The evolution of the ITC
SINCE the early
beginnings of the
independent travel
consultant (ITC) movement
in South Africa back in
1999, the sector has
evolved to include a
variety of models.
Garth Wolff, founder
and ceo of eTravel, recalls
the background of those
early times, when his
consortium became an
early adopter of a new
generation of retail travel
operations.
eTravel, he says,
began as a grouping
of independent travel
consultants, but was
later extended to include
independent travel
companies, as the
number of staff an eTravel
consultant employs is
unlimited. “However, it is
commonly accepted that
the term ITC more often
than not refers to one or
perhaps two consultants
operating their own travel
business.”
Other established retail
chains also took up the
ITC concept, putting their
own spin on it. For many,
the ITC division was run
as an additional business
stream to traditional
agency operations. Some
would say this pitted the
two against each other
and split the consortium’s
focus.
Broadly speaking, there
are variations on two
core genres – the ITC and
the independent travel
agent (ITA). The former
processes all transactions
through a consortium of
members, while the latter
is a ticketing agent who
processes only air sales
through a hosting entity.
The ITC model veers
towards a full suite of
administrative back
office support, such
as invoicing, supplier
payments, ticketing, as
well as ADM, fares, sales
and marketing, training
and IT-related assistance.
The ITC receives monthly
commissions and
sometimes overrides.
The ITA model provides
access to negotiated fares
and a ticketing platform,
without the administrative
support. It’s a model that
suits good administrators,
able to invest time
and resources into
management, marketing
and sales. Proponents of
this model point out that
ITAs remain in full control
of bank accounts and
payments to principles.
Which consortium is best suited to you?
eTravel
eTravel is a full-support
ITC consortium and, says
Garth Wolff, the market
leader in terms of revenue
generated per annum on
just ITC business.
It offers a long list of
administrative functions,
including the allocation,
reconciliation and
management of debtors,
creditors and cash flow.
This is critical, according
to Garth, because while
ITCs may be exceptional
at customer service and
sales, they are often
not great accounting
administrators. Further,
the time it takes to fulfil
administration often leads
ITCs into postponing these
functions, and thereby
commission claims.
“ITCs’ clients are
comforted in the fact that
qualified personnel are
custodians of the funds
they pay into eTravel’s bank
account, rather than relying
on the ITC, who they would
prefer to be focusing on
their travel requirements,
personalised service
offering, duty of care
and any emergencies.”
Suppliers, for their part,
can be confident that
eTravel, as the host
company, safeguards them
against possible bad debt.
eTravel ITCs earn
both commissions and
overrides. “We have
always had a philosophy
of paying out more to our
ITCs, as and when we are
in a position to do so. In
May 1999, when we first
opened our doors, we paid
out 35% to ITCs and kept
65%; now on average we
are paying out 81% to
ITCs and retaining 19%,
before override payments
are made,” says Garth.
“eTravel is owned by one
shareholder who does not
take out large dividends
annually, but always
reinvests into the business
by increasing commissions
to ITCs, covering some
additional costs along the
way to lessen the load on
ITCs, as well as ensuring
that our staff receive
increases annually.”
eTravel prioritises
personal contact with ITCs,
visiting them countrywide.
“More and more corporates
and in-houses are
embracing the ITC model
and will only do so if they
know they are backed by a
proper host company.”
Travel Counsellors
Travel Counsellors, says
gm Mladen Lukic, is a fullservice,
partnership ITC
model, as “we don’t believe
that realistically anyone
can create a competitive
environment on their own
against the major brands”.
It operates on two
precepts, he says – to
offer a reasonable amount
of independence to travel
consultants and thereby
allow them to create
wealth; and to supplement
any skills shortages
consultants may have, no
matter how good they are.
Mladen believes that
the ‘independent’ nature
of an ITC is perhaps a
misnomer, as anyone
affiliated with a consortium
is not truly independent.
But although not 100%, the
independence offered by
Travel Counsellors is at its
maximum without incurring
risk for the ITC.
The transaction in retail
travel, says Mladen, is
only the last piece in the
puzzle. All the other skills
that go into the game are
supplemented by Travel
Counsellors.
These include:
Assistance to the ITC in
adapting to the changing
needs and appetites of
their businesses, with
new business plans,
goals and road maps to
get there.
Full technological support
that keeps abreast of
changing technological
needs.
Marketing; Travel
Counsellors’ expertise
is targeted, specific
messaging at specific
times, based on an
understanding of the
customer’s journey. “It’s
sophisticated, technologydependent
and intensive
and nullifies massmedia
advertising,” says
Mladen.
Commercial support and
higher commissions,
of up to 20% in some
instances.
Harvey World Travel
“As part of the BidTravel
Group, Harvey World ITCs
are able to leverage deals
from our group’s massive
volumes, whilst they have
the autonomy of running
their own businesses and
the flexibility ITCs require,”
says Monica Horn, product
manager.
Harvey World ITCs have
access to a suite of tools
that includes ticketing and
technical support, access
to special fares and volume
deals as well as valuable
networking opportunities.
“As trading conditions
tighten, it’s important
to share best business
practices and grow
together. Instead of
competing with one
another, together we
complete each other,”
says Monica.
Club Travel
Club Travel offers two
partner options for
agents seeking the
independent route, says
Jo Fraser, franchise
director. Essential to
both is the ticketing
facility and Club Travel’s
negotiated airfares.
“Consultants need
the ticket in conjunction
with our fares in order
to be competitive in the
market. All our solutions
include our global fares
system, so consultants
have access to better
availability and have the
free service of our fare
specialist team,” she
explains.
The first partner
solution is an
independent travel agency
option, for all types of
operations – corporate,
leisure, retail, wholesale
or online. The partner
uses the services of Club
Travel’s highly skilled
ticketing team to issue
all airline tickets through
their GDS of choice.
Although independently
run, full access is given
to Club Travel’s industry
expertise, including all
negotiated fares and
travel technology. “You
have the behind-thescenes
backing of our
fares specialist, yield,
product and franchise
support departments,”
says Jo.
The second option
is as an Iata-licensed
associate travel agency.
These partners retain
their own Iata licence
and branding, but benefit
from better override
agreements from Club
Travel’s revenue-based
negotiations with all
airlines and preferred
partners.
Once again there is full
access to all the global
availability platforms and
support.
Rennies Unlimited
Rennies Unlimited "is
the ideal ITC solution for
today’s modern day travel
heroes”, says Lanice
Newton, brand manager of
Rennies Specialist Brands.
“To keep the Rennies
Unlimited ITC ahead of
the curve, we offer ITCs
their own web domain –
a dynamic and uniquely
branded travel booking
website where they can
independently price and
package their clients' travel
experiences.”
Lanice says in order
to cater for every type
of ITC, from the serious
travel industry guru to
a travel enthusiast with
limited experience, the
solution offers tiered,
volume-based commercial
models. “The ITC’s
website will be powered
by our Renniestravel.com
technology which instantly
gives them access to
multi-GDS content, content
aggregator and direct
supplier integrations in one
space.”
She says Rennies also
connects consultants to
a tribe of fellow travel
ITCs so that they can
share experiences through
webinars, networking
events and learning
forums.
“Lastly, we have their
back. By partnering with
us, an industry stalwart in
our own right, ITCs have
the full support and might
of our brand,” adds Lanice.
Suppliers under pressure to keep up
THE growing
number of ITCs
in the market
presents a
challenge for
suppliers to
maintain regular
interactions
with the sector
and keep
relationships
strong.
Lance Smith,
executive Sales,
Avis Budget Southern
Africa, says: “Considering
the growing number and
size of ITCs, social media
trends and a changing
travel market, suppliers will
need to review how they
support ITCs to ensure
that they remain relevant in
the future.”
Currently, the car-hire
company’s commercial and
marketing relationships
with the independent
sector are managed via the
head offices of each ITC’s
travel group,
and detailed
information is
communicated
via Travelinfo.
ITCs have
access to the
dedicated Avis
Budget Travel
sales team, call
centre and GDS
help desks.
On a practical
level, ITCs
are offered a 60-day
worldwide account, subject
to normal terms and
conditions, and are also
assigned a dedicated Avis
Budget number to have
commissions directed to
them. Each ITC can enjoy
ClubRed membership,
which drives additional
rewards, redeemable as
the ITC desires.
Access to training is
provided to ITCs via their
head office intranets and
relationships with all GDSs.
TAG
TAG says its model is
simple in that all its agents
get the same deal. “Our
ITCs get 85% of all revenue
and they get 70% of all
overrides, including GDS
payments,” explains TAG
director, Jonathan Gerber.
“There are no minimum
fees and it’s a hassle-free
start-up process.
“We are selective and
won’t just take anyone on
board. We are a niche,
high-touch offering that
specialises in established
ITCs that see the value in
our financial model.”
TAG also recently adopted
a ticketing model for ITCs
who don’t need all the
bells and whistles but
instead just want a basic
ticketing solution. “This is
more for the smaller guys,
as our full offering is more
beneficial financially,” adds
Jonathan.
Another key differentiator
is TAG’s online corporate
booking tool. “Whilst the
ITC is generally a smallertype
business, this gives it
the feel of a fully fledged
TMC, which they can
combine with their own
service. We think this,
combined with mobile, is
where clients are moving.”
TAG says its approach is
to is act as a partner and
not just a provider to its
ITCs. “It is not for us to
tell them how to run their
businesses, but we do
step in when asked.”
Flight Centre
Flight Centre’s ITC solution
focuses on several key
aspects in order to
differentiate itself from
other consortiums. One
unique aspect is that it
provides a full start-up
package including access
to systems, a laptop and
marketing collateral so that
ITCs can hit the ground
running.
Additionally, it offers
favourable commission
structures, access to all
Flight Centre’s corporate
and leisure deals and a
24-hour ticketing solution.
“We also offer a teamworking
environment, so
you can go on leave with
the peace of mind that your
business is going to be
looked after,” says Chantal
Gouws, area leader FCA
for the Flight Centre Travel
Group.
A few of the other benefits
include exclusive Flight
Centre top achiever trips,
its National Ball awards,
a dedicated wholesale
team, along with marketing,
product, systems, IT and
finance support teams.
My journey as an ITC
Janine Corry
24 Point 7 Travel Studio in association with eTravel, Somerset West
My travel career
started 20
years ago as a
junior corporate
consultant at an
in-house. From
there, I joined one
of South Africa’s
largest corporate
agencies and
spent many years
servicing bluechip
corporate
accounts. I loved
every moment. It was a
real learning experience
and I’m grateful for all the
company taught me. When
the commute got too much,
I joined a small agency
closer to home. This was
short-lived as
I was itching
to step out of
traditional agency
ways.
Honestly,
becoming an ITC
was a selfish
decision, wanting
the perfect
balance of
independence,
flexible working
hours, and the
ability to spend quality
mommy-time with my son,
Tristan. I became an ITC
when he was just three
months old; 10 years
later, I have absolutely no
regrets.
There are many ITC
models out there, however
eTravel, I believe, is the
market leader, operating
since 1999; 18 years in
the industry and still going
strong! They are true to
their slogan – “Big enough
to matter. But small enough
to care.” Garth (eTravel
ceo) and his team are
phenomenal, always willing
to guide you with an opendoor
policy that I can vouch
for 100%.
eTravel has leveraged
preferred partner
relationships with many
suppliers, which comes
in handy when you need
waivers or favours! But
more importantly, knowing
that you are not alone and
that you are backed by a
team of back-office, admin,
processing, ticketing and
behind-the-scenes staff
makes life so much easier!
My business consists
of 95% corporate travel
with a handful of regular
leisure clients. My leisure
travellers add some colour
to my otherwise very busy
corporate work.
As I am self-employed, I
always work on the run –
whether in the office, over
a cup of coffee, next to the
sports field or after hours
on the couch. I believe you
need to walk the talk 24/7.
‘Me time’ is limited.
There is no doubt that
being an ITC is hard work,
however the rewards and
self-gratification make it
well worth it. It’s a scary
thought stepping out
of your comfort zone…
focus, be patient, do your
research properly and just
do it!
Alwin Nell
Abroad with Alwin, Three Anchor Bay, Cape Town (Club Travel)
After travelling and working
overseas for about 10
years, including five years
in the cruise industry, I
decided to become a travel
agent. I joined one of the
largest travel companies in
South Africa and remained
with them for 12 years,
10 of which I served as
manager of one of their
Cape Town branches.
At one point I was no
longer happy with many
of the company changes
being implemented,
especially regarding
which suppliers I could or
could not use. As a travel
expert, I felt I needed
to be able to offer my
clients the best possible
products and suppliers
and not to be restricted
to anyone specifically.
I have developed great
relationships with my
suppliers over the years
and I was not prepared to
give this up.
Money, and the fact that
I wanted to work for myself
were other major influences
for me. Although I earned
an extremely good salary,
cost-cutting measures were
enforced that negatively
influenced my bonuses and
overall earnings.
As an ITC I now receive
fantastic front-end
commissions from the
airlines I sell and I am
able to discount my rates
tremendously and still earn
an awesome commission.
By being more competitive
with my pricing and more
productive at my desk,
even though I work fewer
hours than before, my
earnings have sky rocketed.
Club Travel offers its
ITCs front-end commission
and supplier/airline
overrides. Except for a
nominal ticketing fee, you
essentially earn 100%
of what you sell and you
also share in the override
spoils. Their contracted
airfares are also the best I
have seen in this business.
Besides all of this, their
people are amazing and
the support structure is
outstanding.
Although I am running
my own business, they
are always there for me
if I need any advice or
assistance.
My business is mostly
leisure although I do
have a couple of small
corporates. I am looking to
expand my business. I will
bring another consultant
on board in the near future
and I also want to target a
new overseas market for
inbound luxury travel.”
For consultants
considering going the
independent route, believe
in yourself and take that
leap of faith. It’s also
essential that you have
an established and loyal
client base. Remember,
your clients have formed
a relationship with you
and not the company you
work for. It’s only natural
they would want to stick
with you and support your
business.
Roslyn de la Hunt
Gold Travel Counsellor, Centurion
I started in travel back in
January 2000 as a junior
consultant in a travel
agency in Sandton City and
I have always been in retail,
dealing with leisure and
corporate travel.
I have a passion for travel
and for translating that into
servicing clients, whether
it be a once-in-a-lifetime
holiday, business trip or just
a quick weekend getaway.
In 2009, a number of
factors played a part in
my decision to become an
ITC. I was spending many
hours each day on the N1,
just getting to and from
work. My husband and I had
plans to start a family and,
as a result, I needed more
flexibility and autonomy. I
still wanted to stay in travel
but I knew something had
to change.
That is when I came
across Travel Counsellors,
who were still fairly new
in South Africa. Their
leadership style, systems
and the care and passion
for their people was evident
from the very first meeting
and made my decision a
very easy one.
It was a giant leap of
faith in myself and trusting
my ability to become an
ITC, but ultimately it was
the best decision I ever
made. I have been with
Travel Counsellors for
almost eight years and I
have never looked back.
Their world-class systems
and IT infrastructure and
the support one receives
on a daily basis from
management and fellow
Travel Counsellors is the
enabler to be the best
version of yourself. So even
though you are running your
own business, it is great to
know there is always a team
of people rooting for your
ultimate success.
My business is a mix
of corporate and leisure
– roughly a 60/40 split,
although I do enjoy the
leisure side more.
By leveraging my clients’
networks and through the
effective use of Phenix
(Travel Counsellors’ in-house
booking system) I can not
only provide my clients
with the best deals but
also consistently increase
my sales margins, thereby
incrementally growing my
business year on year.
The best advice I can
offer to any aspiring ITC is
to consciously make the
mind shift from being a
transactional travel agent
to becoming a proactive
business owner and to
always be true to your client
and yourself.
Lance and David van den Heever-Liebenberg
Marmalade Toast bespoke travel & destination management (Harvey World Travel)
David has a
corporate travel
background, having
worked in a senior
capacity at agencies
on multinational
accounts. I started
this journey as a
corporate traveller,
who spent 10 days
a month out of the
country. When we
decided to start the
agency, it was to
fill a need that was
lacking – providing
an almost intimate
and fully bespoke
service tailored to each
client’s needs.
Over the years, we refined
our offering – we don’t fit
any ‘normal’ label that the
industry currently applies.
We have clients all over the
world and a core focus on
luxury, experiential travel
and travel to southeast Asia
and Indochina (we lived in
Thailand for almost three
years). But, having said
that, we do inbound, global
outbound, corporate travel,
midrange holidays, LGBT
travel, event logistics, luxury
holiday packages, yacht and
aircraft charters as well as
wholesale to other agents.
When we started, we
chose a name that would
set us apart and reflect
the uniqueness of our
product offering – these
factors, as well as the red
tape and cost to become
an Iata-accredited agency,
led us to go the ITC route.
Initially we had a stand-alone
ticketing agreement with an
agency David used to work
for. While this worked for a
while, it became clear to us
that not having the ‘buying
power’ of a consortium
was holding us back and
we joined a consortium
that fitted our needs at the
time. While we had a great
working relationship with
this consortium, we knew we
needed a model that was as
bespoke as we were.
We met with Harvey World
Travel (HWT) and were given
an opportunity to ‘stand
on our soapbox’ about
the travel industry. Soon
after, HWT proposed the
development of an ITC model
tailored to our business
needs, which allowed us to
retain our independence,
gave us personalised
support, a voice within
the organisation and the
opportunity to learn from
some of the most incredible
minds in the business.
David and I re-evaluate
our business model on
an annual basis. We have
discovered a need for niche
market travel to southeast
Asia and Indochina (LGBT,
luxury and single female
passengers). Our growth
plan over the next 18
months includes luxury
guided groups of no more
than 16-20 passengers. We
are currently working on new
projects, including a training
academy to share our
business insights with other
agency owners.
To agents looking to go
the independent route, I
offer this advice: you must
have the commitment
and tenacity to keep on
working no matter what;
work regardless of whether
you are in the office, on
the beach or cruising down
the Mekong. Be available
to your clients 24/7, and
always have their best
interests at heart – if you
focus on their experience
you will make money! No
request is too small or too
big, but you can say no –
just be able to substantiate
honestly the reasons
why. Be accountable and
take responsibility and
sometimes no business is
better than bad business!
Tech tools target ITCs
A COMMON misconception
is that ITCs and
homeworkers are not as
‘professional’ as traditional
TMCs as a result of limited
access to technology.
But, according to Anita
Parent, ceo of Alchimea,
much of the travel
technology now available
to ITCs is as state-ofthe-art
as the solutions
provided by large TMCs.
For example, although
designed as an enterprise
mid-office application,
Alchimea’s technology
suits any size business,
even small ITCs. “We
give home-based
travel professionals
comprehensive software
solutions to run their
business, streamline
operational efficiency,
reduce cost and enhance
revenue by increasing
customer reach through
our Travel Management
Application (TMA),”
says Anita.
Technology also plays
a huge role in improved
personalisation, and the
TMA allows agents to
keep detailed information
about their customers’
preferences and lifestyles.
“Host agencies
using the TMA benefit
tremendously from the
consolidated reporting
and quality controls in
the TMA. By automating
the administration,
quality checks and
invoice processing of
homeworker’s transactions,
they can ensure their
brand reputation is upheld
to the highest levels,”
she adds.
“What makes ITCs and
homeworkers successful
is the high quality of
service they offer. This
comes with building
personal relationships
with their corporates
and leisure travellers.
The TMA passenger and
company profiles enable
the home-based agent to
keep detailed information
about their customers’
preferences and lifestyles,”
says Anita, who adds that
they can also keep up to
date with feedback from
their travellers with the
built-in survey module.
A few of the other
elements of the TMA
include: electronic booking
files with document
archiving, online booking
requests, importing of GDS
bookings into the TMA
for professional quotes
with all fees automatically
quoted, automatic
invoicing, traveller tracking
and electronic travel
documents.
Travel Counsellors adds new app features
TRAVEL
Counsellors
myTC app has
just launched
a wide range
of new
features which
aim to help
clients and
consultants
better
communicate
when planning,
organising
and booking
business and
leisure trips.
The new
features include an
enquiries section
to request and view
travel quotes, travel
imagery and videos to
provide trip ideas and
inspiration, the ability to
request an appointment
or booking directly with
a Travel Counsellor and
new functionality to
enable secure
payments
to be made
through the
app.
The myTC
app was
launched last
year and is
available for
both iPhone
and Android.
It enables
ITCs to
personalise
customers’
booking
information
with photos, names
and trip notes for each
part of the journey.
Customers using the
app have instant access
to travel information,
itineraries and travel
documents. They can
also contact their
consultant at the touch
of a button.
