Air Consolidators

By Kate Rice

Airline consolidators let you offer your clients international fares that can be as much as 45 percent lower than published fares, while giving you an opportunity to add in a hefty service fee. These are net fares; there is no commission. Instead of letting airlines set your commissions, you add in your own mark-up, as most retailers outside the travel industry routinely do.

Consolidators allow you to differentiate yourself in the marketplace. It demonstrates to your clients that you’re a professional who knows where to find these fares, and allows you to charge your clients for the benefits they get from your expertise.

For the most part, consolidators sell negotiated fares, or discounted bulk fares that they have negotiated with airlines. The reason they swing such low fares is that they have demonstrated over the years their ability to fill these seats. Usually these are international fares, but some are for domestic flights.

Consolidators can make air a profit center for home based travel agents, says Eren Aksoy, vice president of automation, finance and tour operations for Picasso Travel (www.picassotravel.com) and past president of the U.S. Air Consolidators Association (http://www.usaca.com/). You determine your markup, and customers don’t see that add on. All they see is a fare that’s still lower than published fares. Usually, clients earn frequent-flier miles on these flights as well.

Fares can vary depending on the season. Aksoy has seen discounts as high as 60 percent off published fares. Availability depends on demand, which in turn depends on what the season is like for that particular carrier and flight.

“As always, you do better with more lead time,” he says. If you buy them far enough in advance, you will have more of a selection. Airlines allow a certain number of fares per each class of booking; once the cheapest fares have been sold, they go up to the next fare level.

Air consolidators work with airlines on a long-term basis, generally negotiating contracts annually. They have ongoing relationships with airlines and have proven their ability to deliver business.

Picasso, for example, has been in business since 1979 and has contracts with about 70 carriers. Most of its inventory is international coach. You can book on Picasso’s website, over Picasso’s toll-free number or in your GDS, and use them for individual as well as group bookings. Agents can pay by check or credit card.

Some consolidators set up a link to your consumer site, meaning your clients can shop and book these fares — with your markup included -- on your site.

To choose a consolidator, Aksoy recommends that agents first go to the USACA website to select from among its listed members. That’s because the USACA requires that each member does at least $20 million annually in air consolidation in conjunction with scheduled airlines; is incorporated in the U.S. for at least two years and has never filed for bankruptcy or ceased operation. Their contracts allow your clients to accrue mileage. Most have, or are about to have, systems that allow you to get fare quotes via the GDS or the web, to make booking consolidator tickets as efficient, and therefore profitable, as possible.

When shopping for consolidator fares, Aksoy recommends browsing consolidator websites to look at fares, see what prices and booking classes are available, and to compare prices and routes. For example, you can compare the price of a Los Angeles-London nonstop with a one-stop Los Angeles flight and decide which is better for the customer. If you’re new to figuring what your markup should be, most have a chart on their websites with suggested markups; you can also calculate it according to the amount of work that went into the booking.

Farebuzz (888-808-4123, http://www.farebuzz.com/), which has been in business since 1994, sells first-, business- and coach-class tickets. It offers last minute deals for domestic travel as well as round-the-world fares, hotel and car rental, net rates for travel originating overseas, Eurorail passes and tickets, limo transfers and trip insurance. Josanne Swain, vice president of sales and marketing for Farebuzz, encourages agents to call when they have questions, particularly on first- and business-class fares. Agents can book by phone, online or via email.

Skybird Travel & Tours (888-759-2473, http://www.skybirdfares.com/) is more than 30 years old and has contracts with about 70 airlines. Skybird sometimes purchases blocks of seats to sell to travel agents, assuming the risk for those seats. Skybird is happy to talk to you, particularly if you’re new to the business. Representatives can make sure you understand net fares and how to add in your own mark-up to make selling air profitable, says Sal Prezioso, president of sales and special projects for Skybird.