Can You Sell Airline Tickets?
Selling Airline Tickets –How to
Introduction The airline industry has grown tremendously over the past few decades Studies show that the airline industry is one of the fastest-growing industries in the world. Since the population continues to move from one region to another through airlines, the need for cheap airline tickets is equally on the rise. This is a good business opportunity for anyone interested in selling airline tickets to travel as an independent travel agent or through an online travel agency. But as has been discussed, the marketplace where airline tickets are resold has its peculiarities. The following outlines some of the things that one needs to know when engaging in the selling of airline tickets either through a commercial physical shop or through the World Wide Web.
Understanding Airline Distribution If you want to sell airline tickets effectively, there are things you ought to know about methods of offering and pricing of airfares. Many big global airlines still employ a global distribution system or GDS which travel agencies rely on to locate available flights and make bookings. Currently, the industry employs the following four big GDS systems, namely Sabre, Amadeus, Travelport, and TravelSky. While operating as an airline ticket reseller, one would need to interface with one or more of these systems to be able to book inventory and issue tickets for the airlines.
The fares and the available number of seats for each flight are submitted by the airlines to the GDS. Travel agents then employ the GDS to investigate timetables and costs for different flights. The GDS is mainly used for reservations and ticketing after a booking is made via the agent. The system attracts a small fee per transaction. The easiest way of getting into the GDS system is to obtain accreditation from Airlines Reporting Corporation ARC or International Airlines Travel Agent Network IATAN as this makes it easier to access the systems and discounts.
As a first step, ticket holders must have adequate knowledge of the ticketing rules and restrictions. Every ticket sold comes with some pre-determined conditions under which it cannot be altered, canceled, refunded, exchanged, etc. As a ticket reseller, you need to know these restrictions about the tickets you are selling. Basic economy fares generally come with the least amount of flexibility when it comes to changing and canceling a flight while business class and first-class tickets are offered with more options. Another aspect that is important from a customer service perspective is also to familiarize each of the airlines’ ancillary fee policies. This can help you establish the right customer expectations with travelers when you are selling tickets.
Complying With Regulations To offer airline tickets for both domestic and international flights, some legal frameworks have to be followed by every dealer, for instance, the U. S Department of Transportation DOT and the International Air Transport Association IATA. As a ticket reseller based in the USA, you are an Airline Ticket Agent who requires authorization from the DOT by requesting an Aviation Consumer Protection Division ACP code. It must demonstrate the viability of bonds and other escrow accounts to safeguard the customers’ monies for the unsold tickets. Obtaining an ACP code proves that the person complies with the DOT accreditation and financial protection standards.
Securing IATAN endorsement also proves that you can do well in handling international flights that entail one or many airlines and countries and many routes. There are certain things that every applicant has to pay, they include; an application fee, training fees, as well a USD 100,000 bond. Updating the DOT and IATAN registration from time to time is essential since it will help establish confidence from customers since it is an indication that the business is legit.
Business Implications with regards to Ticket Sales
Some considerations concerning operations, advertisement, and funding that must be taken into consideration while setting up this business include the following. Some elements include
Selecting a market – Specialize in the domestic economy class, premium international fares, and group bookings among others for the simple reason that the company that gains expertise in a specific area stands to earn higher profits.
Ticket selling platform – The business can be conducted based on a home travel agency, independent travel agency, or even an internet portal with an option for ticket booking.
Costs associated with technology – Implementing an online portal requires costs such as acquiring a domain name, web hosting fees, payment gateway fees, cost of website maintenance, etc.
Methods of payment - Allow customers to make payments through credit/debit cards, bank transfers, mobile wallet payments, or even through installment payment systems.
Lead generation – Full-funnel marketing across all forms of advertising, including search, social, email, and direct mail, is essential for building ticket booking leads at scale.
Sources of revenues – The airline ticket sales – are potentially significant but have very slim margins of between USD 10 to 50 per sale. Other sources, such as service charges, extra service commissions, insurance, and advertising contribute to overall miscellaneous revenues.
Travel agency operations and selling tickets: Due to the nature of airline GDS systems, which involve a time between issuing tickets and collecting money from customers, travel agencies require funding to cover operating costs between the two events.
If well managed, these elements would enable anyone to set up and operate an efficient airline ticket resale business anywhere in the United States of America.
Advantages of Direct Travel Bookings as Compared to Those Done through Online Travel Agencies
The internet revolution has thrown up many OTAs that sell low-cost airline tickets through the web via sites such as Expedia, Priceline, Travelocity and so on As an airline ticket reseller, you are competing with these large OTAs that spend billions of dollars on advertising and possess millions of ticket sales with which to bargain with suppliers. Thus, you are in a better position to provide the travelers with a closer, even unique, experience of booking. However, your operational costs, mostly, are slightly higher than those of the larger agencies. They should ensure that they meet or exceed clients’ expectations with regards to enhanced advisory services, follow-up care, easy rebooking charges, and service updates in situations such as delays or cancellations This assists the independent travel agents in attracting and building a loyal base of ticket resellers.
It is also noteworthy that travelers themselves have an opportunity to buy tickets on an airline Web site without going through a mediator. Various incentives offered in an attempt to encourage consumers to make direct bookings through the airline include lower base fares exclusive web fares, bonus frequent flyer miles, additional baggage allowance, and so on Airlines attempt to unbundle their products to lure consumers towards direct bookings The task of research becomes complicated and time-consuming for most consumers when they have to look at hundreds of airlines and possible combinations. Those who have years of experience have the added advantage of creating easier routes for travel at low fares in less time. Agents also can avail themselves of agent consolidator fares which are far less than obtained base published fares to remain profitable.
Conclusion The sale of airline tickets segment has good business prospects due to the constant increase in the popularity of low-cost airline services. However, there are certain legal formalities one has to clear before one can start it in practice that involves a certain amount of money and meeting some legal and financial standards. Measures to sustain good and effective relations with GDS providers and airlines together with excellent customer relations make it possible for even small ticket resellers to compete with other OTHs. Providing superior travel booking services both, online and offline is essential to establishing independent, autonomous travel agencies in this promising market. The following are some important factors that one needs to consider while starting a business selling airline tickets: Primary aspects: Proper pricing, regulation, and customer relation policies are principles of a sustainable airline ticket resale business.