TRAVEL agents are the
lowest paid sales people
in South Africa, according
to a recent salary index,
compiled by CareerJunction.
And while some industry
leaders believe that low pay
leads to low retention of
valuable people, others say
that effective retail agents’
earnings are unlimited.
The index, which shows the
average salaries in 2015 for
over 100 jobs in 10 sectors
across South Africa, shows
travel agents earn salaries
ranging from R9 700 to
R13 587 for ‘skilled’
employees and from
R14 091 to R16 250 for
‘senior’ employees.
“By and large, the travel
industry is a very poorly
paid industry,” says Rachael
Penaluna, business manager
for Sure Maritime Travel in
Port Elizabeth. “Considering
how much hard work and
responsibility is involved in
being a consultant or agency
boss, it really is not worth
the salary we get paid.” She
says the problem is that the
industry is not regulated either
internally or externally. “There
is no way to have a scale
of remuneration, no control.
Agency bosses can pay what
they think is right in their own
context,” she says, adding
that under the current climate,
travel consultants won’t stay in
the industry for more than 20
years any more.
Also younger consultants
tend to get despondent once
they realise they can’t afford
to travel, says Rachael. “Young
consultants enter the industry
and think “It’s okay, we will
get industry rates, so we can
afford to travel”. Rubbish! Very
few suppliers and airlines give
good rates. Consultants end
up despondent because they
are earning a pittance and
don’t travel.”
Jean Rymer, senior specialist
travel recruiter at PCS-SA,
says, currently, young leisure
consultants earn between
R6 000 and R8 000 per
month, with the potential to
make commission, although
the targets are usually quite
high. Corporate travel agents
earn slightly more.
According to Jean, recruits
usually have a fairly good idea
of the salary they can expect.
But after a couple of years,
salary frustrations tend to rear
their head. “Travel consultants
then start to realise that it is
a high-pressure environment
with quick turnaround times.
They tend to get tired of the
combination of little pay and
high pressure,” she says,
adding that another frustration
is the fact that there is only so
far you can climb the ladder in
the travel industry.
Nick Paul, social media
manager for Travelstart, says
agents often have the potential
to earn reasonable salaries
when taking into account
their commission structures.
However, Nick also points
out that travel agencies tend
to work on extremely small
margins, which are often less
than 10% of the total turnover.
“In order for regular travel
agents to compete with online
travel booking engines, which
have very small margins, they
have to drop their service fees
even further.”
However, TMCs say the
CareerJunction survey should
be taken with a pinch of
salt and is not necessarily
representative of remuneration
in the industry. “In our
business, the average salary
in our retail stores is R17 000
per month and in corporate
R32 000 per month, so we
don't classify agents as badly
paid,” says Andrew Stark,
md of Flight Centre, adding
that the position allows for
uncapped earning potential.
He agrees that retention of
talent remains an issue in the
industry. “We recruit 30 and
lose 25 per month but that is
the hard reality of sales. It’s
either for you or it’s not.”
Jonathan Gerber, director at
TAG, says all TAG consultants
are fairly remunerated, can
earn extra commission and do
have decent earning potential.
“Salaries are not this low
and I would not believe the
study! Good people will always
earn well. Salary depends on
experience, billings, customer
service, professionalism and
what value you can bring to
your organisation.”
Sean Hough, ceo of
Pentravel, also doesn’t
agree with the survey. He
says Pentravel’s highest
earner recently took home
R145 000 over and above her
basic salary. “Where else can
you earn salaries like that?”
he asks, adding that Pentravel
people don’t work just for the
money. “We employ people
who feel their purpose is to
make customers happy and
who love travel. But they are
richly rewarded for their work.”
For a travel agency to
become a lucrative business,
it is important that travel
agents start moving away
from the mindset that they
are merely ticket sellers or the
intermediaries of suppliers
such as airlines. Otto de
Vries, ceo of Asata, believes
this transformation has proved
challenging for an industry
that has historically relied on
generating its income through
the supply chain only.
Says Otto: “Those travel
retailers who have truly
understood their customers’
needs and who have
effectively communicated
how they meet these needs,
and how much value they
thus provide, are benefiting
from this and are able to
command fees (salaries) that
are commensurate with their
expertise, knowledge and
efforts.”
