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Re: What's the typical markup range for a travel agent

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Joseph Coulter

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Apr 19, 2006, 6:53:15 AM4/19/06
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"Sam" <newsgr...@gmail.com> wrote in news:1145420308.567336.233970
@j33g2000cwa.googlegroups.com:

> Just wondering what the range be. I would imagine the agency will get
> bonuses or incentives for booking clients on particular cruises/tours.
>
>

Agents in general do not own product and sell it. Rather they are agents
who are paid commission from the suppliers who set the prices.

There are some agencies who package travel and they would have mark ups
but they are not usually dealing iwth the public.

In general asas stated in this forum several times agencies (those who
emply the agents) get 10-15 % of the base price (pre "port charges" now
usually identified as non commissionalble) but the agent actually gets
less based upon the agreement with the host agency and of course any
rebates and discounts "passed" along to the consumer. How much the agent
keeps is contractural depending on the services rendered by the Agency.
More and more home based agents are getting higher perentages as the
host agent provides minimal accounting and admin help. Ranges that I
know of go from TA keeping 50-80% of commissions.

The big commissions go to the big mover agencies, more volume like car
sales results in more commission to the agency.

Thus I am tempted for instance to sell Princess for a higher fee, but I
would prefer for several reasons to sell more Oceania,RSSC and Silversea
at a lower percentage.
--
Joseph Coulter
Cruises and Vacations
http://www.josephcoulter.com/

Joseph Coulter

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Apr 19, 2006, 7:36:16 AM4/19/06
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Joseph Coulter <yourDROPTH...@comcast.net> wrote in
news:Xns97AA4611FCA2Dyo...@216.196.97.136:

> "Sam" <newsgr...@gmail.com> wrote in news:1145420308.567336.233970
> @j33g2000cwa.googlegroups.com:
>
>> Just wondering what the range be. I would imagine the agency will
get
>> bonuses or incentives for booking clients on particular
cruises/tours.
>>
>>

There is of course th matter of air. I forgot about this because I
normally avoid it anymore as the rewards are dwarfed by the risks. This
is the one area where agents can mark up usually on consolidator air and
the range is determined by the difference between regualr air and
consoidator. In recent years this has often been so low that
consolidator air didn't make much sense. In general $25 a ticket is
charged.

dreamcometr...@gmail.com

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Apr 19, 2006, 9:22:29 AM4/19/06
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Don't forget service fees, some agencies charge service fees on top of
earning commission.

Also, I have seen commissions as high as 17% from some cruise lines,
with the agent getting 100% of that, as some host agencies will pay the
100% to the agent, if the agent pays a monthly fee to the host agency.

Fees that I have seen range from $100/month to $195/month and that
included document shipping, with 100% commission paid to the agent.

I would think that an agent would need to be doing a certain amount of
yearly business to make this arrangement worthwhile.

-Joe

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Joseph Coulter

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Apr 20, 2006, 7:20:15 AM4/20/06
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"Sam" <newsgr...@gmail.com> wrote in news:1145501670.407666.278330
@i39g2000cwa.googlegroups.com:

> The reason I ask is that I know someone who has access to the rates on
> www.cruisingpower.com. Of course, I wouldnt expect to get those prices
> but I think it would give one an idea of the wholesale price and
> perhaps bargain with your travel agent and getting the best price?
>

the rates on cruising power are the rates we are allowed to sell and are
the rates we do sell. they are set by RCI and sgents can get a load of
grief for undercutting the official rates and why woul I try to increase
these rates when everyone expects a rebate????

dreamcometr...@gmail.com

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Apr 20, 2006, 9:25:48 AM4/20/06
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The rates on cruisingpower.com are the rates that you should expect to
get!

I think you are misunderstanding how the process works. The cruise line
does not give the agents a wholesale price and the agent marks up -
just the opposite - the cruise lines set the retail price, and the
agent gets a commission from that price.

The majority of travel suppliers (cruise lines, Disney, etc) offer the
same rates to travel agents and to consumers - if the consumer uses a
travel agent, the agent gets a commission on the sale, usually between
10% and as high as 17% depending on certain factors. If the consumer
purchases direct with the supplier, the money that would have gone to
the travel agent stays with the supplier, probably to pay their support
and phone staff.

In the past, agents have discounted the price by rebating back part of
their commission to the consumer; this is currently forbidden by many
cruise lines - agents can have their relationship with a cruise line
terminated if this occurs.

-Joe

Message has been deleted

Rosalie B.

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Apr 21, 2006, 8:22:13 AM4/21/06
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"Sam" <newsgr...@gmail.com> wrote:

>Thanks Joe for the explanation. I always thought the opposite was
>true.
>
>I recall a few years back on how one particular local travel agency
>advertised regularly on tv through the local news had lower prices than
>those offered by other cruise agents. T
>
>There is currently another agency that seem to be undercutting the
>competition big time. I chose not to deal with that partiuclar agency
>because one can't speak to a live person unless you gave out your name
>and phone number. If you ever called again, you would be asked for the
>same info and would automatically be re-routed to that agent that
>initally spoke to you. It didnt matter if you didnt want to speak to
>him or her, you were stuck with that agent. The only way to speak to
>someone else was to go through hoops to finally speak to the agency
>manager. It's also ironic because that agency is a member of the BBB.

I have more than one phone number, and I can also use my husband's
name or mine (or mine with variations). I do the same with email. I
have one address that I give to all those commercial people who want
an email address, and don't give them any of my other email addresses.
Then if they send me any spam afterwards, I know who they are and I
report them.


grandma Rosalie

Message has been deleted

Rosalie B.

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Apr 21, 2006, 2:00:19 PM4/21/06
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"Sam" <newsgr...@gmail.com> wrote:

>Rosalie B. wrote:
>> I have more than one phone number, and I can also use my husband's
>> name or mine (or mine with variations). I do the same with email. I
>> have one address that I give to all those commercial people who want
>> an email address, and don't give them any of my other email addresses.
>> Then if they send me any spam afterwards, I know who they are and I
>> report them.
>

>Interesting, so this appears to be a very common approach used by
>travel agencies.

Not only travel agents. Radio Shack does this. You can't buy
anything there without giving them your address and phone number and
mother's maiden name (joke about the mother's maiden name)


grandma Rosalie

newbie

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Apr 21, 2006, 2:08:55 PM4/21/06
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Rosalie B. wrote:
>
> Not only travel agents. Radio Shack does this. You can't buy
> anything there without giving them your address and phone number and
> mother's maiden name (joke about the mother's maiden name)
>
Radio Shack doesn't ask for address anymore but they still want your
phone number. I always tell them my number is 888-555-1212.

Ray Goldenberg

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Apr 21, 2006, 2:17:20 PM4/21/06
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On Fri, 21 Apr 2006 18:00:19 GMT, Rosalie B.
<gmbe...@mindspring.com> wrote:

>Not only travel agents. Radio Shack does this. You can't buy
>anything there without giving them your address and phone number

Hi Rosalie,

I believe they have changed this policy, at least it is no longer the
case in CA, AFAIK.

Best regards,
Ray
LIGHTHOUSE TRAVEL
--
800-719-9917 or 805-566-3905
http://www.lighthousetravel.com
--

number6

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Apr 21, 2006, 3:43:23 PM4/21/06
to

Rosalie B. wrote:
> Not only travel agents. Radio Shack does this. You can't buy
> anything there without giving them your address and phone number and
> mother's maiden name (joke about the mother's maiden name)
>

Sure you can ... I always give 1600 Pennsylvania Avenue as my address
and make up a random 202 area phone number if the salesclerk doesn't
catch on by then ...

Rosalie B.

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Apr 21, 2006, 8:34:39 PM4/21/06
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"number6" <snum...@aol.com> wrote:

Yes but it annoys me to have to lie.


grandma Rosalie

Harry

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Apr 21, 2006, 9:03:31 PM4/21/06
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In article <0gui42lqsnmro90qj...@4ax.com>,

Rosalie B. <gmbe...@mindspring.com> wrote:
> >Sure you can ... I always give 1600 Pennsylvania Avenue as my address
> >and make up a random 202 area phone number if the salesclerk doesn't
> >catch on by then ...
> Yes but it annoys me to have to lie.

When Radio Shack asks - I just say "cash" - and they stop in their
tracks.

Rosalie B.

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Apr 21, 2006, 10:49:13 PM4/21/06
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Harry <ha...@everhart.com> wrote:

They used to ask for cash too I think. I remember being surprised.

But it has been a REALLY long time since I was in a Radio Shack. I
don't actually do much shopping at all in person anymore. I can't
stand still for too long without a lot of back pain, so a disliked
activity (shopping) has become both disliked and painful giving me
even more incentive not to do it.

grandma Rosalie

Brian K

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Apr 22, 2006, 2:43:42 AM4/22/06
to
On 4/21/06 1:45 PM Sam wrote:

> Rosalie B. wrote:
>
>> I have more than one phone number, and I can also use my husband's
>> name or mine (or mine with variations). I do the same with email. I
>> have one address that I give to all those commercial people who want
>> an email address, and don't give them any of my other email addresses.
>> Then if they send me any spam afterwards, I know who they are and I
>> report them.
>>
>
> Interesting, so this appears to be a very common approach used by
> travel agencies.
>
>
I disagree. It may be the approach of low class ticket writers who
don't have the right to call themselves agents.

My sister's an agent. Her agency is a franchise resident in an upscale
mid-west department store. They may go out invited to clubs and social
groups for Travel Q & A and out of these get some new customers. They
also get walk-ins, newspaper ads in the Sunday travel section. They
compete with the budget outfits by offering service plus the affiliation
with the upscale department stores. They encourage clients to work
with the same agent because he/she can develop a working relationship to
better serve the client's needs. However, if my sister is off for a
week or a male client wants to work with a man a change of agent is done
almost transparently.

--
________
To email me, Edit "blog" from my email address.
Brian M. Kochera
"Some mistakes are too much fun to only make once!"
View My Web Page: http://home.earthlink.net/~brian1951

Brian K

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Apr 22, 2006, 2:49:51 AM4/22/06
to
I just say no, you may not have it. I have signed up for the
telemarketing do not call list and you have to respect that. Sometimes
the kid gets scared and calls a manager. I stand my ground. I smile
and say "I know I'm telling you something you already know about
-<wink> but it's for the kid's benefit." The manager say backs right
down and says to the kid "I thought I told you about this in
training...if they say they're on the Do Not Call List we can't ask for
the number...just put in all 9s". :-)

Dillon Pyron

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Apr 24, 2006, 8:17:26 PM4/24/06
to
Thus spake "Sam" <newsgr...@gmail.com> :

>The reason I ask is that I know someone who has access to the rates on
>www.cruisingpower.com. Of course, I wouldnt expect to get those prices
>but I think it would give one an idea of the wholesale price and
>perhaps bargain with your travel agent and getting the best price?

I assume this person is a travel agent.
--
dillon

I didn't climb to the top of the
food chain to become a vegetartian.

Dillon Pyron

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Apr 24, 2006, 8:19:01 PM4/24/06
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Thus spake Rosalie B. <gmbe...@mindspring.com> :

I NEVER give Radio Shit my phone number.

>
>
>grandma Rosalie

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