What sets consortiuma apart?
IN A recent webinar
organised by travel
technology news website
Tnooz – ‘Preparing Your
Travel Business to Meet
Traveller Trends in 2020’ –
Mary Pat Sullivan, research
analyst at PhoCusWright,
referred to a travel agent
list of priorities. Top of this
list were satisfied clients;
commissions and cash
incentives featured at
the very bottom.
She said of today’s
retail travel consortiums:
“When these organisations
were started, they were
commission-buying
groups. Now they need
to provide all different
kinds of resources to
provide a benefit to the
travel agencies. As we see
changes in the consortium
marketplace, we’ll see
these organisations
continue to redefine what
they are doing for the
agency community.”
TNW spoke to the
different consortiums in
South Africa to see how
they have adapted to
changing times to ensure
they stand out from the
crowd and offer travel
agencies the value they
demand.
Transparency
Vanya Lessing, ceo of
Sure Travel, says all
members in the Sure
group are shareholders
and licensees. This gives
them the opportunity to
influence the direction of
the group and have access
to all information in terms
of contracts and financials.
“We operate with total
transparency,” she says,
adding that the share value
and return on contribution
versus fees has increased
year on year, showing
excellent results.
Transparency also ranks
high on the agenda of
eTravel. Tammy Hunt,
operations director, says
ceo Garth Wolff, promised
ITCs that as the company
grew and economies of
scale kicked in, commission
payouts would be increased.
When the company opened
in May 1999, it was paying
out 35% of all commissions
and retaining 65%. Now it
is paying out close to 80%
on average of all monthly
earnings.
Cost-effective membership
Franz Von Wielligh, Flight
Specials gm, says his
consortium has created
an easy and cost-effective
membership model. “We
charge a flat franchise
fee which is not based
on turnover or BSP, as our
members should not be
penalised for growing their
businesses and charged
more for doing well. We
also have not increased
our membership fees
during the past seven
years,” he says.
Flight Specials offers free
membership for the first
three months to allow ITCs
time to decide whether
they want to join up. “We
have no binding contracts
as we are confident our
members feel, in terms of
their return on investment,
the value of belonging
to our group.” Franz said
the group did not believe
in scaring prospective
members into signing
revolving and indefinite
contracts.
Flexibility
Jo Fraser, franchise director
of Club Travel, says flexibility
is what makes Club Travel
stand out from the crowd.
“We are the only travel
group in South Africa
that backs its brand by
not making partners sign
onerous contracts for five
years or longer. We don’t
penalise partners who want
to exit by not paying their
earnings. Our approach is,
do business with us if it’s
good for your business. We
choose for win/win instead
of legal strangleholds.”
Monica Horn, product
manager Harvey World
Travel Franchise Support
Team, comments: “As
our franchises are ownermanaged,
there remains the
flexibility to manage your
own business yet have the
support of the franchisor,
Harvey World, and backed
by one of the biggest
travel consortiums in SA –
BidTravel.”
International representation
According to Mladen Lukic,
Travel Counsellors gm,
the history and clout of a
consortium is an important
selling point. “Travel
Counsellors is the largest
and one of the oldest host
companies in the world.
We started 20 years ago
and to date we operate
in eight vibrant markets
with over 1 300 travel
counsellors and turnover
of over R8,5 billion.”
E-commererce and mobile opportunities
Technology has made the
competitive landscape more
intense, with consortiums
making it increasingly easy
to book a preferred supplier
with a few simple keyboard
strokes.
Vanya says e-commerce
and the disappearance
of geographical borders
have given Sure Travel the
opportunity to take advantage
of digital platforms, which in
turn have taken the brand to
a new customer base. “We
understand that consumers
want choice and control and
we are giving it to them,”
she says. “Sure Travel has a
full digital strategy across all
platforms, including mobi. We
have seen a massive increase
in traffic and awareness of the
brand.”
Abigail Pires, group
solutions manager for Sure
Travel, says the group provides
online tools, digital content
and online platforms to leisure
agents enabling them to fully
engage their customers and
aid the closing of a sale.
For corporate agents, Sure
Travel provides full online
B2B business solutions as
well as online management
information systems (MIS)
reporting tools and fully
customised online booking
tool interfaces. “Having a
specific reseller licence for
certain online technologies
helps our corporate agents
compete in an ever-changing
technology driven corporate
landscape.”
Travel Counsellors, too,
has been quick to adapt to
the mobile trend. “Our travel
counsellors are fully mobile.
There is no more lugging
around laptops, plus a huge
benefit is Travelport Mobile
Agent, which can be installed
on all our travel counsellors’
smart phones and tablets.
Representation across the road
It is important to be a
recognised brand throughout
the travel industry, according
to Jo. “We have strong
members in each area
of the travel trade, i.e.
independent consultants,
branded and non-branded
retail travel shops and a
strong corporate component
across all the different
areas.
No competitiion
To create an atmosphere of
trust and reliability, eTravel
has decided it will not
compete with its members.
Tammy explains: “We do not
compete with the ITCs as we
do not deal with the public.
This provides the ITC with a
feeling of trust.”
Personal relationships
According to Franz,
building personal
relations with members
is an important aspect
of creating value as a
consortium. As a result,
Flight Specials does
not chase numbers and
become too big, as this
will compromise the
personal relationship with
its members.
Administration solutions
Mladen says that working for
Travel Counsellors means
that ITCs don’t deal with
staffing issues. “Our travel
counsellors have more time
to look after their customer
and focus on what they love
most, as admin work is
reduced. There are no high
overhead expenses, no office
rentals, no salaries, no ADMs
and no bonding costs.
Rewards progremmes
Rewards programmes
for travel agents are now
appearing in all shapes and
sizes. Dinesh Naidoo, owner
of Serendipity Tours, says:
“We believe our unique
selling point is that we have
our own rewards programme
that provides our staff
members and partners with
a unique product that helps
save both time and money
on a daily basis. We provide
the SWG Rewards free,
which include a 24-hour
concierge service.”
Sure Travel’s rewards
programme, Agent Points,
rewards agents for the
bookings they make with
a selection of suppliers.
Finacial protection for clients
According to Mladen,
Travel Counsellors is
the only company that
financially protects its
clients’ monies. “When
1time went into liquidation,
Travel Counsellors was
the only company that
stepped up to the plate
and within 24 hours
clients were rebooked
on alternative airlines
or refunded, all while
tour operators were still
deciding what to do.”
Continuous suppport
Most consortiums
have designed an array
of services to assist
members with financials
and business solutions.
According to Tammy,
there is no other model in
the country that provides
as much support, backoffice
administration, interpersonal
relationships and
remuneration as eTravel.
“Administration costs
time and money and once
you do your sums, joining
the eTravel brand is a
no-brainer.”
Club Travel also touts
member support as one of
its most important selling
points. Jo explains: “We
are unlike our competitors
who see the brand as
the be-all and end-all,
with often very little to
back it up. We see what’s
behind the brand and
give the support that’s
needed to survive in the
travel industry of the
21st century. We offer
the basics like access to
multi GDS systems, but
also the best upfront and
back-end deals, webinar
and on-site training, and
hands-on teams evaluating
new laws, regulations,
HR issues, technology
advances and so on.”
Sure support includes
financial services, training,
business solutions
that focus on growth,
marketing and advertising,
digital platforms and
access to online booking
tools. Vanya says: “We
run an extensive calendar
of events each year to
provide the latest updates,
communication and
networking.”
Travel Counsellors
also offers an elaborate
member support structure
and a partnership
underpinned by business
development, focused
marketing, technology
and admin support.
The consortium offers
a dedicated Travel
Counsellors television
with daily broadcasts from
suppliers, as well as a
message board where
consultants can ask for
support.”
Mladen adds: “We
supply our counsellors
with all their equipment
and take care of the
maintenance and
replacement thereof. We
do all the commercial deal
negotiations. We train our
counsellors face-to-face,
hold annual conferences,
use e-learning and have
specialists in our offices
around the world who will
train via webcam.”
Technological support
Travel Counsellors offers
its consultants a customer
relationship management
system that holds all client
information and streamlines
all their electronic marketing,
giving them access to
reports such as what offers
customers have clicked on
and soft and hard bounces.
Top tips to creat valuable customer relationships
CONSULTANTS are facing
never-before-seen competition
from all sides. The way they
can truly stand out and
capture an important share
of the travelling market is by
building personal and solid
relationships with their clients.
Sure Travel’s Vanya
Lessing, says: “Never
underestimate the power
of client relationships, the
human side of why travel
experts continue to thrive and
survive. Reliability, assurance,
empathy…we care – that’s
what we are about. Customers
are not strangers. Customers
are flesh and blood, the
backbone of our business;
without them we don’t exist.
Travel agents provide not only
a customer service role but
also a relationship role.”
According to Jo Fraser of
Club Travel, a consortium can
help consultants forge and
maintain these important
relationships. “We can help
by giving the travel consultant
the tools to sell and the backup
to be able to offer the best
service and the best rates.”
“Most consumers will pay
for good service as long
as they are able to see the
return,” agrees eTravel’s
Tammy Hunt. This return
should include efficient,
timeous, cost-effective
solutions. “As long as the
client knows that they are
being looked after and not
ripped off, they are more than
likely to remain loyal to the
consultant.”
The supplier, too, can help
by ensuring their quoting
system is effective and
up-to-date. Joanne Visagie,
Beachcomber’s national sales
and marketing manager, says:
“Beachcomber has an online
quoting system that has hit
the pleasure mark with the
retail trade, delivering ease
of use, flexibility and choice,
accurate and detailed pricing
and availability.” The tour
operator’s professionally
laid-out paperwork offers
details of inclusions and
commissions due to the
agency. Beachcomber quotes
can be sent on by the agency
directly to the client. “In short,
booking with Beachcomber
is a breeze and we want it to
be enjoyable and effective,
allowing the travel agent to
be productive and make quick
commission.”
Seven ways to build
and maintain customer
relationships;
1. Manage your customers’
expectations.
Vanya says it is important
for travel consultants
to manage customer
expectations carefully:
“They know a lot but you
are the expert.”
2.Be pro-active.
Joanne says, by being
proactive, you’ll keep your
client happy. “A happy
client and happy holiday
equals repeat and referral
business, and that’s gold.”
3. View problems as
opportunities.
According to Vanya,
problems that arise when
booking holidays are the
ideal chance for travel
consultants to show just
how effective they can be.
4.Be professional at all
times.
Joanne says travel
consultants should always
behave in a professional
manner to gain the trust
of their clients. “This
should be carried through
all your contact with the
customer, whether through
professional quotes, your
website, sales tools,
information sheets, and
other services.”
5.Offer the best product.
“Wow your clients by
under-promising and overdelivering.
Offer products
and services that they
haven’t even thought
about,” says Jo.
Joanne agrees: “To build
strong relationships with
their customers, travel
consultants in South Africa
need to show that they
are reliable, professional
and knowledgeable.
The right supplier, and
successful forging of a
strong relationship between
the travel consultant and
supplier, will ensure that
travel consultants can be
all these things to their
customers. We are a
reflection and endorsement
of each other, thriving as
one entity and delivering
exceptional service,
fantastic product and
expertise.”
6.Be fair.
“Always charge a fair fee
for the work done and
your professional service,”
comments Jo.
7.Be personal.
“Share your personal
experience and the
experiences of your
customers with clients.
If you've received
testimonials, share these,”
advises Joanne.
Club Travel launches virtual creadit cards
CLUB Travel’s Virtual
Credit Card Solution is
being rolled out across the
group. Wally Gaynor, ceo,
says the system has many
advantages. “For Iata agents
this solution can eliminate
cash sales and thus
eliminate Iata guarantees
across the board. This
means that suppliers can be
paid by card, thus protecting
the clients in case of
supplier defaults. The
financial bonus for the ITC
and partner agents is that
they get 0,8% cash back on
the transaction value as a
revenue stream.”
Meanwhile, Club Travel’s
intranet system, Our Web,
is undergoing a complete
makeover. New features on
the intranet will include a
facility to search multiple
hotel aggregators with one
request.
A new Club Travel logo is
also about to be launched
across all the brands – Club
Leisure, Online, Corporate,
Franchise and Club
Executive.
Early-bird and honeymoon discounts at ST Anne Resort
BEACHCOMBER is offering a
50% early-bird discount at the
five-star St Anne Resort and
Spa in Seychelles. This special
is valid throughout the year for
30-day advance purchases.
The tour operator is also
offering a 60% honeymoon
discount as well as a
complimentary lunch, boutique
gift voucher, complimentary
spa treatment at St Anne’s
Spa, fresh fruits in the
villa and a bottle of French
champagne.
Rates start from
R26 250pps for five nights
Mobile: the way of the future
TRAVELLERS are, by
nature, mobile and,
according to a recent
research paper by
Carlson Wagonlit Travel
– Tap into mobile service:
managed travel in the
digital economy – are
often the early adopters
of new technology.
Are South African travel
agents ready to embrace
the mobile challenge?
Abigail Pires says:
“Sure Travel launched
the Sure Travel Mobile
app two years ago now
and has been very happy
with the consistent
download rate of the
app, even two years
after the launch. The
app provides branch
locations for consumers
to easily find the nearest
Sure Travel agent, up-todate
travel news articles
and the latest leisure
package offerings.”
The group’s online
booking tools have
mobile capabilities too,
for engaging business
executives.
Jo Fraser says she
sees a huge change
in buying habits and a
move away from the big
brand, high street agents
to OTAs. She also notes
a move to bookings with
more personal servicedriven
ITCs.
But, says Tammy Hunt:
“The only technology
required today is the
GDS and the Internet.
If you have these tools
you have enough to be
able to provide your
clients with the best
possible options at the
best possible prices.
Technology costs money,
which means either you
as an ITC would take
home less as your host
company is retaining a
higher portion of your
monthly commissions
and overrides, or you will
be required to charge
your client more to
cover the costs of fancy
technology.
Flight spcials launches corporate brand
FLIGHT Specials is in the process of
launching a non-branded membership,
allowing agencies to trade with their
own brand while still receiving full
Flight Specials member benefits.
The consortium is also launching
a corporate brand under the Flight
Specials fold, called Business Travel
Solutions.
Franz Von Wielligh comments:
“Business Travel Solutions will cater
for the corporate oriented agencies.”
How to attract younger clientel
TRAVEL agents are gaining
popularity again. Global
disasters such as the volcanic
ash cloud in 2010, the
continued threat of terrorism
and the recent Ebola outbreak
have all highlighted the value
a travel agent can bring to
consumers. The DIY trend,
which saw travellers booking
their own trips on the Internet,
is dwindling as they seek to
save time surfing for the best
price.
However, travellers returning
to travel agents are in the
older age group. According to
recent research conducted
by PhoCusWright, over 70%
of travel agents’ clients are
45 years and older. Mary Pat
Sullivan says travel agents
need to have the right tools
in place to attract younger
generation travellers. They
need to be in the right place
on the Internet to capture this
emerging market.
Sure Travel’s Abigail
Pires agrees that a large
percentage of South African
travel agency clients fit
into the 45-plus age group.
The local market is still
predominantly corporate,
she points out, and since a
number of top executives fit
into this age category, this
influences the statistics.
Abigail says leisure clients
who use agents tend to be in
the older age group, which is
why Sure Travel has put tools
in place to attract the younger
generation. She says a full
digital marketing strategy
implemented over the past
18 months aims to capture
X and Y generation travellers,
who love to interact via social
media.
Club Travel’s Jo Fraser,
points out that the younger
generation are turning to
online travel agencies (OTAs)
along with ITCs. “Online
agencies with the group like
Flightsite and Webtours are
growing by leaps and bounds.
Many of our traditional
agencies in the group also
have a strong online presence
combining online and offline.”
Dinesh Naidoo says
Serendipity uses Facebook,
Twitter, Instagram, Pinterest
and the company’s
personalised app to
communicate with clients.
“We find our younger clients
to be more tech savvy. They
know what they want before
they consult with us. We have
an online presence to capture
and maintain a relationship
with our younger market.
However, we still do not see
a huge enough shift in the
online space for us to change
our model.”
Dinesh remains active on
social media and participates
in events such as the Ice
Bucket Challenge to keep
in touch with the younger
generation. He says: “My
personal motto is ‘18 till I
die’. This keeps me close to
the trends of our young and
emerging traveller.”
Mary Pat says Facebook
and Instagram need to be a
crucial part of a travel agency
business, as they are sharing
tools.
Jo Fraser believes Club
Travel is the leader in social
media presence in the
South African travel industry.
“We engage our clients
wherever they are found and
in the case of true younger
generation, this is where they
are,” she comments.
Sure Travel has marked
up over 58 000 followers
on the Facebook platform.
Says Abigail: “Our Pinterest
boards have created a whole
different and exciting platform
for us to ‘entertain’ and
‘inspire’ travellers.” The Sure
travel blog and website are
also powerful for the group’s
marketing efforts.”
