HTM 133

1
HTM 133

• distribution

2
Distribution systems
3
Direct
4
Bi-Level
5
Multi-Level
6
Wholesalers

• Tour Operators
• Incentive Travel Company
• Meeting Planner
• Travel Club
• Consolidators

7
Supplier as Wholesaler

• Fly Drive
• Fly Cruise
• Vertical Integration
• CP
• TWA
• United

8
Travel Agents

• Agency
• Fiduciary
• Responsible to Supplier
• Serves Buyer

9
Commissions

• 10
• Overrides Splits
• Rebates
• Service Charges
• Trends

10
Source of Commissions
11
Payment Mechanics

• To Supplier
• Net less commission
• Area Settlement Plan (ASP)
• Invoice Supplier
• What about changes / no shows?
• Is this fair?

12
Discussion on changing nature of travel agency

• 2 sides of round trip to cover Saturday stay
• yield mgt.
• software to get around it
• airline fines and nature of agency
• would it be better to charge traveler fees?

13
Manual Methods

• Tariffs
• Timetables
• Hotel Index
• Cruise Directory
• Reservations by Phone
• Reservations in Writing
• Closely held information

14
Today

• Internet
• 800 number
• Widely held information

15
Travel Agency Response

• Improve efficiency
• Lower rates on simple transactions
• Specialize
• Franchise
• Consortium
• Add Value
• Packaging
• Specialize

16
Computer Systems

• Sabre - American - 50
• Apollo - United - 35
• Worldspan - TWA, Northwest, Delta - 10
• Amadeus - Continental - 5