Your View is a new feature from our daily online newsletter Travel Today, giving you the chance to air your comments and opinions about industry matters: Email traveltoday@travelweekly.com.au
TOPIC: QANTAS EXECUTIVE GENERAL MANAGER JOHN BORGHETTI FIRES BACK AT CRITICS WHO CLAIM THE AIRLINE IS TRYING TO BYPASS THE TRADE AND COMPETE WITH DISTRIBUTORS (Travel Today, July 4)
Editor,
I find myself in something of an unusual position, in that I agree with John Borghetti in his spirited defense of Qantas (Travel Today, July 4)
Of course Qantas has to change, of course Qantas has to evolve and of course none of us want Qantas to become a dinosaur. Extinction is not a good option.
I also find myself in agreement (mostly) with Richard Froggatt when he says airlines do not really "care" about wholesalers or retailers and that those businesses really need to make their own way in the world.
We as retailers have the relationship with the client, we as retailers can build on that relationship, manage it properly and move it away from a transactional arrangement to one that is relationship based and driven.
Then we (as retailers) choose who/what we offer to our clients and our customers. Not driven by preferred relationships, or huge head office structures of major groups but by what really matters - what is best for the client.
To that end we will deal with suppliers and industry partners who provide us with service, support and the structure to provide our clients with the exceptional service that they require.
I also find myself in agreement with Skroo Turner in his comments about airlines, consumer protection and the TCF.
It is time that airlines were bought under control and into the fold of consumer protection. We as travel agents and our partner wholesalers and tour operators have carried the burden of consumer protection and the associated costs for 20+ years and in that time the biggest crashes, the most costly collapses have been airlines who have had no requirement to be members of the TCF and to protect their client's funds.
Peter Watson
director/general Manager
Travel Counsellors
Editor,
There is a very simple solution to the situation to the commission problem. Airlines claim it comes at a heavy cost to them. Airlines should price their seats at what they need to cover their costs and make a profit for their shareholders. Then mark it up nine per cent. That way Travel Agents get nine per cent commission and if a customer books direct the airlines makes an extra nine per cent.
I guess this solution is too simple for airlines.
Rodney Pattison
group managing director
Travel Central, Oatley, NSW
Editor,
Qantas forget that they treat agents badly - firstly, they release airfares on the website that we did not have access to, secondly, the cut our commissions and were one of the first internationally to cut us down, thirdly, we have to collect their taxes for no recompense - they actively compete against us.
Phil Hoffman's comments were long overdue as we have been beaten up for the last 5 years - yes the web is here but it doesn't mean we have to actively compete against each other for business - they should be taking steps to assist us and encourage the industry.
The major chains keep friendly with qantas so they get their overrides - everyone is friendly because currently qantas has a loyal following that mainly seems to come from their frequent flyer programme - once this goes, let's see how much support they have.
Susan Kerr
Director
The Travel Store, Collingwood, Vic.
Editor,
The comments by Qantas' John Borghetti (Travel Today, July 4) make me laugh. John, let's just get a few things straight.
You are the national carrier so the Australian trade has no option but to deal with you. But as you can see from your rapidly dropping international market share where we have a choice and we're exercising our rights not to deal with you.
We're very happy you've embraced the internet - it has allowed us to concentrate on higher yield bookings rather than domestic point to point
We have no problem with you selling direct, you'd be stupid if you didn't. The thing I, and the rest of the industry, object to, is that you decided to give every person walking down the street the same buying power as us. At that time our QF sales were $2 million per year. The wholesale/retail pricing principal works well in almost every industry. Can you imagine the uproar from bottle shops if wineries were to sell at wholesale prices at the cellar door? What would Harvey Norman and JB Hi-Fi say if Sony sold their TVs at wholesale prices to every punter on the web?
The incompetence of the world's airlines in going down this path is incredible. We understand the need to modernise and adapt to changing market conditions but you've done so by destroying your relationships with your biggest customers and industry partners. And yet you gloat at being the last national carrier to make this decision. It sounds to me that you're gloating at being the last lemming to jump off the cliff rather than the first!
Our own wholesale division, Bunnik Tours, sells direct and will always continue to do so. However we would never dream of trying to undercut one of our agency partners by selling cheaper to a client direct. Our relationships are built on respect. Needless to say we're not selling much Qantas these days…..and I assume I'm now permanently off your Christmas card list!
Dennis Bunnik
general manager
Bunnik Travel and Bunnik Tours, Adelaide
TOPIC: READERS REACT TO THE MOVE BY CHINA SPECIALIST TRAVMAN TOURS TO WRITE TO EVERY AGENT IN AUSTRALIA OFFERING PREFERRED DEALS AFTER BEING OVERLOOKED BY EVERY NETWORK HEAD OFFICE (Travel Today, July 1, 2008)
Editor,
I share in Travman Tours' brick wall and sore head story (Travel Today, July 1). We have offered better than 15% commission to agents, plus overrides to some chains for preferred supplier status, and still been knocked back. Our 2008/09 brochure went out to 800 agents in March (didn't bother with the big boys), and to follow up I personally called all 800 to introduce myself, check that the brochure had been received, and to reiterate the commission we were offering, in case they missed this point when they received the season launch flier. The response was not overwhelming. Perhaps the agents found the personalised approach a little too . . . personal?
We want partners in the industry who care about the service they provide and the experience their clients end up having - but rarely do I get the sense that this passion is a sentiment that is widely shared in the industry.
Lincoln Harris
India Unbound
TOPIC: READERS RESPOND TO FORMER LAUDA AIR AUSTRALIA BOSS RICHARD FROGGATT’S VIEW THAT AIRLINES DO NOT NEED WHOLESALERS (Travel Today, June 26, 2008)
Editor,
As much as it pains me to agree with Richard Froggatt, (Travel Today, June 26), he is absolutely right when he states that airlines do not need wholesalers. Discover Asia scrapped packaging up land and air many years ago and concentrated on what we do best – operate land tours. By including air we are limiting a package’s dates of operation and appeal to the consumer who may have alternative ‘loyalty scheme’ preferences. Most retail chains have as good a deal as the wholesalers nowadays and from a personal standpoint, for the $50 mark-up that I could put on an air fare - I would prefer that the retailer had the hassle of talking to the airlines.
If there is going to be a change to a tour, it is normally the air segment that causes the problem, with availability issues and change of class etc.If an airline wants to coordinate a promotional campaign with a wholesaler, that is great, but it will always be the airline’s initiative.
Putting extra steps (and profit margins) into the supply chain is senseless. Wholesalers cannot ‘add’ to the service side of air – we are just putting one more impediment between the consumer and the airline. As a wholesaler, I can create land arrangements that no-one else can offer or match… when I add an airline, I am selling exactly the same seat as everyone else – so where is the value-added?
On the other hand – if a client wants to book 2 nights in a Singapore hotel over the internet, why should the travel agent get uptight? It probably is cheaper for the client, the commission on such a deal would not even pay for the consultant’s time, there is very little ‘talent’ needed and once again – where is the ‘value-added’ from the agent?
Agents, airlines and wholesalers should stick to what they do best… and the only time they should meet – is in a bar!
TrevorLake
managing director
Discover Asia
TOPIC: READERS RESPOND TO COMMENTS BY PHIL HOFFMAN THAT PRINCIPALS ARE INCREASINGLY TRYING TO BYPASS THE TRADE (Travel Today, June 26, 2008)
Editor,
Just a quick thought re the airlines trying to go direct and remove the current distribution system called the “Travel Agent”.
I will happily stand corrected regarding the figures but the general thought process is correct.
Say there are 4800 travel agents in Australia with say each agent employing an average of five consultants. That is a total of 24,000 hard working, very busy, person-to-person consulting staff.
Do the airlines honestly think they can replace all these people and the service they offer to the airlines at a lower cost base than the meagre commission levels they pay their current distribution system?
I would truly like to know if the airlines have done the cost analysis comparison between having to employ more help desk staff, consultants and IT personnel versus current commission payments.
Are you aware of any other industry where the principle is in direct competition to its distribution system? As my background is the building industry I just can’t imagine Boral trying to sell cement or timber directly to the public and not through some form of building supplier/ hardware store
Edwin Spencer
Director
Spencer Travel, Surry Hills NSW
Editor,
If an airline is happy to fill a plane from the "front to the back" then they certainly don't need us wholesalers to fill the plane from the "back to the front" - there are many more seats at the pointy end...aren't there?
Kind regards,
insignificant and unnecessary (Nick Deacock, Garuda Orient Holidays)
Editor,
A big thank you to ANZCRO, who printed the AFTA slogan “without a travel agent you’re on your own” on the back of their brochure, plus the referral to the local agent.
It is heartwarming to see a bit of the old culture still around in an environment where wholesalers are only too happy to approach customers directly after having the got the details from an agent in the first place.
I could not agree more with Phil Hoffmann. Customers, particularly the higher end of the market, do enjoy the personal, face to face service a good agent provides and I doubt that will change too quickly.
Barbara O'Rourke
Manager/owner
Gippsland Global Travel Company, Korumburra, Vic
Editor,
Honeymoon Worldwide Holidays commenced trading nine years ago this September as there was a need for a honeymoon specialist in the market. We are seeing a major trend for agents to go directly to hotels and airlines selling their airfares directly to the retail travel market rather using the wholesale airfares. We have resisted for many years to go direct to the public and we will continue to do so. But as Phil Hoffmann said in yesterday’s Travel Today, this will have to be a partnership between retail and wholesale otherwise more and more wholesalers will have no alternative but to go direct to the public.
Jean Kouriel
managing director
The World Travel Group (Honeymoon Worldwide Holidays), Petersham, NSW
TOPIC: READERS RESPOND TO CARNIVAL AUSTRALIA CHIEF EXECUTIVE ANN SHERRY’S CLAIM THAT THE INDUSTRY IS NOT DOING ENOUGH TO ATTRACT A YOUNGER CLIENTELE (Travel Today, June 24, 2008)
Editor,
If Ann Sherry wants to know about attracting the younger age group to cruising she should look "Back to the Future". In the 1970s and 1980s Sitmar's Fairstar out of Sydney had mainly younger people cruising. That ship had six berth and four berth cabins which made it a cost effective holiday for young people. Security and drugs were not the issue they seem to pose these days.Today's gen X and gen Y might be different but at that age "money" is usually an issue. Like the airlines have cut out food maybe they should look excluding "eternal gorging" as part of the food system on ships - cheap fare, pay for the food as you need it.
Wendy McCafferty,
Tourism Department
Gold Coast Institute of TAFE
Editor,
I'm a domestic consultant with Harvey World Travel in Cairns. I am 18 and have an idea to attract more young people to cruising.
I think the most important thing is price. Young people don't get paid much and when they want to go on a holiday, they try and do it cheap.
The next thing is getting more for your money. If I was looking to do a cruise I would consider one that visited capital or large cities. Cities are where young people want to go and where the action is! It would be great for a cruise to visit Brisbane, Sydney, Melbourne, Perth, and instead of a day stop, have two days, to give people the chance to go clubbing and shopping. It will also benefit older passengers by giving them a chance to see the cities in depth.
Maybe even think about having a short cruise targeting only a specific age range. There is nothing better than knowing you are going on a cruise with only your age range.
Melissa Scrivener
travel consultant,
Harvey World Travel Edgehill, Queensland
Editor,
The cruise industry can hardly attract young people because today's youth get easily bored. Short destination cruises are more likely to attract young people because they are cheaper and not so time consuming. Cruise advertisements are not enticing enough as they show more seniors than young people. Stop being coy about it. Whether you like it or not young people are attracted to cruises that show fun and adventure - show more young skin in advertisements.
Cruise companies are not imaginative and inventive when it comes to promoting to young people. Young people spend so much time browsing on line. They enjoy youtube as it presents short videos, a shining testament to their short attention span. Cruise companies should do their own youtube like creating their own 'you cruise' and ask young people to post their cruise videos.
Sting Pilapil
DeVere Hotel, Sydney
TOPIC: SHOULD AGENTS BE CHARGED NO-SHOW FEES FOR NON-ATTENDANCE AT ROADSHOWS AND EXPOS (Travel Today, February 20, 2008)
Editor,
I certainly agree with the charging of "no show" fees. When a travel agent rings up and books x number of places at one of these events, they are in effect making a contract with the event organiser, who then proceeds in good faith to make arrangements and outlay expenses based on the commitment made by the travel agent. For the event organiser to then charge for a "no show" is an entirely reasonable action to recoup expenses.
We normally travel a 270km round trip to attend these events in Melbourne, and at last night's Bali Roadshow, there were two young travel agents who had driven all the way down from Shepparton for it, and were driving back again afterwards. So, city-based travel agents who "no show' don't have much excuse.
Shayne Doyle
Travelscene Castlemaine
Editor,
It is always the same. For years and years travel agents were good enough to book the product for Wholesalers.
Now we are kicked in the groin, after many years of loyalty, to save a few dollars.
The advertising campaign from the wholesalers must cost almost as much as paying commission. So why bite the hand that was feeding them?
Holger Homann
Senior Cruise Consultant
Travelscene American Express
Editor,
Yes most definitely. Especially after the expense the organisers have gone to. There should be exemptions ‘though.
Eg Stuck at work dealing with a client emergency, PA doing last minute bookings etc.
Jill Wilkinson
The Travel Authority
Editor,
What an ungrateful lot of people. I am a Travel Agent in the country – 4 hours from Melbourne and would love to have the opportunity to attend these evenings given the opportunity. Our agency staff travel to Echuca or Bendigo (2 hours one way/ 4 hours return) whenever there is an information evening which I know is appreciated by the organizers as much as we appreciate the knowledge gained from these events. May be they wont know what they’ve got until it’s gone!
Kaye Mitchell
Sun Centre Travel and Holidays
Editor,
I think fining could be problematic and is sure to generate ill--will against the exhibitors.
But, if the organisers (not the exhibitors) were to publish a list of offenders, that would have more effect.
Rod Eime
traveloscopy.com
Editor,
Bentours have 200 RSVPs for our first ever Cruise Expo on Tuesday! Our last event in Sydney, the ABBA Launch in November attracted 150 agents and we received 29 no-shows or regrets. But you would be amazed how many made the effort to come back to us on the day letting us know that they wouldn’t be able to make it!
Teresia Fors
Bentours International / MyPlanet Australia
Editor,
Agents should never be charged no-show fees. In the past we use to enjoy going to road shows but the few that I have attended recently do not interest me anymore. Road show organizers have put so much emphasis on websites and machines and now lack people skills.
Mereani Niuqila
Fiji & Pacific Holidays
Editor,
Working with the travel industry -- but being neither an agent or a wholesaler -- I have a different perspective.
Instead of penalising agents for not turning up, why not charge the agents $50 in advance to attend -- and give them twice that value in terms of marketing tools or resources for turning up.
Or, perhaps, extra commission on their next booking that returns them more than the cost of the event. How about an agent "certification" they can use publicly to demonstrate their expertise to clients, part of which involves attendance at the roadshow/briefing?.
I've seen that "reward" approach work outside the industry. Paying up front helps cement the commitment to attend. The reward means the agent can easily justify the cost because they're getting more back from the wholesaler than they paid. The wholesaler gets serious agents who are prepared then to go back to the agency and actively seek extra sales of the product because they have a financial incentive to do so. The agents and wholesalers build their relationship and both win.
A no-show fee to me doesn't build the relationship with the agents -- and doesn't appear to offer any reward for the agents who attend.
Dean Kennedy
DMK Business Systems Pty Ltd
Editor,
I agree, something needs to be done, so many agents just don’t turn up and it’s rude, especially if some people miss out on going as the function is full, then people no-show.
On the other hand, maybe a suggestion could be made that there is a mobile or some other contact in the last two days, so that if you really can’t make it for a reasonable reason, then you could contact the wholesaler or show and let them know. I know they may still be charged, but they may also be able to pull someone off the waiting list.
It’s happened to me, a migraine at the end of the day, unsafe to drive and no other way to get there, and I can’t tell anyone as there’s no emergency contact number on the invite, and ringing sales or res doesn’t help…
Diana Leavis
Travel Escapes
Editor,
As a Travel and Tourism Teacher of Retail Travel students I often try to include my students in Industry functions and events. Do to our large class sizes (25-35) I have difficulty gaining entry – even when I suggest just to take a small group. If accepted we would attend – it would not be an option! Maybe organisers could work on a certain % of ‘no=shows’ and top attendee numbers up with students..??
Maybe if I could respond direct to the organiser, rather than via an electronic response that does not allow any discussion, I would be able to gain entry for keen young students to attend and possibly even assist in the set up etc of the event.
How can I involve my Retail Travel students in more of these events as they are currently not practising ‘real life’ Travel Agents?
Sue Andrikidis
Teacher - Travel and Tourism
TAFE NSW, Ultimo College
TOPIC: AUSTRALIA SIGNS OPEN SKIES DEAL WITH THE US (Travel Today, February 18, 2008)
Editor,
The signing of open skies agreement between the Australian Govt and US is
Definitely a very positive step. In order to protect the Australian interests the Govt. should allow fully owned and operated Australian companies to operate on this route. V-Australia has certainly given a wake-up call to other carriers operating on this route.
A very vast percentage of travelers are waiting for the opportunity to fly to US using very economical fares.
It is heartening to see it become a reality.
Pradeep ( Bobby) Bhatnagar
TravelManagers
Editor,
Hopefully, V Australia, will not make the same mistakes as Qantas when comes to servicing Brisbane. Qantas is still trying to use Sydney as a hub for its international flights and for most Brisbane people, adding another 5 hours, going in the wrong direction (via Sydney ) to a 10, 14 or 24 flight is an absolute no-no. This is why the newcomers are killing Qantas, out of Brisbane.
Also, it is worth keeping in mind that a recent survey found that 57% of Australians getting off planes in LA, do not have LA as their prime destination. If your prime destination is Canada or Mexico, the last thing you want to do is have the horrible experience of going through US customs in LA.
Thus, I believe, it would be well worthwhile for V Australia to consider other ports in North America, such as Vancouver, Mexico City and Cancun as well as the US ports they have in mind.
Derry Weis
Pulse Energy
Editor,
It’s good news in principle that there will be more competition between Australia and the USA, let’s just hope that V Australia will see beyond Sydney and look to fly from Melbourne as well.
Surely there’s enough demand? We field many queries from our clients regarding the lack of choice on the direct services.
Peter Scott
Director
Jetset Belgrave
TOPIC: CATO – WHOLESALERS SUPPORT SHOULD BE RECOGNISED (Travel Today, November 29)
Editor,
I agree that many wholesalers are providing much support to the retail industry. However, as has been said many times before by many people, wholesalers can't demand agent's support and then actively (sometimes aggressively) promote themselves on a direct basis to the consumer.
Many wholesaler’s brochures contain the website address on every page which deters many agents (me included) from giving out their brochure direct to the client. Many clients think they may “get a better deal direct” and even if they discover they can’t; well, they are already in the wholesaler's website so it’s easier to just follow the booking prompts ... another booking lost by the retailer who has, in all good faith, given out the wholesaler’s brochure.
Other wholesalers may take a more subtle approach.
Simon Hills' own brochure contains words such as: “Icon Holidays plans individual itineraries with our clients (whose clients????” …….and……..“when you book with Icon Holidays, we will plan your holiday experience with you”.
These comments, coupled with the spreading of the wholesaler’s contact details on the back pages, require multiple stickers to cover up the direct contact details.
I'm afraid, Mr Hills, that you are optimistic in believing that any ‘thinking’ travel agents will give out your brochure to clients when you are obviously trying (in an ever so subtle way) to grab the business direct.
I suspect that the first quality wholesaler that works WITH the retail agency network ... or even provides a white label or affiliate website, will enjoy solid support from the retailers. Get off the fence Mr Hills (and others) and demonstrate firmly whether you want a retail or direct sales channel for your business.
TOPIC: TOURISM PORTFOLIO ELEVATED TO CABINET (Travel Today, November 30, 2007)
Editor,
Tourism professionals should treat as a welcome development the fact that tourism is being taken seriously enough by the Rudd government to be an inner cabinet role. This is long overdue recognition of the importance of tourism in the national economy.
The time is now right for the tourism part of the Department of Industry, Resources and Tourism to be treated seriously enough to become a ministry on its own right as is the case in most countries in the world. Its time, that tourism at government level ceases being the last letter in DIRT.
The Minister’s suggestion that he does not want to interfere with the day to day workings of Tourism Australia is welcome. We can certainly do without ministers who flog tourism marketing slogans (Where the Bloody Hell Are You) which do not translate into most of the world’s languages, whatever their limited merits may be in English..
Hopefully, Martin Ferguson will consult more widely within the Australian tourism industry that his predecessor Fran Bailey and will encourage his Ministry officials to do likewise. Many governments (including the Australian government) make the perpetual error of assuming that the outbound segment of the industry is irrelevant to them.
Tourism, in common with trade is a two way street.
Let’s hope Mr Ferguson corrects this error.
One thing that I sincerely hope the incoming government will maintain from the previous government is the Smartraveller Advisory Group which has been a good example of co-operation between DFAT (Department of Foreign Affairs and Trade) and relevant travel industry associations on the issue of government travel advisories.
Tourism is a strategically significant industry for Australia and as such it needs to involve a whole of government approach A change of government presents an opportunity to look at tourism policy making with a fresh approach.
David Beirman, director Struan & Associates
TOPIC: DEBATE OVER WHETHER WHOLESALERS SHOULD DROP THEIR PRICES (Travel Today, October 31)
Editor,
The actual reason the wholesalers are not dropping rates is demand is out stripping supply and in general the travelling public has an insatiable demand to spend their cash like never before. Lets even be more honest, agents are not complaining about the situation loudly enough, if at all, as yet?
This is a g-d send for wholesalers as Gerry Harvey said in today's SMH, he is not passing on currency gains either, so the wholesalers do not see a need to stimulate demand in a hot market.
I say good on you guys, let the agents explain why clients can go straight to Hotels and tour companies and enjoy the currency gains directly. Who cares about the agents and their credibility with their clients. Let a Current affair do an expose and let’s see how long this situation lasts?
Ben Caplan
Editor,
Wholesalers are quick to add currency surcharges when our dollar depreciates. Now that they have a windfall they spew a bunch of jargon about currency hedging or whatever which supposedly justifies their need not to decrease brochure prices.
Something doesn't add up here????? If their currency hedging doesn't allow for a decrease (presumably because they got their sums right), then logically, if they got it right there would be no need for a surcharge.
It must be a luxury to add currency surcharges at will and not reciprocate when you have an exchange rate windfall
Frank Perry, Axis Travel
Each wholesaler, depending on the destinations and the currency involved has varying exchange rates to factor in pricing agreements with overseas land operators. In the case of Greece and Mediterranean Travel Centre some of our destinations price their product in US dollars and some in Euros. As The US dollar falls it is increasingly likely that the Euro will become the base currency of choice, especially in the Mediterranean and as most people in business know the exchange rate between the Australian dollar and the Euro has been less volatile than with the US dollar. There is no question that the current AUD-USD exchange is unusually favourable for outbound travellers right now but it would be a brave person who would predict that this will be an unending trend.
In common with many of our competitors, Greece and Mediterranean Travel Centre has released a wide of Early Bird product which represent significant savings on the brochure price of 2008 product. If retail travel agents want to ensure that they and their clients can take advantage of favourable exchange rates then they need to learn how to sell these deals to their clients while they are available.
David Beirman, Marketing Manager, Greece and Mediterranean Travel Centre
One has to wonder how wholesale companies can justify themselves. If the Aussie dollar drops in value within a short time prices are increased so they can recoup the loss. Funny how it doesn’t work the same way in reverse.
Ruth Birtwistle, Travel To Go
In response to Mr Caruso's statement to Travel Daily, I would like to comment that, had research on this matter been more thorough, Mr Caruso would have determined that most wholesalers have progressively been adjusting their exchange rates & pricing throughout the year, as the AUD increased against the USD. This would have happened several times since the beginning of the year, with exchange rates being assessed & tweaked by wholesalers regularly, in an effort to pass savings & exchange rate gains back to the consumer & maintain a competitive market position. These regular forex & pricing adjustments usually happen as a normal course of business & unlike on this occasion, without announcements & fanfare!
It is therefore completely wrong to assume that wholesalers are in a position to make such massive reductions as quoted in the article, simply due to the fact that reductions have already been made progressively throughout the year and what we are seeing here, is simply the latest in a long and continual line of adjustments.
Mr Caruso also ignores the fact that wholesalers must forward contract foreign currency, usually many months in advance, to protect their forward booking position (and thus their clients), in the event the AUD reduces in value. Therefore wholesalers generally may have significant amounts of forward contracted currency, which in the case of a climbing forex market, may well be held at rates substantially lower than current exchange rate levels.
Foreign exchange is of course a very inexact science & sadly, the crystal ball is usually cloudy. With 'experts' at major banking institutions usually unable to accurately predict exchange rate trends & often disagreeing on forward forex trends, tour wholesalers must protect their clients and act prudently, not speculatively on forex, which I believe in most instances happens.
In my dreams I fantasise of Mr Caruso's foreign exchange rate gains of 22%, but unfortunately & like most dreams, this does not eventuate into reality.
Ian Garritt, managing director, Venture Holidays SA/NT & Holiday Connect
I doubt that the AUD could ever inflate at the same rate as Mr Caruso’s ability to generate self publicity.
His assertion that wholesalers purchasing in USD should slash prices by 22 per cent demonstrates his lack of understanding of the travel distribution system.
While wholesalers may have negotiated ground arrangements in USD, airlines in the Australian marketplace require payment in AUD.
Typically air accounts for around 50 per cent of packages (it obviously varies by destination, fare type, accommodation standard etc..)
Mr Caruso also ignores the reality that margin pressure on wholesalers has been building for many years.
The current strength of the AUD will assist them to regain some of the ground they have lost.
But competitive forces are certain to ensure that any windfall gains are in the very short-term with the travel industry’s enthusiasm to see who can sell for less likely to prevail.
Perhaps Mr Caruso, who claims to be a guru of marketing in the travel sector, should have more faith in the marketplace.
Ian Marshman, Tourism Strategies
TA Fastrack chief executive Adrian Caruso (Wholesalers urged to slash prices - Travel Today 31/10/2007) clearly does not understand the complexities involved in managing currency exchange risks. It is not a matter of whether Qantas, Explore or any other wholesaler "negotiated their prices 12 months ago", but when they actually costed their brochures and their corporate policies associated with hedging of exchange risk.
In fact Mr Caruso has totally got the wrong end of the stick. Firstly, since Qantas, Explore etc are now selling the 2008 season, their USD rates would only have been negotiated within the past couple of months or so. Secondly it is a matter of when these wholesalers produced their brochures and struck an exchange rate for the conversion. Thirdly, an important factor will be what hedging policies each company has in place.
Mr Caruso has quoted the National Australia bank that the "Australian dollar is likely to hit US96c by the middle of next year". I receive daily commentaries from the NAB and other financial institutions, and my experience is that whilst each institution makes currency predictions, they invariably have to reassess those predictions when the currency exceeds either their lower or upper limit months in advance of their prediction. In other words they are reacting to the way the market has already moved. The incredibly wide range of currency forecasts from financial institutions actually reveals that none of them have any real idea of where the dollar is headed!
Wholesalers like to keep stable pricing as much as possible, as this is actually beneficial for market stability. It was only 2 months ago, when the panic of the Subprime market scare hit, the AUD lost approximately 13% in 3 weeks and approximately 9.5% in just 1 week, although it has since recovered. Wholesalers do not react to small market fluctuations, because even the smallest wholesalers almost certainly employ some hedging strategy. Presumably Mr Caruso thinks that wholesalers should not hedge at all, in which case the industry would be in a continual state of surcharge and price reduction and the additional work involved for agents would be unbearable.
Hedging itself is not an exact science, and involves cost, but it does bring stability to the market, which I am sure that the general public and most travel agents appreciate. Most clients would prefer to have stable pricing than to have to watch the markets every day to see if their tour cost has increased or decreased. Because wholesalers will be continually taking out hedging contracts at all sorts of different rates, they will also look at their actual currency exposure on a weighted average basis or something similar. In otherwords wholesalers may make a currency profit on some bookings, but this may be offset by a loss on another booking. But it is impossible or at least impractical to hedge 100% of bookings so there will always be some degree of risk when working with foreign currencies.
Hedging incidently involves a premium (reduction in exchange rate) the longer the hedging contract is valid for. Then of course most banks require collateral of up to 20%. This may be OK for large wholesalers such as those mentioned above, but for small and medium wholesalers this could mean several hundreds of thousands or even a couple of million dollars secured against personal bricks and mortar. Still it keeps prices stable!
Our own company, African Wildlife Safaris and Natural Focus Safaris has been passing on the benefit of reduced prices for our products in Africa, India, Nepal, Sri Lanka, Bhutan, Antarctica and South America and will continue to do so. Our brochure prices have been discounted by as much as 10% depending on when they were costed and based on hedging contracts in place.
Probably for the last 2-3 years our brochure prices have actually only been an indication of the rates charged and each new quotation is based on current exchange rates. Because our company pursues a policy of hedging USD liabilities, new bookings will always be done at the best possible rate and hedging contracts reduce but do not eliminate the need for AUD price fluctuations.
Stephen Cameron, African Wildlife Safaris
Over the past few weeks we have been changing our FX rates on an almost daily basis, to ensure our customers, the travel agent, are given every opportunity to provide their client with a competitive quote. We feel this is so very important, as with so much media attention being given to the AUD/USD rate, it must surely be urging consumers to be extra vigilant with prices quoted by their travel agent. As a wholesaler, it’s very simple, if the travel agent cannot secure the business, nor can we.
Jo Pettifer, General Manager – Product
I agree, they should drop their prices more than the 9% they have already
Fiona Blizzard, Roberts Travel Senior Consultant
TOPIC: HWT FRANCHISE COUNCIL CONSIDERS OPT-OUT (from Travel Today, October 8)
There must surely be a groundswell of opposition by agents against those airlines that have shown such disdain for the industry that has supported them for so long. In particular I am incensed when I hear that we should simply accept the move towards nil commissions, that it will certainly come, and that we should replace legitimate profit margins with service fees.
We do, and if selling air travel was as simple as selling a theatre ticket perhaps that would be enough. But it is not that simple, it is not enough, and as retailers we must work with a margin.
In my relatively short time (five years) as an agency principal I have been astonished by the manoeuvres taken to reduce and avoid paying airline commissions. It is all so laughably short-sighted that I wonder whether airlines are being run by politicians.
It needs to be said that travel agents deliver a service of real value to travellers, particularly to overseas travellers, and they deserve fair remuneration.
Many agents are, like me, waiting for our industry to put its dentures in and take a strong public stand promoting the professionalism and the benefits delivered by the retail travel industry.
Martin Fallows, managing director, Travel Choice Pty Limited, Mosman
Neither Stella nor the HWT Franchise Council has any right to decide whether I will opt in or out of the QF class action. The fuel surcharge was supposedly introduced as a temporary measure and has now become a permanent means for airlines to avoid paying agents commission. If we all opt out then we are agreeing to QF etc ripping us off forever.
Adele Mitchel principal, Harvey World Travel (St Ives)
What is the ACCC doing about the way Qantas is pressuring groups such as HWT to opt-out of the taxes class option?
Surely this sort of bullying and potentially blackmailing practice is prohibited by the Trade Practices Act?
Stephen Cameron, African Wildlife Safaris
Harvey World agents need to grow some balls. The Stella group is of sufficient size that QF needs it as much as they need Qantas. Also, taking into account the minimal commission airlines like QF are paying, one has to question why all the fuss. If you want to be treated with respect you must earn it first and I can assure you that it won’t be earned by rolling over.
HW agents are delusional if they think QF will, in the medium term, treat them any better because they opt-out. Is it that they feel they must beg the airlines for a living because they lack the skills to create one for themselves?
With this case going to court, it may well be the catalyst for change: ie: restrict these IATA carriers’ commercial dealings with each other that in my view is nothing short of collusion. Where else can a group of competitors have meetings behind closed doors (no independent observers) on the basis that they are only to discuss their interline agreements – YEAH RIGHT!!!
It’s important that all travel agent groups and independents stick together which will negate any bully-boy tactics by the airline. If QF is unsuccessful in dividing some of the travel agents and/or groups, they are then stuck in the position of having to deal with all travel agents the same. If they try and make an example of any particular group then I say “two can play at that game”: ie: collectively we travel agents give them a taste of their own medicine.
My last passing shot is – Who the hell does QF think it is? May be it’s about time travel agents started treating QF with the same contempt they treat us.
Geoff Bouterey, Travel Masters Ltd, Sydenham, Christchurch, New Zealand
TOPIC: QANTAS OFFERS RETAIL DEALS ON CONDITION AGENTS WITHDARW FROM FUEL SURCHARGE CLASS ACTION (from Travel Today, September 11, 12,13)
I note with some interest the dialogue which is taking place regarding Qantas and the reported position it has taken in relation to the commercial dealings with travel agency groups who ‘opt in’ and continue with the class action against Qantas and other airlines.
As a travel agent in practice for more than 40 years, I am fully aware of the power that all our suppliers, not only Qantas have, over the decisions we make daily in the best interests of our business. The decision will be up to each and every individual agent as to whether they want to be part of the class action, and this decision must be taken on commercial grounds. Philosophically it would be great to say that we can be masters of our own destiny, but in reality any industry which still relies very heavily on its income from suppliers, it’s better to be prudent than bullish.
When I look at the amount of money which Travelscene Amex would have for distribution to its members – approximately $550,000, this represents in the vicinity of $1,000 per member and I would suggest that each member derives a benefit from Qantas well in excess of this amount per annum.
Consider this scenario. A client of a travel agent sues the travel agent, but expects the travel agent to continue doing business with them.
My message to my colleagues who want to continue with the class action is, ‘get real’.
Tom Goldman OAM managing Director
In the light of the Fuel Surcharge battle - which will drag on for some time - it is fair to say that airlines have treated agents with contempt for quite a while now.
They have reduced our earning capacity by not only cutting our commissions down to unrealistic levels but also slashed the commissionable portion of the tickets by hundreds, by separating the fuel from the ticket cost. Yet, when agents band together, they threaten to claim back override commissions and the like.
They send customers to their websites to book online, then badger us for not making our allocated budgets and, to boot, charge us to get those same deals through our GDS for a fee! Cheek, Gall, call it what you like.
I have just been at the receiving end of a claim from the administrators of Ansett which I had to pay by the end of last month - or I would be taken to court. Yet, Ansett owed me nine times more than I had to pay out......but I guess that’s just tough .......!Travelworld agent, name and agency supplied but withheld
TOPIC: AGENTS BOOKING DIRECT WITH OVERSEAS SUPPLIERS (from Travel Today, September 5)
Editor,
The current debate between the wholesale operators and some members of the retail travel industry, concerning the agency practice of booking direct with suppliers, highlights the “them and us” mentality that is so prevalent in our industry and so very unhelpful.
As Richard Noon suggests, of course wholesalers add a margin for the services they provide. They run a business that would not be viable otherwise.
However, in return for the fair margin we retain, a wholesaler like Euroscape makes sure that we contract excellent wholesale rates from our trusted suppliers, and offer very competitive rates to our network of Travel Agents in turn. Retail agents acting independently are not necessarily otherwise able to obtain comparable rates.
Euroscape employs European staff members who are experts on their native countries and can offer first-hand advice concerning the merits of properties and packages that are otherwise unknown to the retail agent. We also provide a fully interactive online search and booking facility offering immediate confirmation, quick e-voucher production turnaround, and secure online credit card facilities with the absorption of merchant fees, all without any penalty for last minute bookings. The agent deals with one locally-based online supplier in our case, utilising a website specifically designed for ease of use by the agent. The alternative is to book with myriad online, but offshore, suppliers each providing only a part of their clients’ requirements.
Why would an Australian travel agent want to book directly with such offshore suppliers when this service is available from an Australian-based operator that is a member of the TCF? Will the offshore supplier support them in the event that their clients should claim against them?
What assurance of the quality of the product to be supplied is there? If the agent is booking directly with the offshore supplier simply to match their clients’ price expectations, are they simply not compounding the clients’ often misplaced confidence that the product supplied will meet their expectations? Why not utilise the very specific product and destination expertise that can be provided by a specialist wholesaler?
As to the claim that local wholesalers are actively engaging in direct marketing to the consumers, of course we are anxious to promote our offers and expertise and to encourage the consumers to travel to those destinations in which we specialise. However Euroscape guarantees that 100% of our business is transacted by agents by directing all client enquiries, and all visitors to our website, to nominate their preferred agent before we can proceed to confirmation and documentation.
I trust that these comments are helpful and will help enable both wholesalers and agents alike to continue to work closely together to provide professional service to our mutual clients with fair reward.
Iva Dalco’Euroscape Travel
Editor,
I was interested to read Simon Hills’ comments in Travel Today on CATO’s concerns about agents booking with offshore operators direct. Simon makes many good points. However, I suspect the practice is less common than Simon suggests, For starters individual agents cannot expect to negotiate deals with inbound operators with any clout unless they have a massive and sustained volume of passengers, which is very rare.
Most importantly there is the issue of client protection. Australian based wholesalers guarantee their product and agents and their clients benefit from the extensive consumer protection which Australian state and federal law guarantee,
In most cases Australian wholesalers negotiate with hotels and the tour operators on specific types of rooms and tours. The cheap rate a agent may get may be for the basement room as opposed to the sea view room a wholesaler gets.
In other words are clients and agents comparing apples with apples or apples with rotten lemons ?
A bigger threat to retail agents and wholesalers alike is the challenge of cyber bookings which are trying to cut both wholesale and retail distribution channels out altogether.
Kind regards
David Beirman, marketing Manager, Greece and Mediterranean Travel Centre
Editor,
In a nutshell - when you can't get prices on products that clients want to book now that is only a few months away, and if you do book through a wholesaler and pay 2-3 months prior and then are constantly chasing documents till a week before the passenger leaves, and then its an e-doc situation with no presentation at all and its left upto us to make it look presentable and its just cost quite a few thousand dollars for the product and there is no-one to talk to from the wholesaler with now a couple of days to go - I would rather go direct and know that all parties are happy and I still end up with e-dox - made my sale and moved onto the next item.
Wholesalers want to wake up to themselves. We have had to change a lot of the ways we deal with business now because of the internet and a more informed clientelle - so should they! Being loyal is one thing & keeping to company based preferred agreements - but I would rather get the booking than miss out altogether. They should try sitting in our offices and dealing with clients' needs and enquiries on a day to day basis. Brochures are now a way for the passengers to know what hotels and resorts etc are negotiated and then go direct! It’s dog eat dog!
REALITY IS BEING QUICK TO FIND A SOLUTION OR MISS OUT ALTOGETHER!
Angi Arathoon, Travelworld Carlingford
Editor,
I am amazed to hear that there so many wholesalers worried about travel agents making direct bookings with hotels, as we have seen a major increase in preferred and non-preferred travel agent bookings in the last 6 months. I also totally agree with travel agents that are outraged at how some wholesalers have been promoting themselves, as wholesalers but going direct to the consumer trying to make either additional dollars or in some instances reducing the rate to compete with the Travel agent. In saying this, we also do some direct advertising but the consumer can take our advertising to any travel agent and make the booking with the agent receiving their full commission.
Honeymoon Worldwide Holidays produced the first honeymoon brochure in September 1999 to help travel agents in a market that was in high demand and we’ve continued down the same path and can’t see it changing in the very near future.
Regards,
Mr. Jean Kouriel, managing Director, The World Travel Group (Honeymoon Worldwide Holidays)
Editor,
Surely this is a reality of the electronic market place. We are in the internet age, any small or large Retailer or Wholesaler would be silly not to explore all means of generating better margins. Let face it, isn’t this what the airlines are doing? This is the real world and people should just get on with going about there business.
Blessings,
Frank Scerri managing director/CEO, Mission Travel Group, Camberwell Vic
Editor,
As a wholesaler of a very wide variety of Asian travel destinations, I would like to make comment on the articles over the last two days.
Yes we do have some direct clients, but we do not actively market this way. As a wholesaler, we do advertise quite widely to promote ‘brand awareness’ – but if our retail customers (for example Susan Kerr) care to look at our ads, they always say ‘See your agent or contact us’. We always promote the retail world and do try to refer those who inquire direct to a local retailer near them.
Re flexibility. We believe we offer the retail agents best of both worlds – off the shelf group tours, private journeys and short stops – all in our brochures and/or our website. But in addition, we at InterAsia pride ourselves on our ability to ‘tailor make’ for specific requirements.
Sure your customers will sometimes be able to book cheaper hotel nights via the web – but what we provide is service and a booking guarantee – what you book and we confirm will be available when your customers arrive! Direct to hotel internet bookings seldom offer the same guarantee.
Dan Nebauer, Director, InterAsia Tours & InterGlobal Tours, Ringwood VIC
Editor,
I have made some excellent relationships with hotels and ground suppliers I use on many occasions.
This ensures that when I have families travelling who need more than one room, the hotel actually knows they are travelling together and will guarantee to me in writing that they have the request.
No wholesalers guarantee this, and when I follow up, more than 90% of hotels, transfer operators, car hire etc have never received a request.
Unfortunately the vast majority of wholesalers are becoming like McDonalds, and are only offering generic product. We as agents find that those who offer more specific and specialised product will have the loyalty of agents.
Creative Holidays is a point in case - they market direct to the public and never refer back to agents. I've contacted them myself directly as a member of the public as was told it was easier for me to book directly with them rather than through a travel agent!
Once wholesalers stop trying to bypass agents and actually work with us and offer product we want to sell they will find that they receive much more support.
Cheers - please don't use my name in print or I'll be in trouble!
Harvey World Travel agent (name and agency withheld)
What no-one is providing to this debate is the consumer perspective where it’s cheaper to go direct because wholesalers add (say) 10% for the agents commission, 5% for themselves and 5% for FX rates. In the end easy internet access, the currency padding avoided by use of one’s own credit card and the fact that the product supplier is in the country being visited (and not back in Australia) will cause an ongoing shift to for consumers to book direct overseas, either online themselves or via their travel agent.
Sure there’s wholesaler value in product selection, perhaps volume buying and niche knowledge, but increasingly as the internet and social groups make the world a smaller place it may not be enough.
At some point wholesalers with large fixed costs around reservation teams, reservation systems and brochure prints will be in danger of imploding. This has already started to happen in the UK.
To think otherwise is head in the sand stuff.
Richard Noon, chief executive, Webjet
Editor,
As a retailer, I have no problem in dealing with a wholesaler who is able to answer a telephone promptly, and confirm bookings quickly when required.
What I will not support is a wholesaler who is in competition with me by selling to the general public, either directly or through a subsidiary retail outlet.
I urge other retailers to check the ownership of wholesalers they use, and cast adrift those who are competing for their clients.
David Kellett, The Cruise Specialists, Brisbane
Editor,
Aren’t we all being taught to be more like “travel brokers” than travel agents? We get very little commission from what we do, so we charge a fee. When you charge the fee you have the responsibility to ensure you are meeting the needs of the client as priority. This very often means booking direct with a hotel for me.
I charge upwards of $400 a planned itinerary for well heeled clients, plus various booking fees. Are you going to tell me I have to tell my client, that they must choose from a tiny brochure collection? Or that “sorry the wholesaler has run out of allotment so you can’t have it?!” when there is a room available direct? (very often at better price and better inclusions). No way!
The consumer is way too travel savvy and smart these days! And as agents have been told over and over again, it’s just the changing nature of the business and you have to change your business model to suit. Ditto the wholesalers.
I would prefer to be earning my 12% from a wholesaler and having all the documents nice and neat and prepaid, but there is too much flexibility online and that is something we need to compete with. If the wholesalers can’t help us do that, we can’t help them.
Kim Ward, managing director, Arjenta travel, Melbourne
Editor,
There's a lot of comment in the travel industry regarding agents going direct to suppliers and wholesalers going direct to clients and suppliers going direct to clients. There is a rule of thumb in business which says that the more competitors you have in a market place, the cheaper a product will be. The internet has effectively exponentially grown the number of competitors in the market place to a point where a consumer is now spoilt for choice.
Those wholesalers or agencies that do not upgrade their technology to be part of this global shop will sadly disappear. The current generation of travellers do a tremendous amount of research online and will book a majority of their travel online. If agencies and wholesaler wish to grab these bookings, they need to provide the service. For those that have access to Hitwise, Zuji and Webjet get a hell of a lot of traffic to their websites as does Expedia.
There is little point complaining about who goes direct to who as at the end of the day, you need to provide a service that the online community will utilise. At a recent conference, Keith Stanley said that Harvey World Travel will effectively provide all their shops with an online presence. They will have the ability to target their local market and specialise. This sort of approach will no doubt increase business through online channels.
It's a an increasingly tough world out there!
Pete McDougall
Editor,
Could it be these are the same wholesalers that undercut the travel agent for the same quote direct to the travel inquirer??I wonder!!
Ted Hani
Editor,
This practice has been forced upon agents by consumers themselves doing comparisons and approaching their agent, but is not as widespread as claimed by Simon Hills, chairman of CATO.
We suggest this story has more to do with scaremongering, designed to protect current agreements by a couple of nervous CATO members feeling the effects of stiff competition and wondering if next year's deal is going to be on the table.
He claims he was "unable to estimate numbers," but in the same breath said " a fair proportion of agents are booking product direct."
That's alot of ifs, woulds, coulds and maybes, Simon.
Most reputable agents are well aware of the pitfalls of doing business direct with overseas operators not represented in Australia.
We have seen one group's newsletter to all members that this practice could be fraught with danger.....not out of fear of depriving a preferred of some business.... but of legal repurcussions of a collapse of an overseas operator not signatory to any agreement.
That’s got to be alot more threatening than a cranky wholesaler going to admin complaining they missed out on a couple of bookings, doesn't it?
Simon Hills may have identified one or two "rogue agents" that booked accommodation or car booking online, but it's hardly a big financial loss to Australian based wholesalers is it....unless they're "on the verge" or not popular with retail chain members anyway ?
Consumers can already book these online, but you have to look at the positive side in that they then consulted their agent to see if they could match or better it.
Use this to your advantage Simon. Join forces and crank up an effective campaign that tells consumers "agents can put things right that go wrong"....but that's not entirely correct either is it?
What about first starting with a large colourful window poster and matching hand-out brochure....unless you already have done it..... but somehow I've missed seeing it.
Richard Hall, Fab Travel Deals
Editor,
Perhaps we are going direct more often because the 'wholesaler's have been direct marketing to our clients so much and setting themselves up in opposition - general public believes you can only book Scenic direct or through Harveyworld now! Just look in the weekend travel sections of our newspapers to see the very heavy direct marketing going on and Intrepid and Peregrine have their own store fronts now with more in the pipeline - can't have it both ways!
Susan Kerr, director, The Travel Store, Collingwood
Editor,
We know the airlines treat agents like cattle class without brains but surely not the wholesalers too !
1. Wholesalers, shipping companies, airlines, car hire, hotels and even consultants take the agency's client details to direct mail and the agency loses clients as a result. Is that not theft of intellectual property?
Often suppliers offer the travel agents commission as a "special price" to the consumer with instructions to book direct. This gives the consumer the feeling that agents are ripping them off, hence the growing distrust in the market place. Agents are treated as a conduit for others to build their data bases.
Suppliers are having a two-way bet, knowing agents are the cheapest form of distribution and getting business direct at the same time.
2. Off shore suppliers do not ask for client details and in most cases are more knowledgable than large wholesalers inexperienced reservation and documentation staff. In addition, prices are net so mark- ups/service fees are substantially better for the agent and client.
3. A matter of survival - at the end of the day we are all in the business to earn an income and in another life there was respect and ethics in doing business - today only a handful can lay claim to that. As the majority of wholesalers have put the cost of documentation onto the agents no one should be receiving less than 12% for any product. 10% commission is not commercially viable.
4. As far as suppliers providing funds for marketing and advertising, take a look at the ads today - they all have direct phone numbers and websites and if you have good eyesight you might occasional find small print that says .... or contact your travel agent. If there were no agents to generate business, wholesalers would still have to do massive advertising to generate business just through one source so its a misnomer to assume marketing funds are all for the benefit of the agents. Agents provide storage and display space in their offices for suppliers for FREE unlike any other commercial retailer.
5. If there are problems with clients bookings, it is generally the agent who sorts it out, mainly due to time differences. Agents these days are 24/7 but not wholesalers. TCF is parochial and past its use by date - the internet is global. With today's price driven consumers, It's time agents took up the slogan "buyer beware".
6. Suppliers are an important part of the travel mix to make it such a vibrant and social industry so they are very necessary but lets have a level playing field and more respect, especially from airlines.
From Out in the paddock
Name and company supplied but withheld
Editor,
Wholesalers need to change with the times. When we get an enquiry for an international hotel for travel in April or May next year and we say we don’t have prices yet, it makes us look pretty silly.
Wholesalers need to become more flexible with their contract arrangements. With technology it seems ridiculous that we don’t have rates past 31 March 08. We also need quicker confirmations. People have less patience and expect more nowadays.
Wholesalers also need to be more flexible when it comes to adhoc requests… many of them are stuck in the dark ages… “we don’t contract that day tour / hotel” or “ sorry we don’t contract the pool villa at that property” or “it’s not loaded in our system yet”. That just doesn’t cut it anymore. Maybe some wholesalers should have a dedicated special requests team, one that could get quick answers and adhoc product when needed??
Agents have evolved a tremendous amount in recent years. We are better at what we do than ever before. Wholesalers need to ask themselves what they are doing different compared to six years ago… from what I can tell, apart from a few web booking engine enhancements, many haven’t changed their business practices one bit..
Preferred arrangements are great and we value them enormously, but at the end of the day we need to keep our clients happy and the client is becoming more and more demanding.
Name ands agency supplied but withheld
Editor,
We can see and agree that it is a growing concern regarding travel agents to bypass wholesalers and inbounders. We are a reasonably size supplier offering a large and diverse range of product. We maintain strong trade relationships and stick to the appropriate commission rates. We also do receive a reasonable amount of direct enquiries from travel agents because we are easy to find on the internet, but we do refer them back to “the chain of command”.
We have found that the main reasons these direct enquires are happening is because they are having trouble finding information from their wholesaler.
Clients are becoming more and more internet savvy, find a product they want to book, go to their travel agent, find that it is not in there system, so the agent goes direct because it is quicker to get a quote and retain the customer from going elsewhere or booking direct themselves. It is a double edged sword and we agree a bit of a problem for the wholesalers.
We do not concur with a particular comment of Mr. Hills “The overseas supplier does not contribute any promotional capital or resource to actively win business,” This is absolute rubbish. We are constantly bombarded for brochure contributions and for the most part, WE CONTRIBUTE, usually for a brochure that we have no say in what we think they should be brochuring. Which is separate to the commission we pay! Isn’t that what paying a commission is for – to actively market our product? We could look at it as double dipping, but we don’t.
James Reeves, marketing and Tour division, Banksia Adventures Pty Ltd
Editor,
As a Jetset agent, we have a strong relationship with suppliers, however it is getting more and more difficult to work with wholesalers when our commissions are reduced, the service provided is sometimes less than ideal, AND we have to print out our own documents, as well as provide ticket covers, document covers etc..
Clients love getting their documents in “official” wallets from suppliers such as Qantas holidays, Tempo Holidays, and cruise suppliers… nowadays, they can be spending $20,000 + on a package, and we have to print all their documents for them, and package it up for them to receive.
Sometimes it is easier to book direct, have 1 page as a confirmation, and put it all together in our own ticket wallets….
It seems we are being squeezed on all sides…
Jenni Marr, manager, Jetset Vermont
Editor,
If travel agents are bypassing wholesalers by booking direct, it is because wholesalers are also doing the same by going direct to the consumers.
As the saying goes, don’t get mad, get even…
Sting, Sydney
Editor,
I can’t speak for all agents as I’m sure there are some who go direct because it’s cheaper, I can say that there are only two reasons I go direct. The first is if there is nothing available on the wholesalers list ie no rooms available or no properties in a location that I am looking for.
The second is my current case, I booked with an Australian Wholesaler in July – 3 nights in Vietnam and 8 in Bangkok for 2 adults, they still can’t confirm the 3 nights in Vietnam, and it’s now 3 months later… so getting an answer a little sooner would be helpful…
Wholesalers need to ensure that they offer a competitive product, one that is differentiated on cost and/or quality.
If they don't add value, then they should get out of the market. You cannot blame the travel agents for obtaining product at lower cost for their customers.
It was interesting reading and I tend to agree with the wholesalers in regards to their concern with direct bookings when they are members of TCF and offer backup.
I will always book here rather than there unless it means I am going to loose a booking because client is aware of the difference in costs.
Remember the web is available to all and the consumer is certainly more knowledgeable now days.
On the other hand it also gets my back up when wholesalers direct market to clients and take direct bookings whether it by phone or the internet. It seems they want their cake and want to eat it too. It is a dog eat dog world out there and in all my years in the industry it saddens me how savage things have gotten. This obviously does not apply to all providers but certainly a very large amount.
At the end of the day everyone is trying to make a living which has been made harder & harder because so many of our sources have cut commissions or no commissions at all. It seems the feeling is hey Qantas got away with it so why not. Are we not worthy of being paid for selling and promoting their product.
I ask would Myer’s stock a product in their store if they are not making a profit. I think not.
Sue Pile, senior consultant, Anaysah Travel Centre, Hoppers Crossing
Editor,
It is a case of biting the hand that feeds you and offers no security at all
Irene Dowsett, Owner/Manager, Young Travel, Young
TOPIC: WHY CAN’T AGENTS SELL INTO DOMESTIC PRODUCT (from Travel Today, August 14)
Passengers fee comfortable booking domestic holidays - flights and accommodation on the web.
The Travel agent only comes into play when either the client does not have a credit card or does not have access to the internet or decent internet speed.
Debra Mavin, Harvey World Travel, North Richmond, NSW
The answer to that is easy…..because most agents do not see ‘value’ in Domestic sales.
They would rather sell the ‘sexy’ International stuff and forget about the cheap, no-profit domestic travel. How wrong they are.
AAT Kings Top 3 selling tours – 19 days WA, 17 Days NZ and 31 Days Camping around Australia all sell for 5 grand per person. Do the maths guys - Average 2 people per booking – average sale 10 grand = a cool 1000 bucks in your bank. No visas, no hassle and guess what, no discount – Easy isn’t it,
Even five days in the NT will sell for around for around 700 bucks per person x 2 people = $140 commission..…and best of all your customers get a real experience, a great value holiday and will return to you for their next holiday booking.
So if you think there is not money in Domestic Travel – think again – many other agents do and so it may be you that is missing out on this lucrative market.
Les Cox, managing director, AAT Kings
It is patently obvious that the Australian travel agent community is as usual pathetic. When the domestic airlines cut commission to zero, that was the time to "up stumps" and say enough is enough. But like the little sheep they are they were told to "charge service fees". When they did, they lost their clients to the airlines' website....doh! And that's where the clients stay. They have lost them, perhaps forever. Once our domestic market was 40% of total agency turnover, now it's minuscule.
There is a solution and Stella Travel can't see it. Make sure that their accommodation product is only available through their outlets. Package them together with a chartered weekly flight and that's the only way to succeed. Ignore the airlines, refuse to sell their product and it won't take long for them to come running back making under the counter deals just like the big boys did in the States two years ago. They were sent packing by agents who preferred to be independent.
John Alway,SafetravellerAustralia's Premier Travel Planners and Travel Safety Consultants.
Why cant agents tap into domestic product? - because the suppliers are more concerned with direct marketing and will do anything to cut agents out of the loop.
We try very hard to sell the domestic market. But when a person comes to us for their free brochures, and are then guided by the brochures to the direct booking engine website which is boldly shown on the brochure - and then finding that the price is less than what we can offer - what would you do?
When told by an agent that there is a service fee for booking domestic airfares, knowing that they can be purchased therefore cheaper by doing it themselves - what would you do?
There are people who are prepared to pay for our services, but the man on the street, the person most likely to only be able to afford a domestic holiday, not travel the world, is trying to save as much money as he can.
The first domestic travel company which makes it worthwhile for agents to book thru them and remain competitive, will most definitely see their business increase and the agents will become valid providers of domestic travel, not just free information services for the internet.
KM, Wollongong
TOPIC: WEBJET LAUNCHES LEGAL ACTION AGAINST RIVAL (from Travel Today, July 4)
It would seem Webjet will do anything to get their name in the travel press these days and I’m surprised that allegedly they are taking Jetabroad to court with regards to the "googling" of their name.
Webjet also subscribe to the same theory with the Best Flights name as do many of our "competitors", and have done so for a while now.
I take it as a compliment that they attach so much importance to our name and product, and am never worried about losing business to them. I am confident that our product and applications are far superior to all the featured companies that are attempting to steal our potential clients.
Gary Elliott, Bestflights.com.au
TOPIC: ARE PFEFERRED AGREEMENTS DENYING CUSTOMERS A GENUINE CHOICE?(from Travel Today, June 22, June 27 and July 4)
Let them stick with the 'mainstream' large wholesalers which suit the large agency chains.
We 'niche' agencies will deal with many of the niche wholesalers that can do the difficult, unusual, challenging, high return and rewarding bookings.
Susan Kerr, director, The Travel Store, Collingwood, Victoria
Michael Reed’s comments (Travel Today, July 4) provide a clear view of the real predicament facing niche wholesalers, today.
The competition pressures that drove the distribution network to dramatically consolidate over the past two years has now worked its way up the supply chain to the wholesaler network and no doubt will continue its inexorable journey to impact suppliers in the coming months and years.
As Michael has pointed out, distribution efficiency is just as important for today’s niche wholesaler, as is the quality of the service they deliver.
The vertical integration strategies pursued by the remaining retail groups is as much a result of their inability to access the required range of products efficiently, as it is a search to extract additional value from their investment in distribution.
Unfortunately, niche wholesalers now find themselves in a position where a volatile commercial environment makes it exceedingly difficult to reconcile the risk of committing to the required investment in technology, to meet the efficiency demands of retail chains.
When this same phenomenon swept through the UK market some years ago, it spawned the TIPTO group. This group comprises “20 Independent tour operators and service providers (members) who joined forces back in 1999, to form a dynamic marketing organisation targeted specifically towards the independent travel agent sector”.
When checking the suppliers who make up this group, you find that it is almost exclusively made up of the biggest (non-competing) operators of their segment. Therefore such a strategy in Australia is unlikely to accommodate small niche wholesalers.
Smaller wholesalers are probably aware that although their role is being severely tested by the rapid-fire changes sweeping this marketplace, the industry has already identified the gaps Michael refers to and is working to deliver viable solutions. In fact, a service recently described to me, appears to offer substantial promise. Although, I understand it does require a modification of the traditional functions carried out by wholesalers.
I expect that such solutions will be actively encouraged by the retail networks as it is in their interest to have the widest possible range of best practice suppliers to negotiate with. The $64,000 dollar question is; will the smaller wholesalers have the ticker to adapt or prefer to have a good old rant and rave at the next CATO meeting, only to be humiliated in the travel media, the following day.
These days are definitely the most interesting of my rather long career in this industry.
Colin.
I have been reading the comments about preferred suppliers......you all deserve my sympathy.
Last year I enrolled at Tafe to do a tourism course as my next career pathway should I find nursing too much to physically endure any longer. I loved the course immensely (particularly learning the CRS) but in reality, the idea of me becoming a travel agent lost its appeal as it would involve a lot of extra hours, some frustration........for little reward. Incidentally, many of my nursing colleagues travel regularly throughout the country and with the advent of internet they do their own research on where and what they want to do. They also book and pay online for their holidays. I mention this as a couple of my colleagues partner/husband have travel agencies, and they too feel the squeeze on profit margins.
In the end it comes down to choices..........how to save that extra dollar when taking the family on a holiday.
Kelly (WA)
I totally agree with John Ford and David Beirman. Small specialist wholesalers have such in-depth knowledge on the countries that they specialise in, and also have the flexibility to be able to 'tailor-make' whatever the clients require. Travel agents are given far more support and in-depth knowledge, making them in turn more professional.
Joan Luguel, Managing Director & Masters Cruise Consultant, Exotic Destinations Pty Ltd
I have been reading the comments about preferred suppliers......you all deserve my sympathy.
Last year I had enrolled at Tafe to do a tourism course as my next career pathway should I find nursing too much to physically endure any longer. I loved the course immensely (particularly learning the CRS) but in reality, the idea of me becoming a travel agent lost its appeal as it would involve a lot of extra hours, some frustration........for little reward. Incidentally, many of my nursing colleagues travel regularly throughout the country and with the advent of internet they do their own research on where and what they want to do. They also book and pay online for their holidays. I mention this as a couple of my colleagues partner/husband have travel agencies, and they too feel the squeeze on profit margins.
In the end it comes down to choices..........how to save that extra dollar when taking the family on a holiday.
Kelly (WA)
Now as an agent, I continually walk the tight-rope between managing the small profit margins by focusing on higher commissions and ensuring our clients are dealt with professionally. One cannot work in isolation anymore.
As a UK wholesaler/tour operator, I found while one agency chain would work more profitably on a head office agreement with marketing funds incorporated, another, such as a consortium, would be targeted using the 80/20 mix, supporting the 20% of worthwhile agents. These decisions were often taken following a costly head office gold racking deal.
The huge cost of brochure wastage is a driving force for wholesalers, along with the costly sales force to support low producing agents.
Just like any other industry, there are a variety of business and marketing models to choose from and no right or wrong way to operate.
No one owes me a living as an agent, I'm simply a business partner who must adapt to remain an attractive distribution channel as part of my suppliers' marketing mix. If you run your business well, you can start choosing your preferred suppliers in a more discerning manner.
I believe I can credibly comment on today's article in Travel Today regarding CATO members concerns regarding preferred agency arrangements.
Although a member of a major agency group, our business is mainly FIT and as such we sell very few mainstream "packages" ... we are a niche operator and sell niche products. However, my concern is that many wholesalers do not understand the basic principles of "pull" or "push" marketing ... they want to sell both "direct" to the consumer as well as through the agency channels. I don't think they can have it both ways! Wholesalers need to make a commitment within their business to do one or the other. Too many wholesalers now are putting their "www" address on the bottom of each page and/or plastering their direct contact details so widely over the back page that you almost need an A4 size sticker to cover them up.
Why should we agents actively promote a wholesaler's product and give out their brochure, only to have them take the booking direct? And it's no good wheeling out the tired old story of "if you are giving the client the service they want, why would they want to deal direct" ... many people (Australians in particular) are looking for a "deal" and think they will get a better deal by going direct. Even when they find they can't, well, they are already in the wholesaler's website (or tollfree telephone line) so why bother changing again!
Retail agents (at least this one) will support wholesalers who actively support the agency network by producing 'vanilla' or 'affiliate' websites that agents can link to actively promote their products but where the booking comes back to the agent.
I'm continually disappointed at, one, customers not being offered specialist advice, and two, being used by certain agents for specialist information and recommendations, only to have this advice forwarded to a 'preferred' wholesaler for booking.
Should niche market wholesalers charge a service fee for their specialist knowledge and product?
In these times, I think unlikely to be accepted.
Jim Basedow, Malaysia Holidays
Whilst most of the preferreds are reputable wholesalers with proven track records there remains the question of what happens if the lid is taken off and it's every wholesaler for himself? Would that not lend itself to more wholesaler collapses and subsequent claims on the TCF? Sorry to sound like a reborn rock star, but hasn't the industry been there before? Isn't that why the TCF was created in the first place?
It seems that those wholesalers complaining they can't get their brochures on the shelves are minnows in the industry expecting to crack the retail segment just because they exist. Wouldn't there be a plethora of sales reps calling every day, each claiming to be better because they offer such and such.....and who's got time to see them all?
From my experience most preferreds have been around for years and earned their position and reputation by following sound business practices and deserve to be where they are. Offering high commissions alone won't get you in the door, will it?
However, why isn't there a reputable retail chain that stocks everyone's brochure and offers the client a greater range of products?
Having been in retail for many years there is nothing worse than having to phone a client to tell them their tour has been cancelled due to lack of numbers, or worse still, the tour company has gone bust.
Preferreds tend to have the product fine-tuned to the consumer's (and agent's) desires and are less likely to experience major stuff ups, wouldn't you agree?
In my opinion consumers are better off being sold preferreds than being exposed to inexperienced and unproven track records of some wholesalers. Some of them offer great products and If they create their niche they will stand the test of time and be accepted.
Richard Hall, Fab Travel Deals
I have read the statements regarding the so called ‘closed shop’ that the chains and major agencies are involved in with interest.
As a ‘Niche’ cruise GSA we have found that while they are trying to maximise their income by entering into preferred arrangements with suppliers be they principals or wholesalers we have never had an agent refuse to book our products. They may not sell a lot for us and they may not have the brochures but niche product like Peter Deilmann River Cruises is consumer driven.
What we have found over the years is that agents like to book things that they sell a lot of as they know them better and as such don’t have to appear dumb when questioned on a seldom asked for product. The major problem is that too many agents do not know how to find the information that they require. Very few these days have TravelTrade Year Book, some even restrict their consultant’s access to the Internet and few ever think to contact the Tourist offices. Most do not have a colour printer to download web pages.
It is not that difficult to find the information. The clients can!
Peter Podesta, managing director, Classic Voyages Pty Ltd
Favouring preferred suppliers in your selling efforts is only unethical when the primary reason for bias is self-interest at the expense of client interests. The issue of whether preferred supplier selling is unethical comes down to whether the sole motive for supplier selection was based on supplier compensation to the agency and a demand from the agent's head office. Or whether selection also involved a consideration of the customer's best interest.
A customer focused travel agency has a professional obligation to use a preferred supplier simply because some suppliers, on average, provide a superior value to agency clients. If that preferred supplier also wishes to show its appreciation for directed agency sales emphasis in increased compensation to the agent (and of course the 1% plus on the agents sales (aka super-override) this becomes a mutually reinforcing activity to the consumer's ultimate benefit. The issue here is the criteria by which those suppliers were selected and the motivation involved in recommending them.
These preferred suppliers can sometimes be chosen to financially benefit the agent, their head office and/or franchisor and not the client. To be successful in travel you must always give the client what they want....preferred or non-preferred.
Adrian Caruso, CEO | Principal Consultant | Master Business Coach, TA Fastrack
As a travel consultant I always endeavour to work within the preferred products of the agency that I'm working for.
However whilst supporting preferred suppliers is important, for many reasons, one of which being higher commission, so too is repeat business. There are instances where consultants or even agencies may choose not to use one of their organisations preferred suppliers based on service or prior problems with that supplier.
Just as there are instances when a specialist supplier may not be a preferred product but has the best option for your clients.
It is always a fine line, but I think it is difficult to only ever use 100% preferred suppliers when the reason a company is preferred in the first place is usually economic rather than that they are the best supplier of a certain product.
Lisa Hopkins, travel consultant, Noosa Travel
Consumers are definitely not getting a full choice of holidays when visiting travel agents, because of the demands by group headquarters that agents sell the products of preferred suppliers. This is the case even where the products of niche, age or interest based holidays do NOT compete with the products of preferred suppliers.With the Young at Heart Holidays range, the all inclusive fares cover the whole holiday, including air fares. 10% of a total holiday fare, on average at least $3000, is in my view, good earnings, especially considering that booking is usually one phone call. Sending brochures, or even calling, is a waste of time, except to independents. And paying reps to viisit agencies attached to chains is like lighting $50 to keep warm! Yes, if a customer demands to be booked on my product the agents usually complies, but the next time I see a Young at Heart brochure (except in the bin or the kids old brochure) in an agency will be the first.
The reality is travel dollars are finite, and if an agent sells my product to a customer I have taken dollars which preferreds insist belong to them.
To hell with what the customer wants! The real problem is that the customer actually believes that agents give unbiased advice and carry a comprehensive product range.
Malcolm Reed, Young at Heart Holidays
Having been on both sides of the retail / wholesale divide during my 26 years in the industry
I fully understand that retail groups want to maximise both commission and loyalty benefits that come with selling preferred product.
However, if a client walks in the door waving a brochure which is not preferred product and insists on travelling with that wholesaler it would be folly on the part of a retailer to force sell that customer an alternative product just because its preferred by the agency but not what the customer wants or feels they need, At the end of the day a non-preferred sale is far better than no sale at all.
The travelling public is increasingly savvy about researching product before they buy. They do so on the net and in some cases are better versed about the options for their own holiday than many travel consultants.
Multis who attempt to impose a form of totalitarian discipline on their constituent agents to enforce preferred selling policies sometimes result in agencies losing sales because of a lack of flexibility. Clearly wholesalers like Greece and Mediterranean Travel Centre who are not currently preferred with the major groupings will continue to do all we can to raise our public visibility as a counter to our invisibility on the shelves of many agencies who are members of the major buying groups.
David Beirman, marketing manager, Greece and Mediterranean Travel Centre
The issue among agents about whether to go preferred or not is sending a clear message to the traveling consumers. That it is best for travelers to go and do the searching themselves online for travel purchases rather than getting ripped off by travel agents.
Online travel product purchases are becoming more and more reliable than travel consultants who don’t have the capability of absorbing all the best deals offered by wholesalers as well as those agents who sell preferred products based on the amount of commissions their getting.
Sting Pilapil, sales and marketing Manager, Devere Hotel
I have been reading the comments about preferred suppliers......you all deserve my sympathy.
Last year I had enrolled at Tafe to do a tourism course as my next career pathway should I find nursing too much to physically endure any longer. I loved the course immensely (particularly learning the CRS) but in reality, the idea of me becoming a travel agent lost its appeal as it would involve a lot of extra hours, some frustration........for little reward. Incidentally, many of my nursing colleagues travel regularly throughout the country and with the advent of internet they do their own research on where and what they want to do. They also book and pay online for their holidays. I mention this as a couple of my colleagues partner/husband have travel agencies, and they too feel the squeeze on profit margins.
In the end it comes down to choices..........how to save that extra dollar when taking the family on a holiday.
Kelly (WA)
TOPIC: COLLAPSE OF GET GROUP (from Travel Today, June 4)
Here we go again, another large collapse.
The big companies are the greatest risk to the system but the TCF doesn’t seem to think this. Just look at Ansett. Twelve months previous to their collapse we were all told they couldn’t collapse.
Something needs to done to make the large companies more accountable, particularly ones that are handing clients/booking that have in excess of $1 million in a single transaction.
These are the ones who pose the greatest risk. Not the small operators who are turning over under $6 million a year. Most of these would struggle to cost the TCF more than a $1 million …..and these are the ones who get punished the hardest when the TCF tightens the regulations.
Ray Venn-Brown, Global Bound, Pitt St, Sydney
TOPIC: CONSUMER SLATE QANTAS IN SURVEY (from Travel Today, May 30)
I will never forgive Qantas for the way they treated the "stranded" Ansett passengers when Ansett collapsed.
I was stranded in Brisbane and was charged $1,250 each for 2 One Way tickets back to Melbourne for myself and a colleague.
Blatant profiteering when they could have taken over the Ansett fleet (the adminstrators made the offer), delivered all the stranded passengers and had a huge PR Coup.
What about JAL? We believe their business class services is the best available.
Ian Shannon, Quadrant AgTour – Mackay
I am no fan of QF but whilst I expect such things from the general media I am disappointed that an industry publication such as Travel Today would report this information so incorrectly. Qantas was NOT voted the worst international airline as your story states. It was voted the worst international airline flying out of Australia. This makes a huge difference as there are hundreds of international airlines but only a dozen or so flying out of Australia.
The survey is really pretty worthless. Unless those surveyed have travelled on each of the airlines concerned on a regular basis over the past twelve months then they are incapable of giving a realistic comparison. If you fly once a year on an airline and have a bad flight that doesn't make it a bad airline.
John Gercken, Managing Director, Northside Business Travel. Forestville NSW
I am a frequent flyer with Qantas. Travelling almost weekly on a journey. I was not privy to the survey but tend to agree with the results.
We have noticed that the level of service has dropped and the staff in general find it too hard to serve you. Some have been quite rude.
A few years ago we upgraded our daughter to business class, she was not offered a drink and her meal was delivered last. Why? The staff said she was a child (18 and looked like 12) and the adults took preference. This left a bad taste for a long time and yes never forgotten.
I often get forgotten about my vegetarian meal even it is requested. Some times if my seat has been changed my meal is given to some else. The Qantas staff answer to that is, we will see what we can get for you. Meanwhile the plane has landed and yes I am still waiting.
It is nightmare trying to use points to fly. I try and book my tickets about 8 to 10 months in advance but still have trouble securing seats on the flights we wish to travel on.
If there was another carrier with lounge facilities and frequent flyer points I am sure many Qantas club members would change.
Lia,
TOPIC: INDUSTRY TRAINING NOT UP TO SCRATCH (from Travel Today, May 22)
Paul Wiseman’s comments need some context. There is a solid core of Australian travel agents who are highly committed to increasing their destination and product knowledge and these agents take every opportunity to attend functions and training sessions which will enable them to do so. They are also receptive to wholesalers providing training.
On the other hand there are some agents whose managements are so imbued with towing the party line of the their brand group that they become blinded to saleable product which exists outside the preferred square. This reaches ridiculous extremes when destination training is rejected by some agency groups if non preferred operators are involved in presentations.
In the many years I have either run or presented at Eastern Mediterranean destination and product training seminars there are certain agency groups which are frequently conspicuous by their absence because of internal “ group bonding “commitments. Consultants from such agencies often miss out good solid training because of a requirement to attend a ra ra session which maybe great for team morale building but is often at the expense of developing the sort of knowledge which really matters to their professional development and agency’s competitiveness.
David Beirman, Marketing Manager, Greece and Mediterranean Travel Centre, Botany RdAlexandria NSW 2015
I have just read the story printed in today's "Travel Today".
As an industry trainer with current industry knowledge I agree to an extent with the comments made by Mr Paul Wiseman.
I would like to point out though, that within the training offered at the college I currently work with I encourage students to utilise all the industry training available.
I have students that have successfully completed the on-line training with Great Southern Railway, and I also encourage them to log into the Trafalgar site and do their training as well.
I have also been proactive in bringing Sales Representatives from wholesalers to talk to the students about the individual companies.
I feel the problem lies with travel companies which don't encourage consultants to keep up to date with products, whether it's due to lack of time or staff within the office.
Name and address withheld
TOPIC: ACCOR THREATENES TO RIP CONTRACTS WITH WHOLESALERS (from Travel Today, May 21)
What has taken them so long to act on this abuse? It's been happening for at least seven years that I know of.
However, the question I wish to ask, is why do some large hotel chains give reduced rates to online accommodation websites selling distressed beds within 7-30 days.....well below the rack rate they wish to protect?
Isn't that hypocrisy or are they going to say, "But that's different"?
A few years ago I worked for an online inbound wholesaler who repeatedly undercut major hotels' rates which was rack less 25%...the usual inbound commission deal. I can recall doing it because I loaded the rates into the computer.
If challenged, the wholesaler said they were giving 10% to agents which was absolute bunkum and said this only to go through the motions to appear they were doing business with travel agents.
The website looked like they were serious about doing business with agents but I can tell you, they did nothing to grow or promote business from this sector and was receiving business direct from consumers and pocketing the difference.
Good if you can get away with it, but now the game's up!
Richard Hall, fabtraveldeals.com.au
The accommodation industry should support ACCOR in their threat to pull out contracts with wholesalers.
Truth is, if wholesalers would really like to sell direct to the consumers online then they should also be prepared to reduce their exorbitant 33% mark up which is killing accommodation providers who cannot even sell competitive rates for fear of cutting into wholesalers’ selling prices.
It’s about time accommodation providers unite and not deal with wholesalers online and land based unless they agree on lower mark up or commissions.
This is the age of on line technology called the internet. Everything is now exposed online. If Airlines can reduce commissions to agents then accommodation providers should also reduce commissions given to wholesalers.
Burden by constant carpet, beds, air-conditioning replacements every so often not to mention repainting, purchasing of new towels and linen regularly, a lot of hotels suffered a downgrade from the accommodation rating board as a big fraction of their earnings just go to paying commissions.
Accommodation providers should not be afraid of giving out uniform net rates to agents online or off line and retailers or wholesalers and let them do their own mark ups. This would allow hotels more flexibility with their own direct selling prices free from industry bullying perpetrated by industry giants such as Qantas Holidays, Infinity, AOT, Expedia.com, GTA etc….
The wholesalers are more in a position to lose a great deal if the issue goes public since consumers would surely rally behind accommodation providers who work for their own survival in providing reasonable rates for themselves and acceptable prices to the consumers.
Sting Patel
TOPCIC: COLLAPSE OF GET GROUP (from Travel Today, May 17)
With the stringent regulations that the TCF expects of a lowly travel agent, why is it that these large wholesalers are allowed to get into financial difficulty and collapse so easily.
I have been in the travel industry for 47 years and seen so many collapses and these are mainly due to either mismanagement or fraud.
So why are law-abiding travel agents, who make sure there is sufficient cash flow to cover expenses, going to be penalised because of larger organisations do not give a dam. The TCF is then expected to cover outstanding debts.
Surely it is time that these large organisations had their own insurance to cover such events. Let’s do away with the smaller agencies having to pay for all the red tape to belong to the TCF fund.
John Reynolds, Peregrine International Pty, St Kilda Road, Melbourne
TOPIC: AMERICAN AIRLINES UPGRADES PREMIUM CABINS – BUT NOT ECONOMY (from Travel Today, May 15)
United Airlines just don't get it do they? It is hard enough to try and sell UA when you have QF with a far superior product. And with Virgin Blue coming online with Trans-Pacific routes next year (Product not known yet), UA is going to be relegated even further down the ladder of choice.
Also having the Trans-Atlantic fleet fitted with Individual Economy Class IFE where the flight times are half as long as the Trans-Pacific, show's Australia really is not a priority for UA.
Just my thoughts!
Darren Partridge, Travel Manager, Show Group Enterprises Pty Ltd
If open skies goes through, which United Airlines are happy with, then no one will fly with them with no in-flight entertainment
TOPIC: AGENTS LIKE DOLPHINS – THEY NEED PRAISE (from Travel Today, May 14)
Teaching the younger “new” generation Y has taught me to express human emotion more freely – they like to think they are dealing with human beings.
They are also very supportive of each other and will gang up on someone who threatens one of their crowd.
I also find that they like to bond with people they feel that they can trust and often tell me stories of hardship that their employers have created for them through the AWA’s.
They are a pleasure to train and as long as they are appreciated and their achievements rewarded they will remain loyal, often rejecting better pay for better working conditions and flexibility.
I really liked this article. Thank you
Petula Columbus, Tourism Lecturer, tafeSA, Adelaide City Campus, Tourism & Languages
Given two factors, the profile of travel agents and the consistent communication of a negative out look for agents by the industry as a whole it is not surprising many of the front line staff are seeking a bit of positive feedback.
The profile of staff is skewed in the direction of young people and women many of whom are part time or have transitioned from other careers or streams of the industry so it is not altogether surprising a bit of praise is sought or required they do a great job under “interesting” circumstances.
What is probably the biggest influence on the psychology of those seeking praise is the constant doom and gloom scenarios painted for agents about the future, about the internet, about falling commissions, about wholesalers going direct, about overrides and the good old days.
When one looks at the facts these are great years, we have a great industry staffed by great people who have a great career ahead of them in a range of jobs that were not even invented 10 years ago. People in the industry care about the dolphins and have made moves and commitments in recent months to develop systems to make the industry better and more rewarding for those who work in it. The industry is flatter and less hierarchical than it used to be and agents are enjoying some of their best years ever financially, remember how tough it was after Ansett or in the early 90s? especially in the suburbs .
The amount of bookings being lost to wholesalers seems to be so small that no one can put a figure on it and you would be hard pressed to make a list of wholesalers even half a page long who have direct booking engines on their websites that work. If the carriers have taken a big chunk of the domestic market well out bound international departures are up in number and dollar value, inbound is up, cruise is way up, and at the end of the day there is no point in wasting time in angst about something like airlines or international internet giants that we can’t control and that isn’t going to change.
The facts are that there is a heap of new travel agent licenses and TCF applications every quarter and the public still seem to like us.
Maybe if at a management level we talked a little more about how good things really are in the new marine park of our industry then dolphins would be a little happier.
This is it guys, this is our shot at things, praise where praise is due (it is like manners, it takes effort but is free and always appreciated). Combined that with a bit of glass half full thinking when faced with the new challenges and we will go along way to making a happier work place.
Peter Topping, Ineedaholiday.com
What makes anyone think it is preserve of the “young” to receive praise to keep them motivated. I would have thought it was ALL employees regardless of age.
Name not for publication
TOPIC: STRUGGLING JAPAN MARKET (from Travel Today, May 10)
Why keep chasing when Japanese tourists have found somewhere else in the world they would prefer to visit? Just because they were once a big part of our inbound market does not mean to say it will continue that way for ever.
Your article already states the big increases for China and Korea. For that Australia should be thankful because when Japanese tourists first started coming in the late 1980s early 1990s China and Korea were not even a blip on the horizon.
Also until Australian tourism authorities address the “rip offs” by overseas tour companies of the tourists they bring into this country, other nationalities will also wake up and go elsewhere for their holiday.
As far back as 1960s, Hong Kong had a very good and well publicized programme that if tourists felt they had been taken down by shops, tour operators or anyone in general they could contact Hong Kong Tourist Bureau to report the incident and have the problem addressed.
How long do we have to wait for action in this area where tourists are prevented from visiting regular shops and are pushed into and then harassed to buy in company owned or commission “kick back friendly” shops in the back blocks where there are no other shops around?
Signed – “Tired of waiting”
(Name NOT for publication)
TOPIC: QANTAS TAKEOVER FARCE (from Travel Today, May 7)
The Airline Partners bid for Qantas was possibly opportunistic however it did reflect a massive premium that the board rightly recommended to the shareholders. It is generally accepted and expected that the share price will fall substantially in response to the bid not proceeding. The board realized this and acted, as they are required to do, in the interests of shareholders.
The board would have been wildly reckless had they allowed this opportunity to pass by their shareholders and in my view they really had no choice but to recommend the bid.
The idea that the board, and particularly Margaret Jackson, are compromised by their actions seems to be more of an emotional response that does not take into account the options that were available to them.
Qantas is internationally recognized as a world class aviation success and the executive management and board should enjoy a measure of support for making it so. They are no less valuable today than they were yesterday. Probably even more valuable.
Stuart Ford, chief marketing officer, Cypress Lakes Group
My personal opinion is that any member of the current QF board who supported the APA bid should resign with immediate effect.
Geoff Dixon should be the first to follow Marg Jackson out of the door. Having supported one takeover bid, they will no doubt support future takeover attempts.
Claude Scivolo
APA failed to get the required numbers before shut off time There should be no dispensation or reconsideration in this matter.
You blew it and that is that
Kenneth Ryan
TOPIC: SURVEY REVEALS 77 PER CENT OF AGENTS BELIEVE OPERATORS ARE CUTTING THEM OUT (from Travel Today, April 17)
Interesting article about travel agents thinking wholesalers are cutting them out......and for good reason from my experience, and it's got absolutely nothing to do with wanting to pocket the profits.
When I was a Sales Representative for a wholesaler for many years the company would advertise every week in the travel section and always put their own phone number and not ' or see your travel agent".
After being slapped around the head by agents I would calmly ask them to get the newspaper and I would then show them why the company was advertising direct.
Would you believe 95% of agents said " they didn't have the paper in the office", and it still astounds me that it would be basic business sense to do that. If you are in the travel business you have to know what's being advertised don't you?
Therefore, the wholesaler put their contact in the advert and when the client phoned got all the information they needed.
It seems some travel agents want wholesalers to pay for the advert and direct them to book with them without making any financial contribution. Sadly, and until agents change their behaviour this will continue to be the case, so I strongly urge all agents to take in the travel section each week so it can capitalise on any enquiries stirred up by wholesalers.
Makes sense to me don't you agree?
Richard Hall, Fabdeals.com
TOPIC: 90 PER CENT OF DEPARTURES ON-TIME (from Travel Today, April 18)
I am intrigued by the suggestion that 90% of domestic flights departed on-time in January 2007. As someone who travels frequently this would seem close to unbelievable! Could this be a misprint?!!
My own travels over a period of time would suggest that nine out of ten flights in fact begin taxiing after the scheduled take off time. Whilst I would acknowledge that this time is more often than not made up en-route, it would still appear that my own experiences place me in dispute with these findings.
This assertion presumes that anything i.e. 5 minutes, after the scheduled departure time equates to ‘late’ as opposed to ‘on-time’. Do we know if the statistics that contribute to these findings are publicly available? I would like to see how my flights are recorded therein
Gynes Isherwood, Voyages Hotels and Resorts
TOPICS: OLDERS WORKERS SNUBBED DESPITE STAFF SHORTAGE (from Travel Today, March 22 and 26)
Interesting article about travel agents thinking wholesalers are cutting them out......and for good reason from my experience, and it's got absolutely nothing to do with wanting to pocket the profits.
When I was a Sales Representative for a wholesaler for many years the company would advertise every week in the travel section and always put their own phone number and not ' or see your travel agent".
After being slapped around the head by agents I would calmly ask them to get the newspaper and I would then show them why the company was advertising direct.
Would you believe 95% of agents said " they didn't have the paper in the office", and it still astounds me that it would be basic business sense to do that. If you are in the travel business you have to know what's being advertised don't you?
Therefore, the wholesaler put their contact in the advert and when the client phoned got all the information they needed.
It seems some travel agents want wholesalers to pay for the advert and direct them to book with them without making any financial contribution. Sadly, and until agents change their behaviour this will continue to be the case, so I strongly urge all agents to take in the travel section each week so it can capitalise on any enquiries stirred up by wholesalers.
Makes sense to me don't you agree?
My office must be on a different planet to the rest of the industry!! For some time now, we have had a policy of hiring mature staff, most recently for a reception /admin position which we have just filled.
Our clients are generally sophisticated travellers, and largely in the baby boomer demographic. It is vital that we "match and mirror" our demographic with appropriate staff, so we do.
I would be all for a programme which would introduce mature "career change" people to our industry. It is also worth noting that the Gen Y's are not patient enough to work through the travel career path. Nor are they prepared to work for the kind of remuneration (even at the upper end) which travel offers. So, in that sense I think it's futile to be concentrating so hard on recruiting young people, when there are mature people out there who have a completely different attitude to a day in the life of a travel agency.
Ann Rogers, managing director, Wings Away Travel, Essendon, Victoria
I can only confirm the feedback you are getting from mature people. I have over 20 years experience in hotel operations, marketing, wholesale, Inbound, groups, incentives, etc…
I have travelled extensively round the world, lived overseas and speak three languages. I consider myself a mature, balanced person with life experience and people’s skills.
After reading about the chronic staff shortage in the retail travel industry, I studied towards a Diploma of Tourism at TAFE, a Galileo certificate (85% marks) before looking for a position of “junior” consultant. My (mature) friends had been complaining for years on how hard it was for them to find an experienced travel consultant in most of the travel agencies they had been dealing with, let alone find one who had not moved on elsewhere six month later… I was, I guess, expecting a walk in the park leading quickly to a position in one of those hundreds of agencies crying out for staff.
I quickly realized that the standard perception of a junior consultant from employers is a) preferably female b) 20ish c) with some direct sales experience.
Whether the sales experience was gained selling shoes or lipsticks did not really matter.
I must add that I was quite prepared to accept an entry level salary, confident as I was to quickly demonstrate my ability to fit into the new job, develop my newly acquired Galileo skills, translate it into sales and justify a salary review within 18 months.
I have found the standard interview techniques to be designed, with an almost fixation on sales, solely for young people. The interviews were conducted by very professional persons who were themselves probably no more than five years older than the majority of 20 something applicants.
Mature people are more stable by definition. We have been around the block a few times, and in my particular instance, around the world many times. We have either been trained to acquire people skills, or have simply been “bashed into shape” by life and instinctively know how our fellow human beings react.
It would appear this experience now rates lower on the scale than a couple of years sales assistant job in a Jeans store. I would imagine there are many around, like me, who have now given up trying to overcome what appears to be an entrenched “no mature hiring” policy in the retail travel industry.
Name and company withheld
If there are so many over 40 year old experienced staff around, how come they never apply for jobs that I advertise?
My office prefers to have older staff, 1 for experience, 2 for life experience, 3 for enthusiasm. I will gladly look at older consultants who have a love for travel, are experienced and are not technophobes.
Karen Waples, owner/manager Travelscene Taigun
With more than 30 years sales & marketing experience, in airlines, travel agencies and regional hotel offices I returned from 12 years in Asia and initially worked as a receptionist for the same reason. Anyone with an ounce of common sense would realise that if you can sell and market in Asia where English is not the first language and western working procedures are not normal, you can sell and market anything, anywhere!
Having a resume with all that experience is questioned by headhunters and employers alike because they have no understanding that you work on a 2 year contract at best, and you can be removed on your employers whim given work ethics are unknown.
You can use my experience in your sample but I would appreciate if you did not publish my name thanks.
Name and company withheld
I am looking for that "mature" employee who has experienced in selling, taking care of clients before and after their travel can still work under pressure , But I also I need someone who as been to Latin America!!! My advert in the Age has attracted two inquires and neither fit the category I have specified!
Ted Dziadkiewicz, Contours Travel, Melbourne
What a joke the Industry has become I am an older male with Industry qualifications and a little experience. I have been denied positions because I am a male and aged !!....this is particularly noticeable in the Flight Centre recruitment process where they change their criteria to suit the need i.e. one wants a uni degree one doesn’t. My daughter has a uni degree and we both applied for a flight centre job. I was told I did not qualify for their company as I did not have a degree, my daughter was told as she had a degree she was too qualified.
I am attempting to get back to work after a serious workplace incident but age is against me.
Rex D Jones
I'd like to put my comments forward regarding this article.
I'm 33 and have been working in the industry for 10 years.
I graduated from William Angliss when I was young and only 20 years old. As i was too young and had no experience it took me 3 years to get into the industry. After working full time in the gaming industry and having to give up my 1 of my 2 days off a week to do voluntary work at Peregrine, I managed to get a job in the industry which was through the contacts i made while doing the volunatary work. I would send resume after resume out and i would get nothing but the standard rejection letter back.
So it now seems that the age group who are struggling to find work, are those who were not willing to look at the youth as prospective employees back then!
The industry needs to learn to keep its experienced staff.. I'm always putting the word out there for experienced staff and it seems that my old collegues and work friends have had enough of the industry and are getting right out! So the industry does not need reform on the age group it hires, but reform in keeping and looking after the experienced staff.
Rey Bahar
As a 47 year old heterosexual male currently nearing completion of my travel training at TAFE I can say there is little point encouraging anybody other than teenage females into the travel industry unless the major and minor players have a major change in attitudes in recruitment.
Despite the alleged shortage of staff it seems that nobody is interested in hiring anybody who is not either a young woman or who has at least 12 months experience. How you are supposed to get this experience when nobody will hire you is beyond belief.
The other problem attracting staff is salary, I’m not going to give up a $43,000 job that I don’t really like but is close to home to take on a $32,000 job further away with longer hours and no prospect of a higher salary for years to come. Cheap travel is no incentive if you don’t make enough to even afford the cab fare to the airport!
In short employers need to be more realistic, value my travel experiences far more and be prepared to meet the market part way. Having organisations like TAFE deliver more real world training would help; as any prospective employer is going to have to accept that my fellow students and I have not had the benefit of “real world experience” even in the class that is supposed to teach us how a modern agency operates.
Alan Perkins
Interesting article regarding attracting the baby boomers into the travel business, I have been in the industry for over twenty years before going to Tafe to get the qualifications. But after that it was impossible to get employment in the industry, I tried all the large groups and did not even get a call back. I continually hear comments from travelers who have had terrible customer service and booking’s that have turned into nightmares simply because of inexperience and a lack of knowledge of the world by travel agents who’s longest trip has been a “famil” to Fiji. I would love to get back into the industry but have just about given up because of the lack of foresight and common sense by management in place. If the industry is to compete with the internet then they must do some radical re-thinking with regard to experience.
Name and company withheld
I found the comment re getting us oldies back in the workforce to be somewhat amusing.
I’m in my 50’s and have been in the industry for 32 years, I was considering a change from having my own business to just being a worker a short while ago and sent off my resume to a number of the major recruitment agencies, to be told “our employers are looking for a different category of staff these days”.
When I called a couple of places to find out what they meant I was told that whilst we won’t put this in writing they are looking for a younger more vibrant workforce.I should also point out that I wasn’t looking for a role with an STA or Student Flights and said so in my covering letter.
In the end I decided to stick with my own business and let me tell you, give me a 40-60 year old any day, the turn up on time, have a better work ethic, know how to give service and most of all don’t find their job sheer drudgery as they in fact get a real buzz from it.
Now don’t get me wrong, I know the younger ones have to start somewhere and over the years I have employed many young people and given them their start in this industry so this is NOT a knock against them. What it is, is a knock on a report that say’s perhaps the oldies should be looked at again….if that’s the case then someone had better tell our recruiting agencies.
It is great news that more airlines will be available into and out of Melbourne direct. Travellers from Victoria dislike having to fly to Sydney to connect with their international flights, not to mention the extra taxes/fees/time added for doing so. And true the new comers will need agent support to establish themselves. Hopefully the honeymoon will progress to a long and lasting relationship but only if they pay agents a decent remuneration.
Those agents who have been around for a while know that all airlines start out by callings us partners, telling us how much they love and want to work with us. Tell us they rely on us for a large part of their business blah blah blah. Once the agency network has helped them get a good foothold, they then get forgotten quicker than a wife on a stag night.
Marlene Watson, Strathmore Travel, Strathmore, Victoria
TOPIC: JETSET TRAVELWORLD UNVEILS BRANDING STRATEGY (from Travel Today, Monday March 12 and Friday March 16)
“I particularly enjoyed your comments about retail "straplines" (a new word for me) and slogans, which appeared in your "The week in focus" dated 16/03/07.
Like you, I've often wondered, "do they actually mean anything to the customer?"
Not always. Do you recall Bob Ansett's BUDGET catchphrase "Driving your Dollar further"? Look where he was ultimately driven.
If the QANTAS sale proceeds, do you think we'll continue to hear appeals to "The Spirit of Australia"? Soon our national carrier will be about as Australian as Arnott's biscuits and Vegemite.
The Dollar Reigns. Better get used to it. It's The American Way. The Australian Way. Straplines Way.
The cynical amongst us will continue to make our choices on other grounds. But perhaps we're the minority. So we really don't count at all.”
Sandra is very right about flexibility. I am one of many I know tempted to return to the workforce with a long background in Travel who would take up positions Part-time.
You cannot replace “experience” and customer service skills take some learning !!
Kim Mendes
I doubt many travel agencies will contribute funding to the campaign. I'm sure AFTA will agree with me, as they've never been able to get any support of this kind. And it doesn't pay to be too trusting in business! I certainly won't be contributing until I know what they intend doing with my money, so I can determine whether the plan has merit or will benefit my area of the travel industry.
For travel agencies, lack of experienced consultants is THE biggest issue we face. I've spent thousands of dollars advertising in all areas of the media, and I don't even get a single phone call. I've contacted personnel agencies and rarely even get a follow up phone call.
Last year I sponsored a German travel consultant, and although she is doing very well now, it took us six months to get her up to speed with Australian products, language, conditions, etc. I know other travel agency owners who have also gone down this road, but not always successfully. The main problem is that Travel Consultant isn't one of the accepted occupation categories, so representation needs to be made to change this situation immediately (perhaps a job for AFTA or the committee, and wouldn't cost anything apart from someone's time). In the meantime, I was successful in using the category Sales Representative (Information & Communications Products).
I also believe we need to train more young consultants, but without enough senior staff, this simply isn't viable - it places too much additional pressure on existing staff. Another option is enticing travel consultants back to the industry who have been out of the job for a few years. I did this recently, and again it takes a few months getting them back up to speed, but worth it.
Surely the committee can provide some details of these or other strategies to entice us to give up our hard earned money.”
Adele Mitchell, principal Harvey World Travel St Ives and Harvey World Travel Gordon
TOPIC: HATTON HITS BACK AT AFTA CRITICS (from Travel Today, March 14, 2007)
Mr. Hatton knows the writing is on the wall for AFTA. I resigned as a member of the board, when the board decided to close down State Chapters against the membership wishes. The State Chapters were the conduit that kept the board and the members connected.
On that day, when the vote was taken, I sat around the table and looked at the other sitting members and realised that 80 percent were ex-Qantas employees or were representing organisations that were Qantas preferred. It all began to make sense. Some of the motions that were passed at that time, I felt were not in the interest of the agent but heavily in the interest of the airlines.
Your article quotes Mr. Hatton at the JTW Conference as saying that "you have the pledge of AFTA and the Board to leave no stone unturned" to secure a bright future for members. Just exactly what does that mean. Again a whole lot of piffle from Mr Hatton. If AFTA was really serious, it's members and the industry as a whole wouldn't be in the mess it is in now. Now all Mr. Hatton can do is puff up his feathers at people asking questions.”
Marlene Watson, Strathmore Travel, Strathmore, Victoria
I was just reading ‘with interest the main story in today’s Travel Today “Plea for funding overstaffing crisis” and would love to hear someone actually advise owners of travel agencies to pay their staff what they deserve. Now wouldn’t that be an incentive to keep qualified staff in their jobs. There wouldn’t be this shortage of good travel consultants.
I have been in this industry for approximately 24 years (far too long) and am considering very strongly about getting out and get getting paid a decent wage for what I do as $31,000 a year gross is just not enough for the responsibility of our jobs.
It would be nice to see Sandra Chiles and some other notables of this industry fighting for a pay increase on the travel agents behalf.
Luciana Ricato, International Travel Specialist, Townsville Business and Leisure Travel
“I notice today that TMS-Asia is advocating attracting older people to the industry – hooray at last. Someone is prepared to give us a go. Probably too late for myself now but nice to know that someone has recognized the fact at last that we are usually the more stable individuals in the work force having raised our families.
I have travelled to over 57 countries as well as all over Australia during the past 15 years. Many of them several times to discover various different areas and by many methods. Many people have remarked on my knowledge of countries, culture, history and numerous other facets. So much so that they have wondered why I am not in the industry because my enthusiasm for travel encourages them to venture to places all over the world.
I will tell you why I am not in the industry – it’s because every time I have tried or thought about it I have been knocked back because I don’t have sales experience!! I have also been told that I am too old and so forth.
First I would have thought that an older person with extensive knowledge would be an asset not a hindrance and a stablising factor. I frequently notice that Flight Centre is always advertising. As for sales experience, I have always thought that if your product is good enough and you understand what a customer is looking for in a holiday that you can sell anything. I know that when I used to approach travel agents, I would tell them my budget, time frame and what I was looking for – most of them couldn’t recommend anything and would hand me a brochure or two and send me away.
Now I spend time researching what is available on the internet regarding hotels, tours and travel information so that I can plan my trips. Not something new as I always researched before travelling anywhere to ensure that the place I was visiting contained the elements I was looking for in a holiday.
Therefore I just wanted to let you know that I am sure there are a good many older people out there, just like myself who would love to be accepted into the industry and maybe a nudge from someone in the right direction may achieve this.
Gloria Ryan
TOPIC: INTREPID INTRODUCES CARBON PAYMENT SCHEME FOR FLIGHTS (from Travel Today, February 27, 2007)
“People are more concern about the ABC (Affordability, Budget and Cost) of traveling rather to be concerned about current issues.
People travel to have a good time and relax, to free their thoughts from pressing depressing problematic matters such as carbon emissions.
They also worry about the future alright, but in the meantime, they want to make the most of what the world can offer them rather than what they can offer the world.”
Sting Pilapil
TOPIC: TRAVEL INSURANCE WORRY AS CLAIM REJECTIONS SOAR (from Travel Today, January 12, 2007)
“Re: the number of rejected claims for travel insurance.
“Do we know whether these policies were purchased online or through bricks and mortar travel agencies? My guess would be the majority were online, and just like purchasing anything online it is buyer beware!
At our agency we always make sure the client is aware what insurance is suitable for their particular travel arrangements and are certainly there to answer any questions that they may have. But ultimately the final decision is theirs.
Anne Bain, Jetset Cleveland managing director
“I'm following with interests the "Travel Insurance Rejects Saga".
“Not sure if this aspect of the issue has been considered but... has anyone taken into consideration that there has been a huge increase in insurance policies sold "on-line" ie: with ZERO travel agent input or advice?
“It would be interesting to know, what proportion of the 228% increase was actually pertaining to Policies purchased in such way.”
Voytek Lasek
Manager, Jetset Pennant Hills
TOPIC: COUNCIL OF AUSTRALIAN TOUR OPERTAORS HITS OUT AT RETAIL HEAD OFFICES (from Travel Today, December 7)
“Being a wholesaler, I find the argument in the press over travel groups, the web, preferred suppliers and wholesalers very interesting and there is a very simple solution if travel agents don’t want to go the way of the dinosaurs.
“Travel agents and groups in battling with the web, have fallen into the trap of trying to compete with it, on its own terms.
“One travel group has reduced their number of wholesalers from about 70 to 40. There is no point of difference between most travel agencies and the web.
“They now both sell items that are volume based, require no expertise, are easy to book and because of this, will always be cheaper on the web. Travel Agents must sell niche products that not every idiot can find on the web.
“The chains really need to look at themselves, I know it is difficult, [because] they require volume, but then again customers who walk into a travel agency are not always looking for el cheapo travel. They want quality of service and a choice of niche product, not what is available on the net or high volume discount shops.”
“Maybe the answer lies with what BHP and CSR have done so successfully and that is to split their companies and let each company do it’s own thing. Then we may again see travel agencies becoming a place where you find travel information, advice, service and niche product that is not found on the web.”
Bernard Schaff
Managing director
Transglobal Destinations Pty Ltd
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