Face your fears
CONSULTANTS canvassed by TNW said the thing that was holding them back from stepping out on their own was the fear that they were not going to be able to sustain themselves with enough clients. ITCs and consortiums debunk this myth, however, and say word of mouth from good service delivery is the single biggest source of acquiring new clients. “The best way to get new business is to look after your existing clients,” says Alwin Miles-Nell, founder of AWA and Associates, a Cape Townbased ITC consortium. “When planning to start their own business, most consultants struggle with selfbelief that clients are booking with them and not the agency brand that they are working for. However, over the years it is the consultant who has built up trust, and this exists between the client and consultant that they speak to constantly. Clients want to be part of your journey and your success story and many ITCs find that their clients not only follow them when they set up their own venture but that their referral business skyrockets, with clients wanting the ITC to succeed,” he adds. Md of eTravel, Tammy Hunt, agrees and says the best way to attract new clients is through word of mouth via their own business and personal networks. Social media also works well for some ITCs who promote their businesses in this way. Tammy says eTravel offers a service where head office staff accompany ITCs to meetings and client presentations and assist them in explaining the value of the eTravel ITC model and why this business model is such a winning formula. Gm of Travel Counsellors SA, Mladen Lukic, says the TC business model is heavy on human touch. “So it is not a surprise that the large majority of new clients are a result of referrals. When we execute our business model correctly, our existing clients are our best and most productive ambassadors. Vera Hendricks, franchise project manager of Club Travel, adds that having access to the best negotiated rates and availability also helps tremendously. “ITCs have access to our in-house marketing department, who can offer assistance with social media activity. ITCs can also customise newsletters and Club Travel offers with their own brand and we have also partnered with a reputable third-party service provider offering our ITCs a fully integrated website offering,” she explains. Maria Watkins, gm – leisure travel group, WWTB and Product for Tourvest Travel Services (TTS) adds that TTS shares enquiry leads, assists ITCs in sourcing new clients and helps them with tenders. “We support organic growth of our TCs by coaching new skills, providing management support in strategic decisions, full marketing support and by providing a technology platform that is required to support that growth. This includes participation in RFP, tender or any other TMC lead generation process,” says Mladen. Kelly Jackson, head of sales of The Travel Corporation, says making use of products with a high repeat guest rate is a wonderful way to solidify your relationship with a client. Trafalgar, she explains, has a repeat guest rate of over 50%.
Agencies threatened by ‘the drain’
THE drain of senior consultants from agencies to ITCs is a big concern in the industry, with store managers and consortiums developing plans to retain consultants within their stable. Vera Hendricks from Club Travel says the consortium tries to offer great incentives to narrow the gap between what a consultant could earn being employed, compared with their earning potential as an ITC. “One of the main reasons a good senior travel consultant is still working at an agency is because of the need for a secure income. We have previously backed consultants that we have faith in by giving them the opportunity to become independent consultants within the Club group and guaranteeing their income for the first six months,” she explains. An ITC who wished to remain anonymous told TNW that a large consortium recently did research into the value that senior consultants provide. They found that the pool of consultants who had been with the company for more than seven years were bringing in 80% of the agency’s business. He added that it was far cheaper for a company to try to retain senior staff than to constantly train up new consultants. Kelly Jackson of The Travel Corporation says it seems an almost natural progression for established and senior agents who are not keen on the distinct agency or consortium environment to set up shop as independents. Mladen Lukic of Travel Counsellors believes that the exit of seniors towards the ITC model is a positive trend, and says this makes space for new blood and creativity in the stores that the senior consultants had moved out of.
TCs – evolution of the revolution
SPEAKING at Travel Consellors’ annual SA conference on May 3, Jim Eastwood, TC’s global sales director, outlined some of the new business models that had evolved from the original ITC idea, and emphasised that these operating models had come from Travel Counsellors themselves, not from head offices. Jim told the assembled TCs: “Let us be your Sherpa,” referring to Travel Counsellors’ stated policy that head office is not there to command and control, but to facilitate and enable TCs to run their own businesses and scale and flex them according to their own needs. One of the ways the company is facilitating just that is the formal support, on the Travel Counsellors platform, of a range of options. In ‘TC Assistant’ a TC formalises support and pays another TC, who has extra capacity, an hourly rate for performing tasks such as enquiries and admin. So a TC can pay someone to do the work that allows them to focus even more on customer service. Jim pointed out that the most successful leisure TC ever, Lisa Hillyard, has nine assistants. TC Assistant could also take the form of a TC paying another TC a salary for a certain number of hours of work. The model ‘Lead Share’ will allow a corporate-focused TC to share a leisure lead to a leisure-focused TC, and vice versa, with revenue sharing or reciprocity, working for both the sharer and share. According to Jim, one-fifth of leisure customers say they would also book their corporate travel with their TC. The TC might lack expertise and want to farm it out, via Lead Share. ‘TC Trainer’ allows TCs to train each other, fostering the sharing of expertise. ‘Referral’ and ‘Mentor’ are designed to assist those who need referrals, and mentoring, especially newer TCs. With ‘Buddy Cover’, one TC covers for another on leave, delivering convenience. This can be done with a commission split, or none, with the parties opting for reciprocity instead. There are also supported models for ‘Mini TMCs’ and ‘Lead Gen’ a leadgeneration-only business, both of these with or without employed staff.
Partnerships for TCs can take several different forms. ‘Dual Branch’ looks from the outside like one business, but is two. All commissions go into one account, which then gets split. ‘Office Share’ is a model that can be beneficial in counteracting the loneliness of the lone ITC. ‘Build for Succession’ – Jim reminded the business owners that there is value in their businesses. “The succession can be inside your family. You get to train your successor. It’s also a way to get new blood and new ideas into your business. You can grow your own TC by working with your successor!” Another type of business is ‘Account Manager’ – an account manager works with a team of TCs, as an implant. This can be voluntary or by invitation. This proliferation of different business models will be welcomed by agents who want to launch their own business, but who want to tailor a situation specific to their own needs.
Why women thrive as ITCs
WOMEN are drawn to the ITC model for the flexibility it gives them to spend time with their families. It is also a business model that requires little in terms of start-up costs. Consortiums and suppliers confirm that this sector of the industry is overwhelmingly dominated by female business owners. Tammy Hunt confirms that more than 95% of ITCs within the eTravel structure are female owned. Vera Hendricks says 80% of Club’s ITCs are female owned, Mladen Lukic says 92% of South African Travel Counsellors are female, and Maria Watkins says 95% of Tourvest Travel Services’ ITCs are female owned. Brenda Mitchell, head of sales for World Leisure Holidays, says about 90% of the ITCs that World Leisure sales executives call on are female. She says travel has always drawn female employees, due to the perception that it is an exciting industry offering many travel opportunities. The ITC model, which offers flexibility and the ability to work from home, is another big draw card for women. Brenda says the ITC market is a valuable sector for WLH and that sales executives work around the schedules of the consultants when calling on them. “Not all ITCs like sale reps to visit them at home, so we try to call in advance and arrange meetings at coffee shops or sometimes even group meetups,” she explains. Kelly Jackson of The Travel Corporation says as time is a precious commodity for an ITC and because many work from home, online booking systems are invaluable. She says Trafalgar’s 24/7 booking system gives real time availability and is available to take payment. A series of reminders prompt ITCs to follow up on payments or ask clients for their meal preferences. The Travel Corporation’s ‘Follow the Sun’ call centre offers after-hours telephonic assistance for ITCs too.
Case study: what’s in a workspace?
ALWIN Miles-Nell worked as a successful retail consultant for a large travel company for 13 years before he worked up the courage to step out and start Abroad with Alwin, his own ITC, which opened in 2016. The success of this business, and his firsthand understanding of the fears and challenges that consultants face when starting out on their own, later prompted him to start AWA and Associates, his own ITC model in early 2018. A year and a half later, AWA is growing from strength to strength with 12 ITCs in its stable. Alwin says AWA and Associates is unique as it does not charge ITCs ticketing fees but instead offers them an 80:20 commission split. AWA also offers ITCs access to all the Club Travel preferred fares and rates through an agreement with this consortium. While ITCs have the flexibility to work from home, AWA also offers them their own desk in a dynamic work environment at no extra charge. He says while it is lovely to have work hour flexibility, many ITCs soon realise that having access to a work environment filled with a team of like-minded individuals is hugely beneficial for both one’s business and personal motivation. It also gives them a professional space to meet clients. AWA is Cape Town-based at present, with offices in Green Point and Century City, with office space opening in Claremont soon. “The benefit of working in a space with other like-minded and experienced ITCs is the added support structure. You will never feel isolated and there is always someone to bounce ideas off or who can offer assistance. Our Associates are all highly experienced and we have each other’s back,” says Alwin.
News flash
Amadeus Link invoice allows ITCs to create company profiles, design personalised trip plans for travellers, issue invoices and travel orders that include both GDS and non-GDS content. The documents can be customised with the ITC’s logo and contact details. The Amadeus Link Report service allows ITCs to create useful reports, helping them and their clients make the best decisions for their business.
Travel Counsellor founds Expo
ITCS are looking at new ways to generate business and stay relevant. Karin Livingstone, a Johannesburg-based Travel Counsellor and avid cyclist, founded the first Cradle Sports and Travel Expo, which was held at Valverde Eco Hotel in October last year. “The Cradle of Humankind has become a training mecca for Gauteng athletes due to the wide roads, challenging terrain, country views, pleasant cafés and the fantastic cycling lanes in the area. Muldersdrift venues say that at any one time there are over 1000 athletes training for triathlons, marathons, road or mountain biking events in the area,” says Karin. She realised the huge potential to host a sports and travel expo, and selected Valverde Eco Hotel because a few hundred athletes use their parking facilities as a base to begin their training every weekend. She added that October was a good time for the expo as it was peak training time for the 947 Telkom Cycle Challenge. Entrance to the expo was free and Karin says various travel, sports, fitness, nutrition and wellness companies hosted stalls in the hotel’s boma area. Valverde also set up a 947 pre-ride, which took place before the expo opened in order to attract more athletes to it afterwards. Karin marketed the expo extensively through social media and with flyer drops in the area in the weeks leading up to the expo. Karin was pleased with the results of the first expo and hopes that it will become a popular annual event in the area.
On the move
OUTSIDE the Box Holidays launched in March this year as a new eTravel Island Specialist. Founder Lesley Smith says she has chosen to specialise in Mauritius, Zanzibar, Thailand, The Maldives, Seychelles and Bali, as these are the products she knows best from her 14-year tenure at World Leisure Holidays.
Did you know?
World Leisure Holidays will reintroduce its Travel Consultant incentive programme for the period July 1, 2019-June 30, 2020. This year there will be one incentive, whereby all World Leisure Holidays properties will be included in the programme. Brenda Mitchell from World Leisure Holidays explained that it would be based on a combined minimum revenue and minimum packages booked target. Travel consultants will be rewarded with bed nights at the hotel where they have made the most bookings. Terms and conditions of the incentive will soon be shared with trade, however consultants can already start working toward this incentive as all packages booked now for the new period will already count toward the incentive.
