Question

Topic: Strategy

Finding Alternate Revenue Streams -travel Agency

Posted by Anonymous on 8/3/2010 at 4:08 PM ET 25 Points
Given the Financial depression world is in. What are ways an agency can go about trying to unearth alternate REVENUE STREAMS (e.g. Travel Insurance, Purusing better paying vendors etc).

Can something be done on the backend like (Customer Segmentation) ?
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RESPONSES

  • Posted by CarolBlaha on 8/3/2010 at 4:27 PM Accepted
    travel accessories. Anything from bags to voltage converters. Packable clothes- no wrinkles, light and take no space. Using those plastic bags that let you squeeze the air out let me pack 10 days in one carry on bag. (the ones without a vac)

    When I went out of the country recently I wasn't sure what I'd need-- and spent a lot of time researching - would have been nice to have a one stop shop. Going to Italy-- you need .... include a fave travel book. A bunch of brochures on museums etc.

    Also, I learned how many tourists are robbed. I sat on the train and heard story after story. While you shouldn't plan for it, you shouldn't be stupid either. My friend had his wallet stolen. Now, in Europe did he need his library card, his ID for his plane hanger, his driver's license (we had passports) etc etc. If you leave that stuff at home in worst case scenerio you save yourself convenience. He thought he was smart by bringing duplicate credit cards which he put in another pocket. Sounds good, but they were duplicates of the same cards stolen. So one report missing, the one in his pocket (same # etc) isn't going to work either. So a practical booklet of common sense (but overlooked) things like that would have saved a few gray hairs. Practical guides to the subway system, the train system. Travel books don't discuss this stuff. You learn the hard way.
  • Posted by CarolBlaha on 8/3/2010 at 4:31 PM Member
    To add-- create a bridal registry. As someone recently married and mature couple, we didn't need the usual stuff-- combining households we were giving it away.

    So, we created a honeymoon registry. Our friends could contribute to a carriage ride, breakfast in bed, etc etc.
  • Posted on 8/4/2010 at 10:12 AM Author
    Any more examples ???

    Would anyone have access to any research articles(for above) with info on revenue ?
  • Posted by michael on 8/4/2010 at 2:37 PM Accepted
    Great answers already but the question is whether you can actually sell all those things. Most agencies don't promote the things they already have available to them.

    I'm thinking of PriorityPass as an example. Anyone can sell it, good value, reasonable commission.

    Take the luggage. What are you going to say? "Do you want some luggage?"

    Bottom line, you can look at your current customer base and find out what they're getting after the air/hotel/car sale. That's your target.

    Michael
  • Posted by CarolBlaha on 8/4/2010 at 10:07 PM Accepted
    I don't think luggage would be a good idea. But I spent over an hour finding a source and another hour plus finding the right bag that hugs to you so no one could have pick pocketed me -- and didn't

    As far as can they sell it. Of course. They don't know what they don't know. I didn't. And if Walgreens can sell gift cards for a flu shot (what a gift for Christmas yet)-- he can sell accessories for the trip he just booked

    https://247wallst.com/2010/08/03/the-daily-gimmick-flu-shot-gift-cards-wag/....
  • Posted on 8/5/2010 at 2:12 PM Author
    Very Valid arguments.

    You guys have been very helpful. If I could ask for one more favour:

    1) I tried looking for data/info on revenue potential of a) lounge passes b) Affiliate programs with Amazon and others
    3) Travel accessories
    4) Adventure Travel

    I did find some info but for most didn't find much.
    Would any of you know where shall I look to get more info on revenue potential of above?

    Also If you have more ideas on as to how to improve and increase revenue of Travel Agency(ies), by all means , please feel free to provide details.
  • Posted by michael on 8/9/2010 at 11:02 AM Member
    The problem with revenue figures is most agencies who sign up for lounge pass or SIM cards don't sell it so the numbers will be very low.

    You can either take the commission you get from Choice or you can become an affiliate and get their 5%. I'm pretty sure they're better at paying affiliates than agents..but you know that better than me.

    Switching consolidators is also another option. I know, you don't like to deal with them. But your competition is so just make sure you use a good one. Drive all your international thru them (unless the published fare is cheaper) and you'll become a valuable partner. Times have changed and they need your business.

    Michael
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