Master your margins

TRAVEL Counsellors SA
has grown from being
a R156m business in
2009 to a R483m business
in 2013, making it the fastest
growing country in the group.
SA’s Travel Counsellors may
be ahead of their global
counterparts when it comes
to growth and sales but when
it comes to margins they are
lagging behind.
The current statistics
revealed by Travel Counsellors
md, Steve Byrne, at the recent
Travel Counsellors conference,
indicate that local TCs may
undervalue themselves and
the service they provide.
Steve pointed out that while
the way in which TCs sell travel
has changed dramatically,
commissions have remained
the same.
TCs, and travel agents in
general, needed to re-examine
how they could improve their
margins, he said. The current
situation necessitated a
greater degree of commercial
awareness. “How you buy
is as important as how
you sell,” he said. “Travel
professionals need to focus
on deals that are not only right
for the customer but that are
commercially sound for them
too. When negotiating with
suppliers it’s important that
travel agents actively choose
deals that will give them the
best returns.”
“Agents need to value
themselves and the service
they provide; they must know
what their margins are and
track them, manipulating
them as far as possible.
Travel Counsellors in
particular should book through
Phenix where they can, and
importantly they should not
discount,” he advised.
Steve said TCs were often
more price sensitive than their
customers. “When clients see
the value of the service they
are being provided with, they
are generally happy to pay
more. If a customer does not
value the service you provide,
it may be best to let them go.”