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Old Sep 30th, 2006, 10:50 AM
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Operator Comission

This is a quick question. When you book a trip through a tour operator, do they add their commission on to your cost or do the properties build the comission in to the cost they give the operator.? When you book a hotel room through a TA the hotel pays them a comission. Example the lodge is $100.00 per night. Does the tour operator then mark it up a percentage, or is the price $100.00 and the property pays them a comission on that amount? The operator I amusing says they made a mistake in their original quote and then when I made some changes, they recaculated and added it to the second quote taking the proposal up about $1700.00.
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Old Sep 30th, 2006, 11:02 AM
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It depends. On a customized safari as I know you are doing, I prefer working with people who quote me the rack rate price of each camp and then the discounted rate they are giving me. My understanding is that the tour operator is getting a commission from the camp company.

One large agency refused to break down the costs on a quote for a private safari that I customized. I understand not doing that for a pre-packaged safari, but they're hiding something if they won't tell you how much you are paying for x camp. How can you choose one camp over another if you have no idea of the costs of each? But I think some people just go with whatever an agency puts together for them.

You have the right to ask your tour operator for a cost breakdown. It is very possible that mistakes were made honestly, it happens due to price increases and whether park fees were added in the quote by the camps/lodges.
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Old Sep 30th, 2006, 03:20 PM
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We are working with a reputable tour operator, but this was a "huge"mistake. I have no doubt that it was an honest mistake but it really makes a big difference in the cost. I did make some changes, but this reminds me of the contractor that bids low on a project and then makes up for the low bid when people make changes along the way. Whatever, I like the trip we have planned and will stay with it. Hope to see some of you at the LA get together.
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Old Sep 30th, 2006, 05:02 PM
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I agree that they are hiding something. That in all lilihood is their confidential net rate, so you have no right to pressure them into disclosing what it is as they have every right in keeping the rate confirdential. If you dislike the quote then try a competitor and make the comparison, you'll know soon enogh if you are being ripped off or not.

However to answer your question the camps and lodges typically offer a net rate to the tour operator, his charge to your would naturally include a mark-up to both cover its overhead and offer a percentage of profit.
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Old Sep 30th, 2006, 06:21 PM
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santharamhari
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Most lodges and camps dont allow direct bookings from clients, for obvious practical reasons. However, they do list their preffered agents/operators on their website for you to pick and choose. I usually assume that those listed are usually more competitive both information wise and price-wise for those particular camps/lodges.

Hari
 
Old Oct 1st, 2006, 05:43 AM
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sandi
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For those lodge/camp websites that show prices, show Rack rates (the highest), which if you can book direct is what you would pay. Agents on the other hand, depending on arrangements they have negotiated with the properties receive reduced/net rates to which they add their mark-up. And net rates to one agent may not be the same to other agents, i.e., an A&K or a Micato tend to get lower net rates due to volume they provide the property; also allows for them a larger mark-up as their overall prices reflect.

Also, depending on the country you are visiting, your daily rate may not only include the room rate (w/meals), but whether a game package using property vehicle/guides or full board using your own guide/vehicle/petrol/insurance. Also beverages (included or not), park fees, transfers, etc. etc. It's not simply the room/per/nt rate. And along the way from booking to departing, there maybe statutory increases beyond anyone's control, i.e., fuel surcharges, park fee increases.

Admittedly, I've made a small mistake or two, and "eat it." Thankfully, never a $1,700 error! Horrors!
 
Old Oct 1st, 2006, 06:07 AM
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Wow, that's a huge hike in price. I've seen some up their original price due to increases in park fees etc. but that's over the top. Is it too late to go elsewhere?

I've checked various rack rates for some places I've stayed and they usualy come up higher than the TA/Operater. Also, some don't seem to add in ground transport etc., as stated.

Interestingly, the US TO that I used for my African trip, charged less for the same trip than the ground operater they use based in Africa. I don't know how typical that is, as many Fodorites seem to say that you'll do better if booking directly with an African co.

I also get the feeling that the TO may have a bit more pull and influence for obtaining better rooms/customer relations etc.
Good luck;
Sherry
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Old Oct 1st, 2006, 06:51 AM
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When I booked my safari I was given a quote that I Thought was excellent, since I had checked the rate first directly with the camp.

When I received my invoice, the price was much higher.

I showed them my quote and expected them to honor it.

They said they had made a mistake, and that they were very sorry. They could not give me the price I was quoted, but they would come down 5%.

I do believe they made a mistake because the original quote was just too good to be true. I was still very happy with the price, and the tour company.



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Old Oct 1st, 2006, 09:05 AM
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I believe what the commission is is irrelevant. You should shop around the same intinerary to several tour operators. You will be surprised by the price differences. Another factor is can the tour operator get you a confirmed reservation. At times you are put on a wait list.

Again, shop around. We went to Kenya, least expensive were Southern Cross, Eastern and Southen, and African Serendipity.

Good luck
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