If your agency currently has
airline override programs, its time for a review. Before you know
it, clients will be booking flights departing in first-quarter
2005, and you may not have your new program.
Will payouts for
overrides again be based on market share? Will they change to
revenue only? How about a combination of both?
There is too much
at stake for airlines and agencies not to finalize the objectives
as quickly as possible.
Here are the
aspects of the programs your agency should review before entering
into a new agreement:
standards higher by no longer accepting that you made the override,
but that you will achieve the highest payout level available every
quarter. Dont leave any money on the table by hitting at 2% or 3%.
Take every dollar offered to you.
Dont work with
too many airlines. Maximize your performance and payout with one or
two airlines. This way you will generate more revenue than by
having multiple agreements and earning 1%, 2% or zero working with
a variety of carriers.
Learn to measure
and manage your market share in house on a daily basis.
airlines that you require monthly feedback so you may better manage
your performance. You cant manage archaic information.
Ask airlines to
provide sales training programs that will help your travel agents
more effectively swing share.
Ask for the
expected market share, based on your past performance, for the next
calls that include you, your corporate accounts and the airline to
discuss programs that will differentiate the airline from its
competitors and provide win-win situations for everyone involved.
It is time for creativity. The current override programs are being
attacked by the low-cost carriers and have less impact and value
than they once had.
that trends are changing and clients are requesting low-cost
carriers more each day. That is why you should be financially
rewarded for booking all fares in all classes of
Time is running
out. Contact your preferred airline(s), provide input and create a
more meaningful partnership than in the past.
The legacy airlines
and the performing travel agencies need each other more than ever.
The override programs are a vital ingredient in warding off the
is an industry consultant, trainer and speaker. He can be contacted
at (919) 557-3844 or by e-mail at [email protected].