Changing with the Times

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

By Prem Cohly
President and CEO
Hari World Travels - New York

Commissions, paper tickets, brick and mortar agencies, "see your travel agent" in airline advertising, these are but a few of the casualties we have encountered as we crossed the bridge into the 21st Century. Still, despite seemingly impossible odds we have survived and 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 10% commissions, overrides, fam trips and cooperative advertising have envisioned that our airline partners would abandon us and even compete against us with web only fares and their own sales outlets? Who would have thought that the knight in shining armor, galloping to our rescue, would be a Consolidator?

For many, using a Consolidator 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 reliability in the distribution process has evolved dramatically. Their introduction in the distribution system 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 a 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 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? Which Airlines do they deal with mostly? Have they had to post Letters of Credit and how much? 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. The fares are more expensive and therefore 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 have block space and can offer first and business class inventory.

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 can 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 is a new and exciting era that we are in and for some it means embracing a whole new way of doing business. While it is different it is nevertheless 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 dealing with a person that they know and trust. A few years back a well known motivational speaker, Ira Hayes, commented that the only true weapon that we had fighting inflation was lousy service. That observation is as true today as it was back then. Integrity, value and timely response are still the key elements of successful selling.