Should travel agents charge fees?

Paper

Cassidy, Frances. 2000. "Should travel agents charge fees?" Pforr, Christof and Janeczko, Ben (ed.) 11th Annual Council for Australasian Tourism and Hospitality Education Conference (CAUTHE 2001). Canberra, Austalia 07 - 10 Feb 2001 Canberra, Australia.
Paper/Presentation Title

Should travel agents charge fees?

Presentation TypePaper
Authors
AuthorCassidy, Frances
EditorsPforr, Christof and Janeczko, Ben
Journal or Proceedings TitleProceedings of the 11th Annual Council for Australasian University Tourism and Hospitality Education Conference (CAUTHE 2001)
Number of Pages1
Year2000
Place of PublicationCanberra, Australia
ISBN9780858898325
Conference/Event11th Annual Council for Australasian Tourism and Hospitality Education Conference (CAUTHE 2001)
Event Details
11th Annual Council for Australasian Tourism and Hospitality Education Conference (CAUTHE 2001)
Parent
Annual Council for Australasian Tourism and Hospitality Education (CAUTHE) Conference
Delivery
In person
Event Date
07 to end of 10 Feb 2001
Event Location
Canberra, Austalia
Abstract

Travel agents currently do not charge their clients for the services they perform. Rather their income is derived from commissions paid by principals ranging from wholesalers to airlines and hotels. However, this might change as airlines in particular, are attempting to reduce distribution costs by reducing commissions paid to travel agents.
In recent months Air New Zealand subsidiary Freedom Air have ceased paying commissions entirely, while United Airlines recently announced a reduction of 2% in commissions paid to travel agents effective 01 July 1999 (Read 1999; Brill 1999). Jetset Tours has developed a system to track all hotel and car commissions. According to Jetset's General Manager Corporate Travel, Alan Diamond, they once relied on principals to send them a cheque. Unfortunately, this cheque did not always materialise and so they decided to develop a computer software to track this commission (McMahon 1999).
What if hotels, wholesalers, car companies, travel insurance companies and cruise companies, who currently pay a minimum of 10% commission to retail agents decided to reduce their commissions? How would the retail travel agents make up for this reduction in revenue. How would the retail travel agent stop the spiralling decline in commissions or payment of commissions?
The unrelenting drive by airlines in particular, to reduce cost structures appears to be targeting the commissions previously paid to travel agents. If this continues travel agents face the start choice of seeing profits fall or introducing fees for bookings. This paper will outline current structures of commissions, comment on current changes and examine the options for retail travel agents in the future in relation to commissions.

Keywordstravel agents; commissions; travel industry
ANZSRC Field of Research 2020350899. Tourism not elsewhere classified
350716. Small business organisation and management
380116. Tourism economics
Public Notes

File reproduced in accordance with the copyright policy of the publisher/author.

Byline AffiliationsUniversity of Queensland
Permalink -

https://research.usq.edu.au/item/9z8vz/should-travel-agents-charge-fees

Log in to edit

Download files

Published Version
CAUTHE_2000_1706_001.pdf
File access level: Anyone

  • 1761
    total views
  • 60
    total downloads
  • 3
    views this month
  • 1
    downloads this month

Export as

Related outputs

Core and peripheral experiences: incidental, accidental or intentional
Cassidy, Frances and Hume, Margaret. 2018. "Core and peripheral experiences: incidental, accidental or intentional ." Journal of Tourism and Hospitality Management. 6 (2), pp. 1-12. https://doi.org/10.15640/jthm.v6n2a1
A pilot study of core and peripheral experiences: incidental, accidental or intentional
Cassidy, Frances and Hume, Margaret. 2017. "A pilot study of core and peripheral experiences: incidental, accidental or intentional." 5th Annual International Conference on Tourism and Hospitality Research (THoR 2017). Singapore 11 - 12 Dec 2017 Singapore.
The peripheral and core tourism experiences: a conceptual study in Australia
Cassidy, Frances. 2016. "The peripheral and core tourism experiences: a conceptual study in Australia." 5th International Conference on Advances in Economics, Management and Social Study. Kuala Lumpur, Malaysia 12 - 13 Mar 2016 New York USA. https://doi.org/10.15224/978-1-63248-089-7-36
Wine tasting: to charge or not to charge?
McNamara, Noeleen and Cassidy, Frances. 2015. "Wine tasting: to charge or not to charge?" International Journal of Hospitality Management. 49 (8), pp. 8-16. https://doi.org/10.1016/j.ijhm.2015.05.004
Advancing the global perspective of tourism by examining core and peripheral destinations
Cassidy, Frances and Hume, Margee. 2015. "Advancing the global perspective of tourism by examining core and peripheral destinations." Camillo, Angelo A. (ed.) Handbook of research on global hospitality and tourism management. Hershey, PA. United States. IGI Global. pp. 37-53
A conceptual paper on motivations of sporting event tourists in Vanuatu
Cassidy, Frances. 2013. "A conceptual paper on motivations of sporting event tourists in Vanuatu." Lonik, Ku Azam Tuan (ed.) 3rd Regional Conference on Tourism Research (RCTR 2013): Innovation and Optimisation of Tourism Research. Langkawai, Malaysia 29 - 31 Oct 2013 Penang, Malaysia.
What is the future of sales executives in the travel industry
Cassidy, Frances. 2001. "What is the future of sales executives in the travel industry." Pforr, Christof and Janeczko, Ben (ed.) 11th Annual Council for Australasian Tourism and Hospitality Education Conference (CAUTHE 2001). Canberra, Austalia 07 - 10 Feb 2001 Canberra, Australia.
Wine tasting: should Granite Belt wineries charge for tasting?
McNamara, Noeleen and Cassidy, Frances. 2012. "Wine tasting: should Granite Belt wineries charge for tasting?" 2012 Regional Development: Connectedness, Business and Learning: Creating Sustainable Communities Workshop. Brisbane, Australia 20 Jun 2012 Toowoomba, Australia.
Local residents' perceptions on tourism: an Espiritu Santo and Tangoa Islands, a Vanuatu study
Cassidy, Frances. 2012. "Local residents' perceptions on tourism: an Espiritu Santo and Tangoa Islands, a Vanuatu study." 2012 Regional Development: Connectedness, Business and Learning: Creating Sustainable Communities Workshop. Brisbane, Australia 20 Jun 2012 Toowoomba, Australia.
The outer islands of Vanuatu: is there a synergy between tourists and locals?
Cassidy, Frances and Pegg, Shane. 2011. "The outer islands of Vanuatu: is there a synergy between tourists and locals?" Jones, C. and Neal, M. (ed.) 4th International Colloquium on Business & Management. Bangkok, Thailand 24 - 27 Jan 2011 Bangkok, Thailand.
Sustainable education in the western corridor: the research roadmap ahead
Rose, Denis, Ally, Mustafa, Cassidy, Frances, Gardiner, Michael and Hume, Margee. 2011. "Sustainable education in the western corridor: the research roadmap ahead." Building Business Communities: Justice, Performance and Change Creating a Sustainable Scholarly Community Colloquia (2011). Brisbane, Australia 09 Nov 2011 Toowoomba, Australia.
Establishing a conceptual model for the sustainable wine district
Cassidy, Frances, Hume, Margee and Chadee, Doren. 2011. "Establishing a conceptual model for the sustainable wine district." Building Business Communities: Justice, Performance and Change Creating a Sustainable Scholarly Community Colloquia (2011). Brisbane, Australia 09 Nov 2011 Toowoomba, Australia.
Studies in tourism and travel management: embracing change, incorporating technology, and meeting industry needs in the new millenium
Kavanagh, Marie and Cassidy, Frances. 1999. "Studies in tourism and travel management: embracing change, incorporating technology, and meeting industry needs in the new millenium." Molloy, Janine and Davies, Jenny (ed.) 9th Annual Council for Australasian Tourism and Hospitality Education Conference (CAUTHE 1999). Adelaide, Australia 10 - 13 Feb 1999 Canberra, Australia.
Boracay Island, Philippines: a case study
Cassidy, Frances. 2002. "Boracay Island, Philippines: a case study." 12th Annual Council for Australasian Tourism and Hospitality Education Conference (CAUTHE 2002). Fremantle, Australia 06 - 09 Feb 2002 Perth. Australia.
An exploratory study on consumers' selection of Australian regional travel agencies
Ng, Eric and Cassidy, Frances. 2005. "An exploratory study on consumers' selection of Australian regional travel agencies." Purchase, Sharon (ed.) Australian and New Zealand Marketing Academy Conference (ANZMAC 2005): Broadening the Boundaries. Fremantle, Australia 05 - 07 Dec 2005 Fremantle, Western Australia.
Exploring the motivations of sport event tourists: the Rugby League World Cup Brisbane, 2008
Cassidy, Frances. 2010. "Exploring the motivations of sport event tourists: the Rugby League World Cup Brisbane, 2008." Patterson, Ian, Pegg, Shane and Franzidis, Katina (ed.) 9th ANZALS Biennial Conference: Exploring New Ideas and New Directions. Brisbane, Australia 02 - 04 Feb 2010 Brisbane, Australia.
Determinants of small Pacific Island tourism: a Vanuatu study
Cassidy, Frances and Brown, Les. 2010. "Determinants of small Pacific Island tourism: a Vanuatu study." Asia Pacific Journal of Tourism Research. 15 (2), pp. 143-153. https://doi.org/10.1080/10941661003629953
Promoting to the drive tourists: an exploratory Queensland study
Prideaux, Bruce, McClymont, Hoda and Cassidy, Frances. 2005. "Promoting to the drive tourists: an exploratory Queensland study." Purchase, Sharon (ed.) Australian and New Zealand Marketing Academy Conference (ANZMAC 2005): Broadening the Boundaries. Fremantle, Australia 05 - 07 Dec 2005 Fremantle, Western Australia.
A balancing act between academic rigour and practical knowledge: successfully teaching travel management in the 21st century
Cassidy, Frances. 2002. "A balancing act between academic rigour and practical knowledge: successfully teaching travel management in the 21st century." McIntyre, Norm (ed.) 1st Pacific Rim Leisure Educators Conference: Leisure Education: Past Lessons, Future Prospects. Honolulu, Hawaii 12 - 14 Jan 2002 Honolulu, Hawaii.
Satisfaction of Australian families travel experience to the Great Barrier Reef Islands of Queensland
Cassidy, Frances. 2004. "Satisfaction of Australian families travel experience to the Great Barrier Reef Islands of Queensland." Chon, Kaye, Hsu, Cathy and Okamoto, Nobuyuki (ed.) 10th Annual Conference: Globalization and Tourism Research: East Meets West. Nagasaki, Japan 04 - 07 Jul 2004 Japan.
Thoughts of the local residents of Espiritu Santo on Australian visitors
Cassidy, Frances. 2004. "Thoughts of the local residents of Espiritu Santo on Australian visitors." Ogunmokun, Gabriel, Gabbay, Rony and McPhail, Janelle (ed.) 2004 Inaugural Academy of World Businesss, Marketing and Management Development Conference: The Challenge of Inter-Disciplinary Perspectives & Globalization in the 21st Century . Gold Coast, Australia 13 - 16 Jul 2004 Perth, Australia.
A socio-demographic profile of visitors to the South Pacific outer islands of Vanuatu
Cassidy, Frances. 2009. "A socio-demographic profile of visitors to the South Pacific outer islands of Vanuatu." International Convention and Expo Summit 2009. Hong Kong, China 18 - 20 May 2009 Hong Kong.
Are we there yet? Are we there yet? An exploratory study of baby boomers travelling with their grandchildren
Cassidy, Frances. 2008. "Are we there yet? Are we there yet? An exploratory study of baby boomers travelling with their grandchildren." Chaos to Clarity: The Role of Small to Medium-Sized Tourism Firms in a Mature Market, Symposium 2008. Cairns, Australia 31 Oct 2008 Cairns, Australia.
Exploring the motivations for engagement in sport tourism
Cassidy, Frances and Pegg, Shane. 2008. "Exploring the motivations for engagement in sport tourism." ICES 2008: International Convention & Exposition Summit. Singapore 14 - 16 Feb 2008 Singapore.
Building quality international channel partner relations: a dyadic perspective
Hastings, Kathy, Brown, Les, Ng, Eric and Cassidy, Frances. 2006. "Building quality international channel partner relations: a dyadic perspective." Ali, Yunus and van Dessel, Maria (ed.) ANZMAC 2006: Advancing Theory, Maintaining Relevance. Brisbane Australia 04 - 06 Dec 2006 Brisbane, Australia.
Why are the outer islands in the South Pacific popular with some tourists and not with others? The Vanuatu example.
Cassidy, Frances, Brown, Les and Prideaux, Bruce. 2006. "Why are the outer islands in the South Pacific popular with some tourists and not with others? The Vanuatu example." Ogunmokun, Gabriel, Gabbay, Rony and Rose, Janelle (ed.) 2nd Biennial Conference of the Academy of World Business, Marketing and Management Development: Business Across Borders in the 21st Century. Paris, France 10 - 13 Jul 2006
An exploratory study on consumer travel agency information sources: an Australian regional analysis
Ng, Eric, Cassidy, Frances and Brown, Les. 2006. "An exploratory study on consumer travel agency information sources: an Australian regional analysis." 2006 International Conference on Business and Information (BAI 2006). Singapore 12 - 14 Jul 2006 Taiwan.
What motivates event tourists?
Cassidy, Frances. 2006. "What motivates event tourists?" 2006 International Conference on Business and Information (BAI 2006). Singapore 12 - 14 Jul 2006 Taiwan.
Supplier selection in industrial supply-chains: the case of Taiwanese agribusiness
Ng, Eric, Brown, Les, Hastings, Kathy and Cassidy, Frances. 2006. "Supplier selection in industrial supply-chains: the case of Taiwanese agribusiness." Ali, Yunus and van Dessel, Maria (ed.) ANZMAC 2006: Advancing Theory, Maintaining Relevance. Brisbane Australia 04 - 06 Dec 2006 Brisbane, Australia.
Exploring the major factors influencing consumer selection of travel agencies in a regional setting
Ng, Eric, Cassidy, Frances and Brown, Les. 2006. "Exploring the major factors influencing consumer selection of travel agencies in a regional setting." Journal of Hospitality and Tourism Management. 13 (1), pp. 75-84.
What motivates sports event tourists?: a synthesis of three disciplines
Cassidy, Frances. 2005. "What motivates sports event tourists?: a synthesis of three disciplines." Richardson, Jeni, Richardson, Kristy, Rogers, Margaret and Walker, Sandra (ed.) Women in Research Conference 2005: Women Doing research. Gladstone, Australia 24 - 25 Nov 2005 Rockhampton.
Satisfaction of Australian grey tourists to the Great Barrier Reef islands of Queensland
Cassidy, Frances. 2005. "Satisfaction of Australian grey tourists to the Great Barrier Reef islands of Queensland." Boyle, Alicia and Tremblay, Pascal (ed.) 2005 Council for Australian Tourism and Hospitality Education: Sharing Tourism Knowledge. Alice Springs, Australia 01 - 05 Feb 2005 Darwin, Australia.