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Abstract ▼ AI-Helper

The travel agent commissions was ranked as the largest revenue(more than 50%) for the Korean outbound travel agents, and the leisure sales succeeded to air commissions. In this circumstances, removal of travel agent commissions let the travel agents build new business model in desperate. Service Fee...

The travel agent commissions was ranked as the largest revenue(more than 50%) for the Korean outbound travel agents, and the leisure sales succeeded to air commissions. In this circumstances, removal of travel agent commissions let the travel agents build new business model in desperate. Service Fee model is presented as the alternative business mix for travel agent"s expert. This paper provides on overview of the present status of outbound travel agents work process through the interview of trovel agent"s expert, revenue structure through the survey of travel agent"s expert and cost analysis per customer by a certified public accountant. As a result of the travel agents cost analysis. 10% on each sales prices of leisure sales and airline ticketing per customer is presented Conclusions, the current business mix of Korean outbound travel agents(mark-up or add morgin to price of purchasing) is suitable for leisure travel. But Agencies should analyze and review the services provided to customers when deciding on what marketing strategy per route should be carried out. Business strategy should be based the agency"s business needs, while also reflecting the competitive pasition in the marketplace. And transaction fee model as one of the Service Fee models, suitable for the alternative air commissions is presented. The transaction fee should be a fixed rate-10% on airline ticket price or a flat rate sample of graduated fee scale per routes. And for the agencys may only sell corporate-orientd services, TMC(Travel Management Companies) model, transaction fee is paid based on a contractual agreement is presented.

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