This chapter investigates the transformative impact of technological improvements on traditional travel agencies, a topic that is becoming increasingly important in the fast-changing travel industry. Through the previous related literature, this study aims to shed light on how travel firms are adjusting to the changing demands and tastes of travellers in the digital era by studying the integration of artificial intelligence, virtual and augmented reality, and data-driven personalisation. So, the paper aims to identify travel agencies' challenges and opportunities by analysing digital transformation's impact on old business models. In addition, it investigates the shifting behaviour of travellers, who are increasingly looking for ease and personalised experiences through internet platforms. Finally, this chapter emphasises the significance of travel agencies embracing digital innovation, streamlining operations, and developing immersive travel experiences to maintain their competitive edge in a constantly moving market.