Businesses such as opening an airline ticket office in Russia are becoming increasingly popular. The reason for this is that the services of companies specializing in flights are in great demand all over the world. However, purchasing air tickets directly at the airport, as experience shows, often causes a lot of anxiety.
To avoid unnecessary hassle, you can buy a ticket in a separate place. Consideration of such a situation gives serious grounds to assume that opening an airline ticket office can generate significant income. It should be especially taken into account that the sales figures for plane tickets are growing rapidly.
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At first glance, the question of how to open an airline ticket office seems easy to solve. However, organizing such a business entails a number of specific problems that novice entrepreneurs are unlikely to be able to cope with. Firstly, many newcomers have the false impression that the entry threshold into this business is low.
The air ticket office that you are going to organize will require an impressive amount of investment. It should also be remembered that in the first couple of months, points of sale, without much promotion, operate at a loss. Since air tickets are not classified as essential trade items, maintaining the required sales volume requires a large target audience.
Selling air tickets - how to organize
Nowadays, no one will be surprised by the sale of tickets via the Internet. To stand out from competitors, agencies come up with various tricks. Some offer simultaneous hotel booking or subsequent car rental with the purchase of an air ticket. Others use exclusive programs to create optimal routes and flight conditions.
Also, many online ticket offices offer a wide selection of charter flights, tickets for which are cheaper than regular flights.
The supply market situation changes every moment. Therefore, for the sake of efficiency, it is very important to have modern technology and communication systems.
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The situation with train tickets is somewhat different. The Ministry of Railways is a monopolist, therefore it dictates its own conditions, no less stringent than those of IATA. The agencies themselves, their locations and their staff are subject to accreditation. Only after this, a terminal for selling train tickets for routes across Russia is installed in the agency’s office.
The contract is concluded not directly with the Ministry of Railways, but through intermediaries. For example, the Moscow Railway entrusted the signing of contracts to the MZA (Moscow Railway Agency). Since the contract does not provide for a “commission” remuneration, travel agencies do this on their own. From one ticket it reaches, on average, 120-150 rubles (and with delivery - even more expensive).
Prepared by editors: “Business GiD”www.site
Currently, one can observe a trend of increasing popularity of air and rail transportation services. Of course, organizing a service that allows you to sell both air and train tickets is clearly not a new idea, but in modern conditions it has good prospects, as experts note that the demand for tickets will most likely continue in the future.
The demand for railway tickets is also growing due to the introduction of new ones, in particular, the possibility of online ticket booking. Such a service became possible as a result of the influence of scientific and technological progress, when remote access for end users to many services and goods began to be created.
However, it is worth noting that the official online booking service is still imperfect in cases where it is necessary, for example, to send luggage in a baggage car or transfer pets. Also, problems with electronic registration may arise for employees of companies going on a business trip, since in order to issue an advance report it is necessary to present a paper ticket.
Of course, the control coupon provided when purchasing a ticket online, in accordance with Order No. 322 of the Ministry of Transport of Russia dated August 21, 2012, is a document of strict accountability, but for now many company accountants may refuse to accept it based on conservative images. Naturally, the service will gradually improve and subsequently online booking will be a complete 100% replacement for purchasing paper tickets.
Statistics show that today a considerable number of people agree to buy train tickets at a slightly more expensive price at commercial ticket offices, as this will allow them to avoid long standing in queues, that is, in fact, people are willing to pay extra for more comfortable conditions, since many ticket offices offer a ticket delivery service the address specified by the client.
To do this, you will need a pair of monitors that will broadcast the current aircraft schedule. It is also mandatory to have chairs for waiting clients. The room must be equipped with an air conditioning system. The walls of airline ticket offices should be decorated in light colors (beige and blue colors are perfect).
Underwater rocks
The high rhythm of modern life makes business related to transport transportation more and more relevant every day. One of the relatively simple activities in this area is opening a ticket office and selling airline tickets as a business.
Air tickets are not a necessity for most people. But if it is possible to conclude contracts with airlines on favorable terms, then you will be able to sell tickets to your customers at very attractive prices, providing yourself with a reliable customer base.
An airline ticket office can be opened from scratch in two ways: by concluding an agency agreement with an airline carrier or by entering into a sublease agreement with an agent of a large airline.
The best option would be an area far from the airport and with a large number of office buildings. In the process of drawing up a business plan, you will need to enter into an agreement with the airline. The main cost items when opening an air ticket office:
- Office maintenance – RUB 30,000.
- Equipment and furniture – 30,000 – 60,000 rubles.
- Drawing up a contract, taking into account all the legal subtleties - 200 thousand rubles.
- Advertising campaign and employee salaries – 60,000 rubles.
This type of business, such as the sale of air tickets through ticket offices, is becoming increasingly widespread.
Read more: Auto business and car service franchises for 2020. Current franchising offers for starting an automobile business
The reason for this is that today airline services are in great demand all over the world, and purchasing air tickets directly at the airport is usually accompanied by a lot of hassle.
In order to avoid unnecessary problems, it is enough to buy a ticket at a separate ticket office.
This situation gives quite serious reasons to assume that the opening of a private ticket office should bring tangible profits, especially if you consider that the sales of air tickets are growing every year, and until recently, all tickets were sold only at the airport.
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*Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.* All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.
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Underwater rocks
At first glance, opening your own ticket office is a fairly simple project. However, its organization entails several specific problems that novice businessmen are unlikely to be able to solve.
Firstly, many novice entrepreneurs have the wrong impression that the entry threshold into the airline ticket business is low.
Setting up a ticket office initially requires a large amount of investment, and in addition, the first months of an airline ticket office, as a rule, operate at a loss, since points of sale do not have strong promotion.
To organize an air ticket office, a businessman must have significant connections in the agencies of large airlines, which are necessary to conclude more profitable contracts.
An interesting option would be to enter into contracts with companies whose business travelers are forced to purchase air tickets, thereby creating a permanent customer base. The ability to maintain competitive prices can be confidently called another important factor, without which it is impossible to make a decision about opening an airline ticket office.
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Nowadays, you can purchase tickets by contacting any office of a tour operator or airline. Here you will be helped to choose the best option in terms of price and time. There are no longer such queues as in Soviet times, thanks to a sufficient number of ticket offices.
Air ticket offices are found in large cities much more often than railway ones. This is explained by the fact that the Ministry of Railways is still a monopolist. At the stations there are queues and a lot of resellers offering tickets for more popular flights.
Today in Russia 10-15% of all tickets are sold by travel companies. The percentage increases when it comes to international travel. If you buy a ticket from a travel agency, it is not necessary to have a travel package. 50-70% of the cost of the “package” is tickets. Air travel is much more important and more expensive than booking a hotel and organizing leisure activities.
From the outside it may seem that you just need to rent a room and install a computer to open an airline ticket office. In reality, everything is much more complicated. The most important thing here is information. Organizing access to information sources involves many harsh conditions. To sell plane tickets, you must be an agent or subagent of the airline whose tickets you are going to sell.
All companies have their own requirements. In order to become an agent of a foreign company, you need to register as an accredited IATA (International Transport Association) agent. This association places very strict requirements on safe equipment and on the level of training of personnel who will be involved in issuing tickets.
Agency agreements allow you to issue tickets on the air carrier's forms (stocks). The airline's primary concern is the safety of the effluent. To avoid loss or damage to waste, their owners check the reliability of their potential agent’s safe equipment (and, in general, the conditions for storing and filling out forms) and the qualifications of the personnel.
However, in order to become an airline agent, it is not enough just to become an accredited agent of IATA or the Transport Clearing House (for agents of Russian airlines).
It is very important to gain access to global reservation systems (“Amadeus”, “Gabriel”, “Galileo”, “Star” or “Sirena”, for railway transportation - “Express”). You can connect one-time or permanently. Such systems allow you to book seats on any flight from anywhere in the world. Access to such systems costs $40-60 per month and $40-100 for a one-time connection (depending on the operator).
Various cooperation options
To open a cash register, an entrepreneur must have extensive connections in the agencies of influential companies, which are necessary to conclude profitable contracts. Another good option is to cooperate with companies whose employees are forced to regularly buy air tickets when going on business trips.
This way you will create a permanent customer base. Another significant factor is the ability to maintain competitive prices. Without this opportunity, it is unacceptable to wonder how to open an airline ticket office.
We make money by selling train tickets in partnership with UFS
UFS LLC is the Russian market leader in the provision of services for the sale of railway tickets and an aggregator of air tickets. UFS is the developer and owner of the online system UFS-online, which allows you to sell tickets to any railway routes, JSC FPC, as well as aircraft of any domestic or foreign airlines. Through the system, you can also, if desired, take out insurance and book hotels.
Read more: Can a pensioner open an individual entrepreneur and are there tax benefits?
The company is a technological partner of JSC Russian Railways, a direct agent of JSC FPC and more than 200 airlines are accredited by the IATA association and the Transport Clearing House.
The UFS LLC partner network includes more than 5 thousand Russian companies, including large banks, leading travel Internet portals, large retail chains and travel agencies. Among them are Euroset, Svyaznoy, Russian Post, etc.
Arrangement of premises for an airline ticket office
Before purchasing the necessary equipment, it is necessary to carry out work to prepare the premises in which you plan to sell plane tickets in the future. Of course, comfort should be ensured and information access should be provided to visitors.
To do this, you will need a pair of monitors that will broadcast the current aircraft schedule. It is also mandatory to have chairs for waiting clients. The room must be equipped with an air conditioning system. The walls of airline ticket offices should be decorated in light colors (beige and blue colors are perfect).
Also, we must not forget about the stand, which will provide the operating schedule of the point of sale, the main rules of air transportation, as well as any other necessary information. In agreements with agents, you can find requirements for the mandatory presence of a fire protection system and an alarm system with alarm sensors in the premises.
What do you need to open a cash register?! The main thing is to become an agent... or a super agent
At first glance, to open a ticket office you just need to rent a room and put a slightly trained cashier in front of a modern computer.
In fact, the priority is access to information. To receive it, you need an agency or subagency agreement with the carrier company. But they are first accredited by the Transport Clearing House. If air transportation is carried out on international routes, then accreditation as an agent of the International Air Transport Association (IATA) is required. In addition to strict requirements for safe equipment and personnel qualifications, there is another big problem - IATA accepts financial guarantees from a narrow circle of foreign banks. The situation is solved by a deposit of 20 thousand dollars, but such conditions are practically unrealistic for a small agency.
If all conditions are met, then the agency agreement allows you to use airline forms to issue tickets. The carrier strictly monitors the storage and use of forms, requires constant reporting, and in case of damage or loss, charges substantial fines (up to $500 per form).
An important aspect of the agency agreement is access to global network reservation systems (Galileo, Gabriel, Amadeus, Sirena, and for rail transport - Express). These systems provide operational communication between agents and air carriers and allow booking tickets for any flight from any agent point.
To open a ticket office you need to be well prepared in organizing flights and having an established client base. Then the air carrier will show interest in you, and you will not fall for the “cheap tricks” of some “dubious” air carriers. By wisely taking advantage of the difference in price for tickets from large companies, you can earn decent money (sometimes it reached $30 per ticket or $6-10 thousand per flight). The height of work is holidays. Then tickets are 50-70% more expensive and passenger traffic is higher.
Small travel agencies cannot become full-fledged agents. But our businessmen show flexibility, become subagents and work for “commissions”, amounting to about 6-7% of the ticket price. The companies are also not at a loss - they still have 5-7% of “commissions” left. The requirements for subagents have been slightly relaxed, but only slightly.
Technical equipment
If you are thinking about how to open an airline ticket office, then it is important to know that for its normal functioning you need to purchase a number of equipment. You will need a floor safe designed to store ticket forms and cash; a personal computer with which reporting will be carried out; standard printer for printing various documentation; a device that supports printing on ticket forms; and, of course, a telephone.
How to open a ticket office without large investments?
You can start a business selling air and train tickets by establishing direct contractual relationships with leading air carriers, but this will require serious financial investments, because you will need to purchase or rent suitable premises, purchase a computer, hire cashiers, and provide access to reservation systems.
Moreover, the agency and subagency agreement provides for the partner to fulfill a number of requirements, including sales volume. To enter the market, you will need a large customer base and considerable investment in brand development.
However, there is an easier and more affordable way to start a business selling air and train tickets - you can become a partner and start earning money using software products of the UFS-online system.
Air ticket office as a business: let's summarize
Renting a premises for a ticket sales point costs approximately thirty thousand Russian rubles. In order to purchase the above equipment, you need to allocate about sixty thousand, and approximately the same amount for staff salaries. Beginning businessmen will have to spend up to two hundred thousand rubles to conclude a subagency agreement.
We must not forget about the costs associated with advertising promotion. A necessary condition for organizing the work of the cash desk is the acquisition of access to systems that allow you to reserve seats. The most famous of them are “Amadeus”, “Galileo” and “Sirena”. These systems have paid access, for which you will have to pay approximately three to six thousand rubles monthly.
Having calculated all expenses, it can be argued that the initial capital should be about four hundred thousand rubles. If you are seriously thinking about how to open an airline ticket office, it is worth noting the fact that without initial promotion, ticket sales points for up to six months can operate at a loss or on the verge of self-sufficiency. This involuntarily leads to an increase in the amount of starting investments.
Opening an airline ticket office - features of the business and its prospects
The high rhythm of modern life makes business related to transport transportation more and more relevant every day. One of the relatively simple activities in this area is opening a ticket office and selling airline tickets as a business.
Tickets for air flights are always in demand, and modern technologies for issuing them make it possible to sell them even to those who do not have large start-up capital. To find out how to open an airline ticket office and how much you can earn from it, read on.
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How to open an airline ticket office
There are currently two ways to open an airline ticket office.
The first and more complex one is concluding an agency agreement directly with the carrier airline and direct sale of tickets.
This option allows you to get the most favorable terms of cooperation (minimum cost of tickets), and therefore reach a good level of profit.
But the agency agreement presupposes a number of strict requirements, which are quite difficult to meet, especially for a novice entrepreneur:
- drawing up a business plan with economic justification;
- compliance of the cash register premises with certain standards;
- availability of trained personnel;
- fulfillment of the sales plan, while most air carriers oblige agents to buy a certain volume of tickets broken down by destination.
This option for opening an airline ticket office requires about 600 thousand rubles. at the start. These funds will be used to prepare the premises, conclude the necessary contracts and agreements, train and improve the qualifications of personnel, etc.
The second way to make money selling air tickets is to enter into a subagency agreement with an existing airline agent.
The advantages of this format are the absence of serious requirements regarding the organization of the work process. In addition, an entrepreneur can enter into subagency agreements with several agents, which will allow him to choose the most advantageous offers for his clients.
To start working under a subagency agreement, a minimum of funds is required. 100-150 thousand rubles are enough to open. Approximately the same amount will be required for the first 2-3 months of work, until a permanent client base is formed.
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Features of the airline ticket sales business
If the question of how to open an airline ticket office is relatively simple - it’s enough to open an individual entrepreneur, choose a large ticket sales agent and enter into an agreement with him, then further business activities may cause certain difficulties, which are not always obvious at the start of a business.
There is always a demand for air tickets, but in order to attract customers to your ticket office, you need to make some efforts. Experience shows that it takes three to four months to promote a cash register.
A well-chosen location, a good advertising campaign, and flexibility in working with visitors ensure the formation of a circle of regular customers, which brings in a significant portion of the profit.
There are certain nuances in the calculation of subagency remuneration; the following options for its calculation are currently used:
- fixed amount for each ticket;
- percentage of the cost of each ticket;
- percentage of total sales revenue for a certain period.
With the development of the electronic ticketing system, many air ticket offices began to work according to the following scheme.
On the agent's booking resource, the subagent places a certain amount of money, which is debited when purchasing a ticket, and the subagent sets its own cost.
The difference between the ticket price from the agent and the sale price from the subagent is the latter’s remuneration. As a rule, its size ranges from 2 to 4 percent of the ticket price.
By the way, the small amount of remuneration determines another feature of this business - the need for a large sales volume. On average, to cover the current costs of operating an air ticket office, it is necessary to sell at least two hundred tickets monthly.
Development prospects
The business of selling air tickets is quite specific, but at the same time, it is very interesting and promising. With enough attention to it, it will not only bring good profits, but will also provide an opportunity to reach a new level.
Many of those who recently thought about how to open an air ticket office in Moscow are already confidently working and forming air ticket sales networks that extend beyond the Moscow Ring Road.
By the way, launching such a business in the capital is practically no different from opening it in any of the regions, except that in Moscow there is a higher level of competition in this area.
This business is easy to replicate, so a well-thought-out operating strategy allows you to expand your activities in a short time, including by entering other regions.
In addition, the airline ticket office may eventually grow into a larger business in related industries.
A couple of years ago, some travel agencies gradually switched to selling air tickets as their only activity.
Now the opposite trend is observed - air ticket offices are growing and are gradually turning into places for selling vouchers and tours.
This business has good prospects for development, and the opportunity to start working in a small town also speaks in its favor.
At the first stage, it may even be a home business, because...
Most modern booking systems only require the subagent to have access to the Internet and the ability to make payments to the client.
Selling air tickets is a direction available to anyone who wants to build their business in a popular and promising niche and is ready to put some effort into it.
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Source: https://mir-biz.ru/biznes-idei/otkrytie-aviakassy/
Selling air tickets - how to organize
How to open an airline ticket office from scratch? Today it is possible to work in two directions: as an agent or subagent. Both options allow you to sell air tickets, but the requirements for the seller for each type of cooperation are significantly different.
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To conclude an agency agreement you must:
- be accredited by the International Transport Association - IATA or the Transport Clearing Company;
- conduct professional training for employees in accordance with the requirements of airlines and accrediting companies (personnel are also required to have work experience in the transportation industry);
- prepare the office in accordance with regulatory requirements for ticket office premises;
- gain access to ticket booking systems - “Gabriel”, “Amadeus”, “Galileo”, “Sirena”, “Start”.
In addition, each airline has its own additional requirements for possible agents. For example, an agency agreement may provide for conditions for the agent to open a certain number of sales points, or for the mandatory purchase of a certain number of tickets, including by flight.
An air carrier can advise a businessman on how to open an airline ticket office directly, but it rarely comes to the conclusion of an agency agreement, since airlines need large operators who can organize large-scale sales and have serious financial resources.
A more acceptable option for many entrepreneurs for organizing the sale of air tickets is to become a subagent. Almost all airlines allow their agents to have sub-agents. They are also subject to certain requirements, but not as strict as in the first case.
To conclude a subagency agreement, you must contact the agent and fulfill all the conditions imposed by his partner airline, as well as the agent himself. Most often, these conditions provide for the following responsibilities of the subagent: to equip the point of sale with office equipment, conduct training for staff in working with special programs, and provide advertising support.
All this should reflect the air ticket office that some airline agencies require from their potential partners. Subagents are rarely required to meet sales volume requirements, and a mandatory ticket purchase quota is not established. Working under a subagency agreement is the most attractive option for creating your own business selling airline tickets, which does not require major investments.
An equally interesting area of the “ticket business” is the sale of railway tickets. Here the situation is somewhat different from the air transportation sector. Russian Railways is a monopolist, and therefore dictates very strict conditions for organizing ticket sales.
Today, Russian Railways has several dozen direct agents, as the company conducts a serious selection of partners. To cooperate with a company on an agent basis, you must pass three levels of accreditation:
- accreditation of the right to conclude a contract;
- confirmation of compliance of each point of sale with established requirements;
- accreditation of each employee selling tickets.
In addition, Russian Railways reserves the right to monitor the activities of the agent, including conducting periodic certification of the partner’s sales offices and personnel.
The requirements for subagents are also quite high, but are more feasible for specialists who know the specifics of Russian Railways.
When opening a railway ticket office, it is important to know how to make money selling railway tickets, since neither the carrier nor the agents pay a commission on sales. In this case, the profit is generated through a service fee for issuing a ticket, the amount of which the subagent sets independently or in agreement with the agent. Ancillary services, such as ticket delivery, hotel booking, etc., can bring additional income.
Having an idea of how to open a railway and air ticket office, you can plan to create your own business in this direction. One interesting option is to sell tickets on the Internet. In this case, there is no need to organize an office or hire staff, all costs are minimal.
To do this, you need to enter into a subagency agreement and set up sales channels. This could be a specialized website, message boards, social networks.
Recently, specialized services and affiliate programs have appeared online that allow you to sell tickets without leaving your home. The organizers of such resources regularly conduct training webinars on the topic: how to make money by selling railway and air tickets on the Internet, which allows even a person who is not familiar with the peculiarities of transportation to start a business in this area.
Buying and booking tickets online is gaining popularity among consumers. Potential entrepreneurs who are thinking about it should take a closer look at this area. This is one of the few working business ideas with minimal investment and great prospects.
Businesses such as opening an airline ticket office in Russia are becoming increasingly popular. The reason for this is that the services of companies specializing in flights are in great demand all over the world. However, purchasing air tickets directly at the airport, as experience shows, often causes a lot of anxiety.