Travel budget
Travel and tourism are perhaps the world's largest industry, with some $2 trillion in annual travel related sales around the world. The travel industry plays a major role in the spheres of business, recreation, and family life. During the last decade, a number of phenomena have occurred to promote mass travel budget, including discount airfares, the building of superhighways, the growth of the motel industry, and the abolishment in many cases of international visas. Free-trade zones have facilitated the growth of international business and business travel and will continue to fuel greater travel.
Budget airlines have been at the forefront of a remarkable transformation of the travel budget industry. Perhaps more importantly, they have also led the way in changing our attitudes to the way we travel and the way we book our holidays.
The impact can be seen on an almost daily basis. Many of the Airways announced a major restructure of its direct sales operations as a result of changing customer behavior and increased website sales and competition among themselves.
With prices falling, and the number of air routes expanding it is bringing the travelers a different choices and low prices.
Analysts indicate that they will benefit in the short term but many of the consumers are not aware of the industry and not well versed with booking flights and hotels on-line and maximize the savings. The numbers of people who are aware of the intricacies of travel booking are relatively small; hence, it looks like a good deal in reality nothing much has changed for many.
If one is booking for example a simple A toB booking then one is accessing the on-line and make the booking by surfing
and finding the cheapest price. However, for a complicated travel arrangement where one needs connecting flights or different hotels, then one is more likely to book through a travel agent or specific tour operator.
This situation has resulted in the growth of 'dynamic packaging', where tour operators are offering more than just flight bookings and provide you with car hire, to a hotel accommodation to guided tour of destinations.
But there are concerns expressed by analysts that the emergence of the budget airlines is having a huge negative impact on the tour operators industry, but could spell disaster for many operators.
Reports indicate that the fallout from the radical changes in the industry. Either they have to respond to the changes in the marketplace or perish.
The airlines are resorting to various methods of cost cutting like stopping free food and reducing business class cabins its flights. They have to choose value or volume to their service to survive.
There are significant changes in the relationship between travel agents and the rest of the industry. Traditionally travel agents also receive their commission basing on the number of travel budget bookings, but things have started changing when people are booking directly through on line with the airlines. This has resulted in airliners deciding to either cut the commission to travel agents, or get rid of them completely. This has resulted many smaller agents are unable to survive and are vanishing from the scene. Where as the bigger agents have to adjust and alter the way to operate.
Travel budget have started to charge the customers to make up for the loss of commission. They also got into offering services, like travel insurance, and other specialty services to cover up the revenues.
Other Articles
