Chapter 4

1. Chapter 4 Dealing with Dreams: The Travel Agency Industry

2. 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

3. A Travel Agent’s Value • There are many reasons why consumers use a travel agent…

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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”

11. 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

12. KINDS OF TRAVEL AGENCIES • Specialized Agencies • Usually independent • Narrowing their focus to a particular kind of customer • Corporate, cruise-only, air only, rail only

13. 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

14. 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

15. 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

16. 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

17. Who are travel agents? • About 80% of all travel agents are women.

18. 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

19. 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

20. 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

21. 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

22. 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)

23. 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

24. 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

25. Travel Agency • 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

26. THOMAS COOK • First travel agent • Established first agency in 1845 • Earned commission from train and ship lines

27. Travel Agency • Modern Travel Agencies were made possible by the rise of the air transportation industry.

28. Travel Agency • 50% of all domestic travel is arranged by travel agents

29. Travel Agency • A.S.T.A. • American Society of Travel Agents (ASTA) The largest U.S. trade association of retail travel agencies

30. Travel Agency • Not all travel agencies sell airline tickets

31. 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.

32. 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.

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

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

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

36. 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

37. 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