Having just read about Monster Travel ceasing trading is it now time to allow some form of price fixing? I am not on about the suppliers talking together about fixing prices I am on about fixed commissions with no discounting. The repacked stuff could still be as it is and offer the chance to enhance products and make companies different depending on what they want to offer.
If prices for standard packages on offer, be it cruise or “normal” holidays were the same country wide then companies such as Monster Travel would know exactly how many holidays they need to sell to stay afloat.
Thoughts, anyone?
I have created many websites, including for cheap cruises, cruise deals and a new one attacking cruise holidays.
If a company is unable to sell any product and remain profitable then they don't deserve to be trading and generally wont be for long anyway. I would rather we never had price fixing, who wants to be dictated to on how much they should be selling stock for? Its my business right? If another agent can't be competitive then thats their problem?
OK, so lets say some big boy with the deepest pockets moves in to your sector and sells at a virtual loss, at some point you as a smaller operation will fail. They will then be able to dictate prices and mop up your sector.
Firstly I would like to see someone try (rolls up sleeves hehe). In all seriousness, it’s about sustainability, Monster Travel were a good example of how not to do it, sure they lasted 2 years, I would love to see their accounts and see where their money went - PPC Advertising and way to many staff.
In answer to your question, I really wouldn’t worry very much we run with minimal overheads and zero advertising costs. We are 'designed' to weather lengthy 'storms', economical and environmental. I think they called it 'recession proofing', hate the term but it does apply I think.
I am going to guess that being in Cruise, you’re not very happy with the levels of discounting that goes on in that sector of travel. I have certainly heard a few stories at conference. It’s not an area of travel I am involved in, yet.
I was not actually saying I support fixed pricing hence starting off with “Is it now time…” I was interested to hear what others have to say. Also having checked out your website most of yours would come under repackaging so not affected. I guess with hindsight I should have not used Monster and dealt with pricing in “Cruise.”
Personally I have decided not to actually sell cruises at the moment, too many cons for my liking and yes discounting, or rather discounts given to the big boys is one of my issues. I am building 5 cruise websites for various things and as I am an individual it is taking most of my 15-17 hour working day (7 days a week). So, no real time to source prices for someone only for them to take it elsewhere, just to gain a 50p discount.
It is interesting you mention PPC, I added some Adsense to my main site last week (it is being redesigned so in pieces at the moment) just to gauge potential earnings compared with the monies I earn for lead generation. What is interesting is the number of leads generated since adding the ads have risen by 50%. Add that to the Adsense earning and the sites income has rocketed.
Now that Google tells us we get 68% of their earnings from AdWords it is obvious to me that the larger companies that run PPC continually are paying around 70p per click on my site while the smaller players are paying up to £2.35 for similar terms. Any small company who is paying £2 a click will not last long due to the number of visitors needed to generate a lead. I guess Monster should have invested in a decent SEO?
I see your new offices are "directly across from a pub with a nice beer garden," I guess this link should mean you could buy me a beer next time I am in Fleet (based in Petersfield, Hants).
At the end of the day your both right. Anyone selling at a loss will fail..but big company's can also undercut.
I seen that here, we used to have 14 petrol stations in the area and then tesco and sainsbury's moved in and we had the cheapest petrol in the country. Now just 2 stations left and our petrol is more expensive than anyother area around here.. even more than the next closest Tesco/Sainsbuy. They just price everyone out the market and now charge a 3-5p extra to make up for the losses. Last week I went to a esso station (yes 1p more than tesco) and it cost me 112 went past the Tesco close to home and it was 118.
Same works in any market
Price Fixing is certainly an interesting argument, but I agree it wouldn't be fair to impose it. The majority of companies however that are constantly advertising below net are ruining it for the rest and also in my opinion platforms like Travel Zoo and Teletext are losing credibility as consumers are slowly beginning to get fed up about enquiring about a holiday and it is no longer available or they have to pay £50 more.
As for PPC, if any business is paying upwards of £1 per click they should stop, it is still possible to get clicks from £0.50 to £0.70 regardless of your business size or spend. I have noticed a remarkable increase in cost per clicks in the last 12 months on Google but yes, £0.50 to £0.70 is still achievable.
When the Low cost Carriers came into the Market,that started to change everything.Also Big accommodation only suppliers opened up the market which came as a great shock to incoming Agents in Resorts.I've had potential Clients send emails to price match and when looking at the pricing Companies were setting themselves they have either been under the nett rates or just £1.00 commission.When I've discussed this with my suppliers they are horrified as when I get a nett rate of 25euros for example my suppliers will be taking their commission as 8%.The Public have demanded lower and lower prices but going to the extreme some Companies have gone to to get a sale has damaged the Market.I've had emails over the years stating that My prices are overpriced I work A seven day week and are available out of Office hours I don't think they are but when other Companies undercut under the Market value it's hard to keep the Client .There are running costs to any Business.Even Clients are not bothered about service anymore with these Companies.It's only when they have a complaint they call the service rubbish.As for the Web The Company Website I have is Hosted in USA and I've an excellent Company who never fails to get the Site on the first 2 pages of google without any PPC.
What is the name of your website?
libbyp: What is your website?
It’s possible to haggle even already cheap package holiday late deals by a further 15%. One MoneySaver who "had no idea this’d work" reports £600 off a Crete holiday, just by calling three travel agents. So, with this step-by-step guide package holiday guide, hopefully next time someone asks the dreaded "how much did you pay?", you'll hold your head up high.
Package vs DIY holidays
The first thing to decide is whether a package holiday is right for you, or if you would get a better deal booking a DIY flight and hotel online.
A package holiday is an all-in-one, where the tour operator provides flights, connections and accommodation for one price. That means they're off the peg, and best suited for standard breaks of standard length, thus …
As a rough rule of thumb, packages are usually cheapest for seven, 10 or 14 days away in a traditional holiday destination
If you're going away for a different trip length, a less visited spot, city break, or multi-stop holiday, you'll tend to be better off with a DIY break. Read the Cheap Flights and Cheap Hotel Prices guides, as well as the Hotel Sales deals note, for more on those.
The other package holiday bonus is they usually have added ATOL consumer protection, which means if the holiday company fails, either you'll be given a refund or if you're away, can complete your trip. With DIY holidays, if one of the components fails, you're unlikely to get your money back, unless it cost over £100 and you paid by credit card (read a full guide to Section 75 Refunds). The most important thing to understand before haggling is that …
Tour operators make holidays, travel agents sell them!
Admittedly, they're often both subsidiaries of the same company, yet the distinction is crucial. That's because, just like a Kylie CD is available at different shops at different prices, many different travel agents will try to sell the same tour operator's holiday, but they don't all sell it for the same price.
This is the HEART of the haggling system. The aim is to find the travel agent who'll sell it you for the least. While this system works best for late deals from major chains, if you're booking early at a high street travel agents, it's still possible to lop £100s off the price by haggling.
THE ABOVE QUOTED FROM MARTINS LEWIS MONEY SAVING WEBSITE (GMTV)SO ON AND SO ON AND SO ON.... FORGODSAKE THIS IS NOT GOING TO STOP HAPPENING!!! UNLESS THE GOVENMENT STEP IN AND TAKE RESPONSIBLITY!! MAKE THESE COMPANYS GUARANTEE THE STAFF GET PAID THE MONEY THEY HAVE WORKED FOR, AND THE CLIENT GETS THERE HOLIDAY THEY HAVE BOOKED!! THE TRAVEL INDUSTRY IS DOWN THE PAN!! 3RD TIME I'VE WORKED FOR A COMPANY THAT HAS GONE INTO LIQUIDATION IN THE LAST 3 YEARS AND THE 3RD TIME I'VE NOT BEEN PAID THIS MESS JUST NEEDS TO STOP!!..... O BY THE WAY THANKS MARTIN LEWIS.......
Should there be an online consumer forum so people shop certain Travel Agents who blatantly advertis below Net and on large credit card charges etc. Or would this make no difference?
I could make one if you want me too? It would be a real eye opener for some.
It is very, very tempting!
I say go for it. Start a blog and shop those sites that deliberately show prices below nett just to get the consumer through the door and then add on the extras. But, you may inadvertently be advertising them. Many consumers will simply go to those sites/shops then and haggle their hearts out.
Different, that is the key. Be different. If you sell commodity holidays then you're dust. It's not the companies doing the damage it's the internet. Everything is equal in the eyes of the consumer and the only thing to differentiate is price. Their is a respected professor in the States called Michael Porter and he predicted the end of intermediate businesses, like agents, because of the net. You have got to make your offer different or die. Sad but true. Google him and his 'Five Forces' model
Andy
WE offer Fixed Prices on ALL our Self Catering Holiday Accommodations!!
Regardless of Destination!! Now!! how good is that??