Changing Times

from JAXFAX Travel Marketing March 2009

By Prem Cohly

Internet, commissions, paper tickets, home based agencies, "see your travel agent" in airline advertising, these are but a few of the casualties we have encountered as we focus on the future. Still, despite seemingly I'm possible odds we have survivedand in some cases even thrived. Our survival can be attributed in no small way to the indomitable drive and entrepreneurial spirit of human nature. Our innate ability to adjust to the conditions that surround us never ceases to amaze.

Could anyone, in the halcyon days of commissions, overrides, fam trips and cooperative advertising have envisioned that our airline partners would abandon us and even compete ageinst us with web only fares and partnering or owning their own internet companies? Who would have thought that the knight is shining armor, galloping to our rescue, would be a consolidator? For many, using a Consilidator is a new experience. Who are they? Are they reliable? What products do they sell? How do I choose one?

Who Are They?

Consolidators have been around for a long time and over the course of that time their role and realibility in the distribution process has envolved dramatically. Their introduction in the distribution systems was initially labeled under the sinister and not too flattering titles of "The Grey Market" or "Bucket Shops." The airline product was highly perishable by nature, because once plane lifted off an empty seat was a lost opportunity. Consequently they had to find some way to sell those seats at the last minute. Enter the consolidator with their customer base of students and ethnics who had one thing in common - they had their bags and were ready to travel. So productive was this channel of the distribution that over the years the airlines relied more and more on their contribution. Today instead of just making inventory available at the last minute the airlines have allocated special "Buckets" that can be sold as far in advance as published fares.

Are They Reliable?

At the outset and even today, as in any other business venture, there were those with questionable credentials and business practices. How long have they been in business? Whick Airlines do they deal with mostly? Have they had to post Letters of Credit and how much? Are they a member of the consilidator association USACA? What references can they provide? If what they are offering seems too good to be true it probably is.

What Products Do They Sell?

Most consolidators you will find specialize primarily in international travel. Since these fares are more expensive there is more latitude for markup between the published and the net fares. This in turn allows you to make more profit. Some of the better consolidators offer upgrade programs from Coach to Business to First class.

How Do I Choose One?

One of the most obvious ways to verify the credentials of a specific consolidator is to check with JAX FAX. They have been dealing with them over the years and offer a pretty good idea of the financial stability of most consolidators. Call your airline rep. Ask the Consolidator for agents they are doing business with that you might know.

This ever changing industry means embracing a whole new way of doing business. while it is different it is nervertheless the way the industry seems to be heading. Be prudent and do your homework and you won't go astray. Opportunities in the travel industry still abound and the public despite all the access they have to Websites etc. still find their way back to deling with a person that they know and trust. Integrity, value and timely response are still the key elements of successful selling.