Working Practices
Front and back office systems: All retail travel agencies have a front and back office system. Front office procedures involve selling products to their customers. The main procedures of a front office are to welcome customers coming into the agency and giving the information they receive from them to the back office. When a holiday and/or service is payed for by a customer, the agent will handle the money, cheque and debit/credit card and it is their responsibility to hand it properly. Back office procedures include dealing with the suppliers that the agency works with and the overall running of the store. The main procedures involved within the back office is keeping stock up to date on things such as brochures, e.g. Making sure they are not too low. They are also responsible for managing payment to staffs and ensuring their contracts are being followed through, staff will also contact back office if they need a day off or book a holiday out of work in which they will be away from the store from a prolonged amount of time. The back-office staff also deals with the training of new staff members and sending existing staff members on additional training if necessary.
Procedures and documentation for selling travel services: Customers can contact a travel agent via the phone or over the internet by email as well as in the travel agency store when they are enquiring about a holiday which they have seen advertised online, front window advertising or in a brochure. The agent will first fill out an initial enquiry form which will outline the dates, destination and the number of people travelling. The agent will then check the availability for the requested holiday and once the holiday is confirmed and booked the customer will pay the deposit and receive a receipt. The remaining balance of the holiday must be paid off by the customer eight weeks before the holiday. Around two to three weeks before the holiday date, final tickets are received by the travel agent and the remaining paperwork is either sent to the customer or they are asked to come in store to sign and pick up the documents. Two weeks before the holiday a confirmation invoice is sent to the customer via post or email.
Merchandising and displays: Merchandise and displays help to promote and advertise holidays as well as other products that the agent may offer to their customers such as offers and deals on ancillary services or discounted/last minute holidays. The displays are changed regularly to stay up to date on the latest deals and products available, but also to keep the store looking neat and tidy. Signs are often printed rather than hand written to ensure the store looks professional and easy to understand.
Racking policies: Racking policies enable travel agents to know which brochures need to appear on which shelves within their stores. The policy is very important because if the required brochures are not on the specific shelves, sales will suffer. If customers do not have access to the holidays available and are not able to see the prices and destinations which are listed in the brochures, then sales within the agency will drop. Thomas Cook uses brochures in their stores to advertise and sell their own products and services to customers, the brochures are helpful as many brochures focus on a specific type of holiday making it easier for customers to browse and search for what they're looking for.
Preferred operators: Many travel agents have preferred operators which they work closely with and they will try to sell the products and services of their preferred operators more than other tour operators. Classic Travel has three preferred operators which are as follows: Sandals, Club Med and Kuoni. These three operators work closely with Classic Travel and have their name and advertisements on the walls of Classic Travel stores in order to attract more customers. The agents will also get higher commission from their preferred operators, rather than other operators they work with, due to their close relationship.
Commission levels: Travel agents receive commission on products and services which they sell from other parties. Agents receive different commission levels from the different products and services they sell, for example: agents receive 10% commission on package and coach holidays, up to 9% on airline and ferry bookings, between 9-15% on cruise bookings, 25-40% on travel insurance services and around 1% for travellers cheques. However, these figures are subject to change based in the agreements made with suppliers and the total number of products being sold. For example, if a travel agent sells a large amount of a singular product the commission level may rise as a thank you from the supplier/tour operator.
Sales target: Sales targets are set by the head office in agencies such as miniples, multiples and holiday hypermarkets. They are monitored by a regional store manager to ensure that they are met and if possible exceeded. In independent agencies, staff members are able to set their own targets to meet on an individual basis. Sales targets enable agents to receive extra commission from their preferred operators as they will get incentives to meet their targets. These incentives can come in the form of bonuses, high street vouchers, travel products and even discounted or free holidays for bigger targets.
Switch selling: Switch selling is when an agent is able to sway the decision that a customer was previously set on. For example, if a customer enters a retail store knowing exactly what they want and expecting to book it and the agent is able to change their mind and persuade them to book something different – this is switch selling. The switch is often a different operator (an agent may persuade the customer to book with a preferred operator), hotel or even a different location.
Technology
Using technology: Travel agents use technology daily in their stores; computers are a vital source of information when researching and booking holidays, products and services for their customers. When not using computers, agents are able to use the phones to call customers, tour operators and call centers. The massive improvement in recent technology has benefitted travel agents a lot due to the systems they use being faster and more relevant to the time. However, the increase in developed technology has also had a negative impact on travel agents as they are becoming redundant within the travel industry. Potential customers are now able to independently book their own holidays online without the assistance of a travel agent.
Up-to-date hardware and software: There are numerous systems and hardware's that travel agents use every day in store. These systems are always being improved to ensure they are running correctly and to the best of their ability. Below is listed 9 systems that are used in retail travel agencies and an explanation on how it is beneficial to them.
View data 1980's: This system allows travel agents to review the prices and availability of flights and package holidays. They are then able to book their customers onto the holiday which they have requested. The system has served agents by making it easier for them to book and check the prices of the products and services the customer requires. It has greatly benefitted agents as it has allowed them to check availability without having to call tour operators and enquire directly with them, then having to call the customer back to tell them whether their holiday was available with that specific tour operator or not. View Data was helpful as it saved travel agents a lot of time and effort when looking for the holiday which their customer had asked for, agents were able to show their customers directly from the computer screen what was available whilst they were still sitting at their desk. The customer could then choose the best deal and tour operator available.
Voyager systems limited: Voyager systems allowed travel agents to create and print statements for their customers. Agents were also able to see if their customers were in any debt with their agency and were able to create a payment system which was easy for both the travel agent and the customer to use. There is also a system that allows the agent booking a holiday, product or service to see how much commission they will get for booking it.
Dolphin Dynamics: Dolphin Dynamics systems allow travel agents to use systems which are fast, relevant and up to date, allowing them to give their customers the highest level of service possible. The system helps travel agents to keep their costs down as well as have an efficient workload with profitable sales.
Vertical group: This system lets travel agents buy products and services from larger tour operators. The biggest ones available on this system are: TUI, Thomas Cook, World Travellers, The Cruise Village, Oasis Travel and Your Hotel Integration. This system helps travel agents by allowing them to book their customers holiday easier than before.
Amadeus: This system enables travel agents to search for the products and services they need to book for a customer. It also helps them to manage their customers departure process such as checking in at their airport. This system lets travel agents make their customers holiday stress free by making it possible for the agent to make the holiday one complete package rather than be made up of many different parts, the agent controls the holiday rather than a group of different people and companies. This system benefits travel agents as they are more capable of offering their customers peace of mind and a better quality of customer service.
The four systems that make up the GDS (Global Distribution Systems)
- Softcell information systems Softcell helps travel agencies to be more cost effective and less time consumed by making it easier for travel agents as they don’t have to be on the phone as much. There is also a wide variety of products and services available for customers to choose from on the system. This is beneficial for travel agents as they can use this system to gain competitive advantage on other agencies by offering their customers the best products and services available, at the best price.
- Galileo This system helps agents within the retail travel industry as it makes changing flights simple for the agent. If a customer contacts the agent, urgently needing a flight changed, the agent is able to assist the customer by changing the flight to the one they now need without any stress.
- Worldspan This system enables travel agents to book flights for tailor-made package holidays. This gives the agency which uses Worldspan a competitive advantage as the system also works in partnership with systems such as Amadeus, Galileo and Sabre.
- Sabre The Sabre system allows travel agents to book and buy products and services for their customers. The have a range of companies for which the travel agent can use to book. Sabre works with around 400 airline companies, 200 tour operators, 16 cruise lines, 50 rail carriers, 27 car rental outlets and over 125,000 hotel properties.
Current applications: Travel agents currently use a lot of the aforementioned systems that have been described above on a daily basis, dependent on what service the customer needs and what products and/or service they are asking for.
Impacts of Technology: Positive:
- Travel agents can access the services of certain tour operators faster
- Elderly people may not feel comfortable booking their own holiday online or may not even have access to a computer and would therefore rather come into store to book
- Travel agents are able to easily amend customer bookings and print necessary documents in store.
Negative:
- Customers can book their own holiday online without having to use a travel agent or go into a store
- Customers are able to do their own research on a destination and read reviews left by other people on websites such as TripAdvisor
- Travel agents may not be able to match or better the deals customers have found online, therefore they will lose their custom so that the customer can save money.
Legislations
Data Protection Act: Travel agencies hold personal information of their customers, including name, address, passport details and it is the agencies responsibility to protect this information and have control over who is given access to it to be used. Travel agencies protect their customer's personal information and make sure all vital information is stored safely on the computer database or in a filing cabinet that is locked.
EU Package Travel Regulations: Package travel regulations protect customers in the event that the holiday which they have booked (e.g. Flights, transportation and accommodation) is not up to the standard which was advertised either online or in a brochure. The customer is able to receive a refund if the holiday is not what they expected when booking, the refund can either be in the form of cash, discount or a completely new holiday. Travel agencies have to follow this regulation to endure customers know exactly what to expect from their holiday before they go. If a travel agent sells a holiday that does not correlate with what the brochure has advertised, for example a hotel has dropped a star in rating, the tour operator could be fined. This is why it is so important that brochures are updated regularly, and racking policies are followed.
Consumer Protection Act: This Act protects customers that have booked a holiday but have not received the holiday they wanted when the time came. An example of this could be that there was disruption caused by construction work on a new build next to the hotel and it was unpleasant with no warning from the agent that this development was occurring, or perhaps there is a change in accommodation due to a problem in the previously booked accommodation such as repair or over-booking. Travel agencies follow this Act to ensure that customers enjoy their holiday with no unexpected changes or disruptions.
Contract Law: This law has been put in place to make sure that travel agents a fairly treated and are entitled to a certain amount of paid holiday leave per year. This law makes sure that they have normal, suitable working hours or shift work. All of these factors are controlled by the people who work in the back office of the agency.
Trade associations and licensing
ABTA: ABTA stands for Association of British Travel Agents. ABTA is the biggest and leading travel association in the UK. They have been operating for over 60 years. The purpose of ABTA is to assist British travel agencies to grow their businesses successfully in a sustainable environment and to help the travelling customers have faith and confidence in travel agents.
CAA: The Civil Aviation Authority has one main purpose, which is to make the safety and performance of travel the highest standard possible. CAA is run by the UK government; however, it is funded by its 2,400 members. They are working to improve the choice and value offered to travelling customers and they are making plans to be more environmentally friendly by always improving their environmental performance.
ATOL: Air Travel Organiser's Licence is another government run, financial protection scheme for travelling customers. ATOL makes sure all package holiday providers have a license so that the customer as well as the travel agent feels safe and secure when booking a package holiday. Once the holiday is booked, the booking customer will receive an ATOL certificate, giving them protection in the case of a company failing, this allows the customer to gain a refund on their holiday or a flight home with a different airline is their original airline goes bust. Retail travel agencies can get an ATOL license via the CAA if the agency is a tour operator, sells flight and/or package holidays.
ATOC: ATOC stands for Association of Train Operating Companies. This brings all of the train companies together under one operation to help enhance the benefits provided by Britain's rail network and preserve the services offered. Their aim is to serve their customers with the highest level of rail transportation all the while, supporting new and innovative railway systems.
IATA: The International Air Transport Association requires travel agents to apply for a license in order to sell airline tickets to their customers. All agents and airlines must have an IATA license if they are offering flights and/or flight-based package holidays to their customers. The license is necessary in order to protect customers when flying with a tour operator or with an airline directly.
M2
Independent Agency – Classic Travel Classic Travel is an independent agency located in Loughton, they have a high street store but are also available to talk to their customers via email or over the phone. Their manager owns and runs the store with a small team of specialised travel agents. They offer classic luxury destinations and specialise in holidays to Florida. They have many travel partners such as: ClubMed, Crystal Cruises, Cox & Kings, Regent Cruises, Sandals and USAirtours. Within their store they have a front and back office, the front office is where the travel agents operate, speak to customers and deal with enquiries. The back office is small and is used by the management team for handling money, data and official papers.
Multiple Agency – Thomas Cook Thomas Cook is a well-known, multiple agency which has more than 1,200 stores in the UK alone. Thomas Cook offers holidays to destinations all over the world and offer a range of products and services such as package holidays, excursions, foreign exchange as well as basic help and advice for their customers. Thomas Cook stores often have a large front office as they can afford to hire a large team of travel agents due to the large number of customers that enter their stores every day. The back office does not need to match in size as Thomas Cook has a main head office that specifically works with back office duties for the agencies. The head office is just like a back office in an independent agency but on a larger scale and most likely technology based.
Comparison - The differences between these two stores are as follows: The front office is the first thing that a customer will see upon entering the store. The front office within the Classic Travel retail store is extremely well presented as it is clean and tidy, it is very clear that this is a professional establishment with great pride in their business. It is made clear in the Classic Travel store who their preferred agents are as there are advertisements for Club Med, Kuoni and Sandals on the walls as well as brochures for these operators for customers to browse. The back office is specifically for storing customer information and bookings, as well as holding the agent's details including contracts, wages and shift patterns. The agents in Classic Travel use traditional systems when booking products for their customers, the main system they use being View Data System due to it being a reliable system over the years of operation. The Thomas Cook retail store front office is quite similar to Classic Travel in the way that it is presented as a clean and professional environment however, there would be only Thomas Cook holidays advertised on the walls and brochures, this is because only Thomas Cook products are sold within their retail stores. The retail stores are different in this way as Classic Travel works with many different tour operators and providers; therefore, they are able to browse for the best deals when booking a holiday for their customers whereas Thomas Cook agents have to stick to the prices set by Thomas Cook Holidays. On the other hand, the stores are in some ways similar. Both Classic Travel and Thomas Cook have a front and back office within their stores and use the same operating systems when looking to book a holiday for their customers. All agents follow the same booking procedures when booking a holiday, this goes for both multiple and independent agencies. Both retail travel agencies are attempting to compete in the tourism industry therefore they are always looking for a competitive advantage over the other. As well as this there are smaller similarities such as the front window displays which are strategically placed to advertise holidays along with other products and services the agency offers in order to entice customers into their stores.
