Chapter 10 Marketing to Travel Agents Introduction

Chapter 10 Marketing to Travel Agents

Introduction of Travel Agents Travel agents can be excellent sources of additional bookings and repeat business for hotels that provide good service to them and their clients.

Travel Agents o o 250, 000 Travel agents in USA in 2002 n A small percentage of these agents were involved in meeting planning n The majority concentrated on making airline, cruise, and hotel reservations for business and leisure travelers. n Serving niche markets and focused on special interests and activities for their clients. n E-ticketing and direct airline booking sites on the Internet impact on the downturn in the travel industry. Statistics n 22 percent of hotel room nights n Resort hotel receive 50 to 60 percent of their bookings through travel agents.

Travel Agencies o Travel plans n o Began as Mom-and-pop establishments n o First Travel assistance: Thomas Cook in 1841. Tours were often guided by the owners of the travel agencies, based on personal experiences at the destinations Today’s travel agencies n n n Travel management companies Consortiums Independent agencies

o Travel management companies, meta-travel agencies n n Theirs size and scope are giant chains that own and control all aspects of their operations Have extensive buying power to negotiate special rates for their clients Provide complete travel services, including arranging and booking transportation, accommodations, and trips and tours. American Express, Carlson Wagonlit Travel, Rosenbluth International, World Travel BTI, Sato Travel, Maritz Travel, World Travel Partners, Omega World Travel, Travel and Transport, and Travel One.

o Consortiums n n o Groups of travel agent that have partnered to maximize their buying power and share the high cost of today’s computer technology. NORTHSTAR Travel Media LLC, Hickory Travel System, Travel Savers, GIANTS, and ABC Corporate Services Independent Agencies n May serve areas not covered by major agencies or may specialize in corporate travel services or in meeting specialized travel needs.

Travelers Served o o o Business travelers n One-half of all business generated by travel agents. n More and more travel agencies are serving business groups. n In-plant agencies: Many companies are now setting up their own in-house corporate travel agency or contracting with an established agency to setup and run an in-house agency for them Leisure travelers n 80 percents of all individual visitors to resort destinations use a travel agent to help plan or book their vacations. International travelers n Business or leisure travelers. n The number of foreign traveling is increasing.

Meeting the Needs of Travel Agents The needs of travel agents can be broken down into two general areas: information about the property, and good service to both travel agents and their clients.

Property Information o Global Distribution Systems (GDSs) n n n Hotels can provide basic reservation and rate information to travel agents through the computerized reservation systems developed by the airlines. Four major GDSs: Amadeus, Galileo International, SABRE, and WORLDSPAN. Hotel reservation systems: Pegasus and Wizcom

o Internet Distribution Systems n n n A number of consumer-oriented systems have become available. Expedia, Orbitz, Priceline, and Travlocity Internet-savvy individuals to research travel options and book reservations 24 -hour access and often offering more affordable rooms (see Exhibit 2). Offer great exposure and better deals than the hotel’s own Web site.

o o Web sites Faxes and E-mails n Property promotions and special rates Hotel Directories n Compare one property’s costs, location, amenities, facilities, and activities with another’s, and make recommendations to clients based on more extensive information that found in airline reservation systems (See Exhibit 4). Information packages n Property information sheet, photographs of the property, a description of property amenities, and information about booking procedures, commission payments, and special agent programs.

o Brochures n o Video brochures and CD-ROMS Familiarization (Fam) Tours n n Offer fam tours to travel agents. Conducted during slack periods and are an effective way to promote the property.

Service o Introduction n n o o Travel agents are often blamed for bungled reservations, specific requests that are not met, and any number of details not handled to the guest’s satisfaction at the property. See Exhibit 5 and Exhibit 6. Toll-free numbers Travel Agent Clubs n Are informed of property events and special programs and discounts through direct mail or a club newsletter.

o Commission Payment Plans n n o Preferred travel agents See Exhibit 7. Serving Travel Agent’s Clients n n Providing good service to travel agents means providing good service to their clients as well. See Exhibits 8 and 9.

Finding Travel Agents o o o The Official Airline Guide (OAG) The World Travel Directory In-house records Industry mailing lists Travel industry trade shows

Reaching Travel Agents o o Hotel Directories Trade Magazines n n o o o Pertinent location information Rate information Booking information Commission information Direct Mail Trade Shows Membership in Travel Agent Associations Personal Sales Public Relations

The Future of Travel Agents o Cutting further into travel agent business n n n o o Consumer GDSs Internet travel sites. Hotels Web sites Small hotels still look to travel agents to fill rooms. Provide additional, personalized service is by attending “destination specialists” programs.