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DarrenC
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 Posted: Wed Jun 11, 2003 5:37 am Post subject: Another reason to dump travel agents! |
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| Quote: | British holidaymakers are being hoodwinked into paying hundreds of pounds over the odds by travel agents, according to a report.
The study claims that many agents stifle competition by pushing their own brand holidays, instead of suggesting the best deal available.
Mystery shoppers went to more than 50 travel agencies near airports for the Holiday 2003 report, by Travelcare - the UK's largest independent travel agency.
The survey, which has the backing of Trading Standards, calls for the Office of Fair Trading (OFT) to investigate and for big travel agents to be forced to tell customers about their links to holiday firms.
Commercial links
The researchers, who went shopping for family holidays, said two Going Places agents offered their own brand Airtours holidays, but had to be pressed to reveal equivalents that were up to £300 cheaper.
Travelcare says tourists were paying hundreds of pounds too much
Three Lunn Poly agents quoted their own Thomson Holiday price and also had to be prompted to mention a cheaper version.
And four Thomas Cook branches offered no choice apart from their own-brand breaks.
The report suggests that many people do not know of the commercial links between travel agents and holiday companies.
It says holiday makers often mistakenly believe that Lunn Poly, Thomas Cook, Going Places and Travel Choice are independent.
The government should force big travel agents to make their sales allegiances clear to every customer before a booking is taken, the report says.
Unhappy holidaymakers
Martin Garland, chairman of the Association of Independent Tour Operators, backed the call for tighter regulation.
He said: "We know that this practice goes on and have previously raised the matter with the OFT.
"Whilst we can understand the commercial reasons for directional selling, consumers should be made fully aware that the holiday being offered is a product of the same company, every time they book."
Amanda Williams, Travelcare's general manager, said: "There are few things holidaymakers hate more than getting to their destination only to find the couple next door in the hotel have got the same holiday for hundreds of pounds less."
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tut tut!
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paul
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Hub-UK
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Joined: 18 May 2003
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| Posted: Wed Jun 11, 2003 1:18 pm Post subject: |
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| paul wrote: | I look forward to Hub-UK's comments on this article!  |
I had better not disappoint then!
I only came into the travel industry jsut over a year ago. My primary job was to put together cooking holidays in France, Italy and Thailand and to build the company web site as both a sales tool and an information resource.
I have to say I was suprised to find how many of the major High Street chains also operated the tour companies. I suppose I had never thought about it before but even so there still seemed to be a large sector of the market dominated by them.
There has been legislation in both the insurance and financial sectors to protect the public so presumably somewhere along the line the big boys will get their 'come uppance' - although the public at large could put an end to the practice by dealing with "independants".
We do not fall into this category because the majority of our business is selling cruises. What you find happens is that if there is a price drop to help shift cabins then the people who paid the earlier higher price will have their accommodation upgraded - more for their money.
If someone asks us to search for a holiday for them then we will try and find the holiday first and then look at the price after. Because we are internet and telephone based we have to try and find the best price available otherwise we don't stand a chance of the customer ringing back to book.
With regard to the price charged I simply don't sell holidays which I regard as being too low priced. For example if I was to sell a holiday for two at £200 per person making a total of £400 paid for on credit card it would not be worth my while. The credit card charge to me would be £6.36. There would be staff and telephone time for making the booking, etc. The lower the price the more likely people are to be ringing around for the cheapest deal so that the more time often has to be taken to sell it. A holiday costing £1,500 in total takes the same effort and, apart from the credit card costs, costs the same to sell.
Primarily our searches are for the holiday. If there is more than one price the customer will be told what the prices are and who they would be travelling with. Their choice.
I won't criticise the big boys for doing what they do. That is the way of the world. As long as it remains legal to do so and increase profitability the practice will continue. If people don't like it moaning won't achieve anything - money talks. If they find they are losing business because of bad practice they will change.
My own snap judgement of the travel industry after just over twelve months is that it is outdated, not very efficient and its attitude to its customers is appalling. It doesn't hurt to be polite and helpful - at the end of the day the paying customers at the end of the phone pay the wages. Are the days of the High Street shops numbered? If the answer is yes then the whole problem will start to take on a different dimension.
The question of who pays what is very similar to that of buying computers. What you buy today is always cheaper tomorrow. The view I take is that if it does the job that I want it for and on the day that I buy it the price is what I am prepared to pay then that is it. The same would be my attitude to buying a holiday.
Another area that I do think people are being hoodwinked is not in selling branded holidays when there are cheaper available but in the hidden charges. Holidays are advertised at £300 per pesron for example. Sounds good so the customer rings up to book only to find that for two people the holiday is now £600 + booking fee of £30 + credit card charge £20 + must use insurance adding another . . . I call that misleading advertising. The price advertised should be the price payable.
I must get back to work and sell some holidays!
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DarrenC
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| Posted: Wed Jun 11, 2003 5:46 pm Post subject: |
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| Quote: | With regard to the price charged I simply don't sell holidays which I regard as being too low priced. For example if I was to sell a holiday for two at £200 per person making a total of £400 paid for on credit card it would not be worth my while. The credit card charge to me would be £6.36. There would be staff and telephone time for making the booking, etc. The lower the price the more likely people are to be ringing around for the cheapest deal so that the more time often has to be taken to sell it. A holiday costing £1,500 in total takes the same effort and, apart from the credit card costs, costs the same to sell.
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I have only been involved in the Travel Industry for a short period of time compared to some of the members in this forum, but I would say my annoyance of Travel Agencies goes down to 'greedyness' Yes, we are ALL in the business to make money, and a profit for our company so we can grow, but the two main things that holidaymakers want is 1) wide selection of choice and 2) price! My own personal opinion is that not one of the major travel agencies in the UK provide either of these services!
It is time the OFT started to kick up some fuss, and got these agencies into line!
I understand what you are saying Hub-UK, but I think people want value for money, and a choice, and you do tend to find that in small companies. The high street travel agencies need to get into 2003, its the internet age, and internet based companies are offering holidaymakers better deals.
I think Im becoming a bit of a Travel Agency hater  
Darren
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Hub-UK
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| Posted: Thu Jun 12, 2003 9:49 am Post subject: |
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| Quote: | | I think people want value for money, and a choice, and you do tend to find that in small companies. The high street travel agencies need to get into 2003, its the internet age, and internet based companies are offering holidaymakers better deals. |
Everyone wants value for money. If people feel they have received a good deal they will tend to do repeat business.
We are internet based. I am a firm believer in trying to generate repeat business as been the best way to grow a business. This means looking after people and being helpful rather than pushy. I am sure we lose a lot of sales by taking this attitude rather than trying to close the sale on the phone each time. But hopefully the majority of customers we do book a holiday for will come back to us year after year because they are pleased with what they got and the way they were treated and looked after.
Being internet based means that it is harder to generate customer loyalty but I believe it can be done - the greatest sales tool is word of mouth. A satisfied customer travelling on a cruise can spread the word far more effectively than a lot of expensive advertising.
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paul
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| Posted: Thu Jun 12, 2003 11:17 am Post subject: |
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I agree with this point, David. I've never liked companies that want you to sign on the dotted line there and then, that focus on telesales, and that are just - in general - far too pushy.
It's just a pity that satisfied customers don't share their satisfaction as often as we'd like sometimes! As the saying goes, every satisfied customer tells one other, but every dissatisfied one tells ten... 
Paul
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aaron
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| Posted: Tue Jun 17, 2003 11:02 am Post subject: |
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Looks like people are voting with their feet, so to speak, since research suggests more and more people are cutting out the middle man. Only one in seven holidaymakers in the UK books through a travel agent, according to a report in Saturday’s Daily Telegraph which cites a study by the consultancy firm KPMG, which found that the “vast majority” of people prefer to “cut out the middle man by phoning tour companies direct or booking online”.
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aaron
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| Posted: Sun Oct 05, 2003 4:51 pm Post subject: |
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A new slant on this discussion:
| Quote: | KUALA LUMPUR: Airlines should not do away with travel agents as they are an important element in the growth of the tourism industry, said Malaysian Indian Travel Agents (Mita) president A. Sevaguru.
Airlines could not provide the support given by the agents, he said.
“Travel agents provide a hands-on service, catering to all the needs of travellers going overseas or incoming tourists,” he said at the inaugural Mita Nite 2003 on Friday.
Sevaguru said it would be a grave mistake for airlines to see travel agents as “an expense” to be dispensed with.
“The airline companies should work with the agents which would be beneficial to the airlines and the tourism industry.”
Sevaguru said technological advancement could not match up to the human touch.
“We must not forget that technology is only an enabler and not a replacement for human skills and ability. We need to personally interact with customers to provide customer satisfaction,” he said.
He added that Mita's activities had been focused towards the Indian subcontinent, accounting for 90% of the total business there but sales to other international sectors had been steadily increasing too.
Guest-of-honour Indian Deputy High Commissioner Dr Vinod Kumar said Indian travel agents acted as a bridge between the travellers of India and Malaysia.
“It can be said that the travel agents are ambassadors for the two countries,” he said. |
Aaron
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DarrenC
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| Posted: Sun Oct 05, 2003 5:04 pm Post subject: |
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I'll have a word with A. Sevaguru when I arrive in Kuala Lumpur in 6 weeks time 
I've booked my flight through Travelbag but to be honest I could of quite easily done that via the Malaysian Airways website. I suppose booking internet holidays depends on the holidaymakers experience with the internet.
If you know about search engines, you can find the companies you need, and contact them direct, i.e accommodation etc. The advantage of this would be that the person you are going to speak to actually works at the accommodation and has more experience and knowledge of a travel agent.
I booked a holiday apartment in Port Douglas, the people who emailed me was very knowledgeable, when I spoke to the travel agent about this accommodation, they told me to look in the brochure which had very little information... I bookd the accommodation direct with the owners and saved myself £15 a night AND have a better quality room.
I agree that not every holidaymaker will have the experience of using the internet, and a travel agent might be there only alternative. I think in time people will realise how easy it is to use the internet and what kind of bargains you can get by booking the holiday yourself.
Something which worries me about A. Sevaguru's comments is what he is saying is large companies like Malaysian Airways, British airways cannot help there customers, if you go to the malaysia airways website there is actually more information on its destinations that the travelbag website WITH links to accommodations.
Also; my friends family went to the Canary Islands and booked there accommodation through an high street travel agent; they stopped in a popular aparthotel - when they spoke to the reception staff they could of saved £100 per PERSON by booking direct with the aparthotel.
When they got back they looked at flights, and in total they could of saved over £300 for a family holiday.. let's just say they are booking direct with the aparthotel next year.
Time will tell I guess..
Darren
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Davyburns
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| Posted: Sun Oct 05, 2003 6:36 pm Post subject: |
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| Quote: | | I booked a holiday apartment in Port Douglas, the people who emailed me was very knowledgeable, when I spoke to the travel agent about this accommodation, they told me to look in the brochure which had very little information... I bookd the accommodation direct with the owners and saved myself £15 a night AND have a better quality room. |
I am still brand new to the industry, and am still in the process of forming a travel agency, having had no expierience in the travel industry at all, but I do travel quite a lot. I tried to book a weekend in Belfast for 2 of my staff, and duly got an easyjet flight, and trioed Octopus for a room. I had stayed in Jurys, in Belfast several times, so i searched octopus for this, and was given a price of £61.00 per room per night, but I was a bit worried as I was paying, and wouldnt be going, and the reservation would be in my name. I phoned Jury's Belfast and asked if they could give me a corporate price "£73.00 per night" was quoted. I said I could get it for £61.00 on the net, but i was a bit worried as the booking would be in my name, but I wouldn't be going. I was amazed to be told "Thats not a problem. If you book it on the net, and are not staying, we will change the name after its booked.
I still cant see any sense in this.
davy
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Red Tape
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| Posted: Mon Oct 06, 2003 12:34 am Post subject: |
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Travel agents in the United States in the last few years have started charging for their services. Some charge a nominal $5 for a simple airline ticket, with other fees depending on the extent of their time and services. This is in part because airlines are pay little, if any in terms of commissions.
Holidaymakers as they exist in the UK and the rest of Europe aren't really extensive here. But I think the lesson to be learned from the article originally posted is that as a consumer, you have the right to shop around. If Thompson quotes you something, go to Thomas Cook and see what a deal they have. Or better yet, use an independent travel agent and ask to compare prices.
That said, I'm sure none of it is new to any of you here, but it might be to those who rarely book such holidays.
Me, I've not used a travel agent for personal travel since 1998. I'm required to use one for work, and we pay them $22 for each ticket they issue, no matter how complex. It gets real nasty when on leg is on an airline like Southwest that doesn't have any kind of ticketing agreements with other airlines. For example, last year I flew to New Orleans via Chicago on American, and from New Orleans to Houston-Hobby on Southwest, and then back on American from Hobby to Seattle via Dallas. I had to pay the ticketing fee twice. I could have gotten the same deal booking on my own. |
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Needabed
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| Posted: Mon Oct 06, 2003 11:21 am Post subject: |
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Well, booking directly with the hotel can be cheaper , because they do not have to pay any commissions to Travel agencies.
Of course if the agency prepaid most of the rooms (allotment) you are likely to get a better deal then booking directly with the hotel.
Basically, you have to take you time and browse a bit.
well, here in Italy people are not used to booking on the net, the "human touch" is still very important.
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Hub-UK
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| Posted: Mon Oct 06, 2003 11:47 am Post subject: |
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It doesn't matter which business you talk about - there is nearly always a direct sales operation to cut out the middle man.
If you want service you use a travel agent. If you want to feel you are getting cheaper then go direct.
Most tour operators and cruise lines run direct booking services. They are impersonal with a continuous turnover of staff who just want to get paid for doing a job they don't want to do in the first place . . . and at the end of the day you pay the same price as you would through the travel agent.
My experience in life is that if you try and cut corners to save money it usually costs you more in the end. If any of our customers have a problem or a question they make one quick phone call to us and we will sort it out or find the answer they are looking for - pleasantly. Have you ever tried contacting a major holiday company or cruise line and not ended up hanging on for ages or getting "wound up" trying to find someone who can help you?
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paul
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| Posted: Sun Oct 12, 2003 6:42 pm Post subject: |
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Hi David
I think that's a fair point but possibly one that doesn't always apply. In the case of my honeymoon, I booked directly with a company based in South Africa. I believe I probably got better service by doing so since my questions were answered directly rather than having to be relayed through a third party, and there was no question of impersonal-ness (if there is such a word) - far from it. My enquiries and correspondence were assigned to one particular person within the company (an infrequent visitor/member of these forums now, as it happens) and everything was really efficiently dealt with. I could have booked through someone like Abercrombie and Kent but it would have cost over £1,000 per person extra.
Given that the honeymoon was a fairly exclusive one, and booked with a company that is highly dependent on its public image, this is possibly an atypical example, but I think does demonstrate that it's not always best to book through an agent. Had I booked the honeymoon through A&K, I'm really not sure what I would have got that I didn't get. Instead, I made quite a saving.
Paul
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