Travel Agency Operations

Questions and Answers

What are two key differences between independent travel agencies and chain agencies?

Independent travel agencies are typically manager-owned and have fewer than five staff, while chain agencies are located in high-traffic areas like shopping malls and have larger staffs.

List three essential technical skills required by travel agency staff.

Travel agency staff need skills in reading timetables, calculating fares, and writing tickets.

What is the role of a travel agency manager in relation to financial management?

A travel agency manager is responsible for managing accounts and cash flow, invoicing clients, and controlling business expenses.

Explain the importance of good communication skills for travel agents when dealing with complex airfares.

Good communication skills are crucial for travel agents to explain complex airfares and their associated conditions in a way that clients can easily understand. Signup and view all the answers

Beyond technical skills, what interpersonal skills are crucial for travel agents?

Travel agents need strong interpersonal skills, including the ability to close a sale, communicate effectively, and explain complex information in a clear and concise manner. Signup and view all the answers

How do travel agencies typically earn profit from sales?

By earning a commission, which is the difference between the advertised price and the discounted price from the supplier. Signup and view all the answers

What significant change has occurred in how some airlines compensate travel agencies?

Some airlines have stopped giving commissions to travel agencies. Signup and view all the answers

What is the primary function of a travel agency in relation to suppliers?

To sell travel products and services on behalf of a supplier. Signup and view all the answers

What two essential principles characterize the success of travel agencies?

Good quality customer service and effective management. Signup and view all the answers

What additional services might larger travel agencies offer beyond ticket sales?

Services like in-house insurance, travel guide books, car rentals, and currency exchange. Signup and view all the answers

Study Notes

Role of a Travel Agency

Acts as an agent, selling travel products and services on behalf of a supplier
Does not keep a stock in hand, purchasing products only when a customer requests
Buys products at a discount and sells at an advertised price, earning a profit through commission

Commission and Pricing

Commission is the difference between the advertised price and the discounted price
In some countries, airlines no longer give commission to travel agencies
Travel agencies may charge a percentage premium or a standard flat fee per sale

Licensing and Regulation

In many countries, individuals or companies selling tickets must be licensed as a travel agent

Commercial Operations

May include the sale of in-house insurance, travel guide books, timetables, car rentals, and currency exchange services
Larger chains may engage in these operations to increase revenue

Characteristics of Successful Agencies

Good quality customer service
Effective management, including cost control, motivated staff, and building a customer base

Types of Travel Agencies

Independent agencies, typically with fewer than five staff, manager-owned, and focused on customer service
Larger chain agencies, located in prominent locations, with high passer-by traffic, and owned by tour operators or other tourism concerns