THE Club Travel Group in
March 2015 controlled
an overall spend of
R2,4bn, with its market share
having increased to 9%,
placing it among the top five
consortia in South Africa.
This was the word from
financial director, Gary
Mulder, at Club Travel’s 2015
conference in Cape Town on
May 16.
Returns to its preferred
partners tripled from R11,5m
in 2011 to R33,3m in 2015,
he said, adding that Club
Travel’s sales were up by 10%
for the first quarter of 2015,
while the industry as a whole
was experiencing negative
growth.
Franchise director, Jo Fraser,
added that Club Travel grew
from 20 franchisees in 2005
to 320 franchisees in 2015,
whose combined air turnover
over the same period grew
from R127m to R1,4bn.
The Club Group is in a
strong position having sold
R1,8bn worth of airline
tickets last year, says md
Wally Gaynor. “I have never
been more excited about
Club Travel’s place in this
industry and where we are
going.” He said the company
had been adept at reinventing
its business model over the
years, which had ensured its
survival.
“We have a lot of exciting
new projects on the go
over the next few months,
[including] new partnerships
and new technology.”
Wally said Club Travel was
consolidating its preferred
partners and channelling
its spend to those who
supported the company. He
told delegates to avoid those
who didn’t treat them well.
“The airline that sent you an
ADM for R60 000 on a
R6 000 ticket, where they
have lost no revenue, you
have to avoid them,” he said.
Wally also called on the
industry to clean up its act.
“The travel industry in South
Africa is not in a great space.
It is not growing and that
makes for ugly competition.
We see it particularly in the
corporate market, where there
is unethical, unprofessional
and fraudulent behaviour.”
The industry also needs to
“wake up” and act against
unfair competition from
global online travel agencies
targeting South Africa, Wally
said. “We are not afraid of
competition, but when the
competition is unfair, then I
have a problem.
“Just one example: on
the online stage there is
a company called Tripsta,
with a .co.za website and
a Cape Town number on
their website. If you phone
them, the phone is answered
in Eastern Europe, where
they are based. I have no
problem with that but when
they get better availability
than we have in this market,
even on our national carrier,
then I have a problem. They
are taking money and jobs
away from the South African
industry.”
