How to choose your
host company
WHEN it comes to selecting a
host agency, prospective ITCs will
need to consider a large number of
factors besides commission split.
“It’s just not about ticketing
and commission share,” warns
Mladen Lukic. He says very often
prospective ITCs don’t have a
clear idea of what they would like
to achieve with their business
but it’s important for ITCs to find
a host company that will support
its members with business
development and training.
“In order for any individual
to have a successful thriving
business, they have to bring
something new to the market.
Simply exiting an employment
situation and starting your own
business by doing exactly what you
did as an employee yesterday is
the shortest route to insolvency,”
Mladen maintains.
However, Tammy Hunt argues that
the commission split is important,
as one of the main reasons for
becoming an ITC involves taking
the risk of losing a set salary to
earn extra money. She warns,
however, that it is equally important
to understand what benefits
consultants get for the commission
retained by the host company
and truly understanding the cost
involved of doing it yourself.
“Most consultants do not want
to be bogged down with tedious
administration and follow-ups of
referral commissions, which would
mean that only a full administration
support model would work for
those potential ITCs. Prospective
ITCs need to do their research and
meet with all potentials on their
shortlist. They should never make
a decision without meeting the
consortium face to face because
the move they are making is a
massive one and ITCs need to
know that the consortium they have
chosen is a good fit for them and
one that they feel they can trust.”
Know your consortium
Prospective ITCs need to
keep their eyes open, agrees
Jo Fraser.
“Many ITCs are literally conned
into giving away 30% to 40% of
every cent they earn. Only when
they start operating do they
realise that they are not getting
value for money. If they want to
leave, they are then locked into
barely legal long-term contracts
and threats.”
The company a travel
consultant selects should be a
well-known reputable company,
comments Chantal Gouws.
“ITCS want their clients to
follow them and they want
them to know their business is
looked after and protected by
a global brand with significant
buying power. Prospective
ITCs need to make sure their
host company has access to
preferred partners so that their
clients are protected not only
by themselves but by their
suppliers as well.”
According to Chantal, it’s
imperative to have a back-end
support team. “There are times
where clients are stuck at the
airport in the middle of the
night. ITCs then need a team
that is there to assist them, and
at FCA we make sure we have
that,” she says.
Photocap: Employing happy people
Pentravel believes its purpose is to make people happy. The group aims to be a place
where people want to work and where customers love doing business. Pictured
here are some of the company’s valued agents, who travelled to Vietnam with China
Experience in May this year. The group are seen here with their bicycles and wearing
their Vietnamese conical hats.
Newsflash Asata recently put together a Member Advisory Forum (MAF) to discuss the measures that need to
be taken in order to deliver a definition and framework for the ITC model in the South African market.
The MAF will look into defining the models that are currently termed ITC but do not meet the true ITC
business model. The forum will also review the roles and responsibilities across the entire value chain
of business models operated by Asata to support and encourage a strong business practice and ethic
that protects the travelling consumer and delivers a professional offering.
8 ways to build strong
supplier relationships
BUILDING solid relationships
with suppliers can be the
differentiating factor that
makes travel agents stand out
from the crowd in the eyes
of their customers. Suppliers
can keep consultants up to
date on new products and
could even provide upgrades
and other amenities for the
consultant’s clients.
Unfortunately, building strong
relationships takes a lot of
time and time is a valuable
commodity for most travel
agents. TNW asks industry
players for their tips on how to
build a valuable relationship.
1. Mutual respect
A relationship is not
going to succeed if
there is a disconnect in
values, which is why it is
A relationship is not
going to succeed if
there is a disconnect in
values, which is why it is
important to find the right
fit, says Tammy Hunt.
“At eTravel, relationships
are the backbone of
our strategic triangle
encompassing our staff,
the ITCs and suppliers –
none is more important
than the other!”
“Mutual respect
between both parties is so
important,” agrees Cathie
Bester, national sales
manager for World Leisure
Holidays. “When agents
phone the call centre they
need to remember it is a
real person who is sitting
at the other end of the
phone. They are there to
assist agents in getting
the best possible deal for
them and for their client.”
Also the supplier should
show he values the travel
agent, adds Cathie.
“Relationships with the
trade are very important
to WLH, not only for our
sales team but also for all
aspects of our business,
from our staff in the call
centre who take booking
requests to our finance
department who pay
commissions.
2 .Turn to your supplier for advice
“Agents should try whenever
possible to listen to what
the sales representative has
to say when they come to
see them,” says Cathie. She
says very often the sales
rep will be able to assist
consultants with answering
the simplest query, or they
might give the consultant
some valuable information
about products or specials
that the consultant might not
be aware of.
3. Help the supplier with
detailed information
Spokesperson for
Thompsons Holidays,
John Ridler, says agents
rely on suppliers to
furnish them with suitable
quotes, excellent prices
and reliable, prompt
and friendly service
while conducting the
transaction. The next
important step for the
supplier is to give the
client top service when
they arrive at their
destination.
To ensure that everything
runs smoothly, John says
travel agents can help
the supplier by sharing as
much information about
the client as possible. Are
they away on business
or leisure? What is their
age? Are there children?
What is the level of
sophistication of the
clients? Are they active
and sporty? Are they
interested in day
trips and excursions?
Would they prefer an
adults-only hotel?
4. Make use of technology
As the ITC market is
growing exponentially with
travel agents working
from literally anywhere, it
is becoming increasingly
difficult for suppliers to
make regular sales calls.
Technology often offers the
best solution in this case.
Jo says that is exactly why
Club Travel is now offering
interactive webinars,
supplier-sponsored gettogethers
and educationals.
Technology is becoming
increasingly important
when building relationships
with suppliers, agrees
Dinesh Naidoo. That is
why SWG is launching an
app that will facilitate the
communication between
the agent and the supplier.
5. Organise and attend
educationals
To maintain a good
relationship with suppliers,
Flight Centre Associates
often organises supplier
breakfasts for ITCs during
which suppliers get the
opportunity to showcase
their product and get to
know the consultants
as well, says Chantal
Gouws. “We also offer
educationals for our
consultants to build
relationships and learn
about the product at the
same time.”
6. Use preferred suppliers
It might seem obvious that
travel agents would turn to
preferred suppliers when
in need but sometimes
agents tend to overlook
the very vendors that
their consortiums have
painstakingly chosen.
Tammy says eTravel has a
very strong relationship with
its preferred partners and
is very much involved in the
relationships between
ITCs and suppliers.
Jo Fraser says ITCs in
particular are becoming
increasingly aware of the value
of preferred suppliers. She
says Club Travel has seen an
increase in ITCs looking to
access supplier products that
will not only benefit them
but also the consortium in
consolidating spend and
negotiating volume discounts
and overrides.
7. Choose suppliers that offer
something unique
However, Mladen Lukic
warns that preferred
agreements are not enough
in the current climate. He
says travel agents should
rather look for suppliers
that understand the role
of the supply chain instead
of suppliers that discount
themselves to beat
the competition.
“What can suppliers
do to enable travel
counsellors to provide
a better experience to
their clients? This can be
anything from access to
specific products or access
to specific expertise,”
he says.
8 Keep lines of communication
open
It is of the utmost
importance to keep the
lines of communication with
the supplier open to ensure
a healthy relationship.
Tammy points out that,
for example, attendance at
supplier training functions is
very often a challenge. This
means that the travel agent
needs to find other ways of
communicating and ensuring
relationships remain open.
“Hence the involvement
at management level here
at eTravel is critical in this
relationship process,”
she says.
Photocap: Strong support
Club Travel follows a two-pronged approach, owning and operating corporate,
leisure and online businesses, while offering centralised ticketing and administrative
infrastructure. Pictured here, a group of Club Travel agents explore the length and
breadth of Mauritius on one of the company’s regular educationals. Treasure hunts,
a Bennington sunset cruise, snorkelling and whale watching all formed part of the
experience. Sega dancing among the sugarcane and rum tasting were a few of the
highlights on the trip.
Photocap: Educationals give agents the edge...
Educationals offer agents the opportunity to build relationships and learn about
product at the same time. Seen here, six top-selling South African agents recently
went on a 10-day trip through Toronto, Niagara Falls and Boston, including a threeday
music festival in Montreal, after they won the Contiki Rock Around the World
incentive. Pictured in sunny Boston, Massachusetts (from left): Lisha Tromp (Pentravel
Cresta); Rebecca Scott (STA Travel Menlyn); Christopher Palath (STA Travel Durban);
Nicola Hards (Contiki); Taryn Myburgh (STA Travel Stellenbosch); Christie von
Maltitz (STA Travel Cape Town); and Lerissa van Biljon (STA Travel Menlyn.
The supplier who won’t go direct
MOST suppliers in the South
African market have adopted
a dual approach and tend to
deal with both the trade and
clients directly.
However, Beachcomber
Tours has always adopted a
policy of not taking bookings
direct and not acting as the
travel agent’s competition but
rather their partner.
“This has earned us lots
of appreciation and respect,
which gets turned into sales
as the agents know they can
trust Beachcomber,” says
sales and marketing manager,
Joanne Visagie. “This applies
to the travel agents and ITCs
equally.”
According to Joanne, the
key to building a healthy
and successful relationship
with travel agents in South
Africa includes offering a
great service with excellent
products. “Travel agents are
under huge pressure so when
they can trust and rely on our
good service to help them be
productive and have happy
clients it is a total win-win
relationship. Happy clients are
repeat clients.”
Joanne adds that the policy
of working solely with the
trade has worked well so far,
and Beachcomber has no
plans to change this.
Retail agencies versus ITCs – how do they compare?
TAKING the leap to go it
on your own as an ITC can
be a daunting decision.
TNW speaks to industry
players to assess what the
pros and cons are of being
a travel retail employee
as opposed to being
an independent travel
consultant.
“The financial freedom
and flexibility that comes
with being an ITC cannot
be experienced as a
salaried employee in a
traditional agency,” says
Tammy Hunt.
According to Tammy, the
only con of becoming an
ITC is that, should you
lose a big client and your
risk is not spread across
a number of clients, your
business can then sink
within a very short space
of time. She recommends
that ITCs take on many
small to medium-size
clients rather than relying
on one big client.
A potential ITC must also
evaluate each customer’s
support and try to
determine how secure and
sustainable the business
is, agrees Monica Horn.
She says it would be risky
to become an ITC with just
one big corporate in mind,
because that corporate
can put its business out
to tender. “How secure is
the business they have
and for how long? Staying
with a retail travel agency,
especially linked to the
BidTravel Group, adds
peace of mind, especially
in these challenging
financial times,” she
maintains.
Andrew Stark notes
that it is also important
for prospective ITCs to do
their homework. “Belonging
to a reputable travel chain
should be the only option
available, as those who
don't belong to one risk
bringing our industry into
disrepute when ADMs or
financial constraints hit as
customers are then left
stranded.
“An ITC should consider
the benefits that come
with major travel chains,
including systems, full
accountability, marketing
and sales, support and
responsible financial
measures.”
