Technology investment is increasing across South African travel agencies as ITCs confirm that innovation is a top consideration when it comes to choosing their consortia partners.
A recent Travel News poll found that 69% of ITCs considered a consortium's technology and innovation offering when deciding which to join, indicating that these in-house tools were becoming more essential to their workflows.
“For ITCs, working ‘alone’ no longer means sacrificing scale, efficiency, or connectivity. In fact, the single most important way consortia add value today is by giving ITCs access to a sophisticated digital ecosystem – the kind of robust, integrated technology that saves time and transforms how they do business,” explains Chantal Gouws, GM of Envoyage South Africa.
Lasse Vinther, MD of Automation Architects, an AI consultancy, explains that the application of advanced technological tools not only improves operational efficiencies but also offers smaller agents in profitable niches significant opportunities for sustainable expansion by enabling them to process higher volumes.
“When these technologies are integrated and configured correctly, the impact on operational capacity is transformative,” says Vinther.
Generative vs Agentic AI
While many South African agents initially experimented with generic generative AI tools for tasks such as drafting emails or creating content, the industry is rapidly pivoting towards agentic AI solutions. Unlike generic models, agentic AI is integrated with proprietary data and back-office systems, allowing it to execute tasks within an agent's workflow rather than operating in isolation.
“While we know some ITCs experiment with generic AI tools, especially for writing or troubleshooting, the overwhelming feedback is that ‘one-size-fits-all’ AI-generated content does not connect in a high-touch service business like travel,” says Gouws.
Gouws explains that Envoyage’s specialised NDC ticketing functionality is a top performer for real-time air pricing and booking, while its proprietary marketing platform has rapidly grown in popularity by taking the complexity out of client communications and campaign management.
Franz von Wielligh, Head of Innovation & Member Support at XL Travel, notes that the right technological offerings now expedite agent-specific workflows by speeding up the quote-to-book cycle, providing real-time insights into sales and incentives and by eliminating redundant administration. This allows agents to deliver a more high-value, frictionless client experience.
“I think more and more agencies will start to implement these proven agentic solutions into back-office functionality. Ultimately, the travel agent's role will become more about vetting itineraries, applying their niche knowledge and improving bookings, rather than building everything from scratch,” adds Vinther.
Tech as a competitive differentiator
For many independent agents, developing proprietary AI tools independently is financially out of reach, making the sophistication of a consortium’s technology ecosystem an increasingly important competitive factor.
“Many ITCs simply don’t have the resources to evaluate, source, or maintain stacks of individual tech solutions. What they want is a ‘plug-and-play’ environment – modern, thoughtfully curated platforms that slot directly into their daily work and are always evolving to stay ahead of the curve,” says Gouws.
Vinther notes that South African agencies have approached implementation differently depending on their specific goals. He identifies two distinct approaches:
- Focused automation: Smaller agencies investing upfront to automate specific functions like itinerary creation or market research.
- Systemic overhaul: Larger players requesting the development of entirely new back-office systems from scratch.
Regarding the latter, Vinther notes that this requires smaller instalments over a longer period, with technology rolled out department by department.
“Either way, this technology enables agencies to potentially manage and process tens or even hundreds of travel enquiries per day. This dramatic increase in capacity, coupled with the precision of AI-driven marketing, ensures a highly optimised sales funnel. The subsequent increase in transaction volume allows agencies to rapidly scale their cash flow, which can then be reinvested strategically to further solidify their market position,” adds Vinther.
