Getting a discount on your travel bills.

Going directly to the hotels and getting prices from them logically makes a lot of sense. You cut down the intermediate and therefore save more money.

Right?

Wrong!

While there are no two ways about the logic in my eyes- but reality is quite different. Going through a travel agent makes more sense if the travel agent gives you a discount- upto a certain point this reality is correct.

Actually speaking there is a trick that we have just learned this week on how to negotiate with travel agents.

Travel agents because of the fact that they gaurentee a certain business to hotels and airlines get bulk discounts from them. Now, they have the option to pass on these discounts to their customers if they do desire to.

The issue is that they have no desire to do so unless pushed. Every discount that they pass onto people actually burns a hole in their pocket - so we need to do something to try and get them to pass on a discount.

The way to do so? Negotiate directly with the hotel and get a discount- what this does is that this gives you a bargaining position with the travel agent to try and negotiate further down. Now , be aware that the hotel will not give you the same discount they give to the travel agent- they will give a lower one. So the best deal you can get is if you can negotiate further down with the travel agent.

Why will the travel agent give you an equivalent or a lower discount- here are a couple of reasons.

1. The travel agent needs to fulfil his quota with the hotel- so your business is important to them

2. Sometimes the travel agent gets additional discount for volume business. So if you are going to them in a group- your business is even more valuable for them.

3. If the travel is offseason- it helps even more

In a recent travel booking , we were able to get a 17% discount over the list rates of the hotel .. an additional 5% discount from the travel agent over the 12% the hotel was willing to give us... a good 2000 Rs saving during the negotiation.

Use this next time you plan to travel. Now , I have not tried doing this for airplane tickets- i dont think it will work with them- but at least in travel trips and hotel bookings, this learning will help you get some side pocket money.

Happy Investing.
( Become a follower of the blog or subscribe using the links on the right)