Why use a travel advisor
To get a sweet deal, you need leverage and signaling. That’s my role as a travel advisor.
Mario, how can you claim to offer VIP perks, upgrade potential, and still not charge extra? That’s too good to be true.
The answer is in commissions.
But Mario, won’t they prefer a traveler who booked themselves over one they paid commission to get?
Let’s back up
In the economics of travel, every hotel booking, every tour booked, every cruise that sails, comes with an acquisition cost to the operator. Majority of operators happily pay this acquisition cost and work it into their business model because they have fixed/sticky costs that need to be covered by fluid/variable demand for which there is competition from other hotels, other tours, and other cruises.
Every customer acquisition channel comes at a cost to these operators:
Booking.com / Expedia / Amex Travel / Chase Travel: These are OTA (Online Travel Agencies), and they cost operators the most because they are massive and operators are small. Structurally, OTAs have the leverage over operators 9 out of 10 times and exercise that leverage through the highest fees.
Travel advisors like this one: We cost operators much less because we have little to no overhead and can maintain a business on lower commissions.
The lower cost of acquisition is why operators tend to prefer customers they acquired through travel advisors over OTAs and thus prioritize them higher for limited perks like upgrades and late checkouts.
Well Mario if I book direct with the hotel they should prefer me even more because I cost them nothing
Not quite. While the transactional cost for the booking might be lower if you book direct, it’s never zero when you factor in the marketing that got you to book. TV, Out of Home media, Paid social media, Paid search, and Paid talent/influencer content can really add up. I’d know — my background is in marketing and brand management.
However, the crux is in the elements of competition and leverage. When you book direct, you signal that the operator has already won your business. There’s no threat to you going somewhere else. You’re not signaling that the operator is only one in a consideration set of many options you have and that maybe they should sweeten the deal so you don’t go to a competitor.
That is the sweet spot for travel advisors like this one. We are the signal that your business is worth them sweetening the deal to win.
Book your next trip with me. Exercise your leverage.
How to work with me
Not sure yet? Start with the free one. Send me a message today.
Double-check my trip
Hi Mario — I’d like you to double-check a trip I’ve already booked. I’m forwarding you the confirmation emails separately, so you can see the rate types, what’s refundable and how I paid. Where: [DESTINATION] Dates: [TRAVEL DATES] Travelers: [HOW MANY] Tell me what you can rebook with perks attached.
Or use a form instead