journalism, Heather Murphy taught English at an institute in Chile with unconventional notions about essential words. Niraj Chokshi covers transportation, but his favorite way of getting around is walking with his wife and their dog, Kevin.

A flight attendant with 20 years on the job answered reader questions .

It took 12 days for one Times reader to get her bags. Our Tripped Up columnist persuaded United to give her $3,000 in restitution — and still couldn’t believe it.

Airplane travelers seem to have an unspoken dress code: comfortable shorts, leggings and sweats — maybe even Crocs .

Some dog owners are shelling out thousands of dollars to charter flights for their pets , The Wall Street Journal reported.

President Biden’s unpopularity is testing the strength of Democratic Senate candidates.

The Senate took a crucial step toward approving Democrats’ climate and tax bill, passing it in a test vote.

Abortion rights supporters worry that, as a lifelong Catholic, Biden is an awkward fit to lead a fight to restore Roe.

Conservative groups are trying to expand safe haven laws that allow women to surrender newborns with minimal interference.

The verdict against Alex Jones is unlikely to do much to slow the phenomenon of fabulists influencing the public, Kevin Roose writes.

International

Palestinian Islamic Jihad militants fired a barrage of rockets at Jerusalem, in fighting that has killed at least 31 people in Gaza. Follow our live updates .

Xi Jinping has strengthened China’s security apparatus, protecting against what he sees as threats from foreign forces.

Francia Márquez, who will become Colombia’s first Black vice president today, is an ambassador of an Afro-Colombian aesthetic boom .

Other Big Stories

Major employers in Indiana, including the pharmaceutical company Eli Lilly, criticized the state’s new near-total abortion ban.

Black families searching for ancestors have turned to 19th-century ads that thousands placed in newspapers seeking relatives after Emancipation.

FROM OPINION

Biden’s recent successes should make him confident in his legacy without needing a second term to secure it, Maureen Dowd argues.

The pro-life movement wanted a democratic contest over abortion. After the Kansas vote, it has one , says Ross Douthat .

People shape technology, but technology also shapes us , Ezra Klein writes.

Alex Jones’s trial was a rare — but still insufficient — win for the truth , Pamela Paul argues.

Don’t ask Marvel to recast the Black Panther; demand more Black heroes instead, says Roxane Gay .

The Sunday question: What does Ayman al-Zawahri’s death mean?

The killing of Al Qaeda’s leader shows the U.S. can still fight terrorism without troops in Afghanistan, says the Brookings Institution’s Vanda Felbab-Brown . But Zawahri’s presence in Kabul suggests that last year’s U.S. withdrawal and the Taliban’s return have again turned the country into a terrorist haven , Asfandyar Mir writes in The Times.

MORNING READS

Trilobites: Dolphin strangers met in the Bahamas. It went swimmingly .

Sunday routine: A couple who run a food bank helps get food to nearly 2,000 people.

Design: Would you go back to the office for an Eames chair?

Advice from Wirecutter: The best ice cream scoop has barely changed in 75 years.

A Times classic: Finding the courage to reveal a fetish.

Powerful presence: Read your way through Cairo .

By the Book: Lynne Tillman has “too many” books on her night stand.

Our editors’ picks: An “engrossing” George Michael biography and nine other books .

Times best sellers: Check out our mass market paperback best sellers , and see all our lists here .

The Book Review podcast: Elisa Gabbert talks about poetry criticism.

THE SUNDAY TIMES MAGAZINE

On the cover : A TV documentary upended a sensational Israeli murder case . But did it reach the right verdict?

Recommendation : Souvenir spoons .

Diagnosis : Her lungs mysteriously shut down. How ?

The Ethicist: Is it OK to ditch a roommate to live with a friend ?

Eat: A creamy, spicy dip .

Read the full issue .

THE WEEK AHEAD

What to watch for.

The government will release inflation data on Wednesday. Falling energy prices are expected to have somewhat slowed price increases.

Connecticut, Minnesota, Vermont and Wisconsin will hold their primary elections on Tuesday . Hawaii will hold its primaries on Friday.

With all 50 Senate Democrats voting in favor , Congress is expected to pass the Democrats’ climate, tax and health care package along party lines this week.

Rudy Giuliani is set to testify on Tuesday before a Georgia grand jury as part of an investigation into election interference in the state.

Kenya will hold presidential elections on Tuesday.

Golf’s FedEx Cup playoffs begin on Thursday. Several players sued the P.G.A. in an effort to secure a spot .

What to Cook This Week

Sweet corn season is irresistible to Emily Weinstein. Her weeknight dinner suggestions include grilled chicken with tomatoes and corn , savory corn fritters and cod and corn with Old Bay butter .

NOW TIME TO PLAY

Here’s a clue from the Sunday crossword :

42 Across: Beer named for a founding father

Take the news quiz to see how well you followed the week’s headlines.

Here’s today’s Spelling Bee . Here’s today’s Wordle . After, use our bot to get better.

Thanks for spending part of your weekend with The Times.

Claire Moses, Ian Prasad Philbrick, Tom Wright-Piersanti and Ashley Wu contributed to The Morning. You can reach the team at [email protected] .

Traveling salesman problem

This web page is a duplicate of https://optimization.mccormick.northwestern.edu/index.php/Traveling_salesman_problems

Author: Jessica Yu (ChE 345 Spring 2014)

Steward: Dajun Yue, Fengqi You

The traveling salesman problem (TSP) is a widely studied combinatorial optimization problem, which, given a set of cities and a cost to travel from one city to another, seeks to identify the tour that will allow a salesman to visit each city only once, starting and ending in the same city, at the minimum cost. 1

• 2.1 Graph Theory
• 2.2 Classifications of the TSP
• 2.3 Variations of the TSP
• 3.1 aTSP ILP Formulation
• 3.2 sTSP ILP Formulation
• 4.1 Exact algorithms
• 4.2.1 Tour construction procedures
• 4.2.2 Tour improvement procedures
• 5 Applications
• 7 References

The origins of the traveling salesman problem are obscure; it is mentioned in an 1832 manual for traveling salesman, which included example tours of 45 German cities but gave no mathematical consideration. 2 W. R. Hamilton and Thomas Kirkman devised mathematical formulations of the problem in the 1800s. 2

It is believed that the general form was first studied by Karl Menger in Vienna and Harvard in the 1930s. 2,3

Hassler Whitney, who was working on his Ph.D. research at Harvard when Menger was a visiting lecturer, is believed to have posed the problem of finding the shortest route between the 48 states of the United States during either his 1931-1932 or 1934 seminar talks. 2 There is also uncertainty surrounding the individual who coined the name “traveling salesman problem” for Whitney’s problem. 2

The problem became increasingly popular in the 1950s and 1960s. Notably, George Dantzig, Delber R. Fulkerson, and Selmer M. Johnson at the RAND Corporation in Santa Monica, California solved the 48 state problem by formulating it as a linear programming problem. 2 The methods described in the paper set the foundation for future work in combinatorial optimization, especially highlighting the importance of cutting planes. 2,4

In the early 1970s, the concept of P vs. NP problems created buzz in the theoretical computer science community. In 1972, Richard Karp demonstrated that the Hamiltonian cycle problem was NP-complete, implying that the traveling salesman problem was NP-hard. 4

Increasingly sophisticated codes led to rapid increases in the sizes of the traveling salesman problems solved. Dantzig, Fulkerson, and Johnson had solved a 48 city instance of the problem in 1954. 5 Martin Grötechel more than doubled this 23 years later, solving a 120 city instance in 1977. 5 Enoch Crowder and Manfred W. Padberg again more than doubled this in just 3 years, with a 318 city solution. 5

In 1987, rapid improvements were made, culminating in a 2,392 city solution by Padberg and Giovanni Rinaldi. In the following two decades, David L. Appelgate, Robert E. Bixby, Vasek Chvátal, & William J. Cook led the cutting edge, solving a 7,397 city instance in 1994 up to the current largest solved problem of 24,978 cities in 2004. 5

Description

Graph theory.

In the context of the traveling salesman problem, the verticies correspond to cities and the edges correspond to the path between those cities. When modeled as a complete graph, paths that do not exist between cities can be modeled as edges of very large cost without loss of generality. 6 Minimizing the sum of the costs for Hamiltonian cycle is equivalent to identifying the shortest path in which each city is visiting only once.

Classifications of the TSP

The TRP can be divided into two classes depending on the nature of the cost matrix. 3,6

• Applies when the distance between cities is the same in both directions

• Applies when there are differences in distances (e.g. one-way streets)

An ATSP can be formulated as an STSP by doubling the number of nodes. 6

Variations of the TSP

Formulation

The objective function is then given by

To ensure that the result is a valid tour, several contraints must be added. 1,3

There are several other formulations for the subtour elimnation contraint, including circuit packing contraints, MTZ constraints, and network flow constraints.

aTSP ILP Formulation

The integer linear programming formulation for an aTSP is given by

sTSP ILP Formulation

The symmetric case is a special case of the asymmetric case and the above formulation is valid. 3, 6 The integer linear programming formulation for an sTSP is given by

Exact algorithms

Branch-and-bound algorithms are commonly used to find solutions for TSPs. 7 The ILP is first relaxed and solved as an LP using the Simplex method, then feasibility is regained by enumeration of the integer variables. 7

Other exact solution methods include the cutting plane method and branch-and-cut. 8

Heuristic algorithms

Given that the TSP is an NP-hard problem, heuristic algorithms are commonly used to give a approximate solutions that are good, though not necessarily optimal. The algorithms do not guarantee an optimal solution, but gives near-optimal solutions in reasonable computational time. 3 The Held-Karp lower bound can be calculated and used to judge the performance of a heuristic algorithm. 3

There are two general heuristic classifications 7 :

• Tour construction procedures where a solution is gradually built by adding a new vertex at each step
• Tour improvement procedures where a feasbile solution is improved upon by performing various exchanges

The best methods tend to be composite algorithms that combine these features. 7

Tour construction procedures

Tour improvement procedures

Applications

The importance of the traveling salesman problem is two fold. First its ubiquity as a platform for the study of general methods than can then be applied to a variety of other discrete optimization problems. 5 Second is its diverse range of applications, in fields including mathematics, computer science, genetics, and engineering. 5,6

Suppose a Northwestern student, who lives in Foster-Walker , has to accomplish the following tasks:

• Drop off a homework set at Tech
• Work out a SPAC
• Complete a group project at Annenberg

Distances between buildings can be found using Google Maps. Note that there is particularly strong western wind and walking east takes 1.5 times as long.

It is the middle of winter and the student wants to spend the least possible time walking. Determine the path the student should take in order to minimize walking time, starting and ending at Foster-Walker.

Start with the cost matrix (with altered distances taken into account):

Method 1: Complete Enumeration

All possible paths are considered and the path of least cost is the optimal solution. Note that this method is only feasible given the small size of the problem.

From inspection, we see that Path 4 is the shortest. So, the student should walk 2.28 miles in the following order: Foster-Walker → Annenberg → SPAC → Tech → Foster-Walker

Method 2: Nearest neighbor

Starting from Foster-Walker, the next building is simply the closest building that has not yet been visited. With only four nodes, this can be done by inspection:

• Smallest distance is from Foster-Walker is to Annenberg
• Smallest distance from Annenberg is to Tech
• Smallest distance from Tech is to Annenberg ( creates a subtour, therefore skip )
• Next smallest distance from Tech is to Foster-Walker ( creates a subtour, therefore skip )
• Next smallest distance from Tech is to SPAC
• Smallest distance from SPAC is to Annenberg ( creates a subtour, therefore skip )
• Next smallest distance from SPAC is to Tech ( creates a subtour, therefore skip )
• Next smallest distance from SPAC is to Foster-Walker

So, the student would walk 2.54 miles in the following order: Foster-Walker → Annenberg → Tech → SPAC → Foster-Walker

Method 3: Greedy

With this method, the shortest paths that do not create a subtour are selected until a complete tour is created.

• Smallest distance is Annenberg → Tech
• Next smallest is SPAC → Annenberg
• Next smallest is Tech → Annenberg ( creates a subtour, therefore skip )
• Next smallest is Anneberg → Foster-Walker ( creates a subtour, therefore skip )
• Next smallest is SPAC → Tech ( creates a subtour, therefore skip )
• Next smallest is Tech → Foster-Walker
• Next smallest is Annenberg → SPAC ( creates a subtour, therefore skip )
• Next smallest is Foster-Walker → Annenberg ( creates a subtour, therefore skip )
• Next smallest is Tech → SPAC ( creates a subtour, therefore skip )
• Next smallest is Foster-Walker → Tech ( creates a subtour, therefore skip )
• Next smallest is SPAC → Foster-Walker ( creates a subtour, therefore skip )
• Next smallest is Foster-Walker → SPAC

So, the student would walk 2.40 miles in the following order: Foster-Walker → SPAC → Annenberg → Tech → Foster-Walker

As we can see in the figure to the right, the heuristic methods did not give the optimal solution. That is not to say that heuristics can never give the optimal solution, just that it is not guaranteed.

Both the optimal and the nearest neighbor algorithms suggest that Annenberg is the optimal first building to visit. However, the optimal solution then goes to SPAC, while both heuristic methods suggest Tech. This is in part due to the large cost of SPAC → Foster-Walker. The heuristic algorithms cannot take this future cost into account, and therefore fall into that local optimum.

We note that the nearest neighbor and greedy algorithms give solutions that are 11.4% and 5.3%, respectively, above the optimal solution. In the scale of this problem, this corresponds to fractions of a mile. We also note that neither heuristic gave the worst case result, Foster-Walker → SPAC → Tech → Annenberg → Foster-Walker.

Only tour building heuristics were used. Combined with a tour improvement algorithm (such as 2-opt or simulated annealing), we imagine that we may be able to locate solutions that are closer to the optimum.

The exact algorithm used was complete enumeration, but we note that this is impractical even for 7 nodes (6! or 720 different possibilities). Commonly, the problem would be formulated and solved as an ILP to obtain exact solutions.

• Vanderbei, R. J. (2001). Linear programming: Foundations and extensions (2nd ed.). Boston: Kluwer Academic.
• Schrijver, A. (n.d.). On the history of combinatorial optimization (till 1960).
• Matai, R., Singh, S., & Lal, M. (2010). Traveling salesman problem: An overview of applications, formulations, and solution approaches. In D. Davendra (Ed.), Traveling Salesman Problem, Theory and Applications . InTech.
• Junger, M., Liebling, T., Naddef, D., Nemhauser, G., Pulleyblank, W., Reinelt, G., Rinaldi, G., & Wolsey, L. (Eds.). (2009). 50 years of integer programming, 1958-2008: The early years and state-of-the-art surveys . Heidelberg: Springer.
• Cook, W. (2007). History of the TSP. The Traveling Salesman Problem . Retrieved from http://www.math.uwaterloo.ca/tsp/history/index.htm
• Punnen, A. P. (2002). The traveling salesman problem: Applications, formulations and variations. In G. Gutin & A. P. Punnen (Eds.), The Traveling Salesman Problem and its Variations . Netherlands: Kluwer Academic Publishers.
• Laporte, G. (1992). The traveling salesman problem: An overview of exact and approximate algorithms. European Journal of Operational Research, 59 (2), 231–247.
• Goyal, S. (n.d.). A suvey on travlling salesman problem.

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Travel Complaints and Travel Refunds

Never make a scene at the customer desk.

Mark Kahler

It isn't our favorite aspect of budget travel, but there are times when we must make a travel complaint.

The majority of interactions between traveler and agent go the way of what you see pictured here -- professional courtesy and efficiency.

But when things go poorly, travel complaints often have a sense of urgency attached: you need to get on the next plane out of town or you need that hotel room you were promised. Under stress, many of us raise our voices and quickly lose patience when we sense someone is less concerned about our problem than we would prefer.

No one is suggesting you become a "pushover" and allow the system to trample you. But make your points with a calm politeness rather than a shrill, demanding tone. Ask for a manager. Be clear about what you think would resolve the situation on the spot. If you need a free room or a refund, ask for it. Don't wait for it to be offered.

Remember that whatever an employee tells you does not need to be the last word. But if they can say truthfully that you were loud, rude or even threatening, you might face even more trouble. At the very least, human nature kicks in and the person on the other side of the counter decides there is no reason to help you.

Save Every Document, No Matter How Small

The picture above shows counterfeit rail tickets. If you want to prove you were ripped off, you'll need to show that ticket. But look how small they are -- easily lost in your luggage or among larger travel documents.

It is important to save all the paperwork from the transaction(s) in question. If someone at a complaint desk takes that documentation from you, get their name and job title, and ask if they can make a copy of whatever you're surrendering to them.

Another tip: save receipts from meals or lodging you had to purchase because of your travel problem. You'll need these things to document your losses. They not only show how much extra money spent, but also verify your time line. With all of your paperwork, you are ready to contact the company.

Don't Plead Your Case to the Wrong Department

When you're dealing with multinational companies or government consumer bureaus, it's easy to get lost. There is a natural tendency to unburden yourself of the sad story, but don't waste time and energy telling it to someone who can't help you.

Ask for the specific person(s) responsible for addressing customer complaints. Search for the contract of carriage in your ticket or make a few calls before you spill your troubles.

Resource: Airline phone and web site directory.

Take Detailed Notes

At first glance, this seems like painfully obvious advice. But logic fails us when we're in a difficult situation and perhaps holding back anger or battling fatigue.

You'll need details when you make a formal complaint. Save every correspondence with the company, and take notes while on the phone. Ask the name of each person with whom you speak, and keep a log of your contacts by date and time, including what they promised you or how they treated you. Use the same firm but friendly resolve that you attempted at the ticket counter. Continue as long as there appears to be a possibility of resolution.

As with a travel journal, it pays to write down the details right away, as many are quickly forgotten within a few hours.

Travel Complaints against Airlines

An airline ticket is really a contract between you and the company that they will transport you to a certain place at a certain time. The more formal name is "contracts of carriage." You won't be surprised that much of this information is in very fine print, but pull out some magnification and read it. It is important to know what the airline has promised (or failed to promise) before you go forward with a formal complaint.

If you don't have a ticket handy, go online to the airline's web site. For example, Delta Airlines contract of carriage information is plainly displayed. It's a simple matter of performing a search for it.

Exhaust Internal Appeals Before Going to an Outside Agency

When an airline experiences system-wide problems, you can bet there are hundreds of consumers in your predicament. There is bound to be an internal appeals process in place that will deal with your concerns, or at least attempt to do so.

But there are times when you are butting your head against a stone wall. No one you've contacted will help resolve your problem, despite repeated attempts.

Complaint bureaus and consumer services operate mainly for victims who have done the work and run into that wall. Now is the time to take your documentation and seek the help of a third party. But don't expect an outside agency to help you until you've done everything reasonable to help yourself.

Consumer Protection from the U.S. Government

The U.S. Department of Transportation (USDOT) maintains an Aviation Consumer Protection and Enforcement Division . Within it, you can file complaints about safety and security, airline service, as well as disability and discrimination concerns. Outside the U.S., many other countries maintain similar operations that will vary in name but operate under the umbrella of consumer protection.

Discrimination and safety issues will get a lot more attention here than poor service, but the government keeps tabs on complaints, and it never hurts to let the offending company know that, if necessary, you're prepared to notify the appropriate consumer agency.

Note that there are procedures for airline ticket refunds and baggage issues .

Small Claims Court

The USDOT offers an outline of steps that might be required if you need to go to small claims court.

These courts are operated by state and local governments. As the name implies, this is recommended only for relatively small claims. In these situations, you are your own attorney. Unless you're trained in the law, don't go into this kind of court if the outcome is crucial.

Learn from the Bad Experiences of Other Travelers

Unfortunately, some airlines and travel companies have recurring problems with consumers. Consult their track records before you consider doing business again.

This holds true for all transactions, but especially larger expenditures necessary for bigger trips. Consult the Better Business Bureau or respected studies of consumer satisfaction: J.D. Power and Associates issues annual ratings for hotels and airlines; The American Customer Satisfaction Index compiled at the University of Michigan provides quarterly report cards.

Don't be Discouraged

When wrapped in red tape, it's easy to feel isolated.

Don't allow yourself to be worn down or discouraged. Remember that your perseverance might help someone else avoid a similar problem.

Of greatest importance, however, is the need to pay as little as possible in time and money for your travel. If you think someone has wasted your resources, call them on it.

More resources:

Airline Escape Clauses

Air Travel Resources

Yapta: Refunds for Overpaying on Airfares

What to Do When Your Flight Is Diverted

Flight Insurance That Protects Against Delays and Cancellations

The 14 Best Backpack Brands of 2024

How to Request a Wheelchair or Cart at the Airport

Paper vs. Electronic Plane Tickets

Loss of Use Car Rental Insurance

8 Air Travel Rights You Didn’t Know You Have

Budget Airline Baggage Fees

Saving Money on Your Summer Vacation

Getting Around Madrid: Guide to Public Transportation

Bad Airline Experience? These Companies Can Help

Getting Around Paris: Guide to Public Transportation

What Are Your Rights If Your Flight Is Canceled?

Tips for Being a Smart Universal Studios Hollywood Visitor

Airline-by-Airline Guide to Seatbelt Length

How to Cancel Your Honeymoon or Vacation

Protect Your Trip »

Is a travel agent worth it the pros and cons.

Travel experts agree there are several advantages to hiring a vacation planner.

The Pros & Cons of Using a Travel Agent

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A travel agent can save you money and time.

Need to pivot your trip plans but don't want to deal with the extra time, money and hassle of rebooking flights and accommodations on your own? That's just one area where a knowledgeable travel agent (also commonly known as a travel advisor) can help. Read on to discover the other benefits – as well as the downsides – of using a travel agent, so you can confidently decide whether or not a travel agent is worth it for your next trip.

The Pros of Using a Travel Agent

Travel agents can save you money – and get you other perks.

"In some cases, you'll actually get a better  deal by working with a travel agent," says Jackie Steele, travel expert at MagicGuides . "This could be in the form of a cruise onboard credit (free spending money to use on the ship), access to special agency/group rates, or even just learning about a discount you qualify for but weren't aware of." The best agents will even keep an eye on new discounts as they're announced and apply them to your trip even after you've booked, he notes.

Travel agents handle all the details

Hotel room? Booked. Dinner reservations? Made. Tour tickets? Ready to go. A travel agent handles every detail of your vacation itinerary. "The traveler still gets to be involved in the fun part of dreaming up ideas and providing their travel wishes, while we take and perfect them," says Jessica Parker, founder of Trip Whisperer .

Molly McShea, owner and travel advisor at McShea Travel , points out that travel agents can also help with timing logistics. "Travel agents know how many days should be spent in each destination, which tours go together, and how many things you should do in a day," she says, adding that crafting an itinerary can be challenging if it's not something you regularly do. Additionally, travel agents can help you choose the best time to visit your preferred destination(s) based on seasonality and your budget, and sift through travel insurance policies to find the best option for your needs.

Travel agents can provide local expertise

"A travel advisor's industry connections and relationships provide added value to their clients," says Valerie Edman, a luxury travel advisor and agency owner at Cultured Travel LLC. She says when working with a travel agent, travelers gain access to a global network of connections including:

• In-destination specialists who work exclusively with travel advisors and can connect travelers with unique, off-the-beaten-path experiences they wouldn't otherwise know about
• Exclusive experiences not available to the general public

You'll avoid surprise fees

When deciding if a travel agent is worth it for you, remember this: A reputable agent can guarantee you won't encounter any surprise fees on accommodations and activities once your trip is booked.

You'll have someone to troubleshoot unexpected travel issues

A travel advisor is essentially your personal vacation concierge. "Because they've been around for so long, agents really know what to look for," says Christopher Elliott , a consumer advocate and journalist. "Travel agents are among the first to know about flight cancellations and delays , making it easy for them to rebook itineraries right away." 

The Cons of Using a Travel Agent

It might not be your cheapest option.

There are some instances when it makes more sense to plan your own trip. "If you're planning a quick flight from New York City to Los Angeles, it's easy enough to book it yourself online directly or through a third-party booking site," says Elliott. "If you're planning a once-in-a-lifetime trip or bucket list honeymoon , that's when you call the experts."

You'll have less flexibility in your itinerary

The upside of working with a travel agent is having someone plan an epic vacation for you based on industry knowledge and local expertise. But this can also be a downside in the event you discover an activity you'd like to do or a restaurant you'd like to try that isn't on your pre-planned itinerary. If you alter your plans, you risk losing money; plus, the time it takes for you and your travel agent to coordinate your change of plans may not be worth the hassle.

You still have to do some research

It's important to find an agent you can trust, which means you still have to do some of the vacation planning. For this part, Parker recommends picking up the phone. "Lots of people avoid or don't pick up the phone as much anymore," she says. "That's where you get the high-touch service, tone of voice, excitement or concerns to manage." She advises to look for the following red flags:

• No fees: " Travel advisors are charging planning fees more now or increasing them, so the client knows more confidently than ever, we work for them, not the suppliers with the best commissions," Parker explains. "There are a lot of things that are non-commissionable and the advisor's time and expertise shouldn't be given away for free, either. That's the best way to show an advisor takes their business seriously."
• Limited options: If you work with someone who is inexperienced or has an incentive to book you with a certain supplier, they may not be prioritizing your best interests. "It's important to check if they are with a larger consortia, accreditations and network, typically listed on their website and signatures," says Parker. "That level of mindshare doesn't come with a lone advisor unless they have many, many years of experience."
• Slow response times: If communication is delayed, that's a sign they may be too busy to plan your trip – but again, this is something you can avoid by having the right conversations early on.

Edman suggestes starting your search with the American Society of Travel Advisors . "ASTA-verified travel advisors are committed to the highest industry standards and have verifiable industry knowledge so consumers can feel confident in working with them," she says.

You might also be interested in:

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Top 10 Legal Issues Facing Travel Agents

Problems caused by fraudulent independent contractors, employee mistakes or deceptive clients can cost travel agencies huge sums of money, warns travel industry attorney Mark Pestronk. Travel Market Report asked Pestronk to outline the top legal issues facing travel agencies today and provide quick tips on how to identify and avoid costly legal pitfalls. Here’s what he said. 1. Fraud by independent contractors (ICs). “This is the biggest problem agencies face, as suppliers and clients hold you responsible when a rogue contractor commits fraud by, for example, charging tickets to a phony credit card or taking the client’s money and embezzling it,” Pestronk said. TIP: Screen ICs carefully, including the following: 1) conduct in-person interviews; 2) check at least two references; 3) ask suppliers about the contractor’s reputation, and 4) check credit and criminal records. 2. Airline- debit memos on chargebacks for allegedly unauthorized card charges. “These are especially dangerous because of ARC’s power to declare you in default by deeming a sale that results in such a chargeback to be an improperly reported sale,” said Pestronk. While often caused by fraudulent ICs, debit memos can also result from an employee’s mistake, employee fraud or client deception, he added. TIP: To prevent credit card chargebacks, require employees and ICs to follow the rules outlined in ARC's Industry Agents' Handbook.

3. Airline-issued debit memos for reservation rule violations. These can add up to hundreds of thousands of dollars when clients knowingly book back-to-backs or hidden cities without the agent’s knowledge or when agency employees or ICs make such bookings in order to get lower fares, Pestronk said. TIP: Educate agents about reservation violations for which suppliers could hold the agency responsible. 4. Agency loses the right to sell an important supplier’s services. “Every supplier contract, including your contract with each airline under the ARC agreement, allows the supplier to cease doing business [with your agency] for no reason,” Pestronk said. “Too often, suppliers exercise their rights because they believe that you have done something wrong, even though you are guilty of no wrongdoing.” TIP: If a supplier blocks your agency from selling it, Pestronk offered a work-around: “Book the supplier through another travel agency. However it must be done very carefully, with no record of your agency’s name; otherwise the supplier may drop the other agency as well. 5. Signing supplier-inventory contracts in your agency’s name and then having the client back out. TIP: “Make sure you sign hotel, tour and cruise group contracts as an agent for the client. Otherwise, the supplier could sue your agency if the client fails to perform.” 6. Signing of long-term contracts by unauthorized employees. Although this problem applies mainly to large agencies with multiple locations, Pestronk said owners of agencies of all sizes have had situations where employees signed contracts, such as phone system or copier-maintenance contracts, without having been authorized to do so. TIP: Prohibit ICs and employees from signing vendor contracts without your express written permission. 7. An unknown person makes a fraudulent transaction in your agency’s name on a supplier website or by phone. “This fraud has become quite popular, especially targeting Southwest,” Pestronk said. TIP: Make sure employees understand that emails soliciting their GDS logins or containing a link to a login are always fraudulent phishing attempts to break into your GDS and issue tickets in your agency’s name. 8. A client confuses the agent’s responsibility with the supplier’s responsibility. This confusion is the source of the majority of lawsuits and claims by clients, according to Pestronk. TIPS: Require employees and ICs to use disclaimers in all transactions (except those for corporate clients) that involve signed contracts. Also, offer cancellation and medical insurance to every leisure traveler; a client who suffers a financial loss is less likely to blame the agency if insurance was offered. 9. Getting sued for violations of labor laws or civil rights. “Even if you are held not liable, your legal fees could be hefty,” Pestronk said. Tip: Be aware of the regulations regarding these issues in the state or states where you do business. 10. Fines for failing to register under a ‘seller of travel’ law. Agencies who do business in one of six states that have such laws will face fines if they do not register, Pestronk said. TIP: Be sure to stay up to date on – and comply with – the laws governing travel sellers in your state.

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The final rules also deal with self-defense training for airline crew members, family seating, and more. 

As a travel advisor, you earn trust – and a living – through personal touches and creating connections. 

“The Department of Transportation made a profound error in this final rule." 

Three cruise line sales execs offer advisors advice on what risks they should be taking. 

Suppliers from across the travel industry are expressing their gratitude to the trade.

The new business development manager brings 10 years of industry experience.

PRESS RELEASES

The american society of travel advisors is disappointed by dot’s lack of understanding of travel agencies and the role they play in selling airline tickets.

Alexandria, VA, April 25, 2024  – The American Society of Travel Advisors (ASTA) expresses its deep disappointment over the Department of Transportation’s final rule relating to airline ticket refunds. As it reads, merchant of record ticket agents will be responsible to provide consumer refunds regardless of whether they are in possession of the funds from the airline. Despite ASTA’s years’ long effort to educate Congress and the DOT, this final rule indicates a complete lack of understanding for how our predominantly small business community sells airline tickets.  

“The Department of Transportation made a profound error in this final rule,” commented ASTA President and CEO Zane Kerby. “Our primary concern for our members has always been the potential that regulations aimed at protecting consumers could harm the small travel agencies who book air tickets. And that is precisely what happened. Travel agencies sold 40 percent of airline tickets in 2023, and the DOT doesn’t understand that in the limited situations where the agency is the merchant of record, payment is immediately passed on to the airline.” 

Kerby went on to say: 

“We agree with DOT that for far too long, consumers have borne the brunt of airline bad behavior. Fortunately, those who use a travel advisor know they have someone in their corner working tirelessly to obtain their refund when travel plans go south. But to put the onus of providing that refund on small business merchants of record will be catastrophic to this industry. Merchant of record transactions make up a significant portion of business for many small agencies in our industry, especially those who specialize in group travel.  

“This is a clear case of a federal agency overcorrecting a problem. Now more than ever, we urge leaders in the House and Senate to maintain Section 710 of the House bill to reauthorize the FAA [ H.R. 3935 ] which ensures ticket agents – nearly 80 percent of whom are female small business owners – are not responsible for providing airline refunds when they are not in possession of the funds.” 

You can access ASTA’s comments to the original proposed rulemaking here .  

On Thursday, May 2 at Noon ET, Peter Lobasso, SVP and General Counsel, will provide ASTA with an in-depth analysis of these regulatory changes. Members can register here . 

ABOUT ASTA Rebranded in 2018 as the American Society of Travel Advisors, ASTA is the leading global advocate for travel advisors, the travel industry and the traveling public. Its members represent 80 percent of all travel sold in the United States through the travel agency distribution channel. Together with hundreds of internationally-based members, ASTA’s history of industry advocacy traces back to its founding in 1931 when it launched with the mission to facilitate the business of selling travel through effective representation, shared knowledge and the enhancement of professionalism. For more information about the Society, visit our mission statement .  

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The Travel Agent Problem

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4 scenarios when you should use a travel agent

Editor's Note

If you're a points-and-miles-wielding expert traveler, you may not immediately think of using a travel agent to book your getaways . However, there are times and situations when using these services can be of great benefit.

A good travel agent can be a game-changer when it comes to helping you book your ideal trip and receive the best services once you arrive at your destination. Travel agents can also be of great assistance when things go wrong, especially during this summer of excessive flight delays and cancellations .

Agents can often secure the best room in a hotel or the top cabin on a cruise ship. Sometimes they can even secure complimentary upgrades, breakfast benefits or food and beverage credits, and free spa treatments during your stay.

When it comes to making the right decisions about when to travel, what sights to see and which guides to hire, agents can act as advisors. An excellent travel agent can be the difference between an OK experience and the trip of a lifetime.

For more TPG news delivered each morning to your inbox, sign up for our daily newsletter .

Here are four times when you may want to use a travel agent:

Booking a hotel with extras

Your travel agent can become a trusted friend over time. Before you're ready to turn over all your travel planning to a travel adviser, test the waters by collaborating on a simple trip request. You'll want to see how the agent operates, communicates and arranges extra perks and deals. Avoid a complex or elaborate request on the first go-round.

Start by having a travel agency book your hotel arrangements with a few specific requests for extras baked in, such as airport transfers or spa services .

Start with an agent who is part of a major travel consortium such as Virtuoso, Travel Leaders Network, Ensemble Travel Group or Signature Travel Network. Each of these networks provides a suite of benefits to travelers who book with them. If you're familiar with the perks of the American Express Fine Hotels & Resorts program or the Chase Luxury Hotel & Resort Collection , you'll know what we mean. Extra benefits for booking can include space-available upgrades, free breakfast, additional food and beverage credit, a free spa treatment or a round of golf.

Related: This new travel company will pair you with local experts

You can work with a travel agency that fits your style. This may be someone from a large company based in a major city with dozens of agents, or it may be someone from a more boutique option such as the family-owned and operated Ourisman Travel. (Ourisman Travel is a travel consultancy affiliated with Brownell Travel, one of the oldest travel agencies in the U.S., and also a member of the Virtuoso network.)

What's nice about Ourisman and any Virtuoso agency is that you can have your travel agent do all the work. You can also use the Virtuoso booking tool to make quick, easy reservations. Once your reservation is in the system, your agent swings into action to let the hotel know a VIP is on the way and arranges for any extras, whether it's a Virtuoso perk or one from a credit card program.

It's also possible to stack benefits. If you book your trip with The Platinum Card® from American Express , your agent can secure your Amex FHR benefits; you may also be entitled to additional perks from the agency, its travel consortium or the hotel, cruise line or tour company.

When you're short on time

Not everyone has weeks to spend crafting the ultimate itinerary and keeping watch on every flight deal (although TPG can help you here) . Fortunately, you can rely on a savvy travel agent to step in and plan your vacation when your time is crunched . Otherwise, you might not be able to pull off the travel arrangements on your own, or you might end up spending more for your trip than you should.

When facing a planning time crunch, look for an agent who specializes in the type of trip and destination you have in mind. If you're looking for a beach villa on a Caribbean island , find a travel advisor who has experience booking this sort of trip.

One example is Villas of Distinction, which has been around for more than 25 years and has a vast network of properties. Your travel advisor there can offer advice on which properties are best suited to your needs, what's available and how to book the villa. You can also use your American Express Membership Rewards points to book a villa through the agency, an added benefit to finding a good application of points.

Agents specializing in villa rentals usually have strong networks on the ground, so they can assist with chores such as stocking the villa with groceries, booking a chef or securing the best masseuse on the island for poolside treatments.

Related: Everything you need to know about Homes and Villas by Marriott

When your travel plans are specific and complex

The more complex and specific your travel goals are, the more experts in that destination or trip style can help you.

For example, every year, travel guru Wendy Perrin puts together a WOW List that features experts in the travel-booking field. The agents, advisors and destination specialists on Perrin's list aren't booking budget cruises and all-inclusive vacations for people as a side hustle. The agents on the WOW List are the real deal with plenty of expertise in their subject areas.

Say you want to explore Africa and go on a safari, but you don't know where to begin. Consult the WOW List and you'll see she recommends individuals with an encyclopedic knowledge of the continent.

The WOW List features advisors who can create custom safaris in East, Central and South Africa as well as niche destinations like Madagascar. The website provides a synopsis of the agents' expertise as well as links to reviews and insider guides written by Perrin and her team.

This is an excellent resource for learning about the best attractions, cutting-edge travel trends or finding out-of-the-ordinary experiences, and shows how contact with local agents, rather than anonymous trip reviews, can be a great advantage in planning a trip.

Related: Everything you need to know about going on safari in Africa

When you're looking for value

Travel agents often have access to room rates and cruise fares not available to the general public. This is especially true of agents who specialize in specific cruise lines. When a cruise line needs to fill a sailing, it may reach out to its top agents to extend special fares for their clients. You'll only hear about these offers if you have a top agent who sells cruises on the lines you love.

Related: Why now might be the cheapest time to plan a cruise

For example, Keene Luxury Travel, a member of the Signature Travel Network, has relationships with all the top luxury cruise lines, especially Regent Seven Seas. As a result, your agent can offer shipboard credits, special fares for solo travelers, deals for families traveling with children and more. The agency also has its own KLT Rewards program. With KLT Rewards, you'll get cash back on every sailing, about 10 days before you set sail. Plus, if you book a trip hosted by the agency's owners, you'll get a bump in the amount of your reward for booking with them.

The best part about working with specialty agents like those at Keene Luxury Travel? You can stack deals. For example, you can book a hosted trip to get the usual 5% KLT booking reward, plus an enhanced reward for booking a group trip. On top of that, you could also receive the onboard credit that's a Signature Travel Network perk.

Bottom line

Whether you're booking a weekend getaway in a U.S. city or planning an around-the-world extravaganza that includes an African safari , Antarctica cruise and a stay in an igloo hotel , consider using a travel agent. An agent can help get you on the right trip, at the right time for the right price.

They can help find the best rooms, book services you didn't even know existed and tie all the pieces together on a complicated itinerary.

A travel agent can be particularly beneficial if you don't have the time to do all the research yourself, or if you're looking for help in getting the best deal. It's also helpful to use an agent if your trip targets destinations or itineraries that can benefit from local experts,

If there's ever a problem during a vacation — which seems to happen more often than not these days — it's great to have a problem-solver who is just one phone call or email away.

Additional reporting by Bill Fink

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Travel Agent

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How artificial intelligence is changing the way you buy travel insurance.

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Artificial intelligence is changing the way you buy travel insurance. Here's how.

Artificial intelligence is transforming the way you buy travel insurance. From shopping for a policy to filing a claim, there's no part that hasn't been touched by AI.

"AI is revolutionizing travel insurance," says Greg Jung, chief growth officer for Seven Corners . "It's making it more efficient and tailored to individual needs."

Words like "efficient" and "tailored" are rare in the one-size-fits-all, bureaucratic travel insurance industry. For years, consumers had limited choices. And when they filed a claim, it took close to forever to get an answer, much less get paid.

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Jung says AI is doing away with that. The benefits to travelers include:

• Personalized coverage. AI can analyze vast amounts of data on traveler profiles, including travel history, preferences, and even risk factors like age and health conditions. That allows insurers to recommend customized travel insurance plans that provide the right level of coverage for each individual's needs.
• Proactive risk management. AI can analyze data to predict potential disruptions or emergencies that could impact a traveler's trip. This allows insurers to offer assistance, such as medical advice or flight rebooking assistance, in case of unforeseen events.
• Faster claims processing. AI can automate much of the claims process, verifying documents, assessing damages, and expediting settlements. Travelers can be reimbursed for covered expenses much more quickly, especially for straightforward claims.

Behind the scenes, travel insurance companies are also using AI to conduct better risk management. And there are parts of the business where travel insurance companies won't talk about how they use AI, such as in efforts to sell policies on their sites. Travel insurance companies are also hush-hush about how they are analyzing data to set rates and identify patterns in fraudulent claims data.

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This story is a long time coming. Travel insurance companies have been generally slow to adopt AI. You can see artificial intelligence in action in a few places, but in the places that matter to you — such as finding the best policy — there are still some gaps. AI won't fix everything in travel insurance, but it promises to make many things better.

What took travel insurance so long?

Why has AI been slow to catch on in the travel insurance industry? Well, it has — and it hasn't. I wrote about how Allianz was using machine learning to improve its products five years ago .

But across the industry, change has been gradual.

"Travel Insurance is highly regulated," explains Tim Dodge, vice president of marketing at Arch RoamRight . "There are strict policy definitions, communications guidelines and adjudication rules to which we must adhere. For AI to be successful in our industry, it has to be implemented carefully; improving the customer experience while maintaining regulatory compliance."

If you file a travel insurance claim and get frustrated with the time it takes to be settled, it's because of the way travel insurance is set up. There's a lot of required documentation to review in support of the claim.

Dodge says AI can potentially facilitate and speed up the claims handling process and reduce claimants' frustrations, and that's what travel insurance companies are now doing.

Where can you see AI in action right now in travel insurance?

Travel insurance companies are not waiting for the future.

Arch RoamRight’s AI chatbot has been integrated into every aspect of its customer experience, from its phone system to its website and travel agent portal. It's even used as a training tool for new hires, according to Dodge.

At Generali Global Assistance , a carefully trained chatbot helps customers obtain instant assistance, receive accurate information, and navigate policy complexities. "This digitalization empowers our agents to provide personalized support promptly," says Christopher Carnicelli, CEO of Generali Global Assistance.

Allianz Travel Insurance has been using AI to help streamline its claims process for years. It just added a new chatbot for customer support, too. "Our chatbot supports the customer during filing in the event the customer has questions or needs further assistance, and uses AI to qualify the customer’s needs to quickly get them the help they need,” explains Maggie Butler, director of customer experience at Allianz Partners USA.

At Faye Travel Insurance , an AI-powered app helps customers file claims for flight cancellations, baggage delays, and medical emergencies. The app speeds up the claims process, ensuring travelers get paid in hours instead of days. "It's part of our commitment to making travel insurance an integral and personalized part of each traveler’s experience," says Elad Schaffer, Faye's CEO.

Over time, the entire travel insurance industry will embrace AI. But there are exceptions.

Can artificial intelligence help you find the best travel insurance?

AI might help you find a better policy, but you have to know where to look. I tested the major AIs to see how they responded to a sample query, "I'm a 28-year-old woman who lives in New York. I am planning a one-week trip to Paris this summer. Please help me find the best travel insurance."

• Gemini offered two options — Generali and Travel Insured International, but did not show rates or a bookable link. The responses appeared to be based on a news article.
• Meta AI generated a succinct response citing the benefits of travel insurance with key coverage areas.
• Microsoft Copilot showed a generic "how-to" story about travel insurance based on an article I had written for Forbes.
• Hugging Face gave a generic response with advice on how to buy travel insurance.
• Perplexity offered several specific options, including Seven Corners, Nationwide and Travelex. However, it based its quotes on a story on a news site and did not offer a link to buy the policies.

Bottom line: You can't really shop for travel insurance using AI — at least, not yet.

AI doesn't work for everything in travel insurance

In the travel insurance industry, like in other places, artificial intelligence isn't the answer to everything.

For example, at INF Visitor Care , a company that sells travel insurance to those traveling to the U.S., AI is helping automate its claims system. INF applies machine learning to identify emerging trends in claims to design policies that cover customers when they need it for unexpected issues.

"It has revolutionized the way we think about pricing and policy coverages," says PK Rao, CEO of INF Visitor Care .

But when it comes to customer service, AI is not always the best solution.

"We find customers enjoy talking to a live person on chat and phone," adds Rao.

The future of travel insurance and AI is promising

Over the long term, AI promises to reshape the travel insurance business into one that works the way customers expect it to — quickly, nimbly and efficiently.

At least that's what Daniel Green, chief technology officer for Faye Travel Insurance , sees.

"Imagine a world where most insurance claims are processed in hours instead of days," he says. "A computer system can go out and collect all the documentation for you and prepare the paperwork perfectly, ready for a human to make a quick decision on whether to approve it or not."

AI also has the potential to insure you for only what you need — to give you the "perfect" policy.

"AI can prepare it in seconds based on being able to tell a computer in your own words what coverage you need, by having it translated into insurance paperwork-speak for you," he adds.

We aren't quite there yet, but we're getting close.

There's one more thing that is potentially keeping AI from changing travel insurance — and that is customers themselves.

Breanne Armstrong, who is director of insurance intelligence at J.D. Power, says most consumers understand that artificial intelligence and machine learning have a lot of potential, "but there is hesitancy."

Armstrong bases her observation on another study that J.D. Power recently conducted on banking customers and AI. Only 28% of respondents said they believe AI will make their lives better in the next three years. Roughly one-third say it will make no difference, and 17% say it will make their lives worse.

All you have to do is engage with any chatbot to understand those 17% of respondents. Talking to an AI about banking or travel insurance — or anything else, really — can quickly end in frustration.

"There are mixed sentiments," adds Armstrong.

That may well describe how people feel about travel insurance and AI. It could be great. But if it isn't implemented carefully, it could be not so great.

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