Preamble

This chapter review is the literature and current knowledge about the factors which influence individual
travel behavior towards selection of travel agency. Specifically, the review supports a current research
project studying the impacts of transit led development in a new rail corridor. The review was
undertaken to provide a context for publications arising from the research and also to inform the travel
behavior component of the household survey design. The focus here is mainly on empirical work.

Travel Agency Evolution

Tourism has been known as a potential contributor in economic sector based on long experience of
many countries that sustain and improve the national economy through tourism industry (Lian, Choong
& Hooi 2014). A Travel Agency is a organization act as middleman. Travel Agency can be defined as agent
of the principal specifically, transportation companies. The agency operates as a legally appointed agent,
representing the principal in certain geographic area. The agency functions as a broker for the other
suppliers, such as hotels, car rentals, ground operators and tour companies. Travel agency that attends to
the details of transportation, itinerary and accommodations for travelers. They do not substitute the
service providing information and access to the visitor and are the middlemen in the purchase of certain
services. Most of the travel companies are in private sectors and their main objectives is to earn profit. In
spite of this they play a key role in the promotion and development of international tourism. Travel
agents help travelers sort through vast amounts of information to help them make the best possible
travel arrangements. They offer advice on destinations and make arrangements for transportation, hotel
accommodations, car rentals, and tours for their clients. They are also the primary source of bookings for
most of the major cruise lines. In addition, resorts and specialty travel groups use travel agents to
promote travel packages to their clients. Travel agents are also increasingly expected to know about and
be able to advise travelers about their destinations, such as the weather conditions, local ordinances and
customs, attractions, and exhibitions.
Hooi Hooi Leana , Sio Hing Chong and Chee-Wooi Hooy, (2014), Tourism and Economic Growth:
Comparing Malaysia and Singapore. Int. Journal of Economics and Management 8(1): 139 157 (2014)