chapter 4 dealing with dreams: the travel agency industry

Chapter 4

Dealing with Dreams: The Travel Agency Industry

OBJECTIVES

• Explain why consumers use travel agents• Describe the different kinds of travel

agencies• Contrast the skills of a leisure agent with

one who deals primarily with business travelers

• List the sources that agents use to obtain information

A Travel Agent’s Value

• There are many reasons why consumers use a travel agent…

A Travel Agent’s Value

• A travel agent is more skilled at finding the best travel solution

• Works at finding good rates all day-every day• Spots drawbacks• Finds opportunities• Very Resourceful

A Travel Agent’s Value

• Can find the best deal• Find better deals 75%-85% of the time• Find better value in pricing

• Saves time and trouble• The pro can make the reservations while you

do other things

A Travel Agent’s Value

• The agent is accountable• If something goes wrong on a trip the agent is

accountable• A good agency will do all it can to make your

trip successful

A Travel Agent’s Value

• Knows suppliers better• Gets value for money

• Analyzes client’s needs• Sifts through all supplier choices and

recommend the perfect match for client and product

A Travel Agent’s Value

• Knows Destinations Better• Have a better sense of geography• Have a better sense of client needs and

where they are going

A Travel Agent’s Value

• Are Largely Impartial• Usually only recommend

those products that are good and have been successful for them

• Recommend companies that have preferred relationships

• Helps solve client’s needs by using preferred suppliers

KINDS OF TRAVEL AGENCIES

• Conventional• Full service• Sell it all-air, lodging, car rental, rail,

cruise, tours, packages• May be wholly owned by large

agency with thousands of offices• May be franchises owned by

individuals• May be just an independent with no

affiliations “mom and pop”

KINDS OF TRAVEL AGENCIES

• Online Agencies• Almost exclusively through

Web sites• Example: Travelocity,

Expedia, Orbitz• Sell to people anywhere in

the world• Concentrate on selling travel

products such as air, lodging, and car rentals

KINDS OF TRAVEL AGENCIES

• Specialized Agencies• Usually independent• Narrowing their focus to a particular kind of

customer• Corporate, cruise-only, air only, rail only

KINDS OF TRAVEL AGENCIES

• Home-Based Agencies• Usually works from home office,

but can work anywhere• Requires less office space• More relaxed• Must have self-discipline• Less overhead• May have part-time sellers

CORPORATE TRAVEL MANAGEMENT

• Some corporations have their own in-house agent

• Have corporate travel department

• Corporate travel manager• Sets corporate travel policy• Plans meetings• Negotiates with travel suppliers• Arranges housing

The Corporate Agent

• Responds to requests• Somewhat sensitive to costs• Works almost exclusively by phone or e-mail• Deals with logistics• Seen as service-people• Usually have short lead times• May make many changes• Deals with many “assistants” • Knows a lot about destinations• Usually hears how trip went• Nearly all callers book trip

A Leisure Agent

• Informs and suggests• Sensitive to costs• Usually meets client in person• Deals with vacation dreams• Uses sales skills• Usually has long lead time• Less likely to make changes• Deals with traveler• Knows details about destinations• Hears about trips, if anything goes

wrong• Deals with phone shoppers

Who are travel agents?

• About 80% of all travel agents are women.

CREDENTIALS

• Professional organizations have self-study programs with testing programs for certification in the industry

• Destination Marketing Organizations offer programs that train a person to become a specialist in a particular destination

• Suppliers provide specialist programs for agents to promote their product

• Travel Schools-private and public- offer comprehensive courses of study that lead to certification or a degree in travel

Careers in the Travel Agency Industry

• Executive director, manager, owner of agency

• Human resources/trainer• Travel agent• Outside sales representative• Group specialists• Cruise specialist• Clerical support• Accountant• Technological support

Resources used by Travel Agencies

• The Business Travel Planner: information on hotels, hard-to-find facts about airports, travel problems, colleges, military

• The Hotel & Travel Index: Brief information and ratings for most hotels around the world with maps

• The Intelliguide Professional: Destination information

• Nationwide Intelligence: Information on airports and airlines

• The World Travel Guide: Great source for destination information

Signs of Being a Travel Expert

• Understand travel products and services

• Know product suppliers• Know destinations• Have solid research on products and

destinations• Be familiar with logistics of travel, what

to expect on a trip• Know basic bookkeeping• Have sales, service and

communication skills• Spend time training in the field

Travel Agencies

• Retail establishments• Sell travel arrangements

directly to public• Main products are

transportation (airline tickets are primary product line), accommodations (hotel/motel/resort), package vacations (tours)

Travel Agent• Usually owner or manager of

agency• Makes sales• Gathers travel information• Researches travel products• Makes recommendations for

travel• Gets paid commission on

products sold to customers (average 10%)

• Gets supplemental income from other products such as insurance

Travel Agency

• Sells travel arrangements directly to the public• Sells air, land, and sea transportation• Sells lodging accommodations• Sells package tours and trips• Sells travel insurance

• Quotes fares, rates and schedules• Makes reservations• Accepts payment for travel• Arranges for tickets• Issues tickets and other travel

documents• Arranges delivery of tickets• Assists with other travel arrangements

Travel Agency

THOMAS COOK

• First travel agent• Established first

agency in 1845• Earned

commission from train and ship lines

Travel Agency

•Modern Travel Agencies were made possible by the rise

of the air transportation

industry.

Travel Agency

• 50% of all domestic travel is arranged by travel agents

Travel Agency

• A.S.T.A.• American Society of Travel Agents (ASTA)

The largest U.S. trade association of retail travel agencies

Travel Agency

• Not all travel agencies sell airline tickets

Travel Agency

• Some big companies have their own travel agency because

they have so many employees that have to travel

for business purposes

Make their own travel arrangements.

Travel Agency

• The first contact between a travel agency and a prospective customer is for price information.

Quoting a Fare: communicating the correct price based on the customers needs for a product

Tariffs: Airfares are published in rate books called tariffs.

Travel Agency

• May quote prices on• Airfares• Hotel room rates• Rental car rates• Tour package prices• Cruise fares• Bus or rail fares • Travel insurance

Travel Agency

• Computer Reservations Systems (CRS) can be used to access price information for almost every type of travel product

Travel Agency

• O.A.G. is the Official Airline Guide that is published bimonthly and lists the timetables of all regularly scheduled airline flights

Travel Agency

• The Hotel/Motel Guide and the Hotel & Travel Index are two rate books for accommodations

• The Worldwide Cruise and Shipline Guide and the Official Steamship Guide International are two rate books for transportation

Web Sites for Travel Agents

• ASTA-American Society of Travel Agents

• http:///www.astanet.com• ACTE-Association of Corporate

Travel Executives• http://www.acte.org

• ARTA-Association of Retail Travel Agents

• http://artaonline.com• NBTA-National business Travel

Association• http://www.nbta.org