SOUTH African independent travel
agency companies are booming,
with yet another ITC model set to
launch in the market. Flight Specials is
the most recent consortium to join the
ITC fold, launching on June 1. Earlier
this month, Flight Centre announced it
would be introducing its ITC brand in SA
(see TNW June 10).
“The ITC segment of the retail
market is growing much faster than
the historical legacy membership
or franchise base,” says Franz von
Wielligh, gm Flight Specials.
Franz adds that Flight Specials
received numerous requests from
existing ITCs to join the Flight Specials
stable but – until now – the company’s
business model did not align with
ITCs’ needs. The company has now
incorporated two ITC options in its mix
of membership choices.
Travel agents will be able to opt for
a ‘ticketing only’ option, a ticketing
solution at a cost of R57 (inclusive
of VAT) per ticket. Alternatively, they
can choose a more comprehensive
ITC option that provides back-office
and administrative support as well
as access to more Flight Specials’
preferred deals in the market. This
option comes with a 60-40 commission
split.
What will set Flight Specials’ ITC
brand apart is the fact that there will
not be just one centrally located head
office or host that fulfils all the ticketing
and back-office administration centrally,
says Franz. Instead, every individual
Iata-licensed Flight Specials member
around the country will be able to fulfil
a host function for the ITCs in their
respective region. “This will enable the
ITC to have a personalised relationship
with its nearest Flight Specials Iata
host. The ITC then also has the option
to meet clients and work from the
offices of their Flight Specials host,
providing them with a retail presence if
they wish.”
Whether ITCs opt for a ticketing
solution or a full ITC offering, the Flight
Specials’ member host will manage
all payments as well as BSP. This will
– as far as possible – limit fraudulent
activities, Franz says. “ITCs will be
using their host’s pseudo code, giving
Flight Specials more control over
payments. Payment from clients and
payment to suppliers will also be done
by the Flight Specials host member,”
he says.
Prospective ITCs will only be accepted
if they have a minimum of two years’
experience and will need to sign a
personal surety in the event of default.
With more existing consortiums
introducing ITC models in South Africa,
the question arises whether the market
will become saturated. “I don’t think
so,” says Franz. “It is still a growing
segment of the market and currently
there is not a silver bullet ITC solution
that attracts all ITCs out there"
