ill Murray -- the consolidator, not
the actor-comedian -- understands that a lot of travel agents
remain bitterly angry at the airlines. But if they can get over it,
he says, they can make money selling airline tickets.
A lot of money.
Despite the recent closure of Travac, a New York-based
consolidator, Murray notes that a number of air-only suppliers are
helping travel agencies overcome zero commissions and make
substantial profits.
Unitravel, the company that Murray serves as vice president and
chief operating officer, is an example. The St. Louis-based firm,
in operation since 1968, has evolved from its early days of selling
mainly coach seats on long-haul flights to a new era in which it
offers a far more varied inventory.
"In the early years, we did nothing but international coach
fares," Murray says, "but these days, we have access to the front
of the planes, and quite a lot of domestic space."
In fact, in the past few years domestic ticketing has soared
from half of Unitravel's sales volume to two-thirds, all of it
coming from the travel agency community. Just about every major
U.S. carrier now is working with at least a few consolidators.
"The Internet also has made it easier for agents to use us,"
Murray says. "They can go to Unitravel.com and use our booking engine. We're
now doing half of our business on the Web site -- and it's a less
expensive way for us to take the business."
With the steady reduction in air commissions since the
mid-1990s, culminating in zero base commissions last year, you
might think agencies would have flocked to consolidators, but
Murray says the growth hasn't been as dramatic as expected.
"Some agents were turned off about selling airline tickets or
stayed angry at the airlines," he says. "This was especially true
among the smallest agencies."
But, Murray says, you'd be surprised at how many agencies are
making substantial profits by buying at net rates and marking up
tickets. "You don't have to sell too many international,
premium-class tickets at a good markup to make a lot of money," he
says.
And, if it works right -- as it often does -- everyone wins. The
airline fills a seat it wouldn't have filled, the consumer gets a
better price than would otherwise be available and the agent makes
a good deal more profit.
Some agents are finding that consolidator fares are particularly
valuable in working with group business, where the total savings
are impressive.
So maybe the question is: How much money do you have to make to
get over being mad at the airlines?