Is Tripology Really A Viable Business Model?

With travel slowing down I decided to look for new efforts to market my business and being internet-only is a bit difficult. I’ve tried online advertising, newspapers, magazines and more … all with very little results. This brought me to Tripology.com, the website touted as matching travelers with agents specialized in their area of travel. A match made in Heaven!

I load up my account with $50, not knowing how much it would cost me to purchase each lead and surprisingly Tripology doubled my credit to $100 – always good to get something for free, right?

The leads started coming in via email and I would look them over quickly, quickly skipping those that didn’t fit my area of expertise… after all, this site is to be specialists who know where you want to travel and include special planning. Dozens of requests went by and finally Ireland popped up here and there.

These requests were studied in detail before accepting and although the cost was only $5 each, I would be competing against other travel agents for one person’s business – this had to count. A total of four requests were accepted for Ireland and I started noticing a pattern… each person wanted the absolute cheapest vacation available and they their budget was pretty unreasonable. As I started looking into each one as they came over I realized that those requesting prices are delusional when it comes to pricing… $600 for airfare to Europe during the summer? Seriously now.

The minimum information is listed including airfare, hotels, trains, cars, approximate dates and length of stay. It’s quite generic so interaction with the actual requester is essential.

I accepted my requests within minutes, paying my $5.00 for each and utilizing the online email application to introduce myself and obtain more information on the vacation due to the lack of detail collected by Tripology. My emails went out within minutes and I waited… and waited… and waited. I emailed again and finally one person responded, indicating they had already purchased a vacation within two days of entering their request. Did the purchase from a Tripology agent? I don’t know but I doubt it from the minimal response that I received back. Goodbye $5.00 – that wasn’t a qualified lead and there was no potential for selling a vacation there.

I still didn’t hear from the others so I decided to call them to ensure they did receive my email. One guy did answer and we went over the specifics of his vacation, at my insistence … again, I paid for the lead and I expect to be able to price it out. The second was an answering machine so I left a message and followed up with email. The follow-up email indicated that they didn’t really have specifics on their vacation just yet but that they would contact me if they need me. Yes, I paid $5.00 for someone to say they never really wanted my services but perhaps they’ll be in touch. I couldn’t let that go so I emailed back to advise that we are charged for each lead and that we simply want to help them and the response back was that Tripology simply puts them in contact with three agents who specialize in their destination of choice.

What have I gotten myself into? Who are these people requesting trips through Tripology and what qualifies them as leads?

Looking at Tripology’s home page you’ll see a very simplistic approach for those looking to travel… enter a bit of information and instantly Tripology will connect you with three qualified travel agents. Simple enough… but what about the agents on the other end?

We receive those requests without identifying information, the basic travel details, and approximate budget and if we want to accept the lead we must pay $5.00 each, regardless if the person is serious about purchasing a trip or just seeing how the system works. I have to admit, I’ve done the later in some situations and honestly believe many of those requests coming through are people playing to see if they can get a vacation for a ridiculously low price. $500 - $1000 for 3-5 nights in Puerto Rico including airfare and 4-star hotel… total, not per person. I’m serious, this was a request just a few minutes ago which makes me think someone is just seeing if they’ll get a response for that.

Another type of request I surmise is the person who already has their plans with an agent but they want to try one last avenue to see if they can get it cheaper. They enter their Tripology request with notes detailing their plans and hope that someone will swoop in and take the wind out of their travel agent’s sail – and it will happen. Unfortunately you have three agents each paying $5.00 for the lead and two, possible three, out of the three will lose their money again.

Needless to say I think the concept is a good idea but without full disclosure to both the traveler and the agent, the business model isn’t fair and I hope other agents band together and refuse to use their services.

What is the value of a travel agent these days?

EnchantingIreland.com: What is the value of a travel agent these days?

Yes, I was actually asked this by a potential client on the phone the other day and while it got my back up against the wall, I was able to articulate my actual value to my clients and eventually closed the deal. Rather than listing my value I simply gave examples of it, true-life stories of clients whom I helped over the years.

Our Services Are Free

Either the public is truly ignorant in thinking that travel agents charge them above an beyond the cost of travel or we, as an industry have failed to educate consumers that our services are paid for by the supplier (car rental, hotel, tour operator, etc.) I suspect it’s the later of the two because it has always been taboo to discuss these types of things with clients and now it’s come back to bite us right in the rump.

I didn’t realize this until a few clients asked me upfront, “What are you charges for planning this?” I would explain the commission process and even advise the client that that rate is the same if you book directly with my partner as if you do myself, they just keep my commission as their own profit. All tour operators work this way to ensure it’s a level playing field for all agents – we all offer the same prices and discounting is usually against our contracts.

Rack Rates vs Bulk Rates

Years ago I decided to check on a potential client and see if they were ready to book after weeks of emails flying to settle their itinerary. “We decided to book directly with the hotels and car rental to save money as we’re on a budget. Thanks for your help!” I was curious on what properties they settled on and they furnished an itinerary for my review. I quickly worked up a price based on the same exact hotels and emailed her back the quote – a savings of $83 per person, not to mention the car rental which offers discounted insurance! She quickly cancelled her reservations and booked her package with me and the commission I made helped pay for all of the time and effort I put into planning the vacation for them.

(These days I no longer help with itineraries until after the package is purchased due to many clients knowing I do no charge and trying to use my services for free.)

Our pre-negotiated “bulk rates” beat almost every “rack rate” (direct rate) out there and some of the savings is considerable. As recently as last week I had a client looking at a hotel in Lahinch for €85 per person, double occupancy which is about $272 for one night, two people. My hotel consolidator was able to get me the same rate for $238 which was a nice savings for the client.

Planning Knowledge

You cannot beat the value of a knowledgeable agent and if you combine that with the fact that their services are FREE, you have hit the Mother Load!

Talking with clients or corresponding via email I can get a basic idea of what they want to accomplish on their trip to Ireland, their travel style as well as their level of accommodations and turn around a well organized outline of a trip. Each night can be planned or suggested with intimate knowledge of pubs and restaurants in towns I familiar with. This type of service not only makes your trip easier but it allows you to concentrate on other details, like what to see and do.

One of my favorite stories here is planning a trip for a couple that coincided with my own trip – we would both be in Dublin at the same time, me arriving on their last night of vacation. We made loose plans to meet up at a pub and I would buy them a pint and see how their trip went – and run for cover if there were any problems. I left them a note with a map to the Auld Dubliner and gave them a time we’d be there. This time it was so crowded downstairs that we went upstairs and into a quiet corner so we could all talk and my client couldn’t find us. My sister-in-law was outside smoking and they went up to talk to her and all of a sudden my name popped out of their mouth and Mary whisked them inside, up the stairs and into our corner for drinks. From there we caught up on what they saw and how they enjoyed their trip… no running away from me, nothing but smiles because it went off without a hitch. The personal “thank you” meant the world as I usually don’t get to see my clients in person.Post-Trip Help

This is the most agonizing part for me but shows the value of a good travel agent 10-times over.

When a client has had a “hiccup” in their trip whether it’s the wrong car at check-in or a delayed flight, a good agent is your liaison to recover money from a travel insurance policy or a tour operator if warranted.

One recent incident comes to mind whereby a client had the wrong date for the car rental drop-off and asked if they could keep the car one additional day. She contacted me and upon noticing the error was on our end, we immediately told her we would pick up the one day car rental and the agency contacted us for payment details. Unfortunately she also had a problem with kidney stones while in Dublin and could not get on her flight the next day. Her husband called and I gave him detailed instructions on what to do: contact the airline, get a doctor’s note/receipt, contact the hotel for an additional night. Unfortunately when you are actually traveling these things must be handled by you directly since you are there but we’re always a resource … and that doctor’s note? It saved them a $100 change-ticket fee for the airline and they can turn in the receipts for all expenses to their insurance.

Given a Bad Name

Unfortunately I’ve found that many people fear travel agents these days which is attributed to both horror stories from bad agents as well as the marketing of online sites which promise to save you millions.

When it comes right down to it, use your gut instinct when dealing with an agent and don’t look back. The online sites may be great for just airfare but when you want to create a whole vacation, the experience of a good travel agent will be worth much more than the $30 you saved online.