Attention Travel Agents, Tour Operators; Costing, Rates, Prices in the Travel Trade

The travel trade has got cut throat by the day. OTAs, Travel Agents and Hotels. Between OTA’s, Hotels and Travel agents there is going to be a rate parity of 15% to 20%. Most booking sites, like booking.com, Agoda or TripAdvisor does not include the countries taxes and transfers.

This falls on an advantage for Travel agents to sell packages that are all inclusive taxes and transportation and profitability advantage of 15% to 20%.

This is a revenue generation of 15% to 20% more for travel agents which is substantial.

Now let us see what travel agent do next.

WE as travel agents forget that percentage and we start selling for a bare minimum.

We make profit of USD 5 per room per night, sometimes we like to increase to USD 10 per room per night. We get so greedy for the business we forget we are selling a product, and make our unique selling point as we sell on cost for you.

We forget that it does not cover even operational charges of the phone calls, or sadly even your professional worth of time.

We sell at USD 10, 5, 1, or 0 for the other end to generate 15% profit, which is a sad situation.

We should as travel agents not destroy the revenue we can bring for our company and destination we sell or based in.

Please do not destroy markets selling for USD 10, 5, 1, or 0.

Think hard is your time worth only that much? If yes kindly go ahead, if not don’t destroy the opportunity everyone has in making revenue.

Think hard next time you use this as a Unique Selling Point to motivate partners to work with you. Let your product speak not ON COST.

Cheers!

LISWITH

Maldives