Why Travel Agents Can Offer Better Rates Than Online Bookings
Travel agents are often sought after for their ability to secure better rates and deals compared to what is advertised on prominent online travel platforms like Expedia and Orbitz. This article explores the reasons behind this phenomenon and explains how travel agents can offer their clients more favorable options.
The Expertise and Knowledge of Travel Agents
A good travel agent possesses the necessary skills and knowledge to find and secure better fares than the basic algorithms used by many online travel agencies. Not all travel agents have extensive expertise, but many do. One of the key factors is that some travel agents have contracted agreements with airlines that allow them to offer discounted fares to their clients. However, the most important aspect is that a knowledgeable travel agent understands how to look for the best fares and can utilize fare break options and alternative routings to secure lower prices.
Exclusive Hotel Connections and Reseller Margins
Travel agents do not have access to the full list of hotels for any specific location, unlike what you find on online search engines. Instead, most travel agents typically tie up with 1-2 hotels in different categories. When a travel agent secures a booking for a customer, it goes to one of these selected hotels. Since these specific hotels benefit from a consistent stream of bookings, they are more likely to offer better rates to travel agents as a result of the high sales volume. In the hotel industry, re-seller margins are always based on the sales that the agent brings in. The more sales an agent makes, the better their margin is, and thus the better the opportunity for them to offer lower prices to their customers. This concentrated sales approach means that travel agents often provide more favorable rates than what can be found online.
Beyond Algorithms: The Human Touch
Online travel agencies are essentially algorithms designed to search through vast amounts of data and provide the best options based on the parameters set by the user. However, a travel agent can make more informed decisions by considering factors like peak travel seasons, special event periods, and alternative hotel options. A skilled travel agent can often identify the best deals by leveraging their extensive industry knowledge and experience.
As a travel consultant for the largest retail travel company in the world, Flightcentre Travel Group, I have witnessed firsthand the advantages of working with a travel agent. The primary advantage is the sheer volume of bookings. Since the company handles billions of dollars worth of bookings annually, suppliers are more willing to offer favorable deals on behalf of Flightcentre, which can then be passed on to the end customers. Additionally, travel agents can provide personalized advice based on each client's specific needs and preferences, which is something a computer algorithm cannot do effectively.
Another key advantage of working with a travel agent is their ability to make real-time adjustments. If a client is willing to travel on a different date or to a different hotel, the travel agent can quickly find a better deal that suits the client's preferences. Furthermore, if a particular online booking site offers a cheaper option, the travel agent can "pricebeat" it and ensure that the client gets the best possible deal. This can result in significant cost savings for the customer.
It is also a misconception that everything advertised online is cheaper. Online travel sites are just algorithms and can only search for exact matches. A human travel agent, on the other hand, can use their experience to find the most favorable options and offer personalized advice. It always pays to at least discuss your travel plans with a travel agent, as they can save you a lot of money and ensure a seamless travel experience.
In conclusion, travel agents possess the expertise, knowledge, and connections that allow them to offer better rates than online travel platforms. Whether it is through contracted airline deals, exclusive hotel bookings, or their ability to make real-time adjustments, travel agents provide a valuable service to their clients. It is always a good idea to consider working with a travel agent when planning your next trip.