Ever since the Internet came into common usage, it’s been a common complaint from travel advisers that consumers come to them, tap into the agent’s know-how and expertise and then book the whole thing online.
The very same situation is mirrored in the space where agents interact with suppliers, and this industry member, who prefers to remain anonymous, feels preferred supplier agreements are to blame.
Dear Editor
We are all trying to rebuild our businesses from the ashes after COVID.
We currently hold a booking for an ITC. The agent’s consortium has never approached us or invited us to become a preferred supplier. Now, however, the consultant (who stands to earn over R30 000 in commission from us) has been told to cancel the booking with us and book directly with the principal, as our GSA is not a preferred supplier of the consortium.
Firstly, the principal concerned will not, anyway accept bookings from our region that are not booked through us.
Secondly, is it fair that retail travel consortiums and ITC head offices instruct their consultants not to book locally with local GSAs and representatives? Is it fair that they are told to try to book direct, and to thus divert the business out of the South African economy?
Thirdly, is it the best thing for the client, who, from here onwards, will have to deal with the call centre?
We have had to prove ourselves in the market by providing quality service, marketing support and we champion our retail agents. We even won an award based on the support we gave agents through COVID. I do not believe we are unique. Boutique businesses like us work tirelessly to promote and educate our retail sector. But the large consortiums aren’t interested.
Our company provides visa support (we even send the client visa forms), expertise and experience, pre-travel support and constant information-sharing – plus, we work in local time. But now, both the ITC and the client will be excluded from the benefits brought by an experienced representation company. Because the consortium says the agent must book with the overseas call centre instead.
If we are all to service clients properly and honestly, surely, being a preferred supplier should simply be a case of the ‘good standing’ of the supplier. I think it is perfectly acceptable, given recent events, for a consortium to request a letter of good standing issued by an auditor or a tax clearance certificate before dealing with a supplier or representation company. We are happy to comply with this sort of requirement, and in fact have done so recently. That is fair business practice.
And if an ITC wants to book one of our products and we have not yet met compliance, then we are happy to be approached by their head office with that request.
But the question is, what are the requirements to be a preferred supplier to consortium A or B? In most instances it is additional commission.
Manager of a GSA and representation company
