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Travel Agents – Continuing to Grow

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Out of all the industries worldwide, travel and tourism continue to grow at an astounding rate. In fact, according to the Travel Works for America Council, it is the second largest employer in the United States (the first being health services). Nearly everyone tries to take at least one vacation every year, and many people travel frequently on business. Some travel for education or for that special honeymoon or anniversary trip.

At one time or another, most travelers seek out the services of a travel agent to help with all the details of a trip. This means that jobs for travel agents will continue to grow. Travel agents learn about all the different destinations, modes of transportation, hotels, resorts, and cruises, then work to match their customers' needs with the services travel providers offer.

Travel agents generally work in an office and deal with customers in person or over the phone. They plot itineraries, make airline and hotel reservations, book passage on cruise ships, or arrange for car rentals.



But first of all, they listen to the needs of their customers then try to develop the best package for each person. They work with affluent, sophisticated travelers, or first-timers such as students trying to save money and travel on a budget. They could book a simple, round trip air ticket for a person traveling alone, or handle arrangements for hundreds of people traveling to attend a convention or conference.

Some travel agents are generalists; they handle any or all situations. Others specialize in a particular area such as cruise ships or corporate travel.

Travel agents gather information from different sources. They use computer databases, attend trade shows, and read trade magazines. They also visit resorts or locations to get first-hand knowledge about a destination.

They have to keep up with rapidly changing fares and rates, and they have to know who offers the best packages and service. Their most important concern is the satisfaction of their client.

Most travel agents are offered "FAM" trips to help familiarize them with a particular cruise line, safari adventure, exclusive resort, or ecological tour. These trips are offered free to the travel agent so they can "test-drive" a destination before suggesting it to their customers. Travel providers understand that a travel agent is more likely to sell what he or she knows and has enjoyed. Travel agents also receive discounted travel on other business trips, as well as on their own vacations.

The downside, however, according to many travel agents, is that they seldom have enough free time to do all the traveling they would like. They are often tied to their desks, especially during peak travel periods such as the summer or important busy holidays.

And the work can be frustrating at times. Customers might not always know what they want, or their plans can change, and as a result, the travel agent might have to cancel or reroute destinations that had already been set.

TRAINING

A four year college degree is not necessary to become a travel agent. It can be helpful, however, and shows commitment and discipline. Most travel agents study for at least two years and earn an associate's degree. Many community colleges, trade and vocational schools offer good programs in travel and tourism or hospitality management.

Some travel agencies are willing to hire inexperienced applicants and provide them with their own training.

For a list of schools offering certified programs, you can write to the American Society of Travel Agents or the Institute of Certified Travel Agents. Their addresses are listed ahead.

JOB OUTLOOK

Employment of travel agents is expected to grow faster than the average for all occupations through 2006. Many job openings will arise as new agencies open and existing agencies expand, but most openings will occur as experienced agents transfer to other occupations or leave the labor force.

Spending on travel is expected to increase significantly over the next decade. With rising household incomes, smaller families, and an increasing number of older people who are more likely to travel, more people are expected to travel on vacation and to do so more frequently than in the past. In fact, many people take more than one vacation a year. Business related travel should also grow as business activity expands. Employment of managerial, professional, and sales workers those who do most business travel-is projected to grow at least as fast as the average for all occupations. Charter flights and larger, more efficient planes have brought air transportation within the budgets of more people. The easing of government regulation of air fares and routes has fostered greater competition among airlines, resulting in more affordable service. In addition, American travel agents organize tours for the growing number of foreign visitors. Also, travel agents are often able to offer various travel packages at a substantial discount. Although most travel agencies now have automated reservation systems, this has not weakened demand for travel agents.

Some developments, however, may reduce job opportunities for travel agents in the future. The Internet allows people to access travel information from their personal computers and make their own travel arrangements. Suppliers of travel services are increasingly able to make their services available through other means, such as electronic ticketing machines and remote ticket printers. Also, airline companies have put a cap on the amount of commissions they will pay to travel agencies. The full effect of these practices, though, has yet to be determined as many consumers prefer to use a professional travel agent to ensure reliability and save time and, in some cases, money.

The travel industry generally is sensitive to economic down-turns and international political crises, when travel plans are likely to be deferred. Therefore, the number of job opportunities fluctuates.

SALARIES

Experience, sales ability, and the size and location of the agency determine the salary of a travel agent. According to a Louis Harris survey, conducted for Travel Weekly, 1996 median annual earnings of travel agents on straight salary with less than one year experience were $16,400; from one to three years, $20,400; from three to five years, $22,300; from five to ten years, $26,300; and more than ten years, $32,600.

Salaried agents usually have standard benefits, such as medical insurance coverage and paid vacations, that self-employed agents must provide for themselves. Among agencies, those focusing on corporate sales pay higher salaries and provide more extensive benefits, on average, than those who focus on leisure sales.

Earnings of travel agents who own their agencies depend mainly on commissions from airlines and other carriers, cruise lines, tour operators, and lodging places. Commissions for domestic travel arrangements, cruises, hotels, sightseeing tours, and car rentals are about 7 to 10 percent of the total sale; and for international travel, about 10 percent. They may also charge clients a service fee for the time and expense involved in planning a trip.

During the first year of business or while awaiting corporation approval, self-employed travel agents generally have low earnings. Their income usually is limited to commissions from hotels, cruises, and tour operators and to nominal fees for making complicated arrangements. Even established agents have lower profits during economic downturns.

When they travel for personal reasons, agents usually get reduced rates for transportation and accommodations.

RELATED FIELDS

Other workers with similar duties include secretaries, tour guides, airline reservation agents, and rental car agents.
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