Why Not Outlet Pricing for Travelers?

The proliferation of ‘factory outlets’ or ‘manufacturer-direct’ prices has become common place, but are we getting true ‘outlet or direct’ prices?

The middleman, agent or even retailer is suffering in our modern internet-based environment and big-box stores which appear to offer rock-bottom prices but still make enormous profits are commonplace.

The world of agents from insurance to travel to financial are feeling the crunch as they are rapidly being considered as expensive cost overheads by the producer, provider or manufacturer.

The airlines started the demise of the travel agency system when they started eliminating agent commissions and over-rides and turned to online booking systems aimed directly at the consumer, forcing some retail agencies to charge additional booking fees. Now you can find airline reservation sites charging fees for online seat selection plus anything else that they can get away with. Are the savings they are making being passed on to the consumer?

Insurance companies began advertising for direct dealings as did banks with their development of in-house financial planners (not at all independent, but merely another name for a bank products salesperson). Are they keeping the old commission for themselves or do they pass on the savings to the consumer?

 

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