What’s in ‘store’ for Flight Centre?

TNW: What can we
expect from Flight
Centre for the years
to come under your
leadership?
AS: We have a very ambitious
growth plan in place, which
will see us expanding the
Flight Centre brand outside
South Africa and into Africa.
The aim for the next five years
is to have 300 businesses in
Africa, employing over 2 200
people. By 2020, we would
like to effectively double our
growth model.
All of the new businesses
will be built as Flight Centre’s
new ‘Stores of the Future’.
Existing businesses will
gradually be revamped. All
‘Stores of the Future’ feature
interactive plasma screens
and iPads and offer clients a
similar experience to that of
an Apple iStore.
These are innovative
stores where people can
conceptualise their holiday.
TNW: You have
experience in the
corporate travel sector
through your roles at
Corporate Traveller and
FCm Travel Solutions.
Will this background
influence your new role
at the helm of Flight
Centre?
AS: I think the equilibrium will
be tipping more towards the
corporate side in the years to
come. For the last 20 years,
about 70% of our business
has come from our retail
brands. I see that equilibrium
tipping more to between 60%
corporate and 40% retail over
the next five to 10 years.
We’ll continue to grow retail
with a focus on attracting
new customers and retaining
existing customers.
We are still seeing good
growth in our retail
businesses.
TNW: How do you plan
to ensure the Flight
Centre brand stands out
and remains relevant?
AS: The differentiator for
businesses over the next few
years is to be unique and
exclusive. Those companies
that get it right are the ones
that will survive beyond 2020.
Flight Centre will continue
to create its own unique
products through the Red
Label Holiday products.
We’ve identified high-demand
products for South Africa and
we’ll capitalise on this. It’s
the vertical integration model
on steroids: taking it to the
next level and having your
own wholesaler providing your
stores with your own unique
products.
TNW: Do you feel online
and mobile booking
tools will replace
traditional agencies in
the near future?
AS: We have an online portal
but we’re seeing 99% of our
business through our bricks
and mortar. Some 95% of our
customers are still doing a lot
of their own research. They
are coming to our stores for
validation.
As a global company, we
can see trends in markets
like the US, UK and Australia.
Those markets are often the
yardsticks of what will happen
in SA. There, we can see a lot
of growth in bricks and mortar.
Online booking tools were a
big fad, but they are losing
momentum. You need to find
the balance; you need to
have an online presence but
you also need a solid store
offering.
TNW: What is the
greatest challenge facing
the travel industry in
general, and how does
Flight Centre plan to
tackle this challenge?
AS: The brain drain in
leadership in the travel
industry is one of the greatest
challenges we face. Flight
Centre currently has 160
businesses, which means
we need at least 160 bright,
young and eager business
leaders. That continues to be
a massive challenge. People
need to see a future in our
organisation and in the travel
industry.
Currently, there is a lack of
appetite from youngsters to
join the travel and tourism
industry. Fewer universities
and colleges offer travel and
tourism courses. It’s just not
in demand and we need to
change that.
Everyone in the travel
industry needs to build up a
brand perception that conveys
that the industry is futuristic
and innovative. We need to
be the industry that our future
leaders and generations want
to join.
TNW: Flight Centre has
resisted being a member
of travel industry
associations, such
as Asata. Would you
consider bringing Flight
Centre under the Asata
umbrella?
AS: Flight Centre has always
been the outcast in many
ways. Whether it’s time to
be more inclusive, time will
tell. There might come a time
when we’ll need to be more
inclusive. I’m not closing the
door at all on Asata. The
more I speak with my peers
in the industry, the more I
understand why they are
members of Asata. If the
benefits were there and we
were shown these, I don’t see
why we wouldn’t join. But it is
not in the strategy of the next
few years.
TNW: What 
opportunities remain
untapped in the travel
industry and how will
you take advantage of
these?
AS: Many South African
consumers have never
travelled before. Once you get
the trust of that market,
you’ll have a customer
for life. Every
business, every consortium, is
trying to grow their market and
tap into these new markets.
There’s a lot more we can be
doing on that front.
Also the inbound tourism
sector is presenting
opportunities. Flight Centre
has been looking to venture
into the inbound side of
the business. We might
even look at acquisitions
down the line.