<B> Letters</B>
<B>Improving Agency Partnerships</B>
I have been a regular reader of BTN Online over the past year, and your articles have given me good insight into, and many facts on, the future direction of the travel industry.
It concerns me as a travel agent, however, that the major suppliers of tourism product, namely airlines, hotels, cruise operators, tourist offices, etc., are embarking in a new commercial direction and implementing new platforms that do not include the small- to medium-size retail or wholesale travel agents.
Many airline executives have been quoted as saying that doing business with the current industry distribution channels is too costly and clumsy. We have come to understand that this cost is far more than just paying an agent commission, it also involves the cost of International Air Transport Association, CRS fees and a host of other costs.
Meanwhile, travel agents and small wholesalers are at the blunt end of radical commission cuts, our primary source of income. In order to survive, we have been advised to downsize and consider "fees for service." However, I believe this is too simplistic an approach.
I believe that travel agents and suppliers can radically improve their commercial relationship. Internet, or e-commerce, seems to have become the new medium of choice for suppliers marketing direct to clients, I find no reason why this practice cannot be expanded.
A number of IT consultants in the United States have expressed the opinion that business-to-business e-commerce holds far more potential, which suggests that an intranet-based system of business would enable mutual efficiencies and cost savings. Continental Airlines officials expressed the view last year that they would be happy to share the financial savings with their travel agent partners.
The problem as I see it, is that in order for a new way of business to evolve in the travel industry, someone must start the ball rolling. This time, we the travel agents can make the first move, we need to assess the needs of the suppliers as well as our own, and devise a new business plan that addresses our mutual needs. Giving young airline management a history lesson and asking them to forgo profit is futile, offering a responsible and operational business plan with better practices will be more warmly received in my view.
IT consultants have pointed to network resource sharing and intranets as ways to reduce costs of communication, quotes, reservations, promotions, documentation and payment. With respect, I do not see our industry associations such as UFTA, ASTA, AFTA, etc., addressing these very practical points. Industry politics will not feed us, it is a time for fundamental discussions. Which travel agent, or collection of travel agents, will step up to the plate and begin a meaningful discussion with our suppliers? Which collection of travel agents is willing to try and use this discussion to convince the airlines and hotels that travel agents can be a valuable long-term business partner. My comments will be seen as radical to some, maybe that's what is required today.
<I>John Tollis
Director of Travel Mart-Ski Mart
Perth, West Australia</I>
<a name="2"><B>Gracious Guidance</B>
A short note to express appreciation for the most informative travel publication in the country. The July 19 issue had many great reports; I particularly liked the auto rental insurance and the Web cites articles.
Keep up the good work!
<I>Paul R. Carls
Cardinal Consultants Inc.