Verticalization within the retail travel sector is not just a passing trend; it’s reshaping the landscape of the industry at an unprecedented pace. Mark Pestronk, a legal expert with deep insights into the complexities of travel law, outlines the multifaceted reasons behind this significant shift. From deregulation inviting newcomers to strategic affiliations for survival, the travel industry’s structure is evolving rapidly.
Entry Deregulation and Host Agency Proliferation
One of the primary catalysts for the industry’s verticalization is the deregulation of entry into the travel advisor business. This move has opened the gates for many to venture into selling travel without prior training or accreditation, provided they align with an appointed agency host. This ease of entry has led to a boom in host agencies, catering to various niches and experience levels. From just a couple at the turn of the century to hundreds…