Not using a travel agent because you think prices are lower online? Think again!
Over the years, a large misconception has formed that booking travel online is always better and cheaper. This couldn’t be further from the truth. Depending on the type of booking, travel agents can save you hundreds and even thousands of dollars compared to what is available online.
How is this possible?
Travel agents are highly commission and sales target based. This means they have different incentives and pressures to ‘make the sale’, which usually means lower prices for the consumer. Here is a list of ways a travel agent can help you get more for your money, including an example on a $3,000 tour from a major tour operator like Contiki or G Adventures:
Commission – Travel agents can ‘sacrifice’ part of their commission to lower the overall price. Note: the commission for travel agents is usually not above/beyond the pricing you see online, but is included (or accounted for) in the posted price. So if a travel agent’s typical commission on a $3,000 trip is 12%, but the travel agent is willing to only take 8%, this will be a 5% or $150 savings for the traveller.
Travel agent incentives form the supplier – Suppliers regularly provide travel agents with two kinds of incentives; agent incentives and consumer incentives. Agent incentives are ‘freebies’ that travel agents get (free flights, hotels, additional commission, gift cards, etc.) for hitting different sales targets for a given supplier within a given timeframe (usually monthly) so if the timing is right they will be more willing to negotiate to meet these targets. Consumer incentives are additional discounts/incentives that the supplier offers to help travel agents make a sales for the supplier (versus say its competitors). This can include discounts, upgrades, and freebies (everything from airport transfers to free connecting flights between multiple tours). Additional savings $25 – $300.
Travel agent incentives from the travel agent company – Assuming the travel agent is part of a larger agency network, the company itself offers its agents incentives similar to the supplier incentives based on its sales needs. Additional savings $25 – $100.
Bulk and returning traveller discounts – Both the travel agent and suppliers usually provide additional discounts for returning customers. Usually in the range of 5% or $150 savings in this example.
Other – Since travel agents live and breathe travel each day, they are always in the know of where additional savings can lie. Also, they may be inclined to provide a bigger discount upfront for a chance at selling additional services like travel insurance, car rentals, etc. Additional savings $25 – $100
Total savings for this example: $375 – $800!
So what can you do to help them help you save?
Make it easy for them – Do your homework and know what you want. The more specific the better as the less work the travel agent has to do, the more likely they will be to lower their commissions.
Send them the small stuff – For the most part, flights and hotels have a low markup so the travel agent will only be able to match what you find online. Even though it might be easier to book these one-offs online, sending these to your preferred travel agent will help them meet their sales targets and build goodwill for future larger bookings. Don’t be afraid to ask your travel agent if it’s worthwhile booking the small stuff through them – they will appreciate it a lot!
One more thing!
If you live in a country with a strong currency, be sure to do some research on some credible travel agencies outside of your country. This will allow you to take advantage of cost-of-living and FX imbalances to save you even more!