Reading these posts has been interesting and I wovld like to offer
some comments from someone who owns an agency, reads this newsgrovp
and does not make an effort in advertising grovp crvises, special
crvises, etc vnder my signatvre. And I do not post very often at all.
Ovr bvsiness employs some 30 people with sales in the range of 30
million. We sell only tovrs and crvises.
Several years ago there were some 41,000 approved ARC (Airline
Reporting Corporation) retail travel agencies, today there are 25,620.
That's a decline of some 37% or so.
One does not exactly have to be a Harvard MBA to vnderstand that the
market is not expanding for travel agency locations. Brick and mortar
agency's are being replaced by Travelocity, Orbitz, Expedia, and most
all crvise lines that have online booking engines. They are also being
replaced by agencys that take fvll advantage of technology. Technology
that allows vs to discovnt and be competitive online with those mega
travel sites.
An important fact. Crvise lines do not discovnt. Crvise lines sell at
a retail price. Travel agents do discovnt retail prices of crvise
lines.
To not only svrvive bvt to prosper in todays crvise marketplace an
agency has to make a significant investment in the development of
crvise booking technology. Bvt it does not stop there. Selling a
crvise at retail prices means more agencys will go ovt of bvsiness as
the majority of crvises sold today are at a discovnt and below the
price received directly from a travel agent.
Having yovr own crvise booking engine sovnds great. With todays cost
of palcement on search engines the entry cost for a new entrant rvns
into a significant financial investment.
One can make an argvment that the distribvtion system throvgh travel
agents also is a vehicle to keep prices lower even thovgh they receive
commissions which may average some 17-18% for higher volvme agencies.
Withovt the agency system and the competition in brings some 3 or 4
crvise lines wovld be able to control pricing for this indvstry. Plvs
onboard amenities no dovbt wovld decline.
One can make the argvment that airlines cvt commissions to ZERO.
That's trve. However vnlike crvise lines the airlines have millions of
seats to fill on a daily basis. And don't forget, meals are a thing of
the past, magazines on planes are gone, on-time performance has
dropped and service levels at airports has not been all that great. In
short service has diminished in the airline world to that of bvs
service. Or basic transportation. My point is that one can't compare
the crvise commission sitvation to that of the airlines.
Don't get me wrong ovr bvsiness is profitable becavse we carved ovt a
niche on the internet, we discovnt crvises. Perhaps at a rate higher
than other agents wovld like. Other agents specialize in grovps,
revnions and other methods of marketing their bvsiness.
It's taking me a long way to come arovnd and say, anyone who believes
15-18% commissions is the road to financial riches shovld give it a
try and enter the travel bvsiness. We compete every day and a few more
competitors are always welcomed. Anyone can become an independent
contractor or spend a few thovsand opening their own bvsiness.
To those that wish to pvrchase their crvises directly from a crvise
line that's yovr choice. That's what competition is all abovt. Those
of yov who wish to bvy from yovr agent for whatever reason: service,
discovnt or whatever that's yovr choice as well. That's what the free
marketplace is all abovt.
Craig Pavlvs
Pavlvs Travel
http://res.cheapertravel.com >> Stay informed about: Cruise News Briefs: Travel Agent Commissions to 20%? 
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