1.4 Select sources according to commercial agreements and specific needs
As there are so many products on the market, it is necessary for a travel agent to focus on the specific needs of their target market, however they must also ensure that they endeavour to maximise commission in the sale process to benefit the business.
If a Travel agent wants to increase the commission on products that they sell regularly, they would try to negotiate with the supplier of the product, such as an airline or wholesaler, to make those products ‘preferred’. This means that the travel agent would recommend those products before other similar ones. The supplier of the product would then give the Travel Agent higher commission on each sale. This is a commercial agreement between the two companies.
Examples of how preferences are chosen are:
· one domestic air carrier on trunk routes over another, e.g. Qantas vs Virgin flying Sydney to Brisbane.
· one international carrier per region, e.g. Singapore Airlines or Malaysian Airlines.
and so on for each type of product and region according to customer needs.
Having preferred products also makes it easier for the travel consultant to sell, as they would know those products better than any others because they sell them regularly. Knowing the features so well, it would be easier for the consultant to nominate the benefits for each different type of client.
Even though you know your ‘preferred products’ better than all the others, do not just throw the first preferred product which comes to mind at the client – question: ‘Does this really suit this client’s needs?’ If it does not – use a non-preferred product. Better to have 10% of something, than 15% of no sale.
Other commercial agreements may also be in place for your organisation, particularly if the Agency or company you work for is part of a group. For example buying group arrangements may be in place, such as where you purchase your paper and stationery from or which Travel Insurance product you are to sell.

