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Airline consolidators ticket keep agents in business"AIRLINE CONSOLIDATORS TICKET"
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"AIRLINE CONSOLIDATORS TICKET" 5/6/2002 Delta Air Lines' March 14 decision to eliminate base commissions was an insult added almost as an afterthought to injuries already sustained by travel agents. Earning an income from air sales had become increasingly difficult since 1995, when Delta led the first round of airline commission caps, and it's now nearly impossible. Can agents earn any money now in this market segment? A lot of attention has been paid to back-end payments since the majority of U.S. airlines went to zero pay more than a month ago. But in reality, few agents will ever benefit from these schemes. Airlines only offer sweeteners to agencies that can generate enough volume to affect marketshare, and only 20 percent of the travel agent industry is able to do that. But there is one aspect of air sales that can still reap huge dividends for an agent: airline consolidators ticket. Can't find what you need? Try a Google Web Search in the box below!
Last-Minute Money Issuing highly restricted distressed inventory to airline consolidators ticket has always played a role in the airlines' revenue management system. Last-minute deals at massively reduced prices can eke out those few dollars that make a flight profitable (although Southwest Airlines--the country's most profitable airline--would disagree), and consolidators have shown that they can sell this inventory quickly. However, airlines have historically shied away from overtly dumping inventory through this distribution channel for fear of bastardizing the overall product. The economic downturn of 2001 lifted that reluctance. Then came Sept. 11, and what was already a bleak picture turned quickly into a horror movie. For the year, airline sales plummeted to all-time lows, and losses of up to $3 billion were being predicted for U.S. airlines For some reason, U.S. airlines did not see the travel agent community as a source to help them out of this situation. "The airlines see travel agents as a cost base, not a revenue generator," says ASTA President Richard Copland, referring to the nearly $1 billion that is expected to be saved from the move to eliminate their $2 billion annual base commission payments. "You have to question the logic, when agents sell about 70 percent of airline tickets and only cost 5 percent of the price," says Copland. "That's a very small price to get a ticket sold, but that's how they see it." AIRLINE CONSOLIDATORS TICKET" But while they have been cutting links with agents, airlines also have been strengthening their relationships with consolidators. Although no concrete figures are available, agents across the U.S. are noting a boom in the deals being offered by consolidators. "There are definitely more airline consolidators tickets out there, and there is also a greater variety as well," says Rich Worldwide Travel President Richard Esman. He notes that not only are the international leisure ticket offers increasing, but so are the domestic and international business fares. "It's an opportunity agents should take advantage of, but be warned, the restrictions do not fit everyone's taste." Can't find what you need? Try a Google Web Search in the box below!
AIRLINE CONSOLIDATORS TICKET With significantly lower prices and regular uncapped commissions of 5 percent, consolidators can be a valuable source of income for travel agents. "Consolidators are an effective way of getting that little extra margin," says Harold Stevens, president of Stevens Management Travel. "Not only are commissions still paid, there is usually a margin between the cost of the ticket and the price you charge your client." Industry commentators say this margin can range from $20 to more than $1,000. An increased knowledge of airline consolidators ticket is also part of a travel agent's metamorphosis from agent to true retailer, according to Vacation.com Executive Vice President Bobby Heiser. "The challenge for agents to move from the pre-commission world to the post-commission world is to become true retailers," says Heiser. "To do that, you have to become better at looking for the best gap between the cost of the product and the price you can sell it for. You can no longer rely on being paid for making the booking; it is up to you to make the profit yourself."..... Compare airline consolidators ticket /cheap airfares home |