Suggested Readings
Introduction
Tell me about the travel and tourism industry?
The Travel and Tourism industry is one of the largest and fastest growing industries in the
world. It encompasses a variety of specialized endeavors including travel agencies, airlines, hotels, car rentals, cruise lines, tour operators, local attractions, motor coach companies, railroads, and many others.
How do travel agencies fit in?
Travel agencies employ a number of people in a wide variety of jobs, ranging from entry-level clerical support to highly trained and specialized travel consultants. The average traveler, must depend upon the professional travel agent for honest and accurate guidance because they are faced with a hundreds of alternatives for transportation, accommodations, and other travel services
Travel agents in the United States issue approximately 75% of all airline tickets and account for approximately 95% of all cruise sales. Approximately $50 billion worth of tickets were
purchased through U.S. travel agencies for both international and domestic travel last year.
Travel Industry Outlook
Are there jobs available?
Yes. Travel has evolved into economic prominence as the second largest business in America. According to the US Department of Commerce, by the year 2000 travel and tourism will be the number one industry in our country. Currently 6.7 percent of our Gross National Product (GNP) is generated by the travel and tourism industry. Tourism generates jobs, more than any other industry except health and business services. Tourism's payroll was 83.4 billion in 1990, with over six million jobs.
Is the travel agency business highly competitive?
Yes again. As a result of airline deregulation in 1978 and other industry factors, the travel agency
business has become increasingly competitive. New industry trends have forced travel agencies to become more creative in their marketing and advertising efforts. Travel agents have found it necessary to cultivate new fields to keep their profits high enough to sustain their agencies. Group travel, incentive travel, travel clubs, and corporate contracts are more important to travel agents than they were a decade ago.
Working as a Travel Agent: The Job, The Benefits
What about training?
Training is essential in preparing for a career as a travel agent. Colleges and universities offer two
and four year curriculums in travel and tourism along with vocational schools that teach basic
travel agent skills in six to eighteen weeks. In addition, some larger travel agencies offer their own training programs. A travel agent has a wide variety of responsibilities. Job specialization does exist, but there are many functions that all agents perform. Travel agents are sales people, advisors and counselors, bookkeepers, ticketing agents, file clerks, receptionists and geography experts.
What skills do I need?
You'll need general business skills, good selling skills, the empathy of a counselor, and the knowledge of a seasoned traveler. It is beneficial to have a background in geography, communication, world history and computers.
In one day, a travel agent may make flight, hotel and car reservations for a business traveler going to Los Angeles and book a three-week safari to Kenya for a family. They suggest either independent or escorted tours and optional local sightseeing trips, answer questions about passports and visas, and may be asked to suggest a good local restaurant in Paris.
Travel agents need to know how to use reference directories for hotels and tour operators. They rely
on computers for up-to-date information on airline schedules and fares as well as hotel, car rental and tour information. They must also be familiar with customs regulations, visas and health permits. Travel agents should be able to provide helpful travel tips to clients traveling all over the world.
What is the work environment like?
Travel agents are often desk-bound for much of their working time. They are constantly in contact with clients either face to face or via the telephone. Much of their work is detail oriented and repetitive. The main goal of the travel agent is customer satisfaction so that clients will return again whenever they need further travel assistance. A travel agent must also be patient and able to work under pressure. Working with people can be difficult, specially hard-to-please clients.
Most travel agencies are small with fewer than ten employees, each handling all types of business.
In larger agencies, agents may specialize in either vacation or commercial travel. Office hours are arranged to suit the particular need of the agency's clientele. The majority of agencies schedule employees for a 40-hour work week. Agents may spend some of their non-selling time marketing travel and promoting their agency's strengths.
What about the pay and benefits?
Agency income is derived primarily from commission paid by airlines, travel suppliers, and tour operators. Commission percentages vary. Many suppliers typically pay 10% of the total price.
The primary method of compensation for inside sales agents is salary only. According to a recent survey, agent salaries range from $12,000 for an entry level position; to about $18,000 for agents with five years of experience; and about $23,000 for managers.
Travel agents salaries and benefits depend on experience, seniority, size and location of the firm. Benefits may include medical insurance plans, sick leave, holiday vacation, and familiarization trips.
Is This the Career For You?
Travel is one of the largest industries in the world and offers many benefits to hard-working individuals. It is demanding and requires a wide-range of abilities for success. A love of travel attracts many people to the field. But to succeed, agents must have a genuine desire to be of
service. They must be friendly, articulate, and well groomed. To handle the technical aspects of their
work, they must be well-organized, accurate and meticulous. You should make a thorough investigation by visiting travel schools and agencies before deciding if you are suited for a career in travel.
Suggested Readings
"Your Career in Travel & Tourism", Merton House Publishing Company, 937 West Liberty Drive, Wheaton, IL 60187.
"The Travel Agent" - Dealer in Dreams", Kendal/Hunt Publishing company, Dubuque,IA.
"Flying high in Travel: A Complete Guide to Careers in the Travel Industry", Karen Rubin, John Wiley & Sons, Inc., Publ.
Choosing a Travel School
There are a number of educational opportunities for a person desiring to enter the industry. Although on-the-job experience with an existing agency was once the most common source of training, most agencies now require a more formal education such as:
Proprietary Schools: Day and night courses are offered by numerous travel schools, travel agencies, and other organizations. Contact your local State Board of Education for more information.
College Level Courses: Many community colleges and several universities offer courses in tourism and travel management. Courses are offered at both the graduate and undergraduate levels. For information regarding schools that offer such courses in travel and tourism, contact your local State Board of Education.
How to Find a Good Training Program
It is important that you carefully investigate and research all the professional travel training possibilities and educational opportunities before making any decisions.
First of all, remember that being a travel professional requires certain skills and knowledge. Attending a school to help you acquire these skills may make you more marketable.
With this in mind, you may want to ask the following questions to the representatives of the
educational institutions you are considering attending:
Has the school been "approved," "registered," or "licensed" by the State Post secondary Education Bureau or a recognized accreditation association?
If there is no such indication of "approval," "registration," or "license" in the school's catalog or brochure, check with the State Department of Education within the state where the school is located. For additional information, you may also want to contact the Better Business Bureau in the city where the school is located.
Who teaches on the faculty?
How many members of the faculty have recent travel industry experience or certified travel counselor (CTC) designation?
Are they professionally active within the travel and tourism industry?
What does the curriculum offer?
Does it offer travel courses in: Geography, Fares/Ticketing/Tariffs, Industry Forms and Procedures, Automation, Sales, Marketing, and Travel
Industry Operations?
Does the school provide for internships?
Does the school offer extra curricular activities?
Is the course of study of sufficient duration to adequately cover the curriculum advertised?
What kind of hands-on airline computer training is available? Does it teach both domestic and international reservations? Does the training cover accessing airline availability, pricing, selling, creating passenger name record (PNR), booking hotel, car rental, and rail reservations?
How long has the school been in operation?
Is the school a member of ASTA (American Society of Travel Agents)?
Does the school have a good relationship with the local travel agency community?
Does the school have an advisory board of active travel industry professionals?
Does the school offer placement assistance for graduates? If so, what is their success ratio?
Feel free to ask if there are any graduates of the school who are working in the area whom you can
contact. Ask working graduates for their evaluation of the program.
Travel Agent Schools on the Net
- Bolack Total Travel Academy http://www.bolack.com/school.htm
- Small, highly personalized travel school located in Albuquerque, NM USA.
Toll Free +1 (800) 235-7172
Tel +1 (505) 881-1198
Fax +1 (505) 346-1188
- Boyd School http://www.boydschool.com/
- Post-secondary resident school offering Associate Degrees and Internships in Travel and Tourism and Hospitality Management
Toll Free +1 (800) 245-6673
Tel +1 (412) 809-5100
Fax +1 (412) 809-5320
- ETI Career Institutes http://www.travelschool.com/
- Offers specialized travel industry training programs, including Caribbean destination specialist and CRS programs. School locations in major cities throughout the USA.
Toll Free Tel +1 (404) 303-2929
- George Washington University - Department of Tourism & Hospitality Management http://gwis.circ.gwu.edu/
- Undergraduate and graduate degrees in tourism & hospitality management
- Grant MacEwan College http://www.business.gmcc.ab.ca/travel/
- Offers extensive hands-on training in live Apollo and Global-Matrix. Comprehensive sales, product and destination courses. ACCESS Level II Endorsement. Our quality graduates are in demand.
Tel 1 + (780) 497-5253
Fax 1 + (780) 497-4666
- Harcourt Learning Direct
http://www.harcourt-learning.com/programs/travel/careers.html
- The Travel Agent program allows students to train for a new career as a travel agent from the comfort of their own home, without attending classes or quitting their job.
Toll Free +1 (800) 275-4409
- Mid Florida Tech http://mft.ocps.k12.fl.us/
- Technical College with Travel & Tourism Department for the Education and Training of future travel industry professionals.
Toll Free Tel +1 (407) 855-5880
Fax +1 (407) 695-0315
- Mt. Hood Community College http://www.mhcc.cc.or.us/
- Community college offering Hospitality and Tourism Management degree and certificate programs.
Tel +1 (503) 491-7666
- New Hampshire Technical Institute http://www.nhti.net/
- Located in Concord NH, this two-year community technical college offers certificate programs in travel & tourism and hotel administration.
Toll Free +1 (800) 247-0179
Tel +1 (603) 271-7134
- Sullivan College - right here, right now. http://www.sullivan.edu/
- Kentucky's largest private college, offering travel and other programs.
Toll Free
Tel +1 (606) 276-4357
- Travel Education Center http://traveleducation.com/
- A nationally-accredited travel school for travel careers, offers Internet-based Distance Learning and on-site training. On-site locations in MA, ME and NH.
Toll Free +1 (800) 945-2220
Fax +1 (617) 349-1817
- Travel Tech - The Institute of Travel Technology http://traveleducation.com/
- Offers extensive home study classes designed to allow the student to develop skills in booking reservations for air, car, hotel, cruise and tours throughout the world.
Toll Free +1 (800) 373-3501
Tel +1 (918) 438-2219
- Tri-State Travel School http://www.travelcareers.com/
- Travel curriculum that gives each student a firm, broad-based knowledge of the travel industry and instills a high standard of professionalism. Also a Worldspan regional training center.
- World Span Training Sites and Travel Schools http://www.worldspan.com/Resource/training_schools.asp
- The key to a successful career in the travel industry is training. This is another list of schools on the net that specialize in WorldSpan training.
Starting an Agency in the U.S.
What kind of agency should I be?
A majority of travel agencies specialize in certain services or destinations. One important aspect of specialization concerns the type of clientele which a travel agency serves. In this respect,
there are corporate (commercial) agencies and vacation (leisure) agencies. The commercial agency caters predominately, or perhaps exclusively, to the travel needs of business travelers. This type of
agency actively seeks new corporate accounts and may enter into contracts with companies as their travel arranger.
The leisure agency, on the other hand, assists individuals or groups in making vacation or other
leisure travel plans. Many individual travel agents have specialized skills and work exclusively as either corporate or leisure agents. And, of course, there are travel agencies that provide services for
both business and vacation oriented travelers. Therefore, if you intend to enter the travel agency
field, it is important to realize that it is an exacting profession requiring specialized knowledge
and skills, adequate financing, devotion and willingness to serve the public in the best traditions of business and ethical conduct.
Agency Appointments
What is an agency appointment?
An agent, by definition, is one who is officially appointed by a principal. A travel agent may be
appointed by many different principals such as airlines, cruise lines, hotels, and other suppliers
of travel related services. In general, there are two ways in which an agent obtains these appointments. First, they may be appointed directly by a supplier, as is typically the case with hotels, car rental companies, and tour operators. In this scenario, the agent must contact each supplier directly to work out an agreement as to how bookings will be made and how commissions will be awarded.
The second option is for agents to be appointed by a coordinating body accepted by the various suppliers. This is a common practice among the airlines. The two coordinating bodies for the airlines are the Airlines Reporting Corporation (ARC) and the International Airlines Travel Agency Network (IATAN).
Note: If you plan to purchase an existing agency, keep in mind that the agency's
appointments do not automatically transfer to the new owner.
What does ARC do?
ARC coordinates three functions that add considerable efficiency to the manner in which airlines and travel agents deal with one another:
- ARC provides a mechanism that carriers may use to appoint travel agents;
- Agents appointed by ARC are entitled to use ARC standard ticket stock for issuing traffic documents on carriers that participate in ARC's Area Settlement Plan (ASP). Once an agency is listed by ARC, that agency is free to write tickets on the vast majority of domestic and international
carriers. Over 100 domestic and international carriers have given ARC their general concurrence;
- ARC contracts with a clearinghouse to provide weekly reconciliation of sales, refunds, exchanges and payment of base commissions to travel agents. Each week agents must submit a formal sales report to ARC.
Do I need an ARC appointment?
While agents are not required to be appointed through ARC if they want to sell airline tickets,
earn commissions, or obtain reduced rate tickets, the operational efficiencies offered by ARC's central appointment mechanism, standard ticket stock and ASP are so great, and without equal, that it
would be virtually impossible for a full service travel agent to compete in today's industry environment without an ARC appointment.
While in theory, carriers may appoint agents outside of the ARC framework, the administrative burden, paperwork, and processing costs that carriers incur by doing such is so substantial that most carriers are committed to ARC's mechanism for appointing travel agents. Similarly, most people who want to establish a full service travel agency will find it much less burdensome to file a single application with ARC than to approach numerous carriers on a one-by-one basis for appointments.
Agents appointed through ARC may order and use ARC standard ticket stock for issuing traffic documents on any carrier that participates in ARC's Standard Ticket & Area Settlement Plan (ASP), provided that the documents are validated on a carrier that has appointed the agent. The ASP enables agents to report and remit all transactions to all carriers, and claim base commissions, with one weekly report and check draft. ARC plays no role in determining commission rates or related policies of carriers.
How do I get an ARC appointment?
ARC requires all travel agents to obtain and maintain a bond or irrevocable letter of credit as a
condition for being appointed or retained as an ARC listed travel agent. Today,(1997) the minimum amount required is $20,000. There are two purposes for this ARC requirement. The primary purpose is to serve as a financial screen, a mechanism that assures ARC carriers of the financial credit worthiness of travel agents. Only those applicants that can demonstrate their financial credit worthiness to a bonding company or banking institution will be considered for an ARC appointment. This requirement helps prevent those who would be bad credit risks from becoming or remaining ARC listed travel agents.
The second purpose of ARC's bond/letter of credit requirement is to protect ARC carriers from
financial loss if a travel agency defaults on its obligations to ARC by improperly remitting sales
reports or if the agency files for bankruptcy.
Although some believe that travel agents bonds or letters of credit also protect consumers monies,
that is not the case. Agents financial security is payable only to ARC when an agency defaults.
How do I apply for a bond or letter of credit?
When the time comes for you to apply for an ARC bond or letter of credit, you can joint the American Society of Travel Agents or other societies representing Travel Agents. ASTA recommends two programs which offer preferred rates and terms to ASTA members. You can simultaneously apply for ASTA membership, ARC or letter of credit coverage under these programs.
A list of other bonding companies can be obtained by mailing a request for Circular 570 to:
Surety Bond Branch (Circular 570)
Financial Management Service
Department of the Treasury
Washington, DC 20226
Does ARC require anything else of me?
ARC has other requirements that agents must meet in regards to ticket security and agency personnel. For more information on ARC and their requirements contact:
Airlines Reporting Corporation (ARC)
1530 Wilson Blvd., Suite 800
Arlington, VA 22209-2448
Tel:(703) 816-8000 Fax: (703) 816-8104
So what is IATAN?
IATAN is the other agency appointing body of the airlines. Like ARC, IATAN lists agents who apply. IATAN appoints agents from a data base of carriers individual appointment standards. IATAN compares data from agent applications against each carriers standards. IATAN then appoints agents on behalf of those carriers whose standards the agent-applicant has met.
Carriers establish their own standards and, therefore, are not obligated to appoint agents that are endorsed by IATAN. Carriers may also appoint applicants rejected by IATAN and may appoint agents outside of the IATAN application process altogether. In fact, most international carriers appoint agents through ARC and participate in ARC's Area Settlement Plan, making it unnecessary for agents to also receive an IATAN appointment to sell tickets on many international airlines.
What's the difference between ARC and IATAN?
While appointment by ARC provides agents with access to standard ticket stock and the ASP, endorsement by IATAN does not provide these tools or functions. Agents do not have to be endorsed by IATAN to secure appointments from international carriers, sell international airline tickets or earn commissions. Each of these considerations can be accomplished via
appointment by ARC or directly from the carrier.
So why would I need an IATAN endorsement?
There is currently great debate over the question of why agents should obtain IATAN endorsement. At
this time there is one scenario where an IATAN endorsement is important. If you do business with
an international carrier which does not appoint agents through ARC, then endorsement by IATAN is probably necessary. Each agency should weigh
the benefits of an IATAN endorsement with the costs associated with obtaining that endorsement.
If you decide you would like to be endorsed by IATAN, you must meet certain financial, personnel,
location and ticket security requirements. In many cases, these requirements are identical or similar
to those of ARC.
IATAN requires agencies to demonstrate their tangible net worth and prove that they have
sufficient working capital. IATAN includes a balance sheet in its application packet. For more
information contact:
International Airlines Travel Agent Network (IATAN)
P.O. Box 2988
Plattsburgh, NY 12901-0269
Phone:(516) 747-4716
State Licensing
It is the State's responsibility to protect the health, safety and welfare of its citizens. Whether the regulatory scheme used is licensing, registration or certification, the requirements and procedures for entry into the profession should be clearly related to safe and effective practice.
Currently, there are 9 States that require some type of regulation, registration or certification of retail sellers of travel services: California, Hawaii, Illinois. Ohio, Rhode Island, Washington,
Iowa, Florida and Oregon. For specific requirements contact each states Attorney General's Office or
Department of Commerce.
The following publications have detailed information on starting a travel agency:
Guide to Starting and Operating a Successful Travel Agency By Laurence Stevens, Published By Delmar 1-800-347-7707
How to Open Your Own Travel Agencyby Douglas Thompson Published by Dendrobium 1-800-825-8444
Advantages of being an Independent Travel Agent
As an Independent Travel Agent you can:
- Get Money Back On every Business Trip & Vacation you take
- Get Paid Every Time Family, Friends, Clients and Others Travel if you help them plan their trip and book the trip
- Have all the advantages of the Industry, without being desk-bound or having the disadvantages of boring routine work.
- Choose when and where you will meet your clients
- Avoid the paper work and much of the repetitive detailed work done by inside Travel Agents
- Can specialize in either vacation or commercial travel.
- Have office hours arranged to suit your needs.Your host agency should have hours that allow you to contact them at your convenience.
- Work the hours you want and you are not restricted to a 40-hour work week.
- Have a love of travel and a genuine desire to be of service so you can get paid for doing what you love to do.
- Am paid on commission so the harder or smarter you work the more you make.
- Work with the Inside Travel Agents who are paid on salary to handle the technical aspects of the work. These people are well-organized, accurate and meticulous.
- Can take advantage of one of the best training programs for Independent Travel Agents
- Get paid for referring each new Agent
- Travel At the Lowest Rates Available Only to Travel Agents
- Earn the same Privileges as full time inside travel agents
- Reap the tax advantages of an independent business*
- Receive Travel Agent Discounts on Hotels
- Receive Agent Rates on Rental Cars
- are eligible to receive Upgrades - A Hotel Suite, A First-Class Seat
- are eligible to learn about the industry by taking "Fam-Trips" on Cruises and to Resorts
- Receive Free or Discount Admission to Theme Parks and Shows
- *Consult your tax advisor for details
Finally, be careful when choosing an agency. One organization NACTA, has set minimum operational and
ethical standards for professional host agencies and has identified numerousagencies that qualify located throughout the United States. Try
looking for a host that is more focused on working with professional Independent Agents and has a program to meet your needs. Each host agency offers unique benefits
to their independent agents and you should look closely at each host's program to establish their qualifications relevant to your needs. For a list of NACTA qualified host agencies visit the NACTA
web site and follow the "Hosts" link to the separate host agency web site.
I would also suggest that you educate yourself. NACTA is
currently offering "Home Based Travel Agent Workshops" throughout
the United States that deal with the exact issues you bring up here. To
find the nearest NACTA seminar just follow the "Meetings" link
on the NACTA web site. One of the largest Agencies is Incentive Connection Travel, the largest Host agency for Independent Travel Agents in the United States. Visit ICT's web site. I hope all turns out well for you as you research your options in this area.
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