Introduction

• “The traveller used to go about the world to

encounter the natives. A function of travel
agencies is now to prevent this encounter”
– Daniel J. Boorstin, 1961

• “retailers to leisure and business travellers,

selling flights (charter or scheduled),
accommodation, car hire, foreign currency,
travel insurance and other travel services”
– The European Commission
 Travel agent’s position
Travel principal
(airline, hotel, car hire, etc)

Tour operator
(packages together travel
elements from several
principals)

Travel agents

Customers
(Business and leisure travellers)
 The role of travel agents
• Dissimilar to other retailers;
– Do not purchase a stock for resale (do not stock)
– Approaches to principal on customer’s behalf
when a customer decides on a travel purchase
• Impacts;
– Cost of setting up a business is low
– Only sell products made available by the tour
operators or principals
– Less brand loyalty towards a particular product or
company
Contd….
• Original nature:
– offer objective advice
– promote smaller independent TOs products
• What changed this?
– Negotiations between agents and principals lead to
higher commissions being paid to agents to achieve
sales targets
– Has become more commercial
– Carry limited products
– Subjective, promoting those which provide the
highest commission
 Main roles
Convenient location for purchase of travel

Act as a booking agent

Source of information and advice

Expert product knowledge

Be objective in the advice they offer

 Agent specialisation
• Selection of products offered
• Markets they serve
• Can focus on both, but specialists do better
• Business travel
• Leisure travel
 Setting up & running a travel agent

Location

• Mostly in city centers

• Targets residents and workers near by

Formation

• Buy an existing one vs forming a new

one
 Existing ones vs. New ones
EXISTING
• Figures available for
evaluation
• Loyal clientele
• Goodwill
• Available appointments and
licenses with principals
• Staff retained
• Office building available
FORMATION
• Capital costs are high
• Needs to build a customer
base
• Needs to contract with
principals
 Roomy

Plenty of rack space

Comfortable chairs

Inviting

Cheerful

Bright and warm colors

Good lighting
Location
 TA skills & competences
• Success depend on;

GOOD
MANAGEMENT

GOOD SERVICE
 GOOD MANAGEMENT GOOD SERVICE
• Costs are kept under control • Ensure clients are satisfied
• Staff are motivated • Help build a regular
• Goes out to actively seek clientele
business rather than wait • Encourage WOM
for it recommendations
• Increase the local share of
the market
 Size matters!
• Despite expansion;
– MOST still remain small family run businesses
– Owner acts as managers
– Hires 2 to 3 staff
– Little specialization in terms of division of labour
 Advising potential
Making Reservations Planning itineraries
travellers

Computing airline & Issuing travel tickets & Communicating by letter

other fares other vouchers and telephone

Maintaining and
Maintaining accurate files Dealing with in principals
developing stocks of
on reservations in times of customer
travel brochures
 Functions of a manager

Maintenance & control of accounts

Invoicing clients

Effecting bank reconciliations

Preparing and controlling budgets

Providing with an estimate of cash flow

Controlling expenditure
Customer contact skills

Sales skills

Language
skills

Personal &
social skills
“The customer is always right”
• Expectations;

Warmth

Genuine smile

Unfailingly cheerful
 First impression
• Judged based on their appearance
– Neat hair, suitable make up for female staff, good
hygiene, overall good grooming and wear a uniform
• Judged based on departments (person’s behavior
or manner)
– The way employee sit, stand and walk
• Non-verbal signals
– Smile, handshake, greetings, the way of answering a
call, eye contact, etc….
1. Establishing rapport with clients
• Match the products with customer needs
• For repeat business- satisfy customer!
• How is rapport built?
– Engaging in client conversations ( encourage this!)
– Gaining their trust
– Learning about their needs

• judge how receptive the client is to new ideas

and how willing to make a sale
 2. Investigating clients’ needs
• Thoroughness
Who is travelling & the no. in the group

When they wish to travel & for how long

Their preferred mode of travel

Their choice of destination

What they expect to pay

3. Presenting the products to the clients

Features Benefits

• Ensure that the sales person is aware of the

needs
• Always provide alternatives
• Often have to handle objectives
• Needs reassurance, not fully understood the
benefits, needs not have been met
4. Getting clients to take actions, by committing
themselves to the purchase
• Time to close the deal & take an action!!
• Making the purchase
• Never push the client into the sale
• Show interest and concern even after
receiving the deposit and client returning
home
• Good selling technique grows with experience
 Business travel
• Corporate travel
• Capital spending is high and relatively price
insensitive
• Placing all their travels through one agency
• Agreements placed
• TA pays principals prior to business making
payments
 Business travel
• Extremely demanding customers:
– Level of service expected is high
– Reservations at short notices
– Expect documents to be delivered to their office
– Requires assistance in visa processing
Impact of computer technology
Front office ‘client relations’ systems
enabling a counter clerk to a access
principals’ CRS, check availability

Back office systems enabling documents

to be processed with principals

Management systems, producing

updated figures on performance to assist
managers in guiding and controlling
operations
 Impact of computer technology
Global distribution systems (GDS)

Tour operators’ reservation systems

Technology providing new retailing systems

Technology helps suppliers to serve customers directly

Technology and generating markets for travel products

 The future of travel retailing
• Introduction of B2C in travel threatens tour
operators and travel agencies
• Customer might start to put together their
own packages
• More demand for tailor made trips
• New methods of retailing products will launch
• Traditional corner shops is set to disappear