Chapter 4 Dealing with Dreams: The Travel Agency Industry.
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Transcript of Chapter 4 Dealing with Dreams: The Travel Agency Industry.
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Chapter 4
Dealing with Dreams: The Travel Agency Industry
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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
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A Travel Agent’s Value
• There are many reasons why consumers use a travel agent…
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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
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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
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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
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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
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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
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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
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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”
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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
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KINDS OF TRAVEL AGENCIES
• Specialized Agencies• Usually independent• Narrowing their focus to a particular kind of
customer• Corporate, cruise-only, air only, rail only
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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
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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
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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
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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
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Who are travel agents?
• About 80% of all travel agents are women.
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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
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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
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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
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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
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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)
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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
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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
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• 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
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THOMAS COOK
• First travel agent• Established first
agency in 1845• Earned
commission from train and ship lines
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Travel Agency
•Modern Travel Agencies were made possible by the rise
of the air transportation
industry.
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Travel Agency
• 50% of all domestic travel is arranged by travel agents
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Travel Agency
• A.S.T.A.• American Society of Travel Agents (ASTA)
The largest U.S. trade association of retail travel agencies
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Travel Agency
• Not all travel agencies sell airline tickets
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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.
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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.
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Travel Agency
• May quote prices on• Airfares• Hotel room rates• Rental car rates• Tour package prices• Cruise fares• Bus or rail fares • Travel insurance
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Travel Agency
• Computer Reservations Systems (CRS) can be used to access price information for almost every type of travel product
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Travel Agency
• O.A.G. is the Official Airline Guide that is published bimonthly and lists the timetables of all regularly scheduled airline flights
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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
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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