chapter 10 marketing to travel agents. introduction of travel agents travel agents can be excellent...

Chapter 10 Marketing to Travel Chapter 10 Marketing to Travel AgentsAgents

Introduction of Travel AgentsIntroduction of Travel Agents

Travel agents can be excellent sources of additional bookings and repeat business for hotels that provide good service to them and their clients.

Travel AgentsTravel Agents 250,000 Travel agents in USA in 2002

A small percentage of these agents were involved in meeting planning

The majority concentrated on making airline, cruise, and hotel reservations for business and leisure travelers.

Serving niche markets and focused on special interests and activities for their clients.

E-ticketing and direct airline booking sites on the Internet impact on the downturn in the travel industry.

Statistics 22 percent of hotel room nights Resort hotel receive 50 to 60 percent of their bookings

through travel agents.

Travel AgenciesTravel Agencies Travel plans

First Travel assistance: Thomas Cook in 1841. Began as Mom-and-pop establishments

Tours were often guided by the owners of the travel agencies, based on personal experiences at the destinations

Today’s travel agencies Travel management companies Consortiums Independent agencies

Travel management companies, meta-travel agencies Theirs size and scope are giant chains that own and co

ntrol all aspects of their operations Have extensive buying power to negotiate special rates

for their clients Provide complete travel services, including arranging a

nd booking transportation, accommodations, and trips and tours.

American Express, Carlson Wagonlit Travel, Rosenbluth International, World Travel BTI, Sato Travel, Maritz Travel, World Travel Partners, Omega World Travel, Travel and Transport, and Travel One.

Consortiums Groups of travel agent that have partnered to maximize

their buying power and share the high cost of today’s computer technology.

NORTHSTAR Travel Media LLC, Hickory Travel System, Travel Savers, GIANTS, and ABC Corporate Services

Independent Agencies May serve areas not covered by major agencies or may

specialize in corporate travel services or in meeting specialized travel needs.

Travelers ServedTravelers Served Business travelers

One-half of all business generated by travel agents. More and more travel agencies are serving business groups. In-plant agencies: Many companies are now setting up their

own in-house corporate travel agency or contracting with an established agency to setup and run an in-house agency for them

Leisure travelers 80 percents of all individual visitors to resort destinations

use a travel agent to help plan or book their vacations. International travelers

Business or leisure travelers. The number of foreign traveling is increasing.

Meeting the Needs of Travel Meeting the Needs of Travel AgentsAgents

The needs of travel agents can be broken down into two general areas: information about the property, and good service to both travel agents and their clients.

Property InformationProperty Information

Global Distribution Systems (GDSs) Hotels can provide basic reservation and rate i

nformation to travel agents through the computerized reservation systems developed by the airlines.

Four major GDSs: Amadeus, Galileo International, SABRE, and WORLDSPAN.

Hotel reservation systems: Pegasus and Wizcom

Internet Distribution Systems A number of consumer-oriented systems have

become available. Expedia, Orbitz, Priceline, and Travlocity Internet-savvy individuals to research travel op

tions and book reservations 24-hour access and often offering more afforda

ble rooms (see Exhibit 2). Offer great exposure and better deals than the

hotel’s own Web site.

Web sites Faxes and E-mails

Property promotions and special rates Hotel Directories

Compare one property’s costs, location, amenities, facilities, and activities with another’s, and make recommendations to clients based on more extensive information than that found in airline reservation systems (See Exhibit 4).

Information packages Property information sheet, photographs of the property, a

description of property amenities, and information about booking procedures, commission payments, and special agent programs.

Brochures Video brochures and CD-ROMS

Familiarization (Fam) Tours Offer fam tours to travel agents. Conducted during slack periods and are an eff

ective way to promote the property.

ServiceService Introduction

Travel agents are often blamed for bungled reservations, specific requests that are not met, and any number of details not handled to the guest’s satisfaction at the property.

See Exhibit 5 and Exhibit 6. Toll-free numbers Travel Agent Clubs

Are informed of property events and special programs and discounts through direct mail or a club newsletter.

Commission Payment Plans Preferred travel agents See Exhibit 7.

Serving Travel Agent’s Clients Providing good service to travel agents means

providing good service to their clients as well. See Exhibits 8 and 9.

Finding Travel AgentsFinding Travel Agents

The Official Airline Guide (OAG) The World Travel Directory In-house records Industry mailing lists Travel industry trade shows

Reaching Travel AgentsReaching Travel Agents Hotel Directories Trade Magazines

Pertinent location information Rate information Booking information Commission information

Direct Mail Trade Shows Membership in Travel Agent Associations Personal Sales Public Relations

The Future of Travel AgentsThe Future of Travel Agents Cutting further into travel agent business

Consumer GDSs Internet travel sites. Hotels Web sites

Small hotels still look to travel agents to fill rooms.

Provide additional, personalized service is by attending “destination specialists” programs.