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Should advisors reconsider air travel bookings amid surge?

The Rise of the Travel Seller

In the travel industry, the rise of the travel seller has been a significant development in recent years. Travel sellers, also known as travel agents, have become increasingly important in helping clients plan and book their trips. With the rise of online booking platforms, many people have turned to travel sellers for personalized advice and guidance. Key benefits of working with a travel seller: + Personalized advice and guidance + Access to exclusive deals and discounts + Ability to book complex itineraries + Assistance with travel documentation and planning

The Shift in Commission Structure

The commission structure for travel sellers has undergone a significant shift in recent years. Airlines stopped issuing automatic commission checks for services such as hotel bookings 30 years ago. This change has led to a shift towards a more dynamic and flexible commission structure. How the commission structure has changed: + Airlines no longer issue automatic commission checks + Travel sellers must now negotiate commission rates with airlines + Commission rates vary depending on the airline and the type of service + Travel sellers must also consider other factors such as fuel surcharges and taxes

The Impact on Travel Sellers

The shift in commission structure has had a significant impact on travel sellers. Many travel sellers are now forced to ask clients, “Do you need a hotel with that?” in order to generate revenue.

  • ## The Rise of U.S. Travel Agency Air Ticket Sales

    • The Rise of U.S. Travel Agency Air Ticket Sales

    The U.S. travel industry has experienced significant growth in recent years, with air ticket sales being a major contributor to this trend. In October, U.S. travel agency air ticket sales reached a staggering $8.1 billion, marking a 9% year-over-year increase.

    Key Statistics

  • Passenger trips reached 7 million
  • Average ticket price remained steady at $50
  • 9% year-over-year increase in air ticket sales

    • Factors Contributing to the Growth

    Several factors have contributed to the growth of U.S. These include:

  • Increased demand for travel: The U.S. economy has experienced a period of growth, leading to increased disposable income and a desire for leisure travel. Improved air travel infrastructure: Advances in air travel technology and infrastructure have made air travel more accessible and affordable. Growing popularity of international travel: The U.S. travel industry has seen a significant increase in international travel, with more Americans seeking to explore destinations around the world. ## The Impact on the Industry**

    • The Impact on the Industry

    The growth in U.S.

    The Rise of Online Travel Agencies (OTAs)

    The COVID-19 pandemic has accelerated the growth of online travel agencies (OTAs) like Expedia, Booking.com, and Airbnb. These platforms have become the go-to destinations for travelers seeking convenience, flexibility, and affordability.

    The Rise of Air Travel in the Agency Business

    The air travel market has experienced significant growth in recent years, with a substantial increase in bookings made through agency platforms. This trend is expected to continue, driven by the increasing popularity of air travel among consumers.

    Key Statistics

  • 11% of agency gross bookings are made through air travel
  • Most air bookings are made through agent-facing platforms, suppliers, or GDS systems
  • The air travel market is expected to continue growing, driven by increasing consumer demand

    • The Role of Air Travel in Agency Business

    Air travel is a critical component of the agency business, accounting for a significant portion of gross bookings. The majority of air bookings are made through agent-facing platforms, suppliers, or Global Distribution Systems (GDS). These platforms provide agents with access to a wide range of airlines, routes, and fares, making it easier for them to book air travel for their clients.

    Benefits of Air Travel for Agencies

  • Increased revenue streams: Air travel bookings can provide a significant source of revenue for agencies, particularly those that specialize in travel services.

    This service offers a range of benefits, including:

  • 24/7 customer support
  • Personalized travel planning
  • Exclusive discounts on flights
  • Access to a dedicated travel agent

    • The Benefits of Air Desk

    Air Desk is designed to simplify the air ticketing process for Signature members. With its end-to-end air services, members can enjoy a seamless travel experience. Here are some benefits of using Air Desk:

  • Convenience: Air Desk offers 24/7 customer support, ensuring that members can get help whenever they need it. Personalization: The service provides personalized travel planning, taking into account the member’s preferences and requirements. Discounts: Members can enjoy exclusive discounts on flights, making travel more affordable. * Dedicated Agent: Access to a dedicated travel agent provides members with expert guidance and support. ## How Air Desk Works**

    • How Air Desk Works

    Air Desk is powered by Frosch Travel, a reputable travel agency. The service is designed to be user-friendly, with a simple and intuitive interface. Here’s an overview of how Air Desk works:

  • Booking: Members can book flights through the Air Desk website or mobile app. Planning: The service provides personalized travel planning, taking into account the member’s preferences and requirements. Support: Members can access 24/7 customer support, ensuring that any issues are resolved quickly and efficiently. ## Additional Channels for Streamlined Air Ticketing**

    • Additional Channels for Streamlined Air Ticketing

    Signature members have access to several channels for streamlined air ticketing, including:

  • Air Desk: As mentioned earlier, Air Desk offers end-to-end air services for Signature members. Frosch Travel: Frosch Travel is the power behind Air Desk, providing expert travel advice and support.

    Frosch offers flexible agency models to support different business needs and preferences.

    Agency Models

    Frosch offers two agency models to cater to different needs and preferences. These models are designed to provide flexibility and convenience for agencies, allowing them to focus on their core business while leveraging Frosch’s expertise in airline ticketing.

    GDS Model

    The GDS model is designed for agencies that are already familiar with Global Distribution Systems (GDSs) such as Amadeus, Sabre, or Travelport. In this model, Frosch acts as a third-party provider, connecting agencies to the GDS and facilitating the booking process. Key benefits of the GDS model: + Agencies can maintain control over their ticketing operations + Frosch handles the technical aspects of airline ticketing + Agencies can focus on their core business

  • Example: A travel agency with extensive experience in using GDSs can partner with Frosch to offer a wider range of airline options to their clients. ### Air Desk Model

    • Air Desk Model

    The air desk model is designed for agencies that want full-service handling of their airline ticketing needs.

    However, consolidators may charge higher fees than traditional airlines.

    Consolidators: The Game-Changers in Private Aviation

    The Rise of Consolidators

    In the world of private aviation, consolidators have emerged as a game-changer, offering flexibility and convenience to advisors and their clients.

    The Rise of Private Jet Charters

    Private jet charters have become a staple in the luxury travel industry, offering an unparalleled level of convenience and exclusivity.

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