Travel Reference
In-Depth Information
set period of time. Some offset the commission they
receive when making bookings against the fee charged
to the client.
FOCUS ON INDUSTRY
EVOLVI
Sales targets
Evolvi is an internet-based, self-booking UK rail tool
created specifi cally for business travel agents and
travel management companies. The system offers
agents a fl exible rail booking and ticketing system
for use with their business customers. It also provides
comprehensive online management information for
every transaction and allows companies to specify
which type and class of ticket each member of staff
is allowed to buy. The company claims that 8 out
of the top 10 UK travel management companies
are currently using Evolvi to provide corporate rail
solutions to their clients. Currently, it has business
relationships with a number of GDS providers
including Sabre.
Staff in business travel agencies and travel management
companies are allocated sales targets as an incentive to
increase revenue and company profi ts. Sales incentives
are used in business travel to encourage staff to achieve
general sales targets or sell a travel product from a
particular company, thereby earning their agency extra
commission. These incentives range from bonuses and
discounted holidays to high street shop vouchers and
travel goods.
Cost-saving techniques
Saving money is usually the main reason why a company
or public sector organisation uses the services of a
business travel agent. The buying power of the big
travel management companies results in lower rates
for travel and accommodation than the client could
have achieved by making fl ight and accommodation
bookings themselves. Business agents negotiate hard
with travel services suppliers in order to pass savings on
to their clients, thereby helping to retain their account.
Some businesses that have small travel budgets may
save costs by using low-cost airlines, discounted rail
travel and budget hotels such as Holiday Inn Express
and Travelodge.
Weblink
Check out this website for more
information on the Evolvi system.
www.evolvi.co.uk
Commission levels
Business travel agents earn commission when they
sell travel products and services, e.g. fl ights, hotel
overnights, car hire, etc. The commission is paid by the
supplier (known as the principal) and is a percentage of
the total price. For example, an agent may book a client
into a hotel for 2 nights at a cost of £190. If the hotel
pays 7% commission, the agent will earn £13.30 on
the sale. Commission rates vary enormously between
companies and the products/services that they sell.
Sales of travel insurance may attract a commission of
30+%, while an airline may pay no commission at all.
In this case, the agent may charge a fee to the client
for services provided. Most principals offer incentive
commission to generate more sales, where the amount
paid to the agent increases as the sales volume rises.
Activity 10.4
Visit the website of the Co-operative Travel
Management Service www.co-operativetm.co.uk and
make notes on the cost-saving techniques available
to business clients. You will fi nd useful information in
the ROI (return on investment) section of the site.
This activity is designed to provide evidence for P2.
Promotional schemes
Large travel management companies tend to work
on a fee basis, charging the companies for which
they provide travel services a negotiated price for a
For clients who travel a great deal, promotional
schemes such as loyalty or frequent fl yer programmes
