Abstract
Travel agencies normally receive commission from airlines, tour operators, accommodation establishments and car hire companies in exchange for bookings. Global trends in this commission structure indicate dramatic changes, especially regarding airlines. The majority of them have introduced a system of commission capping, whereby commission paid to travel agencies has been reduced and expectations are that it might even become zero in future. Against this background, travel agencies are considering introducing a system of service fees. It implies that clients will have to pay for services such as the preparation of quotations for national and/or international holidays or business trips. This paper discusses the results of research that was undertaken amongst the middle to higher income classes of the residents of Bloemfontein regarding the introduction of service fees by travel agencies.
Highlights
IntroductionAccording to Geldenhuys (2000: 1) travel (and tourism) has existed since time immemorial
Travel and tourism is a vast, complex network of business which may include activities and travel carried out for leisure, family or business reasons, and usually has the following purposes: rest, entertainment, conducting business and/or personal development (Elliot, 1997: 4).According to Geldenhuys (2000: 1) travel has existed since time immemorial
The research is applicable in two ways: it gives an indication of local market reactions to the introduction of service fees, and it can be used as a point of departure by travel agencies in other regions of South Africa who want to introduce this system in an environment where income sources are decreasing
Summary
According to Geldenhuys (2000: 1) travel (and tourism) has existed since time immemorial. The global travel and tourism industry has developed rapidly since World War 11 and is currently regarded as one of the fastest growing industries in the world (Van Niekerk, 1997: 1; Buhalis, 2003). According to the World Tourism Organisation (WTO, 2001) almost 715 million international tourist arrivals were registered in 2002, compared to 25 million in 1950. According to South African Tourism (Satour, 2002) total international arrivals (Africa included) to South Africa increased by 70 percent between 1994 and 1999. The total number of South African citizens (334 509) who “departed” temporarily during March 2002, increased by 16,4 percent compared to the same period of 2001 (SSA, 2003)
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