Stand out to survive!
THERE has been a lot of
talk in the retail travel
environment about the
need for agencies to rethink
their business strategies if
they want to thrive in current
operating conditions.
Thought leaders say
yesterday’s ingredients for
success are no longer enough.
“You cannot base your
business on the assumption
that good service is the
differentiator any more,” says
gm of Flight Specials, Franz
Von Wielligh. “Good service is
one of the basics for survival
these days.”
“As a travel agent, one has
to think ‘out of the box’ and
be completely entrepreneurial
to succeed in the current
economic environment. We
can no longer afford to sit and
wait for business to come our
way but rather have to think of
a multitude of different ways to
encourage travellers to use our
agency,” says Marco Cristofoli,
coo of BidTravel Leisure and
md of Harvey World Travel
South Africa.
Franz says the real question
is: what is the glue that will
make customers stick to a
particular retailer?
It is about excellence in
executing your business
model, says Mladen Lukic, gm
of Travel Counsellors South
Africa. “Whatever your unique
selling point is, you have to be
the best at it. If it’s price, then
you need to beat everyone
else, if it’s convenience then
booking with you needs to be
easier than ever before. If,
as in our case, it’s customer
service, then it has to be
exceptional, memorable.”
“It is important to highlight
key differentiating factors
to remain competitive,”
agrees Mary Shilleto, ceo of
Thompsons Travel. She says
this includes elements like
attentiveness, personalisation
and innovation. “Buying power
is also a key factor to be able
to offer competitive pricing.
What’s more, when a client
knows the brand is a reputable
one that is financially sound
with consistent deliverables,
this contributes to continued
success.”
Total honesty and
transparency coupled with hard
work and service delivery are
required in this very cut-throat
environment, believes ceo and
founder of the eTravel Group,
Garth Wolff.
Mladen says people are
looking for companies that
can provide tailor-made,
personalised solutions. “You
cannot survive if all you
can do is provide the same
old product everyone else
sells, even if you do it more
cheaply.”
Product innovation
For Flight Specials, Franz
says the key ingredients
are superior product and
destination knowledge, an
emotional intelligence in
understanding what clients
want and ensuring that all
angles are covered in terms
of customer reach (online and
store based).
Dinesh Naidoo, group
operations director of
Serendipity Worldwide Group,
agrees that innovative product
development is key, and says
focus on customer service,
keeping up with market trends,
ensuring that you hire the
right staff and that you are not
overpriced are all important to
success. He says it’s simple,
adding that SWG focuses
on winning and not on the
obstacles and challenges.
When it comes to providing
the right products for the
current environment, Marco
says one has to take into
consideration the weak rand
and be mindful of the value
of all-inclusive packages.
“Professionalism and a quick
response are also paramount
as there are so many offerings
available through mobile
devices. If you snooze, you
lose.”
Innovation in this regard,
says Club Travel ceo, Wally
Gaynor, is a combination of
using technology to find the
best product and price for
the client; and offering ideas,
products and solutions that
clients may not have thought
of themselves. He points out
that being available during and
after the trip, offering service
and peace of mind are all
elements the Internet cannot
compete with.
Agencies need to constantly
watch expenses yet continue
marketing so that when times
get better they are ahead of
the pack, says Marco.
Client centricity
Further to this, Marco
Ciocchetti, ceo of the XL
Travel Group, says agents need
to move away from a model
that focuses almost exclusively
on reducing channel costs
and toward one that seeks
to maximise returns by best
serving customer needs. “We
need to understand that the
customer experience does
not begin at time of sale but
at the time of search and
extends well after purchase
and travel.”
He says customers must be
the strategic focus. “We must
use data to understand them,
serve them better through
partnerships and provide
them with the best end-to-end
experience to promote both
sales and ongoing loyalty.”
Data consistency in key in corporate
AGENTIVITY, which analyses
data from the GDS, says
it is clear that successful
TMCs pay a lot of attention
to the quality of their GDS
bookings and maintain
consistent ways of adding
data to bookings.
“They simply don’t tolerate
consultants adding items
like phone, email or other
critical data elements to
bookings in any way they
choose, but rather they
ensure that the required
format is mandated as a
company policy and adhered
to,” says Agentivity gm
Southern Africa, Yolande
Bouwer. She says savvy
agencies then monitor
this data, resulting in
their being able to react
to client demands for
data in a professional,
data consistent way.
“This empowers even the
smallest agent to compete
very effectively with much
larger TMCs.”
Know your customers
Understanding customers
is key. Yolande says this
can be done, for example,
by having access to
previous booking data when
customers book again.
“This not only makes the
transaction sound more
personal but also helps the
agency to understand which
suppliers the customer
wants to support.”
Significantly, Yolande says
this makes a potential
upsell to ancillary content
more of a possibility.
She says agents can
work more closely with
suppliers by looking at
forward bookings and prearranging
agent discounts
on some ancillaries. “These
various ways of working
with customers empower
the agent to truly own the
customer – repeat business
is pretty much guaranteed.”
In terms of specific
cost-saving opportunities,
Yolande says when it
comes to large corporates,
Agentivity sees many
individuals from the same
company arriving at an
airport within a short time
of one another. “Savings in
transfer costs is a definite
opportunity.”
She says sometimes
these data reports also
help identify opportunities
for agents to advise clients
to rather cancel a trip as
they were not aware another
employee was travelling to
the same city for the same
meeting.
Overall, traveller education
is another good costsaving
opportunity, says
Yolande. “For instance,
with Agentivity, a TMC has
access to the booking
patterns of individuals
within a corporate, allowing
the agent to easily identify
those who constantly book
only a day or so before
travel, or those who change
their bookings frequently,
even before ticketing.
Reviewing these reports
with the travel buyer or
owner of a corporate then
helps them reduce their
travel costs.
Are ITCs the way of the future?
GENERALLY the ITC and
ITA models in South
Africa are thriving, as
more agents opt to
follow this route.
“We are of the opinion
that the ITC model is
the way of the future,”
says Thompsons’
Mary Shilleto. She
says ITCs are usually
entrepreneurial
individuals who take
responsibility, and who
work all hours to write
their own pay cheques.
Club Travel’s Wally
Gaynor agrees and says
because an ITC’s ability
to earn is in their own
hands, the group’s ITCs
are generally thriving.
As well as having the
flexibility to earn more,
SWG’s Dinesh Naidoo
says it is evident
that more and more
senior consultants are
opting for the ITC/ITA
model because of the
relationship it allows
them to develop with
their corporate clients.
He says SWG has
offered an ITC/ITA model
for the past five years
and now has over 400
ITCs or ITAs that work
through the brand.
Travel Counsellors’
Mladen Lukic says
for many travel
professionals a healthy
work-life balance
in conjunction with
the ability to grow
a business that will
ensure a good future for
themselves and their
families is the ultimate
goal.
“Working from
home gives them the
opportunity to achieve
this goal and is the
reason so many are
considering the ITC
option,” he says.
So far, the ITC model
has proved very
successful and in terms
of further innovation,
travel professionals
believe there is no need
to fix what isn’t broken.
eTravel’s Garth Wolff
says the success of the
ITC model is based on
the relationship between
the ITC and the traveller.
“And, just like any
relationship – for
example marriage – if it
is open and honest with
constant communication,
there is no reason why
anything should change.
Capitalise on digitally savvy consumers
WHILE it’s no secret that
travellers conduct their own
research online, industry
professionals believe
agents can capitalise on the
situation.
“Many clients do their
research online before they
speak to an agent and often
they choose product that
is unsuitable,” says Club
Travel’s Wally Gaynor. He
says this is where agents
can offer better options.
“While clients often do not
know the right place to look
for answers, agents have the
experience and access to
more products and systems,
for example, the GDS, which
the client doesn’t know
about or have access to.”
“Fortunately, on the flip
side of any disruption there
is opportunity,” agrees XL
Travel’s Marco Ciocchetti.
He says this challenge is
more of a disruption for
leisure agencies than TMCs,
and maintains that leisure
agencies need to specialise
to survive. “The leisure
traveller is much more costconscious
than the business
traveller but also wants value
for money. A specialist agent
would know how to match
traveller to product.”
In line with this, Hayley
Walls, marketing manager
of Thompsons Travel, says
agencies have to ensure
that they are in line with
or ahead of the pack in
terms of innovation. “At
Thompsons we have an
efficient e-commerce
team who are constantly
researching new ways of
how we can provide both an
online solution, while still
offering that personal touch.
The consumer needs to see
that they are getting added
value when booking through
an agent. It is important to
position the agency as one
that provides this.” She says,
by highlighting destinations
that are cost effective but
still require the expertise
of an agent, agencies can
demonstrate value.
eTravel’s Garth Wolff
agrees, saying agents
need to fully understand
the technology available to
consumers and then use
this technology to greater
advantage by adding that
personal touch.
Tech to consider
Important technology for
agents includes social media
advertising products, says
BidTravel’s Marco Cristofoli.
“Clients are more likely to
search for packages and
good deals on the Internet,
which means a strong
agency presence on the net
has to be standard. Mail
Chimp (email marketing),
sms and a strong Facebook
presence are also musts,
he says.
Retailers should have a
presence online to reach
potential clients who want to
purchase their products and
services online, agrees Flight
Specials’ Franz Von Wielligh.
“We have our own online
system in-house to give
our staff the edge, and use
our own DMCs to remain
competitive,” comments
SWG’s Dinesh Naidoo.
He says for any agency
to remain competitive it is
essential that travel experts
with proper destination
knowledge are employed.
“Even though the consumer
researches before
booking, they are then still
comfortable booking through
an agency or travel expert.”
“I always chuckle when
retailers talk about ‘The
Online gevaar’ as if online
is this big scary monster
that has an appetite for
retailers,” says Franz.
“Online agencies are simply
agencies that acquire most
of their business via online
strategies. In fact, they
are just as much normal
retailers as bricks and
mortar agencies.”
Mladen Lukic of Travel
Counsellors agrees that
online should not be
a significant threat for
agencies.
He says if there are any
instances where clients can
get better product or a price
online, the difference should
at most be the service fee.
“If a travel agent provides
a service that adds value
to a client’s outcome or
experience, then they are
worth that little extra. If they
do not, then they will not be
in business too much longer.
“Customers go online
because they want to be
inspired. They are looking
for suggestions they can
trust. If they see you as a
trusted adviser then they will
rather work with you. That
doesn’t happen if you merely
respond to quote requests.
These they can get online.
You need to do more,”
Mladen concludes.
Brand that walk the talk
Harvey World Travel has
focused on creating brand
awareness and promoting
the Bidvest link to HWT to
improve the credibility of the
brand. Marco Cristofoli says
the agency is promoting
the fact that HWT offices
have professional staff who
take genuine care of their
customers and don’t simply
book tickets without going
the extra mile.
For example, checking in
the client online, sending
them welcome home letters,
birthday greetings and so
on. “We are also offering
more than just the booking.
We include added features,
information and assistance
at no extra charge to ensure
that our customers feel they
are getting value for money.”
Marco points out that the
group is not in the business
of competing on price alone
as some other players within
the industry are doing.
“This is not sustainable
and leisure customers and
corporates alike are seeing
past all the smoke and
mirrors. Good old-fashioned,
genuine relationships are
key.” He says this sifts out
the order takers who work
on commission only and
have to make a sale to keep
their jobs at all costs.
Greater Persnalisation
Travel Counsellors has
made personalisation
its mission. Mladen
Lukic says the group
makes sure its clients
understand that Travel
Counsellors’ job is
to craft personalised
holidays and best travel
experience.
“In the corporate
environment we
guarantee outcomes
and always exceed our
clients’ expectations.
“When we do this,
our clients become
our ambassadors and
our business grows.
To be able to achieve
this consistently we
continuously invest
in our technology, we
carefully select the
partners we work with
and source our own
product where we can
achieve better value for
our clients. We never
stand still and are
always a step ahead of
our competitors.
Diversfication
SWG has a two-pronged
focus. Dinesh Naidoo
says not only has the
group created “wow”
products but it has also
diversified into other
areas besides travel in
order to succeed in
the tough economy.
“With our new brand,
Serendipity Art of Health,
we offer our clients an
immune boost before
they travel and a detox
session after they travel
using Rife Technology.”
Encourage encterpreneurialism
Club Travel drives business
Club Travel drives business
growth by placing the power
to succeed in the hands of
its members.
Wally Gaynor says the
group’s leisure business
is now mainly handled
by independent business
owners or ITCs who have
a vested interest in good
old-fashioned exceptional
service. “If they don’t sell
and grow happy repeat
clients and consequently
referrals, they don’t have an
income,” says Wally.
Drivng loyalty
Flight Specials is about
to launch a consumer
loyalty card that will
allow customers to
recover a percentage
of their spend as
points in a savings
basket. “These points
can then be used not
only toward discounts
on their future travel,
but also as a discount
with various other nontravel
retailers,” says
Staff stisfaction
eTravel’s focus is on ensuring
that members are well taken
care of. Garth Wolff says
the group keeps its promise
to its ITCs by being
Size plus service
Thompsons is a well
established brand
and part of JSE-listed
company, Cullinan
Holdings. However, Mary
Shilleto says, while the
group is big enough for
that to make a difference,
its customers know
that Thompsons still
really cares about their
business and delivers the
edge through personal
service.
Investing in tecchnology
XL Travel has increased its
investment in technology
with a focus on improving
the customer experience.
Marco Ciocchetti says
this is done through mobile
apps, data sciences (data
analysis) and duty of care.
How to drive loyalty
IT IS generally more
expensive to attract a new
client than to keep an
existing one. This means
that agencies that want
to succeed are placing
significant emphasis on
customer retention.
Forward-thinking travel
brands are looking at
loyalty strategies they can
incorporate into the travel
environment.
Indeed, SWG’s Dinesh
Naidoo says strategies
to encourage customer
loyalty are very important
in any business.
“At Serendipity
Worldwide Group we have
a rewards programme just
for our loyal customers
that includes a 24-hour
concierge service
assisting with just about
anything, including
plumbing, tutoring for our
members’ children from
Monday to Friday, twofor-one
dining and movie
tickets, to name a few.”
Thompsons Travel’s
Hayley Walls says a
one-stop-shop travel
solution goes a long way
to encourage customer
loyalty.
“If a corporate client is
getting fantastic service
when it comes to their
business travel and
knows they will be getting
the same when it comes
to leisure and meetings,
they won’t need to look
elsewhere,” she says.
Service is key agrees XL
Travel’s Marco Ciocchetti,
who says travel retailers
need to become customer
centric by showing
gratitude and, in so
doing, improve the guest
experience.
“We need to discover
and foster a shared
purpose with our
customers. Improving
the end-to-end guest
experience is a critical
step in attracting new
customers and keeping
the ones we already
have.”
Marco says, to do
this, agents need to
understand the customer
by enabling two-way
conversation.
Travel brands are
improving the customer
experience and driving
loyalty in a number of
different ways, comments
BidTravel’s Marco
Cristofoli.
“For example, offering
clients prizes for making
bookings, entertaining
corporate secretaries
more often; offering
corporate client booking
engines that provide the
corporate the freedom to
make its own bookings
and yet still ticket through
the agency,” he says.
Brands are also
becoming more savvy
in the way they reach
customers, says Marco
Cristofoli.
“They are offering a
weekly travel service on
site at certain residential
estates and housing or
complex developments
and they are holding more
functions, inviting clients
and friends to attend
specific presentations,”
he says.
Use technology to transform the retail experience
AGENCIES have shown
significant growth in terms of
the retail experience they are
able to offer clients.
Regarding technology
specifically, Dinesh Naidoo
says the travel industry is
very savvy. “At SWG we have
an app that is available on all
smart phones.”
Hayley Walls agrees,
pointing out that over the
past five years the advent
of the self-booking tool has
seen agents transition from
purely traditional agencies to
brands offering a technology
solution that provides the
client with the independence
to search for their own travel
requirements while at the
same time reducing the
overall cost of travel.
“This technology can be
tailored to the individual
client’s requirement with
regard to travel policy,
approval processes and the
like.
“The technology is
constantly evolving and
travel brands really need
to stay current and ensure
that they are offering their
clients the best solutions
available in the market.”
Hayley says combining this
technology with the very best
in customer service ensures
that the travel brand stays
top of mind with their clients.
In line with this, travel
brands are implementing
online tools for both
corporate clients and leisure
clients to help with the
search and booking process,”
says Marco Cristofoli.
He adds that the GDSs
offer various technology
innovations that HWT will
be implementing across the
group in the foreseeable
future.
Club Travel says, on the
retail side, most of its
technology aims to enable its
consultants to access fares,
product and negotiated rates
easily in a global environment
and, in so doing, provide
them with the competitive
edge.
“Our agents have access to
systems that our competitors
do not. For example, our
global fares system gives
access to competitive
airfares in over 85 countries,
often cheaper than those
available in South Africa.
What’s more, our intranet
system provides product
and aggregator sites at the
consultants’ fingertips,” says
Wally Gaynor.
However, going one step
further, Wally says Club Travel
is investing in a client-facing
system where all e-tickets
and vouchers can be booked
via any GDS system, direct
through the supplier or
via websites. This will be
available online via smart
phone or laptop.
Looking to the future of
corporate technology, Marco
Ciocchetti says agencies
need to introduce userfriendly
corporate solutions
by offering travellers access
to familiar, consumer-like
experiences. They also need
to find a way to balance
costs with traveller and
employee satisfaction, he
says.
“I see a move towards
digital personal assistants
(mobile technology)
to improve customer
relationship and customer
experience. The travel
assistant keeps travellers
informed at each step of the
journey, including aspects like
departure, arrival, delays and
gate change.
