Travel Agent-v-Tour Operator

What's the best way to book your holiday?

The cost of overseas holidays for UK travellers can be artificially high because of the various margins added on by tour operators, travel agents, the cost of brochure production and distribution, and other overheads.

To offset this in part, some tour operators offer online booking discounts that travel agents cannot compete with because the discount offered is close to the commission otherwise paid to travel agents. The travel agent may do all the work but, if the client books direct, earns nothing; you can’t blame the public for wanting to get the best deal.

The pressure on margins and the particularly poor travel climate last year, due not only the economic situation and tour company bankruptcies but also the volcanic ash, has led to the decline in independent travel agents. Some that remain employ younger people who can be paid less but who do not have the first-hand knowledge of widely-travelled experts. The market is also increasingly dominated by a small number of holiday companies. So how does the consumer get good independent advice and a good financial deal?

The answer is that some UK travel agents are beginning to adopt the business model of those in countries outside western Europe where large tour operators don’t exist. Travel agents in those countries deal directly with organisations in the destination country, often called Destination Management Companies (DMCs). Travel agents add value not only through knowledge of the destinations but also in knowing where to find the best deals. Some receive a small commission from the DMC once a booking has been made while others charge a fee for their services.

In either case this direct approach means that the cost of the holiday tends to be lower than that using the traditional UK holiday booking methods. For example, a personally escorted ten-day tour of Vietnam, including an internal flight and cruise, costs from £700 per person. OK, you still have to spend perhaps £700 getting there and back but it is still hundreds of pounds cheaper than booking a similar holiday through a UK tour operator. Also, because DMCs deal with tourists from around the world they are not vulnerable to a decline in one or two markets. A reduction in UK travellers, damaging to a company here, would be offset by an increase in visitors from elsewhere, such as Japan or China.

So, if you want a run-of-the-mill European package deal from one of the major tour operators, then Google is probably your best friend. However, if you are looking for something different, with expert advice and ideas plus a great financial deal, find one of the new breed of travel agents who have thrown out the thousands of brochures that get delivered every year and offer personal advice and service. To coin an American phrase, you get a better bang for your buck.

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