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Look at What's Waiting to be Sold in Tourism industry

 The simple fact is that competition among travel industry suppliers is at an all￾time high, and it's increasing every day. Thousands of hotel rooms are opening

somewhere every day. Thousands of airline seats, hotel beds, cruise berths,

and tour-coach seats are all waiting to be sold, day after day. The travel

industry sells the world's most perishable products: An unsold seat or room is

revenue lost, forever.

The key is to sell those seats, berths, and beds—and to get paid for it.

The industry is very complex, though. Customers and travel industry

companies are very demanding. Expectations are rising as never before.

Everyone wants value for money: The highest quality, the highest standards,

and the highest professionalism at the lowest cost.

Products are becoming complex, too. Just keeping track of frequent-flyer

points, shifts in airline alliances, and the different offers from hotel groups can

make your head spin. There is more: new reservations systems, visa

regulations, fares, and terms and conditions (the fine print) attached to every

product.

Customers are not loyal. There are more suppliers to choose from, most just a

click away on the Internet. Consumers are constantly looking to try different

things, and they frequently change travel product sellers if they can find one

that offers them a lower price.

Things can, and do, go wrong. Weather conditions delay flights, or security

considerations require re-routing of a tour itinerary. Though these problems

seldom occur, sorting them out for demanding clients can take a significant amount of time, money, and resources, particularly for small and medium-sized

travel and tourism businesses.

The professional skills that you can develop will assist you in being prepared to

handle such challenges.

On the business side, the financial pressures of being a small or medium-sized

business operation can be heavy. Many such businesses, unable to manage

the pace of change and unable to compete, are being purchased by larger

global chains, which are themselves joining forces with other chains in order to

improve their negotiating power with airline alliances and global hotel chains.

This is affecting medium-sized travel agencies most. While the giant agency

groups can negotiate the best prices and compete amongst themselves for

market share and volume, based largely on price and diversity of product, the

small agents continue to do business with a select clientele that likes

personalized service and does not mind paying for it.

Medium-sized agencies will have to decide in future which way they wish to head.

3 comments:

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