CALLING for TMCs to
reconsider their pricing
models, ceo of XL Travel,
Marco Ciocchetti, says the
time has come for agencies
to do away with transaction
fee-based pricing models.
Speaking at the recent
Barsa Aviation Summit, he
said: “We cannot charge
R1 to issue a ticket when
a customer can do it
themselves at no charge.”
Speaking to TNW after
the Summit, Marco pointed
out that it was mostly an
attitude adjustment that
was required for an agency
to move away from charging
customers per transaction.
“It doesn’t require
reinventing the wheel;
many solutions already
exist but it’s the myopic
focus on costs rather
than returns that prevents
implementation.”
Corporate clients, he said,
were generally frustrated.
when paying per transaction,
as this was perceived to be
a cost associated with the
issuing of a ticket and not
for value-added services
such as consultancy and
data analytics.
He explained that
moving beyond transactional
fees into full consultancy
mode was the key. “The
focus has moved beyond
simply covering costs
or making up for lost
commissions. Instead we
should start looking at our
fees and the service we
provide as a product in and
of itself. We should see it
as a product upon which
profit should be earned,
separate from whatever may
or may not be booked,” said
Marco.
Technology is likely to
play a huge role in this
transition, and has the
potential to completely
overturn the travel industry.
“Consumers are empowered
by information: they have
near-instant access to
their flight, hotel and carrental
options; virtual price
transparency; and the ability
to play suppliers off against
one another. The game
is now about delivering
a superior customer
experience – if we can do
that, the investment returns
will follow.”
So, what does a superior
customer experience look
like? Marco named four
imperatives for travel
companies: making
customers the strategic
focus; using data to
understand them; serving
them better through
partnerships; and providing
the best end-to-end
experience to promote both
sales and ongoing loyalty.
“Data insights can improve
every stage of the customer
experience, from the first
interaction to post trip.
Data has the means to
paint detailed pictures to
drive marketing initiatives
that more deeply engage
customers, yet few – if any
– of us truly maximise the
potential of the data at our
disposal,” he added.
