TRAVEL AGENTS NEED TO MAXIMIZE MARGINS
BOOKING WITH LOWCOSTBEDS CAN INCREASE YOUR WEALTH
Scottsdale, AZ, August 13, 2013 – Its official, customers are often paying too much and travel agents are potentially losing out on earning extra commission in certain instances when they book a package holiday with a traditional tour operator. In some cases the travel agent will lose the booking altogether as many customers will have already done the research and often find they can put the holiday together themselves at a considerably cheaper price.
Clem Walshe, Managing Director of lowcostbeds.com in the US commented, “Both the internet and low cost carrier airlines have made a huge impact on the travel industry in recent years dramatically changing the way customers now research and book most of their holiday requirements.”
lowcostbeds recently ran a number of ‘like for like’ price comparisons on package holidays sold by well-known tour operators. The evidence found that travel agents could save a considerable amount of money for their customers and still earn more commission by simply dynamically packaging the exact same holiday using lowcostbeds.com and a local airline.
“‘The very real danger for agents is that they may be losing a lot of business without actually knowing it. Customers are doing a lot more research on their vacation before they book, it’s unlikely they will continue to do business with an agent if they have been quoted a price that is significantly higher than they were able to go and source themselves,” added Walshe.
Some of the dynamic package savings on like for like holiday comparisons with traditional tour operators included, $114 per person in Montego Bay flying from Chicago, $81 per person in Cancunflying from Houston and $73 per person in the Bahamas flying from Washington.
“The worldwide tour operating model is struggling in many markets because modern holiday consumers expect the very best value for money and flexibility. The challenge for travel agents is to maintain existing customer loyalty whist still protecting margin levels,” continued Walshe. “The main reason dynamic packaging has become so popular with agents globally is because it provides the value for money and flexibility expected by consumers whilst still allowing agents to maximize their margins.”
Travel agents can avail themselves of net rates or earn 15% commission on all accommodation prices and up to 20% on worldwide transfers. Prices quoted on the lowcostbeds site include resort fees and taxes.
lowcostbeds.com is a global, independent, trade only bed bank, live in 45 countries and 13 languages. Established in 2004, it provides agents and websites with access to the vast range of high quality accommodation from around the world, via a website that agents can log into or access easily via a direct xml connection. From 5-star luxury to 2-star simplicity, all 150,000 hotels are offered at competitive rates and cover a range of beach, city and long haul destinations. Travel agencies can register directly on www.lowcostbeds.com.