Booking Air Travel With a Consolidator


from JAXFAX Travel Marketing 2004 Travel Agent's Guide & Directory to Consolidators - WINTER/SPRING SUPPLEMENT VOL. 2

By Clif Cooke, CTC
Editor at Large
JAXFAX Founding Publisher

WHAT IS AN AIRLINE TICKETING CONSOLIDATOR?

Consolidators are not airlines, they are independent entrepreneurs - like travel agents - intent upon offering you ( on behalf of your clients ) domestic and especially international airline tickets on name-brand, as well as secondary class, IATA airlines at rates well below the posted tariff rates.

The air ticket consolidator makes it possible for travel agents to obtain reserved seats for their clients, add a specific service charge or commission for you ( the amount of the charge is not disclosed in the client's ticket ) and still provide a round-trip airline ticket at lower cost than the client would pay by purchasing a regular ticket directly from the airline.

Most, but not all, air consolidators have contracts with at least one and usually a dozen or more IATA airlines. ( Note: Charter flights are not involved in air consolidation. ) Consolidators must use the ticketing and conditions of carriage rules of the specific airlines that they have contracts with. These are called prime consolidators. Some air consolidators do not have contracts with any airlines. These consolidators - also legal - purchase airline tickets for resale to travel agents from prime consolidators.

All consolidators live by their reputation and are not specifically regulated by the U.S. or foreign governments or by IATA. Each airline makes its own decision whether or not to do business with any particular consolidator. It can be assumed that airlines set meaningful standards of performance and financial status when they appoint air consolidators. ( The airlines want minimum negative exposure from consolidators. )

WHY SHOULD TRAVEL AGENTS USE A CONSOLIDATOR?

Travel agents can utilize the expertise of air consolidators who compete openly against each other to provide quality air transportation on a wide range of airlines at prices highly competitive with tickets sold by the airlines or by "online" air ticket sellers - sellers who make little or no personal contact available to the travel agent.

Air ticket consolidators offer travel agents the choice of access to the consolidator's website or toll-free phone.

All consolidators sell tickets to travel agents in either net fare or commission categories. When purchasing a net fare, travel agents can add a service charge of their own selection. The amount of the charge is not identified in the passenger's ticket as such. If the ticket includes a commission for the agent, the amount of the commission also is not identified.

Be sure that your service charge or commission ( as appropriate ) is always included when quoting the selling fare to your client! By using air consolidators, travel agents have a convenient, legal way to provide lower fare international ( and domestic ) airline tickets to their clients.

HOW TO CHOOSE A RELIABLE CONSOLIDATOR?

Most travel agents have already chosen one or several air ticket consolidators who have earned the agent's confidence in recent or past transactions.

JAX FAX constantly monitors the general performance of the consolidators who list their flights and / or advertise in JAX FAX's monthly issues. Subscribing travel agents are encouraged to report poor performance and specific problems directly to JAX FAX. It is the ongoing goal of JAX FAX to maintain the highest level of credibility of its listers and advertisers.

When initially selecting or reviewing the choice of a consolidator, make sure that they meet your standards for business conduct. You should choose your consolidator as you would choose any other professional:
1. Ask your fellow travel agents who they patronize.
2. Make sure your potential ( and actual ) consolidator provides several optional carriers to the areas most in demand by your clients.
3. Test them on reliability and keeping their word.
4. Ask them how many airlines they have contracts with ( a measure of how they rank with major airlines ).
5. Do they provide you with written copy of the airline rules and restrictions of the carrier you booked? ( They should.)

Ask members of your office staff if they have had personal business experience with prospective consolidators.

Continue to be alert after you select a consolidator to make certain that they do not lapse into poor service. As with any other business relationship, vigilance is the key to serving your clients with the best products at prices that maintain your clients' loyalty.

WHAT ARE THE RESTRICTIONS WHEN BOOKING A CONSOLIDATOR TICKET?

As noted previously, all consolidators must operate under the rules of the airline on which your client will fly. Since all airlines have their own rules/regulations, each and every ticket may carry unique conditions.

Airlines change rules all too frequently, so be alert and insist that your consolidator informs you in writing ( preferably at the time of booking ) so that you can advise your client regarding penalties for flight changes, frequent flyer miles, refunds, etc. Make sure that your client accepts the rules and regulations before you pay for the ticket.

HOW MUCH CAN TRAVEL AGENTS MAKE SELLING A CONSOLIDATOR TICKET?

Since travel agents are in business to earn adequate compensation for making travel arrangements for their clients, make sure you have a clear understanding as to whether a consolidator pays ten percent commission ( plus overrides ) or allows you to specify your service fee for each ticket and incorporate your fee into the price of the ticket.

Industry experts agree that ten percent commission is the minimal threshold for a commission or fee. Since you cannot overcharge your client for your services * they have other options ) you must know what your competitors are charging in your selling area to destinations favored by your clients. By all means charge what the market will allow, making certain that your client is convinced that your agency's level of travel planning and service is rated Grade A. If you provide a superior service compared to other agents, you are entitled to charge more, but your client is always the judge.

DO CONSOLIDATORS SELL DOMESTIC AND BUSINESS CLASS TICKETS?

The answer is "Yes" to both questions, but with qualifications. Domestically, most of the top brand national carriers do not offer large blocks of seats to consolidators. Usually domestic air consolidation is confined to distressed markets where too many seats are being offered. Domestic consolidation usually requires a connection over one of the airline's hubs. Regional carriers may be more likely to offer seats to consolidators.

Ask your consolidator if they do domestic consolidation. If not, do some research to identify a reliable domestic consolidator who will usually offer seats up to departure time.

There are no hard and fast rules and conditions change frequently. Again, know your marketplace - today and tomorrow - and into the future.

Business class consolidator seats are becoming more and more available as the full fare business travel market continues in the doldrums and the airlines continue to resist welcoming back travel agents as everyday marketing partners by refusing to pay commissions on this important source of income for the carriers.

Many major consolidators are now offering very attractive commission overrides or low net fares.

Again, not every consolidator offers business class fares, but if you have business class clients or - equally important - upscale clients who dread riding in the economy class section en route to an upper level vacation in Europe or to a cruise port, ask your consolidator what can be done. You will probably receive a positive response.