| Right up there with real estate agents and used car | | | | enough to book RTW trips on the net many people |
| sales people, travel agents are subject to much | | | | still stick with an agent, and leave themselves |
| suspicion when it comes to sales tactics and prices. | | | | vulnerable to overcharging in the process. |
| But are you really being sized up and ripped off | | | | Also, and unfortunately so, times of grief or any |
| every time you walk into an agency or book a | | | | urgent need to get yourself on a flight are also seen |
| holiday? | | | | by many agents as a time to cash in on vulnerable |
| The answer is yes, you will be sized up and yes, | | | | customers. |
| given half the chance many agents will overcharge, | | | | In terms of flights, agents will usually have minimum |
| some by as much as they can get away with. | | | | or net rates that they are free to add whatever |
| With the great resources available on the net most | | | | extra they can get away with. This is where you can |
| travellers will not walk into an agency until they feel | | | | be overcharged if you haven't shopped around. |
| they have a good handle on their destination and | | | | There is only a minimum, not a standard or maximum |
| current prices. Yet no matter how savvy you are it's | | | | price for flights. |
| still worth knowing how agents work before you | | | | Consider as well that some agents are better than |
| decide to use one. | | | | others at finding cheap flights. A high quote might |
| There are two aspects to the way agents work in | | | | just be a lack of knowledge of the destination |
| Australia that affect the service you are given. The | | | | airlines. Many agents will have spent less than a year |
| first is the way agents are paid. Second is the | | | | in the job and it can take time to learn how to get |
| pushing of particular agency 'preferred' products like | | | | the better deals for customers, especially on out of |
| tours (with high commission levels) onto the | | | | the way routes. Another reason to check online first. |
| customer without disclosing this conflict of interest. | | | | Yet another area in which to be careful is with |
| No real newsflash here: agents are paid on | | | | refunds. It is not uncommon for some angents to |
| commission. But people might not realise that base | | | | overcharge you to cancel flights or tours. This can be |
| pay rates are so low, agents need every dollar they | | | | done simply by the agent changing the terms of the |
| can squeeze out of you. The pay structure generally | | | | agreement between you and the agency when you |
| works like this: | | | | first pay a deposit or in full (as you have no direct |
| * The agent is paid a base amount, which is a paltry | | | | contact with the airline). So what might have been a |
| sum at best. The base amount is fairly consistent | | | | $350.00 cancellation fee on flights can be easily be |
| amongst the major agencies, and will go up slightly | | | | turned into a non refundable ticket without the |
| the longer the agent stays in the job. | | | | knowledge of the airline or tour company. |
| * Extra income is based on commission paid against | | | | Importantly this is not a standard practice (some |
| the revenue agents bring in. Different levels of | | | | agancies have measures in place to stop this) but it |
| revenue are made from every product they sell, | | | | does happen. Be really careful and check elsewhere |
| from very little (say a hotel transfer) to up to 50% | | | | before you commit to a non refundable airfare! |
| revenue for travel insurance. 'Preferred products' | | | | The second and perhaps most dodgy aspect of |
| such as tours or flights will have higher levels of | | | | travel agency practice is the pushing of preferred |
| revenue. | | | | products onto customers. |
| * Of this total revenue, agents are paid a monthly | | | | This is not technically a rip off, but if you're after |
| percentage, usually on a sliding scale (the more the | | | | unbiased product advice steer clear of most travel |
| agents bring in the higher the percentage they get). | | | | agents. |
| This pay scale will depend on the agency and some | | | | The major agencies will have certain tour companies |
| are more generous than others. Without this | | | | and even airlines from which they will get higher |
| commission the base amount is barely enough to live | | | | commissions (which can be double that of other tour |
| on (we are talking burger flipping rates). | | | | companies they might sell). |
| * There is massive pressure on agents to hit monthly | | | | So you're booking a tour in South America and want |
| revenue targets (aside from actually making a living), | | | | some advice on a tour company? Chances are you |
| and thus the job has a very high turnover rate (1-2 | | | | will be pushed into using the agencies preferred |
| years is a fair stint as a travel agent or even store | | | | supplier as they make more money out of you that |
| manager). | | | | way. As yet there is no legal requirement for |
| * But what about the perks? Agents fly all the time | | | | agencies to declare this conflict of interest. Just look |
| right? In short there is no particular savings on flights | | | | around the shelves of the major agencies and it will |
| at present. Some agencies are better than others | | | | be clear from the uniform brochures who their |
| but the perks of the job are almost non-existent | | | | preferred suppliers are. |
| compared to how it used to be. Agents are not | | | | This is not to say these companies are not a decent |
| always travelling and when they do it's not as cheap | | | | choice, just be aware any advice is not without |
| as people think. For that you need a job, or your dad | | | | considerable bias. You need to make sure the tour |
| or mum needs a job, with Qantas. | | | | company suits your needs and don't rely solely on an |
| * Some companies overseas pay differently so the | | | | agent's advice on this (contact the company direct if |
| focus is on customer service rather than sales. We | | | | you have any queries). |
| are not so lucky. | | | | This conflict of interest can be applied to many |
| The fact that the job is commission based seems to | | | | products they sell. The major agencies will have |
| be missed by many customers who think agents are | | | | preferred hotels and car hire companies. For almost |
| free to give advice all day as that's what they get | | | | every product travel agent dirty tricks, travel agent |
| paid for. The reality is that they make very little | | | | rip offs, travel advice, travel tips there will be a |
| unless they actually sell you something; it's a sales job | | | | preference they give you that makes them more |
| pure and simple. | | | | money. Agents will themselves often have little goals |
| This pressure on agents can lead to some very | | | | in mind when selling you a holiday. |
| dubious practice. | | | | There are always incentives from different travel |
| So what could be loosely defined as a situation | | | | companies for agents to sell their product. The |
| where somebody is being ripped off? There's a big | | | | incentive might be 'sell five tours get one free' or |
| difference between paying extra for the agents time | | | | something similar. This is another reason agents can |
| and them overcharging you by hundreds, or even | | | | give you highly biased advice. |
| thousands, on your holiday. | | | | Smaller more independent agencies are more likely to |
| Standard booking fees at most agencies are $50.00 - | | | | give you unbiased advice as they may not have the |
| $100.00, depending on the product being sold (less | | | | same deals with tour operators as the major players. |
| for domestic travel). These fees can be waived at | | | | If you are unsure about the charges attached to any |
| some agencies rather than losing a sale if you are | | | | products, simply ask what exactly you are being |
| price matching or bargaining hard with the agent. | | | | charged for as agents should disclose any booking |
| These fees are not a huge price to pay for what | | | | fees involved (sometimes these fees can be hidden). |
| might be hours of the agents time (and remember | | | | If you are suspicious don't fall for any pressure |
| the agent only gets a small percentage of that fee - | | | | tactics, just walk away and check another agency or |
| most goes to the agency), but if you are paying any | | | | online before you book (there's always another |
| more than the standard fees, you are paying too | | | | agency close enough). |
| much. | | | | So the bottom line really is just to make yourself as |
| The most likely chance you have of being ripped off | | | | aware as possible of current pricing before you see |
| is if you have failed to shop around, and get caught | | | | an agent. You can still get great deals through a good |
| up in the agent's enthusiastic sales tactics (always | | | | agent (booking online is not always cheaper) and |
| beware the most upbeat and enthusiastic agent). | | | | there is no need to be ripped off if you are savvy |
| Agents will size up how much you know about your | | | | about your planning. Advice from a good agent on |
| destination, the current price of flights and | | | | your destination can be invaluable, just take product |
| accommodation before quoting you a price. If you tell | | | | advice with a grain of salt. |
| the agent "it's my first time away" your chances of | | | | I left the job in part due to the pressure to |
| paying way too much increase dramatically. | | | | overcharge and BS on which company customers |
| Travelling to an out of the way destination might fall | | | | should travel with. Most people get into the job |
| into this category as well, or when navigating the | | | | because they love to travel, but may end up finding, |
| maze of round the world tickets. While it's easy | | | | like I did, that the job is not worth the stress. |