travel site

timothy · 05-21-2002, 09:08 AM

Hello,

I will be highly obliged

if someone can answer one of my basic questions regarding the travel industry.
Consider a scenario in which a person who does not have any travel certification wants to sell travel. The business will be done exclusively through a web site (Internet). That person will be selling a package (hotel + theme park tickets) to his clients. He develops these packages by booking a hotel and theme park tickets from an independent travel site (e.g. Expedia) for his clients and then adding a surcharge for his services. If the business of that person is incorporated in NJ, what are the rules that apply to his business (NJ state laws)? Is he bound by any regulations to operate his business in NJ?
For your convenience, further illustration is provided below:

From Expeida.com Buys 3-night hotel for a total of $300
From Travelocity.com Buys 3 days theme park ticket for $200
Adds a service surcharge of $25
Sells the total travel package for $525
I am very curious to get an answer. Thank You All.
Regards,
A travel enthusiast.

dbaker · 05-21-2002, 11:23 AM

I don't see why there are any issues with state laws, although this is not the way that traditional travel agents work. Reselling products is generally legal and you would likely want to protect yourself by incorporating, but I would be surprised if any laws were specific to this particular situation.

How do you charge the customers? Do they see all the individual charges on their card plus the surcharge, or does the business operator pay for all the charges and then charge the customer?

Ultimately, what is the value-add that would encourage travelers to use these services? It seems completely useless to the consumer and couldn't be profitable for $25.

05-21-2002, 09:08 AM	#1
timothy Junior Member Join Date: May 2002 Posts: 1	travel site Hello, I will be highly obliged if someone can answer one of my basic questions regarding the travel industry. Consider a scenario in which a person who does not have any travel certification wants to sell travel. The business will be done exclusively through a web site (Internet). That person will be selling a package (hotel + theme park tickets) to his clients. He develops these packages by booking a hotel and theme park tickets from an independent travel site (e.g. Expedia) for his clients and then adding a surcharge for his services. If the business of that person is incorporated in NJ, what are the rules that apply to his business (NJ state laws)? Is he bound by any regulations to operate his business in NJ? For your convenience, further illustration is provided below: From Expeida.com Buys 3-night hotel for a total of $300 From Travelocity.com Buys 3 days theme park ticket for $200 Adds a service surcharge of $25 Sells the total travel package for $525 I am very curious to get an answer. Thank You All. Regards, A travel enthusiast. __________________

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05-21-2002, 11:23 AM	#2
dbaker Senior Member ITYT Captain Join Date: Sep 2001 Location: IAH/HOU Posts: 2,354	I don't see why there are any issues with state laws, although this is not the way that traditional travel agents work. Reselling products is generally legal and you would likely want to protect yourself by incorporating, but I would be surprised if any laws were specific to this particular situation. How do you charge the customers? Do they see all the individual charges on their card plus the surcharge, or does the business operator pay for all the charges and then charge the customer? Ultimately, what is the value-add that would encourage travelers to use these services? It seems completely useless to the consumer and couldn't be profitable for $25.