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1、Lesson Ten Travel Agency Management Travel Agency and Suppliers Liabilities of Travel Agency Conferences and AssociationsCommissions and OverridesTravel Agency Management Future Trends Travel Agency and SuppliersTravel agent is one of the most important members of the travel industry. It is the pers
2、on who brings together the suppliers of travel services with the buyers and offers them something.A retail travel agent is a commissioned intermediary who serves as a sales outlet for :carriers, hotels and resorts, entertainment centers,car rental companies,other suppliers, including wholesalers. co
3、mmission vt. To place an order for.Travel agent usually does not own the services he or she sells to travelers. The agent is paid a commission by suppliers for sales of airline tickets, hotel rooms, and so on. Liabilities of Travel Agency In general, a travel agency can avoid liability problems by p
4、erforming precisely the services contracted for with the client. It can be held responsible for and cannot be held responsible for a client .Though an agent cannot be responsible for social conditions crime or riots, for instance the agent does have a responsibility to inform the client about known
5、adverse factors of the destinations . travel agents and suppliers in order to avoid the danger of being sued by a client for problems created by an intermediary through insurance and use of disclaimers. It is important for them to review carefully all of the advertising and promotional materials the
6、y give to clients to make certain the wording in such material does not negate their disclaimers. A travel agent can be fined or suspended for not assuming obligations imposed by the carriers. So the responsibility to the carriers is of particular importance .Conferences and Associations three major
7、 conferences: The Airline Reporting Corporation (ARC), which replaced The Air Traffic Conference (ATC) due to deregulation; The International Airline Travel Agency Network (IATAN), composed of U.S. and foreign airlines with international routes; and The Cruise Lines International Association (CLIA),
8、 composed of major cruise lines operating throughout the world.The two most influential conferences regarding the manner in which a travel agency does business are ARC and IATAN .Competition in the travel agency business thus is very intense and may be expected to increase in the future. Although mo
9、re agencies exist today, the number of bankruptcies has also reached record highs in recent years. Three professional associations have been established to advance standards in the industry and to serve as spokespeople for the industry: The Institute of Certified Travel Agents (ICTA), The American S
10、ociety of Travel Agents (ASTA), The Association of Retail Travel Agents (ARTA). Commissions and Overrides Travel agents receive commissions from suppliers and wholesalers. A travel agency, for example, may receive a higher percentage commission from a cruise line than from a domestic airline. Retail
11、 travel agents may also obtain override commissions from wholesalers and other suppliers such as airlines and hotels. Wholesalers commonly offer a graduated rate schedule for overrides. This means that the percentage override offered to a travel agent increases as the number of bookings produced by
12、the agent increases. Suppliers also offer other forms of incentives to travel agents to entice them to sell their services. Travel agencies are not high-profit businesses. Many small agencies, where the owner and the operator are the same person, may operate on only a slight profit or none at all. T
13、ravel Agency ManagementManagers of successful agencies must carefully watch all areas of the companys operations to generate a profit. This requires keeping overhead costs to a minimum, maintaining high productivity per employee, producing high-volume bookings, and maintaining higher average profit
14、margins on the bookings. Four areas of special significance to travel agencies in terms of maximizing profits:1)Making Effective Use of Assistance by Suppliers .2) Selling Other Travel Services .3) Managing the Compensation Mix .4) Automation .Future Trends In summary, the travel agency business, wh
15、ich was once thought of as being a relatively simple one to enter, is becoming increasingly complicated .In future it could be affected by a number of trends or problems, including:Automated Selling by Suppliers Inability of Travel Agents to Meet Increasing Costs Decisions by Suppliers Not to Use Tr
16、avel Agencies 4)Deregulation . Deregulation will lead to open competition, which, in turn, lead to various forms of airline price wars on domestic routes. The independent travel agency with no affiliation is fading away, replaced by mega-agencies and franchise agreements.It can survive by joining a
17、cooperative marketing service or a consortium of agencies that is necessary to negotiate the override enjoyed by the franchised and mega-agency. One possible sales mix looks like this: Air Sales 60% Cruise Sales 15% Hotel Sales 10% Car Rental Sales 10% Other Sales 5%travel agencys biggest cost is la
18、bor, about 50 percent of sales. A definite trend in travel agency operation has been the rapid growth of on-site reservations and ticketing locations. To be viable the agency must control credit and costs. In the future, the small independent travel agency is likely to be less of a factor in the tra
19、vel industry, and many will probably join cooperatives or become a part of a consortium to be able to participate in overrides provided by travel suppliers. Travel agency owners must review their market position from time to time and emphasize sales that produce the highest profit. Something travel
20、agency offersound travel counseling on destinations, routing, transportation, accommodations, sightseeing, other elements of travel. LiabilityIt is in law an obligation of one party to another, usually to compensate financially. It is a fundamental aspect of tort law, although liability may also ari
21、se from duties entered into by special agreement, as in a contract or in the carrying out of a fiduciary duty. responsible performing every task agreed to with the client; performing every task in a manner consistent with industry-wide levels of performance; looking out for special known interests a
22、nd requirements of a client. cannot be held responsible weather; hotel operation; food or liquor; criminal or political activity at the destination; baggage; management practices of carriers, restaurants, carrier operation; car rentals (for instance, overbooking); enjoyableness of the destination. D
23、isclaimerIt is a legal statement which generally states that the person/group authoring the disclaimer is not responsible for any mishap in the event of using whatever object or information the disclaimer is attached to. ConferenceA meeting of representatives of a corporate body that constitutes its
24、 legislative or governing body. 同业公会ARCs services They include :Travel agency accreditation Ticket, and ticket number assignment, distribution and control Travel transaction reporting and financial settlement New distribution technology development and support Other related travel and industry servi
25、ces IATAN Its mission is to promote professionalism, administer meaningful and impartial business standards, and to provide cost-effective products, services and educational programs that benefit the travel industry. CLIA Its purpose is to provide a forum where companies engaged in the marketing of
26、the cruise and passenger liner industry in North America can meet and discuss matters of common interest and develop and agree on policies aimed at promoting the concept of shipboard holidays. Bankruptcy It is a legally declared inability or impairment of ability of an individual or organization to
27、pay their creditors. It is initiated by the bankrupt individual or organization. ICTA It is an international, nonprofit organization that educates and certifies travel industry professionals at all career stages. ASTA It is the worlds largest association of travel professionals. Its mission is to enhance the professionalism and profitability of member agents through effective r
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