Travel Agency Role

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UNIT 7 TRAVEL AGENCY AND HOTEL OPERATIONS

FOR BUSINESS TRAVELERS

Structure

7.0 Objectives7.1 Introduction

7.2 Background

7.3 Client’s Profile7.4 Selling Business Travel and Attracting Business Travellers7.5 Technical Aspects: Product Knowledge7.6 Increasing Business Travel7.7 Role of the Hotels in Business Travel7.8 Key Players in the Hotel Operations

7.9 Let Us Sum Up7.10 Clues to Answers

7.0 OBJECTIVES

In this Unit we will attempt to familiarise you with,• the handling and selling of business travel as opposed to leisure travel,

• the travel agency operations for business travellers,

• the future of travel agencies in today’s world, and

• hotel operations for the business travellers.

7.1 INTRODUCTION

Business travel generally represents the largest single source of travel agency revenue depending on

the location and type of agency. In a country like India, most of the agencies survive on business

travel, as the concept of involving the travel agent for holiday plans is still very minimal. In thisscenario as students of business travel it is imperative that you know about the travel agencyoperations for the business travellers. Similarly, hotel operations are now being really directed at the

business travellers. This shift is keeping in with the need of the hour. Certain things need to be done inorder to further improve the situation. In this Unit you are going to study about the various aspects of

travel agency and hotel operations in the business sector, their growth areas and what would be therole of the travel agents and hotels in the near future.

This Unit also contains sections on such aspects as

• Client’s Profile,

• Selling business travel,

• Technical aspects, and

• Combined business / leisure travel.

7.2 BACKGROUND

As mentioned before most of the travel agencies draw their prime source of income from the businesstravel clients. There are several ways by which travel agencies can be classified but the simplest is bysize. At one end of the scale is the small agency, which has a staff of 2, or 3 people, which performs a

very elementary role of providing tickets. On the other end is the large enterprise that employs a staff



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of dozens and deals in a number of diversified ways. It deals with incentive travel, group business

travel and also independent vacationers. In between these two are the mid-sized travel agencies thatare a blend to both.

However, the travel agent should not limit his services to handling business trips exclusively.Business trips may also be combined with pleasure activities on weekends, or the client’s spouse or

family might wish to accompany him/her. Arranging these activities will provide additional revenuefor the agency.

Similarly, the hotels should also see the business travellers as the golden goose who would come

again and again. Not only the travellers but also the delegates of meetings, conferences, conventionsand exhibitions should be given importance in their day to day handling. Later in this unit we will seewhat these can be. But let us first look at who are the business travellers that require special attention

from these sectors and what is their profile like.

7.3 CLIENT’S PROFILE

Millions of men and women world over take business trips every year. Locating business travel

prospects should thus not be too difficult. However, qualifying them as potentially profitable clientsand persuading them to be a customer is not too easy.

The following organisations are good business travel prospects:

• Manufacturing companies,

• Pharmaceutical companies,

• Insurance companies,

• Consulting firms,

• law firms,

• universities and institutions,

• sales promotion agencies,

• wholesale distributors,

• locals sales offices of large companies,

• import - export firms,

• Clubs and associations.

All these can be at the international, regional, national or local levels. They need these facilities forannual conferences, meetings, sales promotions, training programmes, award giving ceremonies,

exhibitions, business meetings, monthly meetings, etc.

7.4 SELLING BUSINESS TRAVEL AND ATTRACTING BUSINESSTRAVELERS

For hotels and travel agencies looking for attracting business travellers it is essential to have anappropriate company identity. Every communication should give a professional image of the agency

and the hotel. This, therefore, requires careful wording. The agency/hotels name, logo, business cardsand the appearance of the agency and hotel staff project the “image” of the organisation. To beeffective, they must all convey the same professional picture.

For a travel agency knowing something about the client’s business is essential, for example

• What products are manufactured, or what services does his company offer?

• Where are the locations of the manufacturing plants, executive offices, stores, etc?



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• In which trade fairs does company participate?, etc.

This information can be found in various trade’s directories, or can be obtained from the localChamber of Commerce or Government Offices. You can also search the Internet for this.

When meeting the client, note should be taken of his business patterns and personal preferences, forexample:

• Frequency of travel,

• Length of stay,

• Airline preference: carrier, aircraft, class etc.,

• Accommodation preferences,

• Car rental requirements, and

• Limousine or transfer needs.

The client himself, if diplomatically questioned, will appreciate your interest and will be happy toprovide information. Secretaries are also usually very helpful. You must keep a file on each client (for

example, a printed form with the above information) for ready reference whenever a trip has to bearranged for him/her. Some of this information can be used by the hotel industry also.

7.5 TECHNICAL ASPECTS: PRODUCT KNOWLEDGE

To work efficiently with the business client, the hotel and the travel agent must assume quite adifferent role compared to dealing with vacation clients. In this case arrangements would often be

made at a very short notice, and requirements have to be met with minimum flexibility.

For example, a flight, which is not available on the requested date, may jeopardise the client’s

attendance at a predetermined meeting. The meeting cannot be changed because other participants areinvolved or because a subsequent (or preceding) meeting in another city has already been scheduled.By the same token, the business traveller may have to change a reservation in a hotel for

circumstances beyond one’s control. As a result, the entire itinerary may have to be revised, includingtransport and hotel reservation, and new tickets issued. The client may also want to visit an exhibitionwhen it is virtually impossible to obtain hotel reservations. All these problems have to be carefully

understood before getting business travellers.

When preparing the itinerary for a business trip, the travel agent should take down all pertinent factsstep by step and try to fill the order, then come back with logical, concise answers. Make alternativesuggestions if the requirements cannot be met as originally requested. As business is normally doneby telephone, it is recommended that the agent. “Works out the complete itinerary before making the

first reservations. Asks for possible alternatives (or suggests some) e.g. alternate flights class of service, hotels, in the event that the initial requests cannot be satisfied.”

A thorough knowledge of the product is essential when dealing with business travel. The agent shouldbe fully familiar with travel geography and should be able to offer or to propose alternativepossibilities whenever the client’s itinerary cannot be competed as originally planned. Similarly, the

hotel staff should be fully conversant with the needs of the business traveller and offer on the spot

solutions to problems that might crop up during the course of their stay. Creative thinking can bereally helpful in some extreme cases.

The agent should also have solid understanding of fares as well as applicable hotel rental rates. Aclient may like to travel first class but he or she will not appreciate paying a higher fare or rate than is

necessary. Companies are usually cost conscious and the agent will do well by demonstrating hisorher ability to recognise less expensive possibilities and to offer them when applicable, like special

fares or less expensive ground transportation or hotel In certain cases consideration might be given tohiring a direct telephone line or even placing agency personnel in the client’s firm. This could be a

deciding factor for future business with the commercial account. Similarly hotels would also do wellby being flexible in giving special rates and better facilities to the business travellers.



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7.6 INCREASING BUSINESS TRAVEL

If business fails, travel agencies and hotels could find themselves in a very sad financial situation.One must keep ones eyes and ears open for news of the business conditions in the area. If one findsanything amiss or ongoing one must advise the travel or hotel manager immediately.

Increasing business travel revenue is the job of the manager or marketing manager. Knowledge andapplication of marketing skills is necessary in this regard. One needs to investigate the corporatehouses, industries, and offices, i.e., the prospective clients in your area of operations, find out the total

business, i.e., the number of likely frequent travellers, the most likely travel destinations, and the lineof existing travel arrangements.

The next step could be to visit each company, telephoning to make an appointment with the person

responsible and then make most of the opportunity to sell one’s services. One should be well preparedwith all the details needed regarding the benefits of using your travel agency. You could add to yourlist of benefits modern technology to instant reservations, and friendly well-trained staff to serve the

business travellers. Assure customers care, quality services and if necessary add value to your productor services.

Check Your Progress - 1

1) Where would you look for business traveller clientele?

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2) Why sound product knowledge is essential while dealing with business travellers?

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7.7 ROLE OF THE HOTELS IN BUSINESS TRAVEL

As mentioned earlier the role of the hotel is to provide the facilities and services needed to assist inthe execution of meetings, conventions, and expositions. Hotels, besides their primary function of

providing accommodation to the business travellers have to cater to their other requirements. In thepast, when people thought about the role of the hotel facility, they thought of rooms and food. Today

the hotel is much more intricately involved with the overall planning and execution of the meetings.

This involvement may include helping to design and market the programme, assisting in the planningof hospitality programmes, theme parties, and sporting events, and training new meeting planners.

Many of the major convention hotels actually go so far as to provide training seminars for the meetingplanner. Hilton Hotels has designed a Host a Host (Hilton on-site Training) programme to improvecommunication between the host property and planner. This programme gives the planner the insights

into the inner working of the hotel, thus stripping away any lines of miscommunication and ultimatelyincreasing the efficiency from both sides (Tannenhaus 1986). Sheraton has a similar programmecalled Sheraton Showcase, which “teaches planners the ABCs and XYZs of meeting planning”

(Lieberman 1991, p.33).





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Although the account executive remains a part of the servicing staff, once the contract is negotiated

and signed, the convention service department takes over the reigns of command and is responsiblefor fulfilling the host properties’ commitments. In Ellen Muraskin’s article “Convention Service

Managers: The On-site Connection ,” she addresses the concept of “uni-service”. Uni-service allowsthe meeting planner to experience one-stop shopping. In basic terms this means that the meetingplanner no longer must deal with the individual departments such as catering and rooms, and support

departments, such as audiovisual and special events. They need only contact their convention servicemanager. This is a new position that evolved from the demands made by meeting planners for a

central point of command. Meeting planners are often frustrated when there is not a member of

management who is intimately familiar with their meeting and who has the authority to get thingsdone. This person or department acts as the liaison between the host property and the group. The

positioning of this department within the organization is a point of contention. One school of thoughtis that the convention service manager should report directly to the general manager. This insures thatthe convention service manager has the authority to carry out his or her responsibilities. The other

school of thought believes that this position allows too much freedom on the part of the conventionservice manager and that they should act as another arm of the sales department. In most casespositioning of this department is directly related to the percentage of the properties business that is

generated through meetings, conventions, and expositions – the higher the percentage, the higher thedepartment is placed in the organisation.

The convention service manager must be brought into the negotiation process as early as possible.This will allow an easy transition from the sales department to the convention service department.

This guarantees a clearer line of communication between the group and the convention servicemanager once the meeting, convention, or exposition has been turned over to the convention service

department. The department then develops a series of communications with the meeting planner toascertain all the needs of the group.

The convention service manager is then responsible for communicating these needs to the hotel staff.This is done through booking the appropriate space, blocking rooms for the meeting, convention, or

exposition, planning meal functions, and so on. Again, constant communication between thisdepartment and the meeting planner or association executive must be maintained to guarantee success.

The convention service manager is also responsible for overseeing the actual event. This is

accomplished through a series of meetings with the appropriate departments within the host property.These meetings are designed to address all details of the upcoming event. Individuals involved in

these meetings can range from the general manager (depending on the size and importance of the

event) to the front desk manager.

Two or three days before the event, the convention service manager brings together all the key playerswith the meeting planner or association executive to iron out any last- minute changes. This meeting,

called the pre-convention meeting, ensures that all players are playing from the same game plan.

The pre-convention meeting should be directed by the convention service manager and shouldinvolve:

• Sales person

• General manager

• Catering manager

• Front office manager

• Director of housekeeping

• Director of food and beverage

• Security supervisor

• Meeting planner/executive vice president

The salesperson is there to provide contract clarification as well as to show continued commitment tothe success of the function. The general manager is there to provide continuity and to ensure that all

the needs of the group have been met.



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The catering manager will address every food and beverage function, its menu, its layout, and its

staffing needs. They will also verify counts and discuss any last minute changes.

The front office will address the preparations that have been made to handle check-in/ checkoutprocedures. This includes discussing all possible heavy check -in/ checkout times and how they willstaff to ensure smooth service. Many a meeting or conference has gotten off to a bad start because

attendees have had to spend too much time waiting to get checked in or waiting for their room oncethey are checked in.

The director of housekeeping will discuss all special services for the group. This might include

turndown service, special amenities to be placed in the room, and any special arrangements for theexecutive suites.

The director of food and beverage will discuss all of the food and beverage operations available to the

groups, including room service, office shops, informal dining, formal dining, specialty dining, andlounges. In many cases the host facility has made special arrangements for large groups, such asputting more staff on the floor to handle the large influx of patrons during group breaks.

The security specialist will outline all necessary security measures that will be taken by the host

facility. Included in this discussion should be the number and functions of the security guards onduty, their specific training (i.e., CPR and first aid), fire alarm systems and evacuation procedures,

location of nearest hospital and medical assistance, as well as a the hotel lock system and safe depositboxes.

After the host facility’s representatives make their presentations, the meeting planner or executivevice president will address any areas of concern. This is the final opportunity to clean up any possible

misunderstanding, thus preventing last minute problems.

During the event the convention service manager is on hand for all functions. He or she often arrivesover an hour before the event begins amid leaves well after the last attendee. This provides a sense of

security for the sponsors of the function. A quick fix to unanticipated problems is the most importantfactor involved with a meeting, convention, or exposition. Year not even the most capable individualcan anticipate everything. Therefore, ensuring that someone of authority is on hand at all times toaddress the problems as they arise is crucial.

The Convention service manager’s job does not end with the event. He or she is then responsible forbilling, evaluation, and the post-conference meeting. This meeting allows the major players

(convention service manager. meeting planner, salesperson, and general manager) to discuss both thepositive and the negative aspects of the event. These meetings convey a sense of commitment to theoverall success of the association or corporation and any future events they might host. This meeting

also provides a forum for rebooking.

Check Your Progress - 2

1) Discuss the role of hotels in business travel.

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2) List the key players responsible in hotel operations for the management of a convention.

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Travel Agency Role