About
I know a lot of good people in the travel industry and all they ever asked is that they make a decent living wage for what they do……and the majority of them can’t. And that doesn’t make any sense. America is now a service based economy, and the products travel professionals sell are big ticket items. So what gives?
Is it the Agency Owners? Definitely Not. From what I understand, after paying their people, agency owners barely have enough to keep the lights on, never mind sustaining a recurring marketing plan such that the phones keep ringing. An if fact, their hope for annual profitability lies in the override checks suppliers issue to well performing agencies. But that is but a gift at best. So What Gives.
That leaves the travel suppliers (Cruise Lines, Air Lines, Tour Operators, etc.) as the culprit. It’s not rocket science. In the minds of all travel professionals, there is a general consensus that suppliers need to pay out more in commissions. After all, they raise retail prices all the time, certainly, they can fold a commission increase in their retail pricing. But can they?
Travel Suppliers have a keen understanding of the retail market. They know the price point at which their products are best received by retail consumers in the current economic environment. The only reason they raise retail prices is for inflation or an increase in their cost of sales incurred when providing their travel product.
Fuel, food, air, marketing, maintenance, employee labor, as well as the need to maintain a profit margin for wall street are all elements that directly affect their retail pricing model. Travel suppliers are somewhat powerless in negotiating these types of costs. Thus, any increases in these costs to the supplier directly cause an increase in the consumer retail price.
For their sales distribution cost of sale element however, they are not powerless. In fact, because they have many subcomponents of their sales distribution channel (agencies, internet direct sales, etc.) if one channel exerts cost of sales pressure, they can ignore it knowing full well that another subcomponent will pick up the slack if an Off Sell strategy is implemented by that squeeky subcomponent (agency, professional trade organization, etc.). Translating…..No Commission Increase For The Travel Agent.
Travel Suppliers, any business for that matter, will always try to minimize their consumer retail price increases attributed to increases in cost of sales. If the business can keep their costs fixed for any one component of their cost of sales such that they do not have to factor that in to a retail price increase, they will. And thus, because they don’t have to raise retail prices as a result of a pay increase to agents and agencies, they won’t. Which means, in essence, the agent does not get a pay raise.So the agency, agent needs to implement cost cutting measures at their own level in order to realize an increase in their profitability. The agency isn’t going to be getting a pay raise anytime soon. So comes the existence of CruisePak
| CRUISEPAK IS DESIGNED WITH THE INTENT OF PROVIDING THE AGENCY WITH A MEANS BY WHICH THEY CAN INCREASE REVENUE WITHOUT INCREASING COSTS THEREBY LEADING TO INCREASED PROFITABILITY. |
My name is Paul, and I am the primary developer of the CruisePak. I’m married, have two daughters, a dog, and a cat. I hope that you find value in your exploration of CruisePak which has become, over time, more of an offensive weapon in an agency/agent’s business arsenal.
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