Anyone have an inside connection?
(US only) Most airlines pay 5 percent of the ticket price, while having to put forth more work than ever to find the lowest price for their clients. Hotels, car rental agencies, cruise lines, and so forth have variable commission rates, but airline tickets are by far the biggest volume.
Until a couple of years ago, the standard commission was 10 percent. With growing market penetration of the Internet, more airlines are selling more tickets directly to their passengers, who are scouting their own fares. Even the paper ticket is a relic now, so people don’t even need an agency for that.
A growing number of smaller agencies are simply closing now, unable to make a living at 5 percent. Some are able to keep going with niche markets (cruises, group packages, specialized tours), though, but it’s not a business you’d want to get into these days.
In the UK a lot of travel agents make most of their money not from selling the actual holiday but from commision from other services like travel insurance and airport car-parking etc. The insurance that is on sale from travel agents is at least twice the cost of that on sale elsewhere.
The same is true of electrical retailers who can make more money from selling extended warranties ( a type of insurance) than from the actual electrical goods.
I love this thread. I want to marry this thread. I want to kiss this thread on the lips.
Elvis is right. Not only do you not want to BE a travel agent right now (you WILL go broke) but you don’t even want to USE a “travel agent” anymore.
Until recently, a travel agent was your only recourse to discount fares and discount accomodations. Now that you have access to the internet, YOU HAVE ACCESS TO ALL THE INFORMATION YOUR TRAVEL AGENT DOES.
Prior to today, travel agents had exclusive access to computerized information regarding lodging availiblity, airline schedules and fare/rate information. YOU now have all that information in your home and/or office… should you choose to avail yourself of it.
Travel Agents are not magical people with advanced training… they are largely people who have access to computers. You now have access to a computer. Use it.
And don’t ask the hotel for a “Travel Agent Discount.” We’re a few years ahead of you.
I have a number of unpolite things to say about travel agents, but I’m saving them for a Pit Thread, or even my Meltdown, scheduled for April 2003.
Regarding commissions: Elvis was quite right, they were ten percent until recently, cut to five percent. We in the hospitality industry received many letters of complaint (most of them of a dire, threatening nature) regarding the universal commission reduction. We read these letters with great concern. We held meetings. And then we danced long into the night, wiping our bottoms with the letters.
Plan your own holiday. If you don’t have a computer, ask a friend. But “travel agents” are out of the question.
Might as well ask a buggy-whip manufacturer to help you buy a car.
I should have mentioned that an increasing number of US airlines are capping agency commissions, too, so the average rate is even lower than 5 percent. For instance, Delta won’t pay more than $50 commission on any ticket, no matter how much its value.
I’ve wondered how travel agencies exist anymore.
How much longer do you think it’ll be before they are completely gone?
Well, the reason I asked is because I actually have to deal with them to book tours. The tour company doesn’t deal with the public, period.
So last year when I booked a tour, I managed to find a website that offers 11% off brochure price. It worked out well then, so it’s not a scam, but I just can’t figure out how you can give up that much money and still make something for yourself.
You work out your price and become a tour director.
OK, how do you sacrifice the profit margin?
Good question.
The answer is : You don’t
If I have a ship that’s going to sail, I’ve committed to this ship sailing, I want to get as many guests as I can in this ship.
If even ONE bunk goes vacant, that’s revenue I’m going to never have the chance to recoup. Get it?
Like FarmerOak says, it’s better to get some money than none.
I am able to travel with a staff discount on one airline… these tickets are standby. If I am unable to get on that plane, I will try as many other airlines as I can find travelling to the same destination… I’ve never had an airline with empty seats turn me down…
It’s better to have $50 for a seat than nothing.
wooba is right, to an extent.
I am in hotels, not airlines. I would rather have a head in that bed than to let it go empty, and never be able to fill that room (on that night) again.
But make no mistake: If I have a room, on a busy weekend, when no one else has a room, and you didn’t make a reservation:
I own you. Do not argue with the Farmer.