Travel agents

LecturerDr.S.Nyaruwata
Introduction
 Definitions
 Types of travel agents
 Role of travel agent
 Requirements of travel agents
 Office location
 Change in business model
Difinitions
 It is a retail business that sells
travel related products to customers
on behalf of the suppliers(Bennet et
al, 2001)
Types of travel agents
 Independent—traditional (classical)
 Multiple—(franchise) American
Express, Flight Centre, Vacation .com
 Tour operator owned—different
names
 Business house agencies(dedicated
to specific organizations e.g. UN
agencies)
characteristics of travel agents
 Mass market
 Business travel
 Niche market-sports,
Traditional business model

Holiday Packages

Accommodation Airline Tickets

TRAVEL AGENT

Insurance Train/Coach tickets

Functions and characteristics of travel
agents

 Travel adviser
 Sell travel products to the public
 Does not hold own stock of any
travel products
 Sell ancillary services-foreign
currency, insurance , etc
 Information centre on traveller
Function and characteristic (cont’d)
 Highly personalized
 Trust is key—manpower challenges
 Multi-tasked staff
 Airfare calculations
 Ticket writing
 Managing of cash
 Grooming and etiquette-body
language important
Composition of income
o Service charges---varied
 Commission sales—7-10%
 Productivity bonus—depends on
sales volume and prior agreements
with suppliers
Requirements
 International Air Transport
Association (IATA) licensed
personnel
 A secure office
 A safe
 Computers----most equipment
provided by principle
Ideal location
 High Street/CBD
 Shopping Malls
 Large departmental shops
 Company head offices
Challenges facing travel agents
 New business environment in the
mass tourism era:
 Airlines—no commissions
offered:2002 Delta Airlines removed
commission, followed by other
airlines worldwide-in Africa only Air
Malawi is still offering commission
Challenges facing travel agents
 Principals offering set prices—agents
to decide on mark up
 Need to offer more than the product
—agent has be more informed on the
product in order to justify service
charges
 Performance agreements with
principals-targets/bonuses on
productivity
Challenges facing travel agents
 Growth of the use of ICTs in the
industry-principals selling direct to
the clients-CRS,GDS and websites
 A highly educated and internet
literate consumer base-buying
direct form the supplier
Survival strategies employed by
travel agents
 Becoming centres of product
knowledge
 Creating own virtual platforms

Focusing on markets segments that

have phobia for the internet-e.g the
elderly
 Concentrating on the business
traveler
Survival strategies employed by
travel agents
 Reducing service charges
 Focusing on good customer care

 Undertaking intensive marketing

 Implementing efficient staff training

programmes
(Nyaruwata, S. and Mutenure, T. ; UZ
Business Review.2015;number