Travel Industry Tools Updates

TRAVEL AGENCY

The travel agency is giving knowledge about
Geography
Climate
Routing
Accommodation
Formalities
Money-saving opportunity

PREMISES

Major things which travel agent must consider regarding premises are
Quantitative criteria
Business criteria
Staff Needs
Costs

TRAVEL AGENT

People who deal with the traveller to help in sorting out the
Itineraries
Select Products
Make Reservations
Finalize Documents

FUNCTION OF A TRAVEL AGENCY

To give knowledge about
Geography
Climate
Routing
Accommodation
Formalities
Money Saving Opportunity

SERVICES WHICH ARE PROVIDED BY TRAVEL AGENTS

A location where travel information can be obtained
Advice on any option those are available
A booking service
Advice and help in procuring any necessary travel documents and tickets
Vouchers and itineraries for all travel arrangements

MAIN SOURCE OF INCOME

The main source of income for travel agents is commissions. In addition to normal commission, a travel agency may receive an incentive commission. These are
Over rides
Bonus
Super commission

ADDITIONAL OR OTHER SOURCE OF INCOME

Service charge
Obtaining a travel document for the passenger
Communication in connection with the reservation
To supplement the normal commission, which does not cover costs
Late booking requiring special handling
Serving complicated itinerary requests
Wholesale fee

TO SUCCEED IN A TRAVEL AGENCY

An able travel agent should succeed in the travel business are get along with people, have refined sales techniques, promotional know-how and good public relations

USEFUL TECHNIQUE

The useful technique available to the agent for reaching his audiences is participating in local or regional travel or trade exhibitions

POSITIVE SELLING ACTION

Before taking positive selling action, the travel agent must assess their market. The questions which he should ask himself in this connection are what kind of area is the agency in - business or residential, what kind of people lives in the area, do they have high or low spending power, what kind of travel will appeal to the majority of people in the area, what is the business potential of the district and how are the other travel agents in the area influencing the business?

POSTAL SURVEY

The steps an agent could undertake to provide a useful guide for the type of postal survey include determining the size of the market to be analysed, designing the questionnaire, covering letter, reminder letter, and analysis.

HOW TO INCREASE TOTAL INCOME

The only way for a travel agent to increase total income is to increase turnover. Agents can achieve extra turnover through a serious sales campaign to generate additional business. If agents cannot generate additional business, they can remain profitable by controlling and reducing costs, including overheads.

PLANNING THE AGENCY

When planning the agency, consideration should be given to the office layout to ensure maximum efficiency within the available space.

PRODUCT KNOWLEDGE

Things that help increase product knowledge include newspapers, tourist offices, consumer magazines, radio and television, maps and atlases, personal experience, and in-house and client sources.

SELLING TRAVEL BUSINESS

A travel agent is not entitled to issue tickets and make reservations, but is actively engaged in selling services. Selling means influencing a client to buy holiday arrangements, and it is a primary goal of the travel business.

TO ANSWER THE TELEPHONE

The correct way to answer the telephone are answer promptly, preferably within 3-4 rings, speak clearly, greet the caller and identify your company and your self, put a smile in your voice, keep pen and paper handy, get and use names, eliminate any background noise, don’t disappear if you have to check on several things offer to call back and have a friendly finish, thank the caller and hang up the telephone properly. To answer the telephone for someone else, the things one should keep in mind are: identify yourself, write down the message, including name, phone number, time, and the person called; repeat the information to ensure you have recorded it correctly; and don’t give more information than necessary.

SERVICES PROVIDED BY THE TRAVEL AGENCY

A location where travel information can be obtained, advice on any options that are available, a booking service, advice and help in procuring any necessary travel documents, tickets, vouchers and itineraries for all travel arrangements.

THINGS WHICH THE AGENT SHOULD KNOW ABOUT THE CLIENT

Before offering or discussing any arrangement in detail, the things which agent should know about the client are where does he want to go, when does he intend to leave, how long does he plan to stay, can these dates be changed, where has he been before, has he already traveled on a tour, what type of tour, what are his hobbies and interests, how much is he prepared to spend for this trip and would a tour suit his requirements.

SERVICES TO INCOMING TOURIST

The services provided by travel agents to incoming tourists include meeting visitors at airports, railway stations, or ports; organising transfers, car rentals, and hotel reservations; reconfirming travel arrangements; and altering travel arrangements or documents.

SERVICES TO TRAVELER

The other services that travel agents can offer travellers include selling travel-related products, such as international plugs for electronic devices, travel sewing kits, suitcases, travelling irons and clothing, passport and visa photo facilities, and travel publications.

SKILLS FOR TOURISM PROFESSIONAL

The skills a tourism professional or personnel should have are
Communication Skills
Customer Service Skills
Selling Skills
Organization Skills
Problem-Solving Skills
Leadership Skills
Technical Skills

BUSINESS REQUIREMENT

Sound financial record and standing
Obtaining the necessary government licenses
Adequate premises
Qualified staff
Security and security equipment’s

LICENSE TO OPERATE

In certain countries, a license is required to operate a travel agency. The requirements which will generally have to be satisfied by the agent are that the agency must be duly registered in the country of operation, must offer a guarantee of financial health and solvency, the owners, directors and officers must meet defined experience and professional qualification, premises must be suitable and the agency must provide a bank guarantee or bond to the competent government authority.

SUSPENSION OF LICENSE

The license may be withdrawn or suspended for a certain period as a sanction when the conditions for granting are no longer met, malpractice, fraud, foreign exchange regulations, bankruptcy, or suspension of the agency's activities.

REQUIREMENT TO START A TRAVEL AGENCY

Finance

A substantial amount of capital is required to cover
Rent payment
Purchase of the shop
Shop fitting
Operating costs
Personal living expenses
It is recommended that loan finance be less than 25% of total capital to ensure the business's success.

Licensing

Not all countries have the licensing requirement, but those that do normally check that the travel agency has
Sound financial record
Suitable premises
Qualified staff
Adequate security
And the owner is a suitable person to operate the business in terms of integrity.

Premises

Four major considerations with regard to premises are:-
Quantitative criteria
Business criteria
Staff needs
Costs

Personnel

Efficient recruitment and placement procedures are essential for effective working force

Market analysis

for which product to offer and which market segment the agency is likely to serve more successfully.

ADVANTAGE IN OPERATING A TRAVEL AGENCY

Personnel satisfaction
Financial reward
Sense of achievement
Social recognition
Experience in leadership

ADVANTAGE OF BUYING TRAVEL THROUGH TRAVEL AGENTS

Saving time and effort
Personalised service
Choice of payment
Different types of services provided by suppliers
Choice of products
All arrangements are concluded in one place at one time

DISADVANTAGES IN OPERATING A TRAVEL AGENCY

Since it is financially not feasible nor commercially advisable for an airline to open up offices in the various cities, the airline started appointing local travel agents as its authorised agents to provide services on its behalf to the passenger.
In the travel trade, with respect to the airline, there are the following categories of authorised travel agents
GSA (General Sales Agents)
PSA (Passenger Sales Agents)
IATA Authorised Travel Agents

GENERAL SALES AGENT (GSA)

A local travel agent, which is duly appointed or authorised by an airline as its representative to work as per the conditions or the restrictions imposed by that carrier

REASON FOR THE APPOINTMENT OF GSA

Financially, it is not feasible for any airline to open offices around the world. Which is why they appoint a local travel agent as their representative, called a general sales agent.
A local travel agent understands the entire market much better than the airline and can handle customers much better.
As per IATA resolution, no IATA member airline should provide any discount or rebate on air tickets on its own premises.
This gives equal and fair opportunities for all airlines to survive in the market, but ultimately it restricts airline productivity.
IATA further amended its resolution, seeing that an airline can appoint a local travel agent as an authorised agent who can be offered a certain amount of incentives or commissions on the sale of each ticket.
Each GSA is entitled to a fixed official commission of 12% on each ticket sold.
GSA is entitled to retain ticket stock of its respective or parent carrier.

PASSENGER SALES AGENT (PSA)

A local travel agent duly appointed or authorised to sell passage on behalf of a carrier as per the conditions and restrictions imposed by the carrier.
As per the IATA resolution, an airline may appoint only one GSA per city. Which again results in the airline having restrictions on its productivity.
To increase the number of selling outlets, the airlines began appointing a new type of agent called a PSA.
PSA is offered a minimum discount of 9%, which can be raised to a maximum of 11.5%, depending on productivity, sales ability, or achievement of various targets set by an airline.

DIFFERENCE BETWEEN GSA AND PSA

There can be only one GSA of an airline in one city. An airline can appoint as many PSA as it wants.
GSA is entitled to a fixed official commission of 12% on each transaction. The official commission for PSA starts with a minimum of 9%.
GSA is authorised to handle both cargo and passenger transportation. PSA can sell only passage, which is the transportation of passengers on behalf of the carrier.
GSA holds primary status in the market. PSA holds secondary status in the market.

CONCLUSION

Both the GSA and the PSA are individually appointed by the airline and must act in accordance with the terms and conditions imposed by the airline.
Both the GSA and PSA have to furnish a bank guarantee in favour of the airline.
Airlines generally set the targets for both GSA and PSA. Upon meeting these targets, GSA and PSA will receive additional incentives.
GSA on an airline has no relationship with the PSA of the same airline.
At any point in time, the airline might decide to promote a PSA to the level of GSA, creating competition among the other PSA.

IATA AUTHORIZED TRAVEL AGENT

An agent who is duly appointed or authorised by IATA is called an IATA Agent.
Mainly, an IATA Agent has been appointed to serve clients or customers requiring services from various airlines.
An IATA Agent can maintain ticket stock for all airlines, subject to the bank guarantee furnished to each airline.
The maximum official discount (commission) given to the IATA Agent is 9%.
IATA Agents are also known as the IATA Passenger Sales Agent.
IATA Agents will be allowed to use the IATA logo on their signboards and all stationery.
An IATA agent can reissue the ticket, subject to the airline's approval.

CONDITIONS LAID DOWN BY IATA FOR APPROVAL OF TRAVEL AGENCY

A travel agency should have been in the trade for at least six months.
A travel agency should have an easily approachable office, preferably located in a commercial complex.
The travel agency should have sufficient security arrangements for the safe storage of cash value documents. A travel agency should have a fireproof steel safe of at least 300 kgs fixed to the wall or to the ground.
A travel agency should have sufficient financial credibility in the market.
A travel agency should have strong business potential to generate and promote more business, or at least maintain the current volume.
A travel agency should have IATA/UFTAA-qualified staff.

PROCEDURE FOR IATA APPROVAL

Any travel agency located in India seeking IATA approval must apply to the Air India (Mumbai) AIP – 09 (Agency Investigation Panel) by sending a demand draft of Rs. 5000/- for the application form.
In India, the AIP–09 code has been assigned to Air India, representing all Indian airlines.
AIP – 09 on receiving the demand draft, note down the name of the travel agency and send them the application form.
On receiving the application form, the travel agent fills it completely and, along with the application form, sends the following enclosures:-
Interior and exterior photographs of the travel agency
Balance sheet of the travel agency for the current year
Bio – Data of IATA qualified staff with a photocopy of the IATA Certificate
AIP – 09 gets through the form and other enclosures and sees the eligibility of the travel agency for an investigation
If the travel agency is eligible for the application of IATA, then it is registered as an IATA applicant agency
AIP – 09 then instructs the Local Working Group (LWG) to investigate the IATA applicant agency.
The local working group is a committee of 10 to 14 top professionals from different airlines.
The LWG has full authority over the travel agency. It investigates the travel agency on the following details:-
Operational Period – the period of time during which the travel agency has been operational. IATA requires that the given travel agency be operational for at least 6 months.
Premises – this refers to the office's exterior and interior. The office location should be as per the client's request, whereas the interior should be as specified by IATA.
Financial Creditability – the LWG sees to it that the concerned travel agency is financially sound
Business Potential – the ability of the travel agency to generate business. The agency has strong business contacts and the ability to meet IATA-prescribed sales targets.
Security – IATA prescribes specific security arrangements for IATA agencies. These arrangements include proper shutters and grills made of steel for the doors and windows, and a steel fireproof locker weighing about 182 kgs, cemented to the floor. If the locker weight is 300 kgs or more, then there is no need to be cemented to the floor.
Staff Qualification – IATA wants the agency to have IATA-qualified staff who have successfully completed the IATA/UFTAA Diploma.
In case the report is in favour of the concerned agency, in that case the AIP–09 will send an oral intimation to the travel agency and a written statement to the IATA Regional Office (Singapore)
IATA Regional Office (Singapore) will then advise the travel agency to complete the following formalities: (01) Sign a contract with IATA, known as the ‘IATA Agent’s Passenger Sales Agent Contract’; (02) Furnish a bank guarantee in favour of IATA.
Upon completion of the formalities, IATA issues the travel agency with the agent’s code, which comprises 7 or 8 digits. The first two digits indicate the name of the country, the third digit indicates the IATA area, and the rest of the 4 or 5 digits indicate the agent’s numerical code.

DISQUALIFICATION

No applicants will be approved if
He acts as GSA or PSA for more than one airline
He acts as gsa or psa for one or more non-IATA Airlines
The office for which approval is requested is located at an airport, hotel or club
The name used by an applicant is identical or similar to that of an IATA Agent or an IATA member
Any material statement made in the application is inaccurate or incomplete
That the record of the applicant or the IATA qualified staff is unsatisfactory

HOW TO CONVEY MESSAGES

A letter is a communication between two people. The travel agents can clearly convey the messages, keeping certain things in mind, such as-
The letter should start with an individual
Establish what type of letter the recipient would expect
The opening paragraph of the letter should be interesting and exciting to capture the initial attention
It should be presented in a clear, concise fashion, explaining how and where to book
Give the prospective client a good reason to respond and leave him with an intriguing thought

HOW TO HANDLE WRITTEN ENQUIRY

To handle the written enquiry, the things one should keep in mind are -
Read the communication carefully and make notes on all points raised
See if you have sufficient information to get a clear picture of what the customers want
Gather relevant information and answer all questions asked
Use brochures and other visual material to support any recommendation you have made
Offer alternatives, give information about yourself and your organisation
Include any booking conditions and relevant information
Assure the customers that you are willing to answer any further queries
If no reply is forthcoming, follow up

SWINDLE OPERATORS

Operators whose practices cheat consumers and negatively impact the travel industry.

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