Sunday, December 20, 2009

Having goals helps your business

For years now I have a made a few goals for my business for the New Year.  You should make the goals achievable.  Something as little as increasing your sales by 5% can really help motivate. 

This year my main goal is to use technology to help the agency.  We have been looking into the different options for online bookings as well as automating things for the agency. 

Our past goals have been getting to the highest levels of commission with suppliers like Carnival Cruise Lines and Royal Caribbean.  When we met those goals, it felt like such an accomplishment. 

Being a homebased agent means you have to find ways to stay motivated and know that only you can make your business a success.  Finding ways to help you continue to increase sales and go after business is 1/2 the battle!

I think 2010 will be our best year yet. 

Thursday, December 17, 2009

Why I became a travel agent

Believe it or not, being a travel agent was not what I originally planned on for a career.  I wanted to be a preschool teacher but decided that it would be hard to work full time with children and then come home to my own children.  I went back to my notes from high school where I took a test that gave ideas for careers based on your answers.  I saw travel agent as one of the options.  So with a leap of faith I went to travel school.

I had a hard time memorizing the airport codes but made it through the classes.  I got hired by a travel agency before I even graduated from school.  I really enjoyed travel.  It felt like a puzzle most of the time trying to fit together all the pieces in order to plan that perfect trip. 

Once I had my son, I realized I could not go back to work.  It was too hard to leave him each day knowing I could miss the basics (first roll over, first step etc..) so with the support of my husband I started Dugan's Travels.  It was the best decision of my life.  I was able to be a full time mom at the same time build an incredible business. 

I met other work at home moms online (thru dial up.. yikes) and began tutoring other moms on the travel business.  That was another fun aspect of my job.  I loved teaching others what I knew.  We began working together in order to build our sales.  In fact, one of my very first students is now the manager of the agency!

Now that our agency has grown so much in the last 10 years, I am now focused more on the business side of things and do not get to do as much travel as I would like but I still enjoy having my own business.

For those who also are homebased travel agents, I wonder why you decided to become a travel agent?  Would love to hear your stories!

What is a homebased travel agent?

A travel agent books travel for customers and is paid by suppliers a commission on the booking. For bookings that suppliers do not pay a commission on, a travel agent also can charge the client a service fee for his/her time. An example is if you were to book a hotel for a client, the hotel would then send a check to the agency after the client checked out. Most hotels pay 10% of the price of the hotel before taxes and fees. A $100 per night hotel reservation would mean $10 a night for the travel agent who made the booking. This hotel would cost the same whether the customer uses a travel agent or books through the hotel directly. In many cases the travel agent can get a better price. It costs the customer nothing to use the travel agent unless the travel agent charges service fees.

Can anyone do this? In order to work with suppliers, you must have an account set up with the supplier. Most require an agency to hold an IATAN, CLIA or ARC number. IATAN stands for International Airlines Travel Agent Network. CLIA stands for Cruise Lines International Association. ARC stands for Airline Reporting Corporation. Each of these memberships requires different things including sales, money in the bank, experience or training in the industry, and membership fees. Many will require Errors and Omissions insurance of $1,000,000 or more.

For the average travel agent, membership is not a possibility with some organizations so the agent will team up with an agency and work as an independent agent or outside agent. There are also advantages of working with an agency because most travel agents cannot make enough in sales with a particular supplier to obtain higher commission levels and bonuses. Working with an agency with many agents can increase the commission percentages the agent gets because of the joint sales of all the agents at the agency. Support is also a very important aspect of being a successful agent. Agents who do not work with others tend to feel more isolated and have to learn to do it all solo. Since no agent can have the experience of being everywhere in the world or staying at every hotel or resort, having others that you can get advice from is really helpful.

The future of travel agencies is always questioned. The truth is the industry has changed in many ways. Some changes were for the better, some for the worse. Many airlines have cut commissions for travel agents. However, there are many other suppliers who are paying travel agents more than they were ten years ago. Cruises used to be booked by only the rich and now people in every income book cruises. Each year more and more people go on cruises. Most people say they want to go on a cruise at least once and many who go on their first come home to want to book another.

You can earn commission on many travel reservations.

Hotels

Rental Cars

Tour Packages

Cruises

Some airline tickets

International airline tickets

Travel insurance

Ground transportation including limos

Attraction tickets

Train tickets

Plus many other things

People all need travel arrangements at some point in time. Those who take road trips need hotel reservations. Those who need to travel for business need airline tickets, rental cars, and hotel reservations. Families want to experience vacations with their loved ones. People visit family and relatives. Most people who win money say they are going to spend it to take a nice vacation. Newly married couples go on honeymoons. You are not selling something that is hard to sell. People contact you for help; you are not calling them or approaching them trying to sell them something they don’t want.

Educating the public is the main thing any travel agent must do. Most people put travel agents into the same category as real estate agents. They believe it costs additional to use a travel agent. This is untrue. In many cases a travel agent can get a better price than the general public through the suppliers who work only with travel agents. Many people do not know all the options for booking a vacation. A good travel agent does. Once people are educated on how a travel agent gets paid, they are more willing to work with travel agents. If a person knows that if he or she let you book a hotel and it will cost the same price regardless, she or he will work with you. It is important to let people know how you can help them save time and money on their travel arrangements.

So how do you get into the industry? Many people think they must go to school or become certified. This is not true. You can get into the industry and begin training. I don’t recommend anyone spend thousands on a travel school until he or she knows this is a career that he or she will really want to pursue. The truth is you do not have to spend thousands to get trained. There are many courses free to travel agents from suppliers. There are also organizations such as ICTA (Institute of Certified Travel Agents) who offer courses as you get more years experience in the industry. CLIA also offers courses. There are some agencies that will offer training. Even if you decide this is a career you would like to pursue, you do not need to spend thousands to become an educated and competent travel agent. There are many courses you can take with suppliers and organizations to get a better education in travel. I truly believe a hands on approach is the best way to become a better travel agent. Learning to work with suppliers and how to find the information your clients need is an important part of becoming a good travel agent.

How can you find an agency to work with? There are a few organizations dedicated to independent travel agents. NACTA and OSSN are the top organizations. NACTA stands for National Association of Commissioned Travel Agents. OSSN stands for Outside Sales Support Network. You can also search online for home-based travel agent programs. I would never recommend anyone spending a lot of money to start this business. It is key to first try and see if it is something you would really want to do and get training before you invest too much money into it. Get involved in the industry first and see if it is really a career that is best for you.

For more information, you can visit

http://www.travelathome.com/

I also have an ebook on this website with more detailed information.