What are Transaction Costs?

[@sis4205]

great video, Thank you!

[@quynhhuongnguyen9391]

Travel agencies that provide travel services often have a policy of price discrimination against tourists and locals. So what led to the formation of this strategy?

[@armansultanov6879]

I am not an expert. I can only assume that the market of travel agencies has shrunk significantly since Booking and AirBnB, but there is still a market for their services. Some people prefer buying their travels as a package for various reasons. For example, they do not mind overpaying for the travel, because their time costs more than services of the agencies or they can afford it. In addition, information literacy still plays a great role in the cost of this transaction and it is different for people with different levels of that literacy. Their prices are still high (assume) because there is still a demand for them, and they have to pay transaction costs that involves organising your travel.

[@sis4205]

your voice is really good