Understanding UK Travel Industry

"50% Discount!"visa and health requirements, changes to bookings
"Cut out the middle man"etc).
"Its cheaper on the web!"* there could well be identical (or very similar
"Free Insurance for a year!"holidays) available cheaper with other tour operators,
"Book direct and save!"but of course,the direct sell operator will not be
"No Booking Fee!"offering competitors products to the client, unlike a
Are you confused? Do you know the differencegood independent travel agentwould. Equally there
between a travel agent, a tour operator and acould be more suitable holidays available with other
consolidator. Do you know who is offering the besttour operators.
deals? Is free insurance and 20% discount betterOur advice: - only buy from a 'direct sell' operator if
than 50% discount? The UK travel industry is ayou are absolutely sure exactly which holiday you
minefield and mine detectors are nowhere to bewant and that no other operator does it cheaper.
seen.'The Travel Industry Uncovered' is our attemptTRAVEL AGENTS
to unravel some of the confusion andadvise you on=============
the way. We don't pretend to be unbiased and weTravel Agents are agents for tour operators.
acknowledge that our opinion doesn't necessarilyGenerally, they sell package holidays (and other
reflect the opinion of others in the business, but weproducts/services) on behalf of the tour operator
do try to be honest and give the facts as we seeand are paid a commission or fee by the tour
them. Hopefully you will find the pages useful.operator for doing so. In addition to package holidays,
TOUR OPERATORSmost travel agents will offer other products and
==============services such as:
Tour Operators put together the various elements of* Travel Insurance
a typical holiday and sell them as package* Flights
holidays.They sell their packages either direct to the* Car Hire
public and/or through travel agents. The cost of a* Ferry Crossing
holiday can vary greatly between touroperators (see* Train Tickets
examples). If they sell through travel agents, they* Advice and information
pay a commission (usually a percentage of theIndependence
holiday price) to the agent.Most people are familiar============
with the large tour operators such as Airtours,Many of the large UK chains of High Street travel
Thomson and JMC. Such touroperators offer a vastagents actually belong to companies that also own
range of holidays and a vast range of destinations,the UK's major tour operators. We class these as
and their buying power ensures reasonable'non-independent'.Independent travel agents are those
prices.However, never forget that there arethat are independent of their suppliers,and usually,
thousands of other tour operators out there. Manytherefore, have greater freedom to supply a wider
are small operators, specialising in specific markets orrange of products from a wider range of tour
specific destinations. and their prices can be veryoperators In our view, non-independent travel agents
competitive.Tour Operators come in for a lot ofwill always have great difficulty in offering a totally
criticism from consumer groups and watchdogs.unbiased service to their clients.
Whilst, there are, of course, very good operatorsRange of Products/Services
and very poor operators, we believe that in general,==========================
customer service in the travel industry leaves a lot toThe range of products/services offered varies from
be desired (at all levels, including operator to agent,travel agent to travel agent. In particular, the number
agent to the consumer and operator to consumer).of tour operators supported by agents varies
Direct Sellconsiderably.Most 'High Street' travel agents will
===========actively promote and sell only certain tour operators'
Some tour operators will only sell their packageholidays. Their 'racking policies' dictate which
holidays direct to the consumer, bypassing the travelbrochures they will display in their shops and this is
agent. Other will sell through travel agents and alsogenerally determined by commercial agreements with
direct to the consumer and others sell only throughtour operators. Basically, the more commission the
travel agents."Is it not cheaper to buy direct then?",operator pays, the better chance of their brochures
you may ask. The answer is "well, perhaps sometime,being racked. Further, if a travel agent is
if ... and but...". Let us explain...First we need to clearnon-independent, this can greatly influence which tour
up a misconception which has evolved from aoperators are promoted.These policies limit the
deplorable series of TV advertisements. Thesenumber of tour operators that are actively promoted
advertisements were designed to discredit travelby sales staff. Holidays from many operators are not
agents. One in particular, indicated that travel agentssold at all.At Holiday Bargains, we are often asked by
ADDED commission to tour operators' prices andour clients, " Well why did Lunn Poly not offer me
therefore charged the client MORE than the quotedthat one?" (for "Lunn Poly", you can also read other
prices. This is totally inaccurate and resulted in'High Street' travel agents). The difference is that we
complaints to the ITC (Independent Televisiondo not operate a 'racking policy' and we will not
Commission), which were upheld. The ITC alsorestrict our range of suppliers based on the
required the broadcaster to cease furthercommission that they pay. more
transmission of the advertisement in its currentCoincidently, at the time of writing this document,
form.The truth is, clients booking through travelone of our Holiday Bargains consultants has had an
agents do NOT pay more than the operator's quotedenquiry from an employee of a major 'High Street'
prices. In many cases, they actually pay less than thetravel agent, who was, apparently, unable to find the
operator's quoted price because travel agents oftenholiday she required at the same price as we could
give some of their commission back to the client as aget. (We found the holiday with a smaller operator
discount. Further details and the ITC's ruling iswhich isn't part of the same group as the travel
available here.Right, that's that out of the way - backagent).
to the question and the answer...Generally, there isChoosing a Travel Agent
little advantage buying direct from a tour operator=======================
who also sells through travel agents. The tour(Yes, its obvious what's coming, but we passionately
operators do not want to alienate the travel agentsbelieve it..) Our advice is to always book through an
andconsequently, you can usually get similar pricesindependent travel agent.This will not guarantee
from both travel agents and 'direct'.Tour operatorsexcellent service and prices, nor will booking with a
who only sell direct to the public can offer goodnon-independent agent guarantee poor service and
value. They don't pay commission to travel agentsprices. However, we believe that you will be more
which should allow them to sell holidays a littlelikely to get:
cheaper than if they did. However, bear in mind that:* truly independent advice and guidance
* the tour operator has the extra cost of supporting* an agent with the freedom to use a wide range of
the client that would traditionally be borne by thetour operators and other suppliers.
travel agent (resort and accommodation information,