Airline Consolidators - Career Quest Training Center

Airline Consolidators
This course was written courtesy of Centrav, Inc., an airline consolidator that began operation in
1988. Centrav is a member of ASTA and USACA and is a preferred supplier for OSSN and CWT.
What is an Airline Consolidator?
In general, this is a company that has contracted NET fares from many airlines and sells international
airline tickets to Travel Agents at reduced prices. The consolidator is given discounted NET contracts
because of the high volume of tickets they sell. By using a consolidator, travel agents can buy a ticket
for their client on a major airline at a cheaper price than they could get from the airline directly.
Consolidator fares can be hundreds of dollars cheaper than published fares. Usually no price is shown
on the ticket so the travel agent can charge the client any reasonable amount.
What advantages are there in buying airline tickets through a Consolidator?
1. PRICE. You can save 10% - 80% or more by purchasing your client’s ticket from a
consolidator. Watch for huge savings on close-in departures because consolidator fares
usually have no advance purchase.
Example: Chicago – Paris roundtrip leaving in a few days.
Published fare ……………………= $ 2914
Consolidator fare (from Centrav) = $ 623
You can earn up to $2291 on this ticket without charging a service fee above the
published fare!
(This comparison was done with actual fare data but may not reflect today’s rates)
2. FLEXIBILITY in setting your markup. Published fare tickets show the price on the ticket so
your client knows exactly what you charged as a service fee. Consolidator tickets show only
the word BULK on the ticket so your client has no idea what you are making.
3. EXPERIENCE. By training and sheer repetition, consolidator reservationists quickly become
experts at booking international air. A consolidator reservationist takes about 100 calls per
day for international air. They are trained to offer you the best routings and airlines to get
your client into even the most remote destinations.
What disadvantages are there in using a consolidator?
Usually there are none. But you need to do your homework and compare. Consolidator tickets will
usually have a significant penalty for changes and are often nonrefundable. (But, this is often the case
with low priced published fares, too). Consolidator tickets are usually not upgradeable.
A good consolidator will make you completely aware of any restrictions that may apply.
Are consolidator net fares always lower than published fares?
That is the model, but in practice it is not always so. The airlines sometimes decide to offer a
published ‘sale’ fare that dips below the consolidator price. This is more common during low season
than high or shoulder. When this happens you have two options:
1.) Ticket the published sale fare yourself and charge a service fee, or
2.) Check with your consolidator to see if they offer a commission on the published fare.
Consolidators often have an ‘override commission’ on published sale fares. If you allow the
consolidator to ticket your published sale fare you can often earn 5%-14% or more in commission.
How far in advance do I need to buy a ticket for my client?
Consolidator fares usually have no advance purchase and so the fare is the same whether you buy
close-in or far in advance. Note: there may be some minor fees close-in. The real question is: will
seats be available in the lowest booking class if you wait until the last minute? When an airline
decides it has sold enough tickets at consolidator levels they simply close the lower classes of service.
At that point a consolidator can usually offer ‘bump-up’ classes of service at a higher price.
What markets do Consolidators service?
The most common consolidator ticket is for an international flight originating in the United States.
Some consolidators sell ‘reversals’, a trip that originates outside of the U.S. traveling to the U.S. In
addition, some consolidators have contracts to sell ‘intra’ fares (intra-Asia, intra-Africa, etc.).
You can usually check a consolidator’s carrier list and destination guide online. Click the following
link for an example: http://www.centrav.com/pages/products.php.
How do I book with a consolidator?
1. Book on the web. Today’s booking technology allows you to book, guarantee, email
itineraries, and keep track of all your bookings via the internet.
2. Book by phone. Reservations departments are there to serve you just like the airlines.
3. Book and queue. This process is getting limited as the airlines are beginning to restrict it.
Book and queue is still a valid method for many airlines if you have a GDS.
Note: The consolidator should have its company policies clearly spelled out on their web site.
Click this link for an example… http://www.centrav.com/pages/policies.php.
Do I need an IATA or ARC number to buy from a consolidator?
No, but you must be a legitimate travel agent. This screening will take place at time of booking.
How do I choose a consolidator?
• Product line. Does the consolidator have contracts with the airlines that your clients want to
fly? Do they have the air network to cover the globe?
• Price. With web sites and 800 numbers it’s now easy and inexpensive to compare prices.
You’ll see a trend in pricing after a few samplings.
• Size. Find one big enough to serve up a full line of airlines and services but small enough to
help you personally when you need it.
• Financial stability. Make sure they have been financially solid for 10 years or longer. No
bankruptcies. No interrupted service.
• Technology. Look at their web site. Is it fast? Is it easy to use? Is it accurate? Today, a web
site says a lot about a company.
• Customer Service. Give them a call. Are they helpful and service-oriented? If they are
unhelpful before you buy a ticket don’t expect better service after you’ve paid in full.
• Reputation in the industry. Ask them if they are preferred with anyone. A good reputation is
earned the hard way and takes years to develop.
• Affiliations. A reputable consolidator will develop long-term relationships in the travel
industry and belong to organizations such as ASTA or USACA.