Online Corporate Travel Services Become the Vehicle for Travel Agency Growth

29th Mar 2002

As more airlines drop travel agency commissions to zero - reflecting a long
downward trend of reduced agency compensation - the natural question is:
What`s next for agencies serving large corporate customers? 
To learn how
agencies can still profit in light of a potential loss of revenue, it is
vital to look to the online travel industry.

According to a recent analysis of the corporate travel industry from
PhoCusWright, statistics strongly suggest that agencies move toward
utilization of online travel services. With an online service, agencies
achieve greater efficiencies due to several key factors:

á Average calls per transaction are reduced from three to just one

á Transaction costs are reduced by 50 to 75 percent

á Up to 10 online reservations can be processed in the time it takes to
process a single manual reservation

á Customer loyalty to the agency increases due to the convenience and speed
of booking reservations online



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