1. Dealing with Dreams: The Travel Agency Industry
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. There are many reasons why consumers use a travel agent…
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 Saves time and trouble
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 Analyzes client’s needs
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
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. 50% of all domestic travel is arranged by travel agents
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. Not all travel agencies sell airline tickets
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
ACTE-Association of Corporate Travel Executives
ARTA-Association of Retail Travel Agents
NBTA-National business Travel Association