| Journal: TWUK | Section: |
| Title: | Issue Date: 07/08/00 |
| Author: | Page Number: 4 |
| Copyright: Other |
Put focus on added extras to boost pay
Travel agents’ pay has never been great and in the light of more commission cuts, the chance to earn more money is slowly diminishing. But switched-on counter staff can boost their earnings by selling added extras. Jane Archer reports
THE SUGGESTION by consultant Nolan Burris that agents should make up for airline commission cuts by offering to walk their clients’ dogs prompted a stream of letters to Travel Weekly from angry agents.And as the trade braces itself for British Airways’ introduction of 0% commission which comes in next year, Burris’ comments have also raised the question of how well agents are replacing lost commission by selling travel extras such as car rental, airport parking and travel insurance.
ABC Holiday Extras managing director Stephen Lawrence said: “Agents should be aiming to sell more extras because they are a hugely important way of earning more money.”
ABC sells many extra products, including airport parking and lounges but dog walking is not one of them.
“We believe agents should be targeting at least 30% of their clients with airport parking and hotels – that is the percentage of people that we believe will need this service after taking out those who get a lift with a friend or a taxi,” said Lawrence.
“Our top performers are selling 15% of customers just one added extra but the trade as a whole is converting at 1%-2% so huge opportunities are being missed,” he added.
A recent survey of 100 travel agents by car-rental broker Holiday Autos showed that just 19% were offering clients car rental without prompting.
Group marketing and communications director Sara Zimmerman said: “Our business is growing dramatically each year but there is only a gradual change in the way agents sell car rental. That is very frustrating, especially as falling airline commission means there is even more reason than before for agents to increase car-rental bookings.”
Zimmerman estimated that most agents are making just one car-rental booking a week.
“One a day would be quite achievable, especially if they offered it all the time,” she said. “We see an immediate improvement in sales where offering car rental becomes a habit.”
Travel insurance is another key area where agents can make up revenue.
Ketteridge general manager sales Doug Weston tells of one agent who started to sell travel insurance at 20% commission – below the competition in his town – and has seen both his sales and income rise.
“Agents need to be aware how competitive it is, with many more companies selling travel insurance and cut their cloth accordingly,” he said.
Get motivated: agents should make sure they sell all the holiday extras to their clients. Inset, a flashback to Travel Weekly’s front page (July 10) which caused outrage among retailers