The orginal post wayne zab asked do the prices in the brochures have any leaways, I'm just tring to show all prices agents quote have leaways if you know how the commission structures and pricing models generally work.
Diamond Olly raised the very vaild point about Air Passenger Duty. Any form of Tax is not commissionable Insurance IPT is another example.
Current reduced rates* of Air Passenger Duty is £5 for specified European destinations and £20 for all other destinations per air passanger over the age of 2. *The reduce rate applies to most charter flight seats.So if a screen qoute is £169 for a charter flight to a euro destination you would minus the £5 to get £164 which is the base to calculating percentages from.
As i pointed out before most retail agencies use a basic add on figure after the net commission price to guareente a set basic profit per individual booking. Even this can be negotiated down if you have a party of 4 or more adults.
For an example lets use TUI in this case.. the agent will make a minimum of £15 per individual flight seat so on booking of 4 adults thats a
guaranteed profit of £60 on the flight booking, even if the customers been canny and got the standard comm rates knocked off.
Now if your party has 5 or more adults you can start to get the £15 min more towards £10. Say for example you have a party of six adults, 6 x 10 is the same £60 in profit for the agent. The front line sales agent will often need authorization from the sales team manager,but if the customer has said they will book and got the credit card number ready , the sales managers rarely turn the offer down on a guaranteed booking.
So even if the agents say some items have are none commissionable and with tax that is the clear case, you can still offset this by knowing how the minium ratail sales price works!
Its not easy and does take time and work playing agents off to get the agents down to cost minimums, but if you know what you want it is very possable to do.
On a side note I should say front line staff are between a rock and a hard plate. They offen neeed to make 5-6K in profits for the company before they get anything above their basic for themselfs. Thats 400 bookings per month to do just before they get a bonus. As Diamond Olly points out they do extra things that don't often result in a sale as most punters are cost fixed only.
Hopefully these posts give an idea of how things work and its up to the individual how hard they are on the agents bottom line. Most of the best sales agents got high volume on bookings sales due to people coming back to them after they've "done the rounds" because the customer liked the agents knowlodge and general customer interaction rather than the cut to the bone price.
Too much hassle if you ask me...finding accomodation, booking it, finding flights, booking them, organising transfers and booking them....and what do you actually save?
Well on the last 2 holidays we have had we have saved £1000 both times by booking diy.
I don't find it a hassle to look through a few websites sat at my computer in my pajamas drinking a cup of tea - you cant exactly do that at the local travel agents!
Obviouisly the biggist savings are on accommodation when you using a softer local currancy to calculate costs.
The tour operaturs use this as well to forward book rooms in local base currency or dollar offset to negotiate block bookings at a very favourable rate comparied to standard rack rate.
The further away from departure you book ie the less time decay risk the more apparant a cost advantage becomes between self tailored verses package. However as time decay risk increases the gap narrows and then inverts to favour the package option as the operator has a very large percentage advantage to work with compaired to someone dealing with prices at or slightly below rack.
Again there a other vairables based on geographic regions on harder/softer base currency and if the tour package operator has a currency heading programme in place.
The basic rule is the later you leave it ie sub 28 day time decay window , packages are gernerally cheaper.
Again there a other vairables based on geographic regions on harder/softer base currency and if the tour package operator has a currency heading programme in place.
EXACTLY
I knew that, whatever it means
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