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.
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Beyond technical skills, what interpersonal skills are crucial for travel agents?
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How do travel agencies typically earn profit from sales?
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What significant change has occurred in how some airlines compensate travel agencies?
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What is the primary function of a travel agency in relation to suppliers?
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What two essential principles characterize the success of travel agencies?
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What additional services might larger travel agencies offer beyond ticket sales?
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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
Responsibilities of Travel Agents
- Make reservations
- Plan itineraries
- Calculate fares and charges
- Produce tickets
- Advise clients on destinations and travel products
- Communicate with clients verbally and in writing
- Maintain accurate records
- Act as intermediaries in customer complaints
Skills Required
- Technical skills in reading timetables, calculating fares, and writing tickets
- Good interpersonal skills in closing sales and using technology
- Ability to explain complex air fare conditions in simple terms
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Description
Learn about the role of a travel agency, how they act as agents, and their pricing and commission systems. Understand how they earn a profit and the changes in commission structures.