DECA Hospitality and Tourism Cluster Practice Exam

Why is it important for a travel agency to establish a good relationship with customers?

1. To increase agency fees

2. To foster repeat business and referrals

3. To minimize office expenses

4. To limit customer choices

The correct answer is: To foster repeat business and referrals

Establishing a good relationship with customers is vital for a travel agency as it fosters repeat business and referrals. When customers feel valued and understood, they are more likely to return for future travel needs and recommend the agency to friends and family. This loyalty can significantly contribute to the agency's long-term success, creating a steady stream of clientele without requiring extensive marketing efforts. Positive word-of-mouth is particularly powerful in the travel industry, where personal recommendations can influence decisions. By building strong relationships, the agency not only enhances customer satisfaction but also cultivates a supportive community that can lead to sustainable growth.