Jul 07 2008
Travel Agencies: Friends Or Foes
When should you use a travel agency? If you meet any of the profiles below, it may be a good idea to consider their services.
- Limited computer access or ability.
- No time for or interest in travel research.
- Planning a cruise. Here travel agents can often find discounts and upgrades that might be difficult to obtain otherwise. The cruise industry is one of the last bastions for travel agents and one in which they are still well-compensated.
- Frequent flyer and/or business traveler. You can benefit from establishing a good relationship with an agent, since that agent will likely work hard to earn and keep your business. They will come to know your travel preferences, help you save time and find the things you like best in travel. Loyalty and rapport between a traveler and a travel agent can still yield great results.
- High end traveler. Travel agents still have a valuable niche here and can be of good service.
- Complicated or exotic itinerary. Here, agencies, especially those specializing in certain destinations, may be very helpful in building your trip plans.
- Special needs. Those who are elderly or have physical or other challenges may benefit from the services of a travel agent.
If you don’t meet these profiles, with all of the resources available online, we suggest you become your own travel agent.
How travel agencies work.
Through the 1980’s, travel agents typically booked over 80% of all airline tickets. Since then, the industry has dramatically changed. By 2001, airlines stopped paying regular commissions to travel agents entirely.
Travel agents were once the essential intermediaries through which travel providers and consumers were connected. Their role and function has to a large degree been replaced by the internet.
Agents are still paid commissions by suppliers, including large override fees (cash, trips and other incentives), for bringing customers to specific travel providers.
This is another example of travel industry directional selling, wherein agents are incented to direct customers to the places that provide agents with the most income.
Consumer fees.
Travel agents now charge up to $50 for issuing an airline ticket. Most also have fees by service, per hour, or based on the cost of a trip. This is due to the disappearance of airline commissions.
Beat of Hawaii’s Suggestions:
- If you use the services of a travel agency, always double-check the agency’s recommendations and pricing before buying. Most professionals are members of the American Society of Travel Agents (ASTA).
- Understand how agency fees work. For example, if you are paying by the hour and the agency is entitled to a commission from the supplier, will their fee be refunded to you?
- Be certain that the agent you are working with is knowledgeable in the type of trip that you are planning.
- Shop and compare the services and experience of different agencies before deciding on one.
- A travel agent cannot think for you, or know your innermost wants and desires. Putting most of the planning experience in someone else’s hands may leave you vulnerable to having your expectations left unfulfilled.
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Isn’t it amazing how our travel industry has changed with the Internet? We hardly pay attention anymore when we search for the cheapest airfares and best vacation accommodation, whether hotel or private vacation rental. It’s now all in our hands what travel deals we end up with! No chance to blame the travel agent.