10 travel retailing

8/16/2019 10 Travel Retailing

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TRAVEL RETAILING

TOPIC 10


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• “The traveller used to go about the worldto encounter the natives. A function oftravel agencies is now to prevent this

encounter” – Daniel J. Boorstin, 191

• “retailers to leisure and businesstravellers, selling !ights "charter or

scheduled#, acco$$odation, car hire,foreign currenc%, travel insurance andother travel services”

– The &uropean 'o$$ission

Introduction


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Travel agent’s position

Travel principal"airline, hotel, carhire, etc#

Tour operator

"pac(ages togethertravel ele$ents fro$

several principals#

Travelagents

Custoers"Business and leisure

travellers#


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• Dissi$ilar to other retailers)

– Do not purchase a stoc( for resale "do not stoc(#

– Approaches to principal on custo$er*s behalf

when a custo$er decides on a travel purchase• +$pacts)

– 'ost of setting up a business is low

– nl% sell products $ade available b% the tour

operators or principals – -ess brand lo%alt% towards a particular product

or co$pan%

T!e role o" travel agents


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• riginal nature – o/er ob0ective advice

– pro$ote s$aller independent Ts products

• hat changed this2 – 3egotiations between agents and principals

lead to higher co$$issions being paid toagents to achieve sales targets

– 4as beco$e $ore co$$ercial – 'arr% li$ited products

– 5ub0ective, pro$oting those which provide thehighest co$$ission

Contd#$


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'onvenient location for purchase oftravel

Act as a boo(ing agent

5ource of infor$ation and advice

&6pert product (nowledge

Be ob0ective in the advice the% o/er

%ain roles


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• 5election of products o/ered

• 7ar(ets the% serve

•

'an focus on both, but specialists dobetter

• Business travel

•

-eisure travel

Agent specialisation


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•7ostl% in cit% centers

• Targets residents and wor(ersnear b%

-ocation

• Bu% an e6isting one vs for$inga new one

8or$ation

&etting up ' running a travelagent


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E(isting ones vs$ Ne) ones

E*I&TING• 8igures available for

evaluation

• -o%al clientele

• oodwill

• Availableappoint$ents andlicenses with

principals

• 5ta/ retained

• :ce buildingavailable

+OR%ATION

• 'apital costs are high

• 3eeds to build acusto$er base

• 3eeds to contract withprincipals


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; o o $ %

< l e n

t % o f r a c (

s p a c e

' o $

f o r t a b l e

c h a i r s

+ n v i t i n g

' h e e r f u

l

B r i g h t a n d w a r $

c o l o r s

9

o o d l i g h t i n g

Location


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TA s,ills ' copetences

• 5uccess depend on)

D

7A3A&7&3T

D5&;=+'&


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GOO- %ANAGE%ENT

•'osts are (ept undercontrol

• 5ta/ are $otivated

• oes out to activel%

see( business ratherthan wait for it

GOO- &ERVICE

• &nsure clients aresatis>ed

• 4elp build a regularclientele

• &ncourage 7reco$$endations

• +ncrease the localshare of the $ar(et


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&i.e atters/

• Despite e6pansion) – 75T still re$ain s$all fa$il% run

businesses

– wner acts as $anagers

– 4ires ? to @ sta/

– -ittle specialiation in ter$s of division

of labour


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Advising potentialtravellers

7aintaining accurate>les on reservations

'o$puting airline other fares

7a(ing ;eservations

7aintaining anddeveloping stoc(s of

travel brochures

+ssuing travel tic(ets other vouchers


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+unctions o" a anager

7aintenance control of accounts

+nvoicing clients

&/ecting ban( reconciliations


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Custoer contact s,ills


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T!e custoer is al)as rig!t2

• &6pectations)

ar$th

enuine s$ile

Cnfailingl% cheerful


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+irst ipression

• Judged based on their appearance

– 3eat hair, suitable $a(e up for fe$ale sta/,good h%giene, overall good groo$ing and

wear a unifor$• Judged based on depart$ents "person*s

behavior or $anner#

– The wa% e$plo%ee sit, stand and wal(

• 3onverbal signals

– 5$ile, handsha(e, greetings, the wa% ofanswering a call, e%e contact, etcE.


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1$ Esta3lis!ing rapport )it!clients

• 7atch the products with custo$er needs

• 8or repeat business satisf% custo$erF

• 4ow is rapport built2

– &ngaging in client conversations " encouragethisF#

– aining their trust

– -earning about their needs

• 0udge how receptive the client is to newideas and how willing to $a(e a sale


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4$ Investigating clients’needs

•

Thoroughnessho is travelling the no. in the group

hen the% wish to travel for how long

Their preferred $ode of travel

Their choice of destination

hat the% e6pect to pa%


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5$ Presenting t!e products to t!eclients

•

&nsure that the sales person is awareof the needs

• Alwa%s provide alternatives

•

ften have to handle ob0ectives• 3eeds reassurance, not full%

understood the bene>ts, needs not

have been $et

8eatures Bene>ts


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6$ Getting clients to ta,e actions73 coitting t!eselves to t!e

purc!ase

• Ti$e to close the deal ta(e anactionFF

• 7a(ing the purchase

• 3ever push the client into the sale

• 5how interest and concern even afterreceiving the deposit and clientreturning ho$e

• ood selling techniGue grows withe6perience


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8usiness travel

• 'orporate travel

• 'apital spending is high andrelativel% price insensitive

•


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8usiness travel

• &6tre$el% de$anding custo$ers – -evel of service e6pected is high

– ;eservations at short notices

– &6pect docu$ents to be delivered totheir o:ce

– ;eGuires assistance in visa processing


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Ipact o" coputer tec!nolog


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Ipact o" coputer tec!nolog


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T!e "uture o" travel retailing

• +ntroduction of B?' in travelthreatens tour operators and travelagencies

• 'usto$er $ight start to put togethertheir own pac(ages

• 7ore de$and for tailor $ade trips

• 3ew $ethods of retailing productswill launch

• Traditional corner shops is set to

disappear

10 travel retailing

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