Leisure agents take charge of packaging

LEISURE travel agents are relying
less on tour operators and
designing their own packages to
significantly increase their margins.
Steve Byrne, group md of Travel
Counsellors, explains that, whereas
agents traditionally acted as the
intermediary in the booking chain in
the past, they now realise they can
function as tour operators by putting
in a bit more time and effort. He says
agents can increase their margins
and strengthen their customer
relationships because they have
more control of ensuring the best
product at a good price. Steve adds
that close customer relationships are
the key to long-term success.
Travel Counsellor Roshnee
Govender, who won the award
for best margins of 2016 at the
conference, achieved a profit margin
of 14,5% in 2016 by designing
packages for her leisure clients.
She says it takes less time than
going through a tour operator.
“Sometimes you spend so much
time on the phone to a tour operator
holding for quotes. Instead, you could
be looking for quotes for flights,
accommodation and car rentals
yourself.”
Mladen Lukic, gm of Travel
Counsellors South Africa, believes
relationships between agents and
tour operators will continue to evolve
for as long as agents focus on
giving their clients the best package
options. “While relationships with
certain tour operators will strengthen,
others will weaken,” he says. That
said, Mladen predicts that tour
operators will not be completely cut
out of the chain in the future.