Business Operations and Agency Management
The Operating Model
This domain covers how an agency runs: business structure, staffing, supplier relationships, accounting, and compliance. Know the difference between an independent contractor and an employee in broad terms, and why classification matters. Understand the agency's role as an intermediary: you sell on behalf of suppliers, and your contracts with both sides shape liability.
Money and Records
Know the basics of client funds handling: deposits, final payments, refunds, chargebacks, and reconciliation. Understand that client money may be held in trust depending on jurisdiction and structure, and that mixing client funds with operating funds is a red flag. Know why documentation matters for disputes - invoices, itineraries, waivers, and communication logs. Familiarize yourself with the purpose of errors and omissions insurance and business licenses.
Supplier and Channel Management
Understand preferred-supplier agreements, overrides and commissions, and the difference between a host agency and a traditional agency. Know how GDS or booking platforms fit into workflow and why data accuracy at booking prevents downstream cost.
Traps to Watch
Questions often test who is responsible when something goes wrong - the agency, the supplier, or the traveler. Watch for distractors that treat a commission as guaranteed, ignore reconciliation, or assume insurance covers every loss. Also watch for confusion between a business license and a seller-of-travel registration.
Worked Example
A supplier fails and a client demands a refund. Rule of thumb: follow the money and the contract - determine who holds the funds, what the supplier terms say, and what you disclosed at booking, then document the path forward.
Rule of Thumb
If it is not written down and reconciled, assume it will be disputed.