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Business Q&A -- Ron Burgess What is the biggest misconception about travel agents and travel agencies? Many people believe that they can always get lower prices on travel through the Internet. The majority of the time, the travel agency is exactly the same or even lower, saving the traveler an average of 12 percent over the Internet price. Travel agencies provide a service after the sale, they are not just an airline ticket mill. The next time you book your ticket on the Internet, ask if there is a 24/7 toll-free traveler's assistance telephone number for after-hours service, or how do you deal with exchanges, updated flight information, or seating availability. Travel agencies provide a service to travelers that the Internet cannot. Purchase an airline ticket online and try to make a change to your travel plans - you can't. What is one thing that you would change about the travel industry ? Make the airlines operate like a real business. The government needs to quit protecting them and make them pay for the outrageous treatment of travelers. Do you know any other business that can treat the consumer as poorly as airlines do, with all their ridiculous rules, and not get sued? If you buy a ticket today and change your mind, you should be able to use that ticket whenever you want (based on seat availability), and if you decide you want to give it to anyone else instead, why can't you? How do they get away with it? Because they can. Travelers should not be penalized $100 if they have to change the date of their travel. If they want to change the name on the ticket, they should be allowed to do so. The airlines have a variety of rules when purchasing tickets (i.e.: date of purchase, Saturday-night stay, etc.) that do nothing but penalize the traveler. How has corporate travel business changed recently ? Many businesses have cut back on their corporate travel, instead using conference telephone calls and Internet video-conferencing. How have online capabilities affected the business ? Some business people take the time and effort to research fares but online ticketing is highly restricted with severe penalties. A local corporate client has saved in excess of $17,000 this year by using the travel agency services in comparison to Internet bookings. A recent report shows that the airline industry is encouraging corporate travelers to go directly to the Internet because the majority simply accept the lowest price shown, not realizing that travel agencies have all the rates, all the available seats and all the restrictions. The airlines have said that, statistically, an individual booking on the Internet increases their profits by 17 percent! The "extra miles" people receive don't affect the airlines at all. Again, the usage of mileage awards is very restrictive, people cannot always use their awards for travel or upgrades at the time they want to travel. Savvy vacation travelers know that a travel agency provides the best information on destinations and cruises. Travel agencies have experienced travel counselors who have cruised or visited vacation destinations around the world and they can give personal experience and knowledge. The Internet shows pictures and rates; there is no personal touch. Does the Rogue Valley face unique circumstances for travel? Yes, we are only serviced by two airlines, making for minimal competition. The rates flying out of Medford to San Francisco or Seattle can be higher than flying from either of those two cities to a destination across the country! Why do the airlines, cruise lines, hotels, etc., have different prices for the same seat or room? It's a simple case of supply and demand. For example, there are "high seasons" and "low seasons" for hotel rooms. The room you had this past summer in downtown New York may have cost $300 a night, but this winter it may drop to under $100 a night. The issue price for a ticket to see "The Producers" on Broadway is $35; but you can expect to pay considerably more because tickets are not always available. The seat you occupy will not be any different at $35 than at $400. Airlines allot a certain number of seats for mileage-award bookings and advance bookings. Once those seats have been sold, the next tier price goes into effect Will the airlines' recent cut in travel agent commissions (from a maximum $50 down to $20) hurt your industry? Of course, it hurts us. But we just have to revamp and redo our business plans and do what we can to work with the airlines and have them work with us. People relying strictly on airline tickets for the bulk of their business may find it difficult. The airlines are trying to drive customers directly to them. To suggest a subject for this column, please contact business reporter Greg Stiles at 776-4463 or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.