Travel Agents - Are You Being Ripped Off?

Perfect up there with real estate agents and made use of auto sales men and women, travel agents are subject to substantially suspicion when it comes to sales tactics and costs. But are you extremely getting sized up and ripped off each and every time you walk into an agency or book a holiday?

The answer is yes, you will be sized up and yes, given half the opportunity several agents will overcharge, some by as a lot as they can get away with.

With the great resources readily available on the net most travellers will not walk into an agency till they feel they have a wonderful manage on their destination and existing prices. But no matter how savvy you are it is nonetheless worth understanding how agents function ahead of you make a decision to use one particular.

There are two elements to the way agents operate in Australia that influence the service you are given. The 1st is the way agents are paid. Second is the pushing of particular agency 'preferred' solutions like tours (with high commission levels) onto the consumer without disclosing this conflict of interest.

No real newsflash right here: agents are paid on commission. But people today could not realise that base spend rates are so low, agents want just about every dollar they can squeeze out of you. The spend structure normally functions like this:

* The agent is paid a base quantity, which is a paltry sum at preferred. The base quantity is fairly constant amongst the significant agencies, and will go up slightly the longer the agent stays in the job.

* Added income is based on commission paid against the income agents bring in. Distinct levels of income are created from every single product they sell, from highly little (say a hotel transfer) to up to 50% revenue for travel insurance. 'Preferred products' such as tours or flights will have higher levels of revenue.

* Of this total revenue, agents are paid a monthly percentage, generally on a sliding scale (the much more the agents bring in the higher the percentage they get). This spend scale will depend on the agency and some are a lot more generous than others. With out this commission the base quantity is barely sufficient to reside on (we are talking burger flipping rates).

* There is massive pressure on agents to hit monthly income targets (aside from actually producing a living), and therefore the job has a incredibly high turnover rate (1-2 years is a fair stint as a travel agent or even store manager).

* But what about the perks? Agents fly all the time correct? In short there is no particular savings on flights at present. Some agencies are better than others but the perks of the job are practically non-existent compared to how it used to be. Agents are not often travelling and when they do it really is not as low cost as folks feel. For that you want a job, or your dad or mum requirements a job, with Qantas.

* Some firms overseas spend differently so the concentrate is on customer service rather than sales. We are not so lucky.

The reality that the job is commission based seems to be missed by a lot of shoppers who assume agents are free of charge to give suggestions all day as that's what they get paid for. The reality is that they make rather little unless they truly sell you a thing it is a sales job pure and very simple.

This pressure on agents can lead to some very dubious practice.

So what could be loosely defined as a situation where somebody is being ripped off? There's a large difference between paying extra for the agents time and them overcharging you by hundreds, or even thousands, on your holiday.

Normal booking charges at most agencies are $50.00 - $100.00, depending on the product being sold (much less for domestic travel). These fees can be waived at some agencies rather than losing a sale if you are price matching or bargaining hard with the agent.

These charges are not a tremendous price tag to spend for what may possibly be hours of the agents time (and bear in mind the agent only gets a smaller percentage of that fee - most goes to the agency), but if you are paying any far more than the typical charges, you are paying too much.

The most most likely possibility you have of being ripped off is if you have failed to store around, and get caught up in the agent's enthusiastic sales tactics (often beware the most upbeat and enthusiastic agent).

Agents will size up how a lot you know about your destination, the existing value of flights and accommodation before quoting you a price. If you tell the agent "it is my 1st time away" your probabilities of paying way too much increase drastically.

Travelling to an out of the way destination might possibly fall into this category as nicely, or when navigating the maze of round the planet tickets. Whilst it really is painless sufficient to book RTW trips on the net numerous folks nonetheless stick with an agent, and leave themselves vulnerable to overcharging in the method.

Also, and sadly so, occasions of grief or any urgent require to get your self on a flight are also seen by a lot of agents as a time to cash in on vulnerable clients.

In terms of flights, agents will normally have minimal or net rates that they are totally free to add whatever additional they can get away with. This is exactly where you can be overcharged if you haven't shopped around. There is only a minimum, not a normal or maximum price tag for flights.

Take into consideration as nicely that some agents are better than other people at obtaining low-cost flights. A high quote might possibly just be a lack of knowledge of the destination/airlines. Many agents will have spent less than a year in the job and it can take time to discover how to get the greater deals for clients, in particular on out of the way routes. A different cause to check on line first.

But yet another area in which to be cautious is with refunds. It is not uncommon for some angents to overcharge you to cancel flights or tours. This can be performed basically by the agent altering the terms of the agreement between you and the agency when you initially pay a deposit or in full (as you have no direct speak to with the airline). So what may have been a $350.00 cancellation fee on flights can be easily be turned into a non refundable ticket with no the expertise of the airline or tour corporation. Importantly this is not a normal practice (some agancies have measures in place to quit this) but it does take place. Be genuinely cautious and check elsewhere ahead of you commit to a non refundable airfare!

The second and probably most dodgy aspect of travel agency practice is the pushing of preferred products onto shoppers.

This is not technically a rip off, but if you're following unbiased product tips steer clear of most travel agents. The key agencies will have specific tour organizations and even airlines from which they will get greater commissions (which can be double that of other tour corporations they may sell).

So you happen to be booking a tour in South America and want some advice on a tour firm? Odds are you will be pushed into employing the agencies preferred supplier as they make much more dollars out of you that way. As but there is no legal requirement for agencies to declare this conflict of interest. Just appear around the shelves of the significant agencies and it will be clear from the uniform brochures who their preferred suppliers are.

This is not to say these corporations are not a decent selection, just be aware any advice is not with no considerable bias. You have to have to make sure the tour organization suits your requires and don't rely solely on an agent's guidance on this (speak to the company direct if you have any queries).

This conflict of interest can be applied to quite a few merchandise they sell. The main agencies will have preferred hotels and automobile employ companies. For just about each and every product travel agent dirty tricks, travel agent rip offs, travel assistance, travel helpful hints there will be a preference they give you that makes them even more dollars. Agents will themselves usually have little targets in mind when selling you a holiday.

There are usually incentives from various travel businesses for agents to sell their item. The incentive could possibly be 'sell five tours get a single free' or a thing related. This is an additional reason agents can give you very biased tips.

Smaller additional independent agencies are far more likely to give you unbiased assistance as they can not have the similar deals with tour operators as the main players.

If you are unsure about the charges attached to any items, simply ask what exactly you are becoming charged for as agents should disclose any booking fees involved (oftentimes these fees can be hidden). If you are suspicious don't fall for any pressure techniques, just walk away and check an additional agency or online before you book (there is continually one other agency close sufficient).

So the bottom line really is just to make oneself as conscious as potential of current pricing just before you see an agent. You can nevertheless get good offers by means of a really good agent (booking on the internet is not always less expensive) and there is no require to be ripped off if you are savvy about your organizing. Tips from a wonderful agent on your destination can be invaluable, just take product tips with a grain of salt.

I left the job in component due to the pressure to overcharge and BS on which corporation consumers should travel with. Most consumers get into the job for the reason that they adore to travel, but could finish up obtaining, like I did, that the job is not worth the anxiety.