Target-related incentives from suppliers for consortiums and travel agents have always been a common feature in the industry. These were based on marketing plans with the suppliers and direct consultant agreements, often with a historic component in which the agent or agency had to exceed the prior year’s sales.
After 18 months of COVID havoc and very meagre sales of every product across the board, loyalty rewards are few and far between. Travel News asked a few industry folk how they see the future of loyalty rewards for retail travel consultants and agencies, and how important these incentive programmes are in the lives of consultants.
Odete Jackson, internal systems and operations manager at Sure Holdings, said while consortiums received various incentives based on marketing plans with suppliers, and some suppliers offered direct agent incentives per transaction, these were perceptibly fewer than previously. “In these trying times, many suppliers are not giving any incentives due to dried-up marketing funds, but they forecast that once travel starts opening up fully, we will see a lot of agent incentives flooding the market.”
Debbie Joubert, owner of Sure Travel 24-7, said there were very few agent incentives being offered in the current environment. “We all know that suppliers are cutting their costs as low as possible and funds for incentives are on the back burner. Until travel is fully back to normal there will be fewer and fewer incentives for agents, who are working harder than they ever have before.”
Debbie predicted that suppliers would find incentives persuasive to attract the attention of agents. She said so many in the industry had been hit hard by COVID, and that it would take a long time to get out of the debt they were in. “That includes travel consultants who were, or are, on short time or have no salary at all. I believe vouchers or cash rewards offered by suppliers, available monthly to consultants, will be the type of incentives consultants will push the hardest to sell.”
City Lodge Hotel Group has maintained a close long-term relationship with agents. “We have always endeavoured to be the most bookable hotel group, particularly now that we are reopening more hotels as travel restrictions ease,” said Andrew Widegger, ceo of the group. “We know that travel management companies and travel agents have been hard hit by the lockdown and related restrictions and want to reassure them that we value their business and are happy to reward them for continued loyalty.”
