AGENTS will need to relook their
business models and place greater
emphasis on service excellence in
2016 if they hope to survive the tough
trading environment.
Last year saw significant down-trading
among many corporate clients, with
economists forecasting near stagnant
economic growth for the South African
economy this year, says md of Carlson
Wagonlit Travel, Ben Langner.
Although this will not necessarily
play out in the reduction of demand,
it does create an environment in
which companies are reluctant to
seek opportunities, which immediately
translates to less travel, adds gm
for Travel Counsellors in South Africa
Mladen Lukic.
Increased consolidation in the TMC
environment will also create instability,
comments Claude Vankeirsbilck, chief
sales and marketing officer at Tourvest
Travel Services. However, he maintains
where there are challenges, there are
always opportunities for those who are
quick enough and smart enough to act.
As a result of the crippling rand
exchange rate and the lack of elasticity
in pricing, price will not be enough to
differentiate travel companies in 2016,
says Mladen. “People are no longer
satisfied to base their decision on
price. They are looking for value. In the
value-based system, quality providers
will beat large companies with
no flexibility and complete
inability to personalise their
offering.”
He adds that 2016 will
bring about some “aggressive
failures” of companies that
still think they can provide
commoditised, cataloguebased
travel.
A significant number of
travel managers will expect
“enhanced TMC services”
to have a high impact on
their programmes in 2016,
comments Ben. This could be
anything from visa processing
and VIP travel on demand
– including private jets or
concierge services – to leisure
bookings and relocation
support.
In light of this, innovative
companies will invest more
in culture, says Pentravel
ceo, Sean Hough. “Incredible
success has been achieved
by focusing on a culture of
purpose and putting people
before profits.”
The focus on quality of
services means training
will become increasingly
important, notes Adriaan
Liebetrau, ceo of SAACI.
“Educated and skilled staff
are becoming increasingly
scarce and suppliers in the
business events environment
are going to focus a lot more
on internal training.”
However, exceptional service
alone will not be enough in
2016, maintains Flight Centre
md, Andrew Stark, adding that
unique product and exclusivity
will be key. According to
Andrew, travel agents will
need to offer the customer
a product they can’t get
online in order to distinguish
themselves. “If you can’t
provide that, you’re in trouble.”
For more on what to expect
in 2016 see TNW’s industry
outlook on page 6.
