Barter For A Bargain Beach Holiday

MSE_Martin

The following discussion relates to the Barter for a Bargain Beach Holiday article.

To

ask a question
discuss it
or report whether it worked for you

please click reply

Clare_McGibbon

Its all very well bartering your well earned probably well paid earnings on getting the best price for your holiday but it is the poor self employed agent who is cutting their wages down each time you come back for a cheaper price. I work as a self employed travel agent from home and earn commission only on any bookings that I make. I get 30% of the commission (which is not the full price of the holiday) earned on a booking and every time I beat a price that a customer might ring and tell me that they have received (after they have knocked a bit off the price that they have really been quoted!!), my earnings go down. So when you are getting your holiday for the lowest price and nobody can beat it I have probably earned £7 and I have probably been working on your booking for hours if not days. Whatever job you get up in the morning to do every day ask yourselves this, would you compete in a price war in your hairdressing salon or your sandwich bar? Would you cut the price of your tyres in your garage? Would you reduce the price of your labour if you are providing a service? Well no you wouldnt because if you did you wouldnt be able to afford your holidays? If I get more than 1 booking a day in this job I am very lucky!! Would you go out to work for £7 per day? People think that you have all the time in the world to find them the best holiday to meet their requirements and then take the price to someone else for them to tap into their computers and undercut you and take away your hard work and your wages. I am working for less than the minimum wage and yes this has made me realise that I am in the wrong job. What started as a passion for me has resulted in a nightmare. Enjoy your holidays!!!!!

mike_the_bike_2

If you are that unhappy with the slim margins provided by your chosen occupation..can I suggest you consider a career move. If you really are spending "days" working on making £7 it may be more productive to obtain a position in one of the retail supermarkets where you would obtain better renumeration with less hassle..and less stress!!!!

bonehead50

or perhaps a paper round ?

TRAVELMAN_2

Clare,

In the same position as you. I don't know how long you have done the job for, or which homeworking company you work for. I'm lucky in that I've been doing it for 7 odd years & do have a large & (largely!) loyal customer base. 7 years ago whilst the web was about 'self-packaging' & web 'book direct' options were not around.

Yes-it IS a competitive Industry & I wholeheartlidly agree with most of your comments. The way I view what I do is that of a business not a job. Several new starts who work for the comapany I'm with DO find it very tough-if they've come from a High Street background & are just used to normal package holidays, etc....I know we're all different but I'll do things like give out flyers to people leaving a Travel Agent (especially this time of year-prople wanting School half-term) with example prices on & my number. Cheeky....YES but so what! It p****s of the Travel Agency staff (not that they can do a thing about it) but I KNOW by 'tailor-making' packages, say for August it'll be in most cases AT LEAST a 1/3 off any discounted High Street price! So all i do is just print 3 examples on headed paper & staple on my business card-2 for School Hols & 1 for a 'cheapie' date. 30 leaflets given out is may be 1 or 1/12 hours tops-at least a third will call me.

With the Industry the way it is you HAVE to look at ways of getting the customer the best deal & keeping some margin for yourself. If you package a deal & the company you work for has an ATOL licence you can get rates direct from the ground handlers (who DO NOT deal with normal Agents, jut Tour Operators, which if your company has an ATOL licence you then become!)-now these guys will supply the likes of the direct sell accom only companies such as Med Hotels, Alpha etc but are obviously NETT cost-so Med or Alpha (just as an example) will put on approx 10% for them & then 15% to cover them paying out Agent commision-so if you take the NETT & add on 12% commision you will STILL be 13% approx cheaper than if the customer went direct (& as the ground handlers DO NOT deal directly with the public-only Tour Op's you will not be undercut)! Obviously SOME customers will book directly with the low-costs, follow a link-book Hotel, etc but they should be aware this is NOT a package holiday & no aspect is bonded-hence the flight can be changed, cancelled, etc, Hotelier can cancel or overbook you & you have no comeback .let em' get on with it is what I say-they'll only be saving a small ammount for a big risk.

Now accom only companies don't discount-so you can package something up that gives your customer a cheaper price than doing it themselves, gives them ATOL protection & keeps your margin-everyone is happy!

As far as package hol 'price matching' goes remember you do not HAVE to say who the Tour operator is!! If your customer insists (ok-it's a fair point I suppose) tell them but don't get involved with a Dutch Auction on price. I personally will work to a certain margin & will point blank just say NO if people try to beat me below this-after all the next call is only a few minutes away! Also, people forget that if they ring round for an hour on a late deal it'll probably either GO UP or sell-hence no holiday! I always see if I can tailor-make to the same Hotel/resort too as this will get the customer a better price, they have the benefit of private taxis, etc.... & you keep your margin!

yes, I know a few Tour Ops (not many as they obviously want to keep the trade sweet) will undercut-but if that happens just tell your customer to book it.

So many people 'make up' prices to beat you down. Do they think we're daft???! We know what the market is doing! I had a guy the other day who wanted 3*+ in teguise, all-inclusive, any time Feb, Lanzarote, 2ad+1 x 3 year old. Asked for the budget-OF COURSE he would not give this-gave an example price & so established he was looking at £259ish pp. He did not want transfers so got him something for £789 for all tailor made (after obviously checking the Tour Op prices first). He said 'oh no....much too expensive-been quote £259 pp & £109 for the child'. My answer was 'Ok-you'd better book it then-don't know why you're ringing around' (or words to that effect)' to which he said 'what are your flight times' etc.. (felt like saying 'why ask if it's so much cheaper somewhere else'!)-upshot was he said 'I admire your honesty' & phoned back to book!

So...he obviously lied to get the price lower, but our advantage as knowledgeable Agents is to KNOW the market prices. In this day & age people will 'play the game'-does not mean you have to get sucked in too as the above example shows. Nett result = a booking for me-a happy customer (who KNOWS the real prices) & only a very short ammount of time spent on the 'price haggle' game.

Keep smiling!

Chris

peejay67

Clare,

I agree with your comments whole heartedly. Ignore people who give really sound advice like "change your career" they obviously do not appreciate what the travel business is about. Travelman is right in his comments. We have to move with the times and capitalise on gaps in the market. One thing he didnt point out is he gets a lot of business from teletext, which is obviously a very good advertising medium albeit expensive. If you are working for yourself that sort of advertising is probably beyond you, but if you are working for a company you should really question their advertising methods if you are only getting enough calls to convert to one booking a day.

Its tough out there but we really need to grab any ways of cornering the market.

Chin up.

PJ

TRAVELMAN_2

Agree Pee-Jay. I'm guessing if Clare is on 30% then Teletext advertising would be in on that. Another good (but competitive) place to advertise is teletext on the web-called HOD (holiday offer database). Problem with this is that, as on text on tv-companies put up 'ghost' prices (ie to get the customer to call!!) that do not exist! I know mystery calls are made but there are endless excuses given as to WHY a deal is advertised but not available! Really gets my goat-as it gives us ALL a bad name.

With working for yourself if you are 100% confident that you can a)-rely 100% on client base b)-get enquiries NOT from text but generated by yourself then most homeworking companies will let you move to a different position-paying you up to 75% NOT 30%! Obvioudly a risk but the rewards are there! I've been toying with this for a while now but when you know that your advertising will in wffect be taken away it's scary-but, as del boy says...'he who dares' (!!).

Keep smiling Clare! Need any advice/help feel free to PM me.

Chris

almond

I agree with all you say, all of us in travel have spent years training and learning the job, all I say is let them ring round and do as i do quote them
nett and if they ring back to book tell them its gone LETS WASTE THEY TIME
AS WELL and remember without our knowledge things will go wrong, when was the last time a customer checked his passport or knew you could'nt go
to dom rep if you were a single parent without the correct paperwork.
keep your chin up remember for ever timewaster they is a nice customer

d.ylan

not to be antagnoistic, but I would say I disagree. If you operate long term for £7 a day I would be thinking there was a fundamental flaw in the business plan somewhere

Personally I agree with trying to get the best deal, however I do not like to haggle. I would rather be given a fair price in the first place, voluntarily. From the consumer POV I do not think Martin's advise is bad for business -- purely because I would previously have never really used your services nor would be likely to, however this article has been informative and lead me to move agents in a worth-considering bracket.

While I am not currently in a position to book a holiday for the next 12-24months , purely on the strength of his intelligent, informative, seemingly honest and very helpful (to you other agents too I would like to think, with his sharing of tips) reply I would most definately approach TRAVELMAN as an agent for my vacations (assuming you're still going strong, finger crossed!)

I would suggest you see the article as tempting people to give you a try, and drive business to you that you otherwise would not have had. -- Also, Surely if being frugal becomes a cultural trait, people will by their very nature have that much more money to splash out on their own recreational activities such as holidays than day to day expenses!

I think one thing you need to do is set yourself a barrier and not go below that as previously suggested, if you can offer a quality service as mentioned that doesnt carry the risks of arranging everything in a non-bonded fashion as when its self-arranged (as again previously mentioned), yet still be cheaper than the high street shops, this would be a big factor to sell to your customers. I also liked the idea of flyering outside the stores, score one for bare faced cheek! But from a consumer point of view, if the material convinced me it was a legitimate (not a fly by night, and off with my cash) deal I'd be interested, and its focussing directly on your target market.

From a personal preference, in literature I would include the type of points made by Travel Man, explaining that while you may be a one-man-band, you offer a service that you pride yourself on, being able to offer the best value to your customers compared to high street stores, and the extra security (bonding times) available using your service -- cut out the hassle for the consumer explanatory sort of speil!

apologies for any blatant typographical errors.

[/2pence]

TRAVELMAN_2

My word....ANOTHER free holiday or big cheque to send out....(!!!!!!).

D.Ylan-thanks for those kind words.

One very important point to make-my posts are not designed to 'drive people to me' (sorry-I can't see your post here but you get my drift!)-I'm just (sadly!!) very interested & keen in packaging up (i know-I need to get out more!) to not only earn myself a crust but also to help my customers. There are plenty ofAgents who post on here or indeed on the web-I'd just like to clarify that my posts are not blatent adverts-just my thoughts on the thread i reply to. Of course some people PM me/ask questions, etc, but they are free to go anywhere on this board or the web to do this.

Just to clarify, whilst I work on my own from home (now i realise how much i hated commuting!) I am part of Co-Op Travel so whilst I'm a '1 man band' in respect that it's just little old me working on my own for myself...I'm just a small cog in the big wheel that is Co-Op travel!!! I do my best-sometimes when i get 10 odd enquiries i can take a day or 2 to reply (each search can take 30 mins to 1 hour to make sure all options covered) but i do try!

I've covered all the various points re: haggling, Agent profits, ATOL in previous posts so i won't go over these again. Suffice to say, the consumer is king & has the WEB as his tool to MAKE SURE deals quoted are competitive. in 85% of cases Tour Op prices can be crucified, notice I say 85% as the other 15% (in my opinion) has a valid place in the market at whatever price charged as it may have specific family features, kids clubs, etc (ir Thomson Superfamily, etc), the likes of which CAN'T be reproduced by 'tailor-making'.

Martin has made some valid points on the TV show & on here regarding haggling down PACKAGE holidays, my point is that often by 'tailor-making' with the full protection of ATOL (& the accomodation only direct rates in both euros & dollars that are not accessable by the public or non-atol agents) you can not only match/beat the 'haggled' price BUT you can offer your customer a choice of flights, extended room occupancy (to do away with the 'being kicked out at noon & paying Hotelier £40 for just a room for 5 more hours' (!) scenario) & a lovely private taxi (god....I sound like a pensioner & I'm only 38!).

Some of the posters on here who are canny MSE moneysabers have realised that by booking directly with foreign owners HUGE savings can be made. Problem with this is that it's completely unbonded & if Apartment/room does not exist (!!) or room is overbooked AND the cost of a money transfer to their bank a/c for the deposit (!!) or owner vanishes you are stuffed! By going through an ATOL Agent (NOT advertising-plenty on this board & the web!) who probably has the same nett rates (granted-possibly not the very same property but I'll be same resort/type of accom) as by going direct-the whole thing is fully protected (especially if your atol agent is able to put the low-cost airlines in their packages) & will cost you no more, or at most an extra tenner or so!

Those Agents that are moaning about getting £7 quid odd profit on a booking should 'look outside the box' & quote tailor-made atol delas OR quite simply set themselves a commision figure they WON'T drop below-after all the next call/customer is only a short wait away!!!

& also remember that after an hour or so ringing around that elusive 'dscount' you've got on a hol may mean nothing as the holiday has SOLD (sorry to be sad....but I'm sure all Agents have an unhealthy feeling of 'ha ha-servies you right for trying to scrape anothe fiver off' when this happens!)!

All I'd say to bargain huntrs is TAKE IN TO CONSIDERATION all the facts you can glean from posters on here to obtain the best sort of price at least risk!

Chris

peejay67

Im hoping Clare is exaggerating slightly. Just looking at basic mathematics, and a very poor commission level, its near on impossible to earn that little on a booking.
Lets say its a Thomson booking. Even if Clare was on 10% with Thomson. If she had an average priced holiday at say £300pp with two people travelling, thats a total booking price of £600. 10% commission = £60, of which Clare's earnings are £18. Even if the price was haggled down and Clare cut her commission by half, which on principle you shouldnt do!, she would still make £9 per booking.

Lets remember thats on an average priced hoiliday. Take that up to a £1000 holiday and Clare's earnings are £30. Bearing in mind the average commission level with your average Tour Op is 12.5%. Clare you should be earning pretty well out of everything you book!

Answer: Keep a base rate of commission you wont fall below. Renegotiate commission levels. Advertise, and Package!!

PJ