How to Reduce Travel Agent Transaction Fees | travelerannet.ga

TMC’s earn their money by apportioning a fee for each travel transaction being processed through them. The fee covers expenditure and profit margin. The fee is levied per traveller and is dependent on the mode of travel and destination.

For example, if your business travel programme involves travelling by air to the Americas, Europe or within the UK, then you will have 3 different levels of transaction fee.

To compare pricing between different suppliers, don’t be fooled into comparing a transaction fee in isolation. I recommend you undertake some internal analysis. Create a list of your transactions broken down by area. Ask your current supplier for this information.

Use an Excel spreadsheet to aggregate totals and compare total costs. Use a full year of transaction data and multiple each TMC’s transaction fees, by the number of transactions for each mode of transportation or accommodation. The totals will give you an accurate assessment of future costs.

Travel Agent Transaction Fees

Remember, most fees can be reduced by over 50% if reservations are purchased using your suppliers self booking tool. Automation reduces the cost of salaried staff being involved. Salaries are the biggest cost of any travel supplier and are reflected in service fees.

Transaction fees cover the cost of;

1. A centralised payment and settlement credit scheme

2. Providing cost savings reports, purchasing data,

3. Traveller tracking to cover security and well being

4. Monitoring of service for quality and efficiency

5. Travel policy advice

6. Support on mandatory governance issues

7. Investment to cover improved systems

The above is a snapshot view of how transaction fees are apportioned. Undertaking the analyses and benchmarking can be time consuming, especially if managers are juggling other projects. If this sounds familiar, the Academy offers a programme that may be of interest.

We provide a cost review as part of our Health Check Report, focusing on transaction fees. We’ll give you an honest and accurate assessment of current charging, make comparisons against market rates and identify the amount of savings available.

For more information visit www.academyobt.com/healthcheck.htm

How to Start and Run a Hotel Business Successfully | travelerannet.ga

If you are thinking to start to start your own hotel business, it is better to plan your business priorities first. It will help you to know what exactly you need in order to achieve your business objective. Every business needs a robust business plan before it gets started whether its matter of raising funds or to run the business. Here are few steps to enable you to start your hotel business successfully.

Raising Funds
Every business needs money to be invested in it to function properly and when you are starting a new hotel, money is the critical element of your planning. Whether you are planning to buy an established hotel or constructing your own from the scratch, you need strong financial planning for it. The best source to raise funds is taking a business loan from a bank. You can approach to any bank of your choice but before that keep your business plan ready. Nearly all banks need a business plan as an integral part of your loan application

Location of Hotel
A right location matters a lot for your hotel to get success. For example if your hotel is located in an area where competitors are unable to fulfill the requirements of travelers your hotel can touch the heights of success and if your hotel is located on a walking distance from the main tourist attraction but there is lot of competition your hotel might not get enough guests. If you hotel is located near to airport or railway station or bus stand, you will get many guest without doing any thing. You also have to think that shopping places and entertainment places are easily accessible from hotel.

Strategy
Business strategy is the foundation of successful hotel business. Your strategy should be very clear in concept without any confusion. It is better to plan your business strategies in advance. Just ask few questions to yourself like “How you will fulfill the requirements of families, kids, honeymoon couples, business travelers and international tourists.” And “What kind of services you will offer to your guest.” A good strategy is always a key to success in any business.

Hospitality Experience
If you are new to this industry you might face lots challenges to gain success. You must know “How you want your guests to be treated in your hotel”. Every guest in your hotel needs highest level of attention and service whether it’s a family or business traveler. It is better to first get a job in a hotel, learn some basics of hospitality industry and then start your own hotel.

Marketing
Once your hotel is up and running, you need customers. If you will not get enough guests in your hotel your business will fail. To attract guest you must run effective marketing campaign and you must advertise your hotel. You must contact travel agents and franchise to get bookings in your hotel. There are many online hotel booking websites, you must register with them. Your hotel must have an effective website of its own with online hotel booking facility so that your customers can make direct booking with you and you don’t have to pay commission to travel agent. You can pass this saving to your guest by lowering down your tariff or by providing then additional services.