The Global Travel Group Plc has a reputation for providing a low-cost solution for people wishing to start their own business venture in the travel marketplace. Their unique customer protection scheme has enabled entrepreneurial individuals from a variety of different backgrounds to set up their own successful travel business and avoid high barriers to entry usually associated with the travel industry.
The Global Travel Group Plc head office is based in Chester with over 200 staff dedicated to ensuring the success of over 1000 independent travel agents who are part of the Group.
The Global Travel Group Plc has recently launched state of art bookable agent websites ‘Global Travel Web’ to its members. The future is bright for the Global Travel Group Plc as it has developed its core business by also recently launching its in-house Tour Operation ‘Destination2’ and its Accommodation Only arm ‘Globalrooms’ providing members with all the tools to compete with Exclusive differentiated products and services.
Following Discussions with the CAA, the Global Travel Group Plc has announced the launch of the Group Air Travel Organisers Licence (ATOL) allowing members of the Global Travel Group Plc to legally package holidays using individual elements i.e. ‘no frills’, charter, published and consolidated airfares with accommodation only and car hire, and legally advertise these at a single inclusive price.
World Choice Trade Association
World Choice Trade Association is a nationwide consortium of independent travel agents, also governed by a Code of Conduct.
World Choice Trade Association is the UK's largest network of independent travel agents with over 700 outlets nationwide.
World choice offer unrivalled value and service, and because they are independent they can search out the kind of deals that other travel agents can only dream about.
They can help you with everything from your holiday choice to car hire, airport parking and travel insurance.
Advantages of being a member of World Choice Trade Association:
- Strength in numbers
- Representation
- More Commission
- Assistance with marketing/promotion and training
- The members will benefit from a newly launched in house tour operator system (DESTINATION 2) that can make all members able to view Global rooms.
- They have been provided with the tools to compete with major travel groups to sell products and services.
- They have launched the ATOL Air Travel Organisers License, which will allow all members to legally package holidays by using individual elements; also each member will feel protected.
- All members enjoy the travel industry technology and moving with and market trends.
Thomas Cook (Multiple Retail Travel Company)
Thomas Cook offers a range of holiday deals, flights, hotels, cruises, UK breaks, guides and other essentials which includes:
Currency
Car hire
Airport parking
Insurance
Airport hotels
Theatre tickets
Holiday extras
Thomas Cook has more than 3000 branches in over 100 countries where there customers can shop. More than 14.000 people are employed by Thomas Cook around the world. Every year Thomas Cook serves over 20 million customers, from leisure to business customers.
Thomas Cook is a vertically integrated as it has control over other companies.
THOMAS COOK GROUP (UK)
Teletext ThomasCook Thomas Cook Thomascook.com Thomas Cook Thomas Cook
Retail Direct Tour Operators Air
(700 branches) (4 call centers)
Thomas Cook is members of:
Association of British Travel Agents (ABTA): they deal with complaints if customers cannot come to an agreement. They offer an arbitration service to make sure that there is a fair solution to the situation.
International Air Transport Association (IATA): they work with their members to make their industry safer, more profitable and efficient.
They have a license with:
Air Travel Organisers Licensing (ATOL): protected: protects you from losing money or being stranded abroad should Thomas Cook go out of business. It does this by carrying out financial checks on the firms it licenses and requiring a guarantee, called a bond, to be lodged with CAA.
Thomas Cook has a racking policy and has an agreement with TUI. Thomas Cook promise to rack at least four brochures at a time. In return TUI offer Thomas Cook a high percentage of commission when booking any holiday from Thomson.
(Miniple Retail Travel Company)
Trail Finders offers a range of:
Flights
Special offers
Hotels
Car hire
Insurance
There are a total of 26 shops in the UK and over 100 best highly trained and experienced
Trail finders are not vertically integrated.
Their aims and objectives are to:
Make a profit
To expand their business
Exceed customer expectations
Maintain their good reputation
Trail finders are members of:
Association of British Travel Agents (ABTA): they deal with complaints if customers cannot come to an agreement. They offer an arbitration service to make sure that there is a fair solution to the situation.
International Air Transport Association (IATA): they work with their members to make their industry safer, more profitable and efficient.
Trail finders have a license with:
Air Travel Organisers Licensing (ATOL): protects a company from losing their money or being stranded abroad if the company should go out of business. It does this by carrying out financial checks on the firms it licenses and requiring a guarantee, called a bond, to be lodged with CAA.
(Independent Retail Travel Company)
Kap Travel is located in West Ealing and they have been in business for over 5 years.
They sell a range of services such as:
Flights
Car hire
Package holidays
Insurance
There aims and objectives are to:
Keep the loyal customers happy
To make a profit
To attract new customers
To maintain their good local reputation
Kap Travel is not vertically integrated it doesn’t have control over other companies that are at different levels in the chain of distribution.
They sell holidays over the phone or face-to-face in the only branch they have.
(E- agent)
Bargainholidays.com was founded in 1997 and is Britain's longest-established online holiday service. It's owned by OTC, , was founded in January 1998 and is one of the UK’s leading and most forward-thinking online travel organisations, providing travel and travel-related services through the Internet for the leisure and the corporate traveller in the UK. We are a fully licensed travel agent and tour operator with Air Travel Organisers Licensing (ATOL), International Air Transport Association (IATA) and Association of British Travel Agents (ABTA) certifications, as well as 12 years' experience in the travel trade.
Bargainholidays.com offers a range of products and services:
- Flights, hotels, car hire, Euro tunnel, ferries, and more.
- An extremely wide and varied selection of our own package holidays, from city breaks in Europe to all-inclusive resorts in the Caribbean – all at competitive rates.
- A range of late-availability bargains from the UK's top tour operators.
- Very competitive rates on travel insurance.
-
A discount of as much as 12% off the brochure prices of many of the UK’s leading tour operators.
Their aims and objectives are to:
Bargainholidays.com are fully committed to the highest standards of customer care, and plan to continually introduce new technical developments, as they become available, to further enhance their web site and give more control, choice and savings to consumers. WAP technology and digital TV are just a few of the advancements our customers can soon look forward to.
All their holidays are sold online or by phone.
Bargainholidays.com is members of:
Association of British Travel Agents (ABTA): they deal with complaints if customers cannot come to an agreement. They offer an arbitration service to make sure that there is a fair solution to the situation.
International Air Transport Association (IATA): they work with their members to make their industry safer, more profitable and efficient.
Bargainholidays.com has a license with:
Air Travel Organisers Licensing (ATOL): protects a company from losing their money or being stranded abroad if the company should go out of business. It does this by carrying out financial checks on the firms it licenses and requiring a guarantee, called a bond, to be lodged with CAA.
They are not vertically integrated.
(Holiday Hypermarket)
They have over 300 stores nationwide for all holiday needs. Their experienced staff can help with an extensive range of holidays and short breaks from all of the major holiday companies, as well as foreign exchange, car hire, airport parking, airport hotels and insurance.
First Choice Holiday Hypermarkets offer a themed experience, making customers feel like they are on holiday before they even get there!
They sell their products and services through the Internet, on the phone or face to face.
Their aims and objectives are to:
Keep customers satisfied
To make a profit
To expand
To attract different types of customers
First Choice is members of:
Air Travel Organisers Licensing (ATOL): protects a company from losing their money or being stranded abroad if the company should go out of business. It does this by carrying out financial checks on the firms it licenses and requiring a guarantee, called a bond, to be lodged with CAA.
The vision from the Federation of Tour operators (FTO): is to ensure the continued long term success of the air inclusive holiday by influencing governments and opinion formers on the benefits to consumers and other stakeholders of air inclusive holidays compared to other forms of holiday arrangements
First choice is vertically integrated:
TOUR OPERATIONS
Agencies Call center brands Teletext/internet/ Airlines Cruises
Digital TV
PART 2
Reasons why travel retailers try to gain a competitive advantage
The travel and tourism industry is a very competitive industry. Organisations continue to exist and show a profit by having a competitive edge over their rivals and by winning customers from the competition. For example holiday centers in the UK are competing with villa complexes abroad, different airlines compete with each other and travel agencies compete for holiday business. In such a competitive environment, excellent customer service is vital for the survival and development of the company.
Travel and tourism companies cannot compete on prices alone. What usually distinguishes one company from another is the level of customer service offered. In many occasions customers choose one company rather than another because they provide better customer service. Therefore many companies have improved the standards of customer service they offer by:
- Training consultants
- By making sure all staff are experts and have good product knowledge
- Making sure a rapport is built with customer to gain customer loyalty
- Professional and tidy appearance both in store and staff
- Wider range of services offered.
Companies improve the standards of their service because it is important that those customer requirements are implemented. The better the service offered by the company the more the company will benefit because customers will feel more confident to use the facilities and services of that company.
The methods used include:
Travel agencies will promote by giving out leaflets, advertising on the internet, television and radio
They are offered in order to secure customers.
For example car hire, foreign exchange, insurance and airport parking. This is an advantage as customers will feel that they are being treated as individuals and they can be fully catered for.
Regular staff training is vital, as staff need to be up to date with product knowledge in order to answer any questions customers may ask.
Commission is offered to staff in order to motivate them to sell the companies’ products and services. This is an advantage as staff will feel more confident and will be motivated.
At the moment Thomas Cook have a campaign called “Price Match”. This campaign has been set up in order to compete against other retailers. Therefore Thomas Cook are giving discounts on holidays and offering free insurance to customers who book with them. This campaign gives Thomas Cook an edge over their competitors.
The impacts that trade associations are having on the travel retailers
The growth of the Internet has increased the collection of information about travel and tourism products and services. There is an estimation of 30 to 100 million worldwide users, this makes the internet an important part of the travel and tourism industry. Anybody can access information on travel destinations, transport, accommodation and attractions on the internet; they can also make bookings direct with travel and tourism companies using secure credit card facilities.
Customers can also get up to date information on a wide range of services such as flight schedules, train timetables, compare costs of similar products and find information about holiday destinations.
Since the internet has given customers the ability to plan and book their own travel there has been a decrease in business in travel agents. Questions being raised today, will there be a travel agent in the future? Will the web result in the end of the travel agent? The questions are raised because of the internet, commission caps, commission cuts and the changing world of travel.
Advantages of the internet:
- Gives travel agents the opportunity to have their own sites and greatly expands their contact.
- The internet is an information and transaction source.
- The internet can be used by anyone, therefore reaching a much larger audience.
Disadvantages of the internet:
- Direct sales channels reduce distribution costs by having the consumer do the booking, therefore eliminating travel agency commission and computer reservation fees.
- The internet produces too much information therefore customers will be put off.
- Customers sometimes question the privacy and security of the internet, therefore will not purchase.
Travel agents offer a valuable service that is valued by the majority of clients. Travel agents are an important part of the travel and tourism industry; therefore they will continue to save clients, time and money far into the future.
PART 3
Working practices used by travel agents
(Front office operations)
Sales process
The prime objective of travel agencies is to sell holidays and other travel products, in order to do this the selling skills provided in a travel agent by the staff are very critical. Selling involves skills such as communication between the buyer and the seller which should be used to persuade and encourage the customer to purchase the product you are offering. Selling also involves matching and meeting customers needs, therefore the better the match, the more the relationship between the agent and the customer will last in order to build customer loyalty.
There are other aims to the selling process including:
- Repeat business
- Increasing customer satisfaction levels
- Increasing profitability
- Securing competitive advantage
- Targeting specific sectors of the market
- Raising awareness of a new product or services.
The key stages of the sales process in travel agencies.
The booking process:
The following stages only occur when a customer books a package holiday through a travel agent:
Customer books a package holiday
(Immediately)
Customer signs a booking form
(Immediately)
Customer pays deposit
(Immediately)
Tour operator issues confirmation invoice
Customer pays remaining balance
(Approximately 10-12 weeks before departure)
Tickets are issued and collected
Customer travels
If booking within 12 weeks then the full amount should be paid at the time of booking.
If holiday is booked within 2 weeks of departure, sometimes tickets will be collected at the airport.
Booking form
Is a legal contract between the customer and the tour operator. The customer is agreeing to certain terms and conditions. It’s the travel agents responsibility to ask the customer to sign the booking form.
The terms and conditions can be found at the back of the brochure.
Payment timetable
Customers are required to pay a deposit when they book a holiday. However all customers pay a different amount of deposit depending on when the holiday is booked.
55 - 29 days 50% or deposit if greater
28 - 22 days 70% or deposit if greater
21 - 15 days 80% or deposit if greater
14 - 4 days 90% or deposit if greater
3 days or less 100% or deposit if greater
Brochure handling
The brochure is the travel agents prime sales tool.
Brochures aim to:
- Accurately present products and services to the reader.
- Supply product information to travel agents.
- Convey an image of the company.
- Offer a means of booking a holiday.
- Explain booking and contractual conditions.
- Present the information within the bounds of current UK and European legislation.
Brochures should be designed in such a way that they have the best chance of converting enquiries into sales.
Displays
Window displays and free standing displays in a travel agency play an important role as they promote holidays and travel products.
Displays should be changed on a regular basis to keep customers up to date with new products and special offers. They should also look professional and tidy.
Commission rates/ incentives
Travel agents earn commission from the principals whose products they sell. The commission payment is usually expressed as a percentage and varies according to the product being sold and the commission policy of the principals.
Average commission rates are as follows:
Package holidays 10%
Airline tickets 7.5%-9%
Ferry bookings 9%
Travellers’ cheques 1%
Travel insurance 35%-40%
Coach holidays 10%
Rail tickets 7%
Cruises 9%
Some principals offer incentive commission, where the amount paid increases as the sale volume rises.
(Back office operations)
The operations that are dealt with in the back office of travel agents include customer letters of complaints.
Many different types of customers are dealt with in the travel and tourism industry; therefore the complaints that are faced can vary. Customers can complain by writing a letter, which is very common. Letters should be dealt with by looking at the problem, solving it and replying to the customer and hopefully they are satisfied and will remain a customer. Customers may also complain through spoken word which is the most common form of complaints. Spoken word complaints provide information on problems, which can be solved to ensure they don’t happen again. Phone calls are also very common generally used for minor complaints. However if the complaints are handled optimistically and appropriately it can be an advantage to the company as it gives them a second chance to change things and put them right to satisfy the customer. Complaints may include:
-
Bad products or service: The service offered is very important because the quality of service may doubt the quality of the product.
-
Waiting: Customers hate waiting. So the more they wait, the more they are likely to complain.
-
Being patronized: the tone of voice used by a member of staff is very important as the customer may take it in the wrong way, which, may lead into an unnecessary argument.
Examples of situations, which may lead customers to complain:
- The time of a flight has been changed at the last minute.
- The telephone line is constantly engaged and therefore not being able to get through.
- Hotel rooms not being prepared up to standards.
- Being served cold meals at the hotel.
Handling complaints
How to deal with a complaint step by step:
- Listen to the customer.
- Thank the customer for telling you about the problem.
- Apologise for the inconvenience.
- Tell the customer that the problem will be dealt with immediately.
- Sympathise with the customer and put yourself in their situation.
- Don’t justify what led up to the complaint.
- Always ask questions to be clear.
- Find a solution.
- Make sure the customer agrees with the solution.
- Make sure that what you have agreed on with the customer has been done.
- In the future, try to foresee complaints before they happen.
Other operations also include administrations which are:
- Accurate
- Accessible
- Up to date
- Reliable
- Easy to use
The administration system covers:
- Bookings for customers
- Record keeping
- Stock control
- Handling cash payments
Invoices are also dealt with; therefore a daily receipt summary will help keep track of cash takings.
Payments accepted will go through the following stages:
- Payment received
- Receipt issued to customer
- Entry made on daily cash summary sheet
- Receipts and summary sheet reconciled
- Bank paying-in slips completed
- Monies paid into bank account
- Paying-in slips stamped by bank
Staff disciplinary also takes place in the back office where the manager will talk to each individual and give them a one to one on their service. This will include improvements in order to motivate staff. If staff are motivated they will be encouraged and more confident in themselves to sell and offer good service for the company.
Filing system
In a travel agency in order to find enquiries quickly for clients, tour operators or another principal a filing system is vital. Some agencies use a manual filing system and others use a computerized filing system based on database software. Filing systems can be arranged alphabetically, numerically or in date order. For example information on countries, office copies of brochures, timetables are filed alphabetically. Numerical filing is used by some agencies for client’s bookings by giving them each a reference number.
The most common filing system is date order based on the date of departure. However there is a disadvantage with this system because on peak travel months of July and August generate a great deal of paperwork, making it necessary to devote extra space for these months.
Some travel agencies use a filing system according to the status of the booking with separate sections for:
- Initial enquiries (written record of a client’s first contract)
- Options (details of a clients who has taken out an option on a booking)
- Confirmation (clients who have paid a deposit)
- Final payments (booking on which the balance has been paid)
- Awaiting tickets (clients who are awaiting their tickets and vouchers)
- Refunds due (any clients who are due a refund on their payments)
Client’s files are normally kept for up to two years. Files that are no longer current are referred to as ‘dead files’ or ‘closed files’ and are stored in an archive in case they are needed for any claims that may be made.
Travel retailers hold a membership with trade associations such as ABTA.
The Association of British Travel Agents (ABTA) is the UK's Premier Trade Association for Tour Operators and Travel Agents. ABTA's 1052* tour operator and 6310* travel agency offices are responsible for the sale of some 85% of UK-sold holidays.
ABTA deals with around 60,000 enquiries per year on all travel-related subjects, from Foreign Office advice to requests for information about destinations and holidays.
COMPLAINING
ABTA provides assistance to you if you have a complaint against companies that carry their logo. The quality of the holidays and services provided by ABTA companies is crucial to the reputation of the industry - ABTA tour operators and travel agents are responsible for the sale of the vast majority of package holidays.
When you send a complaint to ABTA:
- They need to see all the documentation. This includes confirmation invoice, relevant parts of the brochure containing descriptions of the holiday, and copies of all relevant correspondence
- They will immediately make a record of your complaint
- They aim to reply to you within 7 working days and will give you an exclusive ABTA reference number
-
They look for evidence of any breaches of their Code of Conduct and take appropriate action.
- They will deal directly and informally with you and the company
- They may be able to help you settle your dispute by bringing you and the company together. If this doesn’t work, they can offer the Independent Arbitration Scheme. This is a low-cost alternative to court action.
INDEPENDENT ARBITRATION
Key facts about the Independent Arbitration Scheme:
- The complaint must be about an ABTA regulated company
- Your arbitration application form must be sent to the Chartered Institute of Arbitrators within 9 months of the date your problem arose, or of the date of your return from holiday, whichever is the later.
- Applications can be made by post, online, or a combination. Before applying you must have your own exclusive ABTA reference number.
- Professional arbitrators who are members of the Chartered Institute of Arbitrators handle claims. Like the courts system, the Scheme is entirely independent of ABTA.
- Your claim will be dealt with on the basis of the documents (including any video evidence) so there’s no need to attend a hearing or present any evidence in person. This means that some matters are not suited to this format. For example, serious illness or injury claims need expert medical evidence.
- In making a decision the arbitrator will look at what the law says as well as ABTA’s Code of Conduct.
- The objective of the arbitrator is to arrive at a conclusion that is fair and reasonable in the circumstances, looking at all the evidence presented by both parties.
- The award is issued in writing and gives a summary of the facts, the conclusions and reasons for reaching them. The arbitrator’s decision is legally binding on you and the company, and is enforceable directly through the courts.
CODE OF CONDUCT
A Guide for Consumers
As a regulatory body, ABTA maintains a strict Code of Conduct. ABTA companies agree to be bound by the Code, which governs the relationship between you and a company, and also the company’s relationship with them.
The Code aims to ensure that you receive the best possible service from your ABTA Travel Agent and Tour Operator from before you book your travel arrangements, through the booking process and the after-sales service and information you get, to the way they handle any complaint you may have.
Benefits of being a member of ABTA
Benefits to Members (Travel Agents):
-
Financial Protection: customers will be reassured and are therefore more likely to book with an ABTA member.
-
Representation: ABTA will fight for the rights and interests of Travel Agents in the UK and EU parliaments.
-
Arbitration: low cost independent arbitration, corporate insurance, reduced credit/debit card charges etc.
-
Information: ABTA magazine, regional meetings.
-
Annual Conference: open to all members.
-
Training: ABTA offers training and certificates at various levels, in partnership with the TTC.
Benefits to customers:
-
Financial Protection: if the travel agency goes out of business, ABTA will step in and pay any outstanding bills to make sure the customer gets their holiday or their money back. If they are abroad, then ABTA will make sure they get home.
-
Regulate Industry: ABTA has codes of conduct for its members who should mean that they offer good service and conduct their business fairly and professionally.
-
Training: customers should be dealing with knowledgeable and professional staff.
-
Arbitration: in the event of a complaint about a Travel Agent or a Tour Operator, which cannot be resolved, ABTA will offer a low cost independent arbitration service in order to settle the dispute.
Regulations and Legislations
As competition in the outbound travel industry has intensified, tour operators have sought alliances and merges with other travel and tourism businesses as a way of maintaining or increasing their market share and maximizing profitability.
Travel and tourism organisations communicate in various ways with their customers which are controlled under a number of legal and regulatory provisions which include:
- The Trades Description Act 1968
This Act protects customers against false descriptions made knowingly or recklessly by those who are selling or providing services, including holiday companies’ products and services. For example a description of a hotel or resort must be truthful at the time it was written.
- Package Travel Regulations 19992
Came into operation on 23 December 1992. Its main aim is to give people buying package holidays more protection and access to compensation when things go wrong. The Regulations place a number of duties on the organisers of packages, i.e.:
- Providing information to customers on who is responsible for the package they have booked. That person or organisation is then liable in the event of failure to deliver any elements of the package.
- Providing clear contract terms.
- Giving emergency telephone numbers.
- Providing proof of the organiser’s security against insolvency and information on any available insurance policies.
- Giving immediate notification with explanation of any increase in prices permitted within terms of the contract.
- Providing variety of compensation options if agreed services are not supplied.
- Producing accurate promotional material including brochures.
- Consumer Protection Act 1987
The Consumer Protection Act makes it a criminal offence for an organisation or individual to give misleading price information about goods, services, accommodation or facilities they are offering.
A misleading price is a price which: - Is greater that the price given in the promotional
material.
- Is described as being generally available, but in
reality is only available in certain circumstances.
- Does not fully state what facilities are included in
the price and the fact than surcharges will be
payable after booking.
The Act has special significance for travel and tourism operators who must ensure the accuracy of any price information in their brochures and other publicity material.
- Data Protection Act 1984 and 1998
This government legislation was introduced in 1984 to safeguard the public from problems relating to the inaccuracy of any information held about them on computer records. Under the terms of the Act, all organizations that hold data about individuals on automated systems must register with the Data Protection Principles, which are a set of good practice guidelines. Travel and tourism organisations that hold client details on computer databases are likely to fall within the scope of the Act and must abide by the Data Protection Principles. One of the Principles states that the information held on the computer must not be disclosed to third parties. This means that a travel agent who holds information on clients on a computer cannot sell the data to another company without being in contravention of the Act.
New data protection legislation came into force on 1 March 2000 with the implementation of the Data Protection Act 1998, which updates and reinforces the Data Protection Principles included in 1998 Act.
- The Advertising Standards Authority (ASA)
The ASA was set up in 1962 to make sure that non-broadcast advertisements appearing in the UK are legal, decent, honest and truthful. The Authority protects the public by ensuring that the rules in the British Codes of Advertising and Sales Promotion are followed by everyone who prepares and publishes advertisements. These are the rules that the industry has written and agreed to follow. The ASA is there to protect the consumer by helping advertisers, agencies and the media to produce advertisements which will not mislead or offend consumers.
The Codes are that advertisements should be:
- Legal, decent, honest and truthful.
- Prepared with a sense of responsibility to consumers and to society.
- In line with principles of fair competition generally accepted in business.
All advertisements and promotions in non-broadcast media are covered by the Codes and are therefore regulated by the ASA. These include:
- Press-national, regional, magazines and free newspapers.
- Outdoor – posters, transport, aerial announcements.
- Direct marketing- direct mail, leaflets, brochures, catalogues, circulars, inserts and facsimiles; as well as the content of such material, the use of mailing lists for targeting consumers is also covered by the ASA.
- Screen- cinema commercials and advertisements in electronic media such as computer games, video, view data services, CD- ROM and the internet.
- Sales promotions- on-pack promotions, front-page promotions, reader offers, competitions and prize draws.
The ASA will investigate complaints and carry out research for advertisements and promotions in all the media listed above.
The ASA aims to promote the highest standards in advertising. It does this by a programme of industry information and training through some 70 presentations and seminars each year. It actively promotes its work and role through a coordinated media relations strategy to the advertising industry and consumers.
