Tell Us What You Really Want: Agents Speak Out on Tour Op Issues
by Maria Lenhart /While tour operators’ relations with travel agents are generally strong, agents see room for improvement, especially when it comes to price parity and the amount and timeliness of commission payments.
So exactly what types of support do agents want from their tour operator partners? For answers, Travel Market Report spoke to agents with a long history of selling tours.
Level the playing field
Big-box retailers’ practice of undercutting traditional agencies by discounting brochure rates needs to be addressed by tour operators, said Sandy Anderson, president of Riverdale Travel Leaders in Coon Rapids, Minn.
Anderson believes tour companies should ensure agents’ ability to offer clients the best price.
“We had a situation where one of our customers went to a Costco-type place and was offered a tour price that was cheaper,” she said. “Fortunately, the tour operator was able to match the price, so we could keep the business.”
“In another such situation, the tour operator wouldn’t match it – although the customer ended up being loyal to us.”
Respect the relationship
Tour operators should also honor their agency partnerships by not giving big-box retailers higher commission rates because of their ability to generate greater volume, said Michelle Duncan, president and CEO of Odyssey Travel in Centreville, Va.
“When tour operators give them bigger rewards, they are stabbing the hands that feed them,” said Duncan, a member of NEST and The Affluent Traveler Collection.
“We’re the ones who take the time to explain the nuts and bolts to the client. We’re the ones who ensure that their experience will be a good one.”
Deal with problems
If a client encounters a problem during a trip, the tour company should do its best to amend the situation and not “make excuses,” said Paul Seifert, owner of Terra Travel, a Signature agency in Phoenix.
“I expect the tour operator to be our advocate,” he said. “If a client is unhappy on a tour, then I’m unhappy. The operator has to take action.”
Seifert pointed to a recent situation where he booked a client on a Hawaii tour. Code-share issues with the flights resulted in airport hassles on both ends of the trip.
“I had called the tour rep after the client reported the problem with the departure flight and was assured that it would be taken care of for the return,” he said.
“When it wasn’t, I called the tour rep again to say this was not acceptable,” Seifert said. “They gave the client a $400 voucher for a future trip. So even though they screwed up, I appreciate that they did something to make amends.”
Bigger and faster commissions
Agents see room for improvement on the commissions front, although they said tour commissions have not eroded as they have with cruises.
“I really think the commissions should start out higher. The standard 10% is not really enough, when you consider all the work we’re doing behind the scenes,” Duncan said.
“We deserve another 2% or 3%. They can afford it, and it would really make us feel like true partners.”
Timely payment
Some tour companies’ practice of not issuing commission payments until 30 days after travel is completed irks Lisa Silvestri, owner of Silvestri Travel in Sarasota, Fla., a member of NEST and The Affluent Traveler Collection.
“At the very least tour companies should do what some of the upscale cruise lines and river cruise companies do – pay 30 days after the booking,” she said.
Duncan said that when it comes to commission concerns “all the segments,” not just tour firms, need to do better.
“They keep raising the limits and quotas of what we need to do. I’m a mid-range agency, not a huge house. It’s the frontline agents who make things work,” she said.
High-cost fams
While tour operator fam trips are a good educational tool, some agents said they cost too much, especially given the added expense of air travel.
“If it’s for educational purposes or if you are a frequent seller of the company’s product, the fam should be free,” Silvestri said. “You are walking away from your business while you attend, so it has to be worthwhile.”
Duncan would like to see more fams give participants free time to absorb the destination and the hotel.
“Some trips just run you into the ground – you’re doing site inspections from morning to night,” she said.
Marketing support
Agents view tour operators’ marketing support – everything from advice and participation in promotional events to professional-looking fliers and documents – as critical.
“The ideas for marketing that I get from suppliers are so important; it’s key for getting people in the door,” Seifert said.
“I rely on my local BDMs to keep us informed on what they see working well for other agents; what’s going on the industry that is useful for us.”
Suppliers’ online templates that enable agencies to furnish customized fliers and other materials to their clients are among the marketing services most valued by Seifert.
“The ability for us to take their fliers and put our name on it, so it looks like we produced it is a huge help,” Seifert said. “I’m not a graphic artist, but this makes it so I don’t need to be.”
Looking good
While it may seem like a small detail, tour companies’ ability to furnish attractively packaged trip documents is an important service, particularly at the luxury level, according to Tony Cardoza, president of Cardoza-Bungey Travel in Palo Alto, Calif., a Virtuoso agency.
“Good quality documents really get clients excited about the trip,” he said.
“They should just present the facts in a contract, but have a nice format – some of them even come in leather-bound books. If we had to create these documents ourselves, it would cost a fortune.”
Dispelling outdated images
Anderson of Riverdale Travel said she appreciates the role tour reps can play in helping her educate clients on the diverse nature of the contemporary tour industry.
“We work to get clients to realize that the outdated notion of tours is gone – it’s not all about seeing a lot of countries in a few days,” she said.
“The vendors will come in and help us do presentations and shows. Globus comes in every year with one of their tour guides, so we get an idea of what goes on during a typical tour day.”
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