Competition in the Travel Industry

What’s The Truth About Competition in the Travel Industry?

Journey Puget Sound Travel - Certified Travel Teacher

Do you think that because a travel agency has a well known name that their prices are less than anyone else?

It’s time to rethink that idea…

Every month I get my AAA magazine. That is the one with all the travel specials inside  in addition to lots of great articles about where to go and what to see locally. 

I love reading those articles because I like the 3-4 day trips in the Pacific Northwest.  But the part I really love are the cruise “specials” they advertise.

Here is the way the travel agencies work.

Except online travel sites, there are basically 2 types of travel agencies:

  1. You have the “brick and mortar” or “store front” agencies.  There used to be hundreds of them. 
  2. Then you have “home-based” travel agents. 

Let’s look at both of these…

TravelAgencyClosed-CruiseAndTourPlannersFor many years you could walk down most city business streets and find a number of travel companies. What happened to them? Where did they go?

The business that made those agencies prosper was the airline ticket business.  Then deregulation happened and the airlines began cutting commissions paid to the travel agents. (I might add this is also when the airline’s problems began.) Those travel agencies previously ran piles of tickets every day, particularly for business travelers. The handwriting was on the wall…one day there were  no more commissions.  But instead of moving into leisure or vacation travel, many put their heads in the sand and believed that the airlines would come back. They didn’t. Thus the death of many “brick and mortar” agencies.

Many of those Travel Agents took their business and moved home…

This phase of the travel business has exploded. The biggest problem is how to find us. Mostly it has to come from word of mouth referrals, and many of us are out in the market place advertising, networking, doing shows and being visible.

So how do the prices you pay for travel differ from “brick and mortar” to “home based”?

Not long ago, the cruise lines decided to level the playing field for the cruise pricing. Great news for the home-based agent! Now we can compete with the “Big Boys”. Many tour operators do the same. Every month when my AAA magazine comes, I check my pricing against theirs. In every case, I can beat their prices!!!  This is good news for YOU!

  • Now you get a personal, professional agent who will hold your hand through the whole travel experience.  
  • You won’t get a different person every time you call. Many of the Big Boys hire “order takers” who may not have ever left home, let alone taken a cruise or tour.  
  • So, not only can you save money, you get my personal service and experience because I have traveled the world.

The truth about Costco travel…

Costco is another of the big agencies. People have the mistaken idea that they are lower priced. That is true with toilet paper, but not necessarily true with travel. And again, these are “order takers”…not professionally trained or experienced.

***One note about Costco, where they get it over on the U.S., is they give gift cards, which really cost them nothing.  Otherwise our prices are the same and even lower. One client booked a Disney cruise to Alaska with Costco because they got a $500 gift card. But the price of their cruise was $1000 per person higher than mine!!! (OOPS!)

Talk to a professional who travels and will help you see the world before you leave it.

Strong Home Based Travel Agent - Cruise and Tour PlannersI love the competition and I love beating up on the Big Boys!!

If you moved away from using a certified travel agent, come on back.  I am waiting for you!

Contact Sharon at Cruise & Tour Planners

 

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