TRAVEL agents need to rely
less on tour operators to sell
packages and become more
adept at servicing clients directly
to stay competitive.
This was the word at the Travel
Counsellors annual conference,
held at the Fairmont Zimbali
Resort and Spa from June 5-7.
Travel Counsellors’ own
dedicated tour operating system,
Phenix, was growing from strength
to strength and more TCs were
taking it upon themselves to
design and package holidays for
their clients, the consortium’s
leaders said.
Kirsten Hughes, Travel
Counsellors’ commercial director,
says tour operators in other
countries are bypassing agents
and going direct. “The world has
changed significantly. In the UK,
for example, tour operators started
cutting the agent out eight to 10
years ago.”
She adds that travel agents
who design their own packages
for their clients are able to
significantly increase their
margins. “Tour operators would
historically have made 30%
margin, of which they pay the
travel agent 15%. By doing it
themselves, TCs can make double
margins.”
Although Phenix originally
only offered accommodation
options, the system now allows
travel agents to book transfers,
excursions, and flights – most
recently LCCs.
Group md, Steve Byrne, says, in
an age where a lot of businesses
rely heavily on overrides, Travel
Counsellors wants to go in a
different direction.
“Look after the customer, then
you’ll make enough money.”
“Travel Counsellors own their
own business and are therefore
truly empowered to focus on
the element of the business
that produces the best result,
which is talking to their clients,”
says Mladen Lukic, gm of Travel
Counsellors SA.
Mladen says it’s difficult for
agents to say that they are
customer-focused but then
hand over the responsibility of
packaging the client’s holiday to
someone else. Phenix allows travel
agents to really cater for clients’
wishes without being bound by the
offering of a tour operator or being
influenced by override agreements.
Kirsten adds that Phenix gives
TCs much more control over the
booking. “If something goes
wrong, the agent can go directly
to the hotel or the DMC to ensure
the problem is fixed,” she says.
This doesn’t mean there isn’t
a place for the tour operator,
Mladen said. “The future can’t
be on the basis of segmentation:
‘I’m a tour operator, you need
to use me because there is no
other option’. There has to be
more value. If the tour operator
provides value for our TCs and
our travellers, then they will
maintain their relevance.” If a
tour operator has an exceptional,
in-control programme that will add
value by giving customers a much
better experience, then Travel
Counsellors would encourage
its members to maintain the
relationship with the tour operator.
“But it can’t be a post office
process, where the only reason
I’m using you is because you
are an easy way for me to buy a
package,” he says.
Do agents need tour operators?
Comments | 0
