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Tour operators under the pump

02 Aug 2019 - by Catherine Bower
Comments | 0

 TOUR operators are facing the risk of

being displaced as agents are getting

more comfortable dynamic packaging

trips for their clients through the use of

online aggregators.

In the past, travellers relied on agents

to find and book their holidays, says

ceo of Reynolds Travel, Mary Reynolds.

“Travellers are now going online so

they’re more informed,” she says.

“They’re looking at bookings.com and

Expedia; they know what prices are

out there. As agents, we are being

forced to use aggregators to access

those rates, or we risk losing

the client altogether.”

She points out that aggregators allow

agents to book using credit cards

or virtual cards, where only some

operators offer this service. Beginning

to allow systems like this would keep

operators relevant, she says.

Janet Aldworth, md of Sure Voyager

Travel, advocates supporting operators

that support the agent. “If an operator

refers a consumer back to an agent, I

am more inclined to support them.”

Operators are feeling the pressure,

having to rethink their model in order

to remain competitive. “The days of

traditional tour operating are long

gone. Tour operators have had to align

themselves with strategic partners as

well as build strong relationships with

DMCs for better rate negotiations,”

says Marelize Le Roux, gm of Travel

Vision.

“Operators no longer have exclusive

deals because hotels will supply

through these online intermediaries

in addition to the operator,” says

Ramesh Jeenarain, md of World

Leisure Holidays. But operators offer

the benefit of being specialists in a

destination. “We are dealing with wellinformed travellers, so we have to offer

expert knowledge that the Internet

cannot,” he says.

Ramesh says the relationships

operators have with their suppliers and

DMCs mean operators can offer agents

an assurance on their products that

aggregators cannot. “Our service is not

one-sided. Agents deal with consultants

who offer personal service that comes

with that.”

For travellers with specific

requirements, operators lend a more

human touch to booking than a

checklist on an aggregator, he says.

“Young and inexperienced agents

rely on operators for their knowledge,”

agrees Janet. But she says operators

must provide an adequate service that

makes the agent’s life easier. 

have vetted the product and

we monitor the quality of the

product/service. We have the

benefit of a procurement team

whose job it is to make sure

the quality of our suppliers

remains a good standard. An

agent, therefore, does not need

to do that extra work.”

Tour operators offer

emergency assistance, giving

peace of mind to the agent

that their clients will be taken

care of during an emergency,

adds Joanne. The service an

operator offers goes beyond

just making a booking. “It

is about resolving any issue

during and after booking is

made,” says Marelize

Mary admits that while

agents are becoming more

comfortable dynamic packaging

accommodation and transfers,

they still want the comfort of

using operators on complex

bookings and when booking

unfamiliar destinations.

With fam trips, operators

offer agents the chance to

get to know a product and

destination, says Ramesh,

which adds to the value of

the service the agent can

offer their clients. Joanne

says Thompsons also offers

educationals and in-house

training, with a national sales

force to assist the trade to

convert sales.

Another benefit is

commission payment, says

Joanne. “An agent should

consider when they get

paid their commission.

In Thompsons’ case, the

commission is paid after full

payment is received. The

agent doesn’t have to wait

until after travel is completed,”

she says.

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