Trade puts high value on tour operators
IN AN age of vertical
integration, industry
professionals maintain
there is still a necessary and
respected function for tour
operators in this market.
Mladen Lukic, gm of Travel
Counsellors in SA, believes
there will always be a role for
any player in the industry who
adds value.
“Our successful relationships
with tour operators are not
based on catalogue, but rather
on product expertise. They add
value by taking responsibility
for the product and looking
after the passenger once we
have acquired the product.”
He says the industry does
not need operators who
simply charge an excess on a
product; any retailer can match
the price across a wide range
of products.
The idea behind vertical
integration is often lost in
translation, Mladen believes.
“For those core components
that are essential to our
business, we prefer a direct
relationship with the product
owner, not the supplier. We
don’t want to be subject to
industry whims in terms of
the level of our remuneration
for those core products. This
direct relationship with product
owners, however, only applies
to core products, not across
the board.”
Expert advice
It’s impossible for a travel
professional to know every
property in every destination,
which is why agents still rely
on tour operators to guide
them, says eTravel md,
Tammy Hunt. Tour operators
provide first-hand knowledge
and expert advice to ensure
the information a travel
professional passes on to
clients is verified and checked.
Club Travel franchise director,
Jo Fraser, says tour operators
understand their ideal
customers and evolve their
products based on the current
and future needs – financial
and expectation wise – of
these clients. “They don’t try
to be all things to all people.”
Tour operators operate
on economies of scale, Jo
adds, so they can negotiate
better deals with hotels, city
tour operators and transport
providers. They can also
offer experiences that agents
cannot book online, such as
meals in local homes.
This saves time and hassle
as agents are able to give
customers access to exclusive
products, better deals
and a quick response to a
packaged request, says Marlin
Magadani, marketing assistant
at World Leisure Holidays.
It also translates into
operators helping agents get
their bookings confirmed in
peak travel periods, suggests
Beachcomber Tours md, Terry
Munro.
Development Promotions
md, Jackie Adami, adds that
it’s also easier for agents
to contact a tour operator
in SA as opposed to calling
an international supplier
and dealing with currency
fluctuations as well as foreign
payments and contracting.
“Tour operators have direct
relationships with the right
people for the products they
represent. They understand
what this market requires and
can relay that information to
suppliers. In turn, they pass
information from suppliers on
to agents,” Jackie says.
“Formidable levels of
service” across the tour and
cruise brands of The Travel
Corporation (TTC) ensure
incredible products are
delivered, while backed by
an infrastructure designed
with the travel trade in
mind, believes md, Teresa
Richardson.
“They offer high levels of
commission and give roundthe-clock support. A sales
team operates countrywide.
Agent educational trips across
all brands help consultants
sell trips with confidence. We
are only ever a phone call
away.”
For 41 years, Thompsons
Holidays has offered agents
top service, says PR and
media manager, John Ridler.
“Our reservation agents are
travel specialists with excellent
product and destination
knowledge. We offer a onestop service for multiple
services such as flights,
accommodation, transfers, day
excursions, cruises etc.”
Thompsons Holidays vets
destinations and properties,
also ensuring that DMCs are
accredited and offer suitable
insurance. “We provide a
24-hour emergency service as
well as constant updates if
there are situations such as
strikes or natural disasters.”
“Regardless of the business
model chosen, we never let
this get in the way of doing
business together,” continues
Teresa.
When things go bad… focus on the good
TOUR operators and travel
agents generally work well
together, believes Club Travel’s
Jo Fraser.
“Retailers rely on the
knowledge and destination
expertise of operators, but
most importantly, the travel
agents are comforted knowing
that the tour operator will be
there if or when something
goes wrong.”
Tour operators do feel
abused, however, when many
travel agents come through
for the same client who is
shopping around to get expert
input and then, feeling more
confident, either the travel
agent or client books it directly.
“Since travel agents use and
at times take advantage of
this situation, it means a tour
operator can have a very high
quote versus booking ratio,
which they cannot sustain,”
says Jo.
Beachcomber Tours’
Terry Munro says there are
excellent travel consultants
who are a pleasure to deal
with, but there are also
those exceptions who are
unreasonable, demanding and
rude.
eTravel’s Tammy Hunt,
suggests that when relations
turn sour, it’s critical to get
out of the emotional bubble to
resolve the situation without
inconveniencing the client.
“Parties need to
compromise. We all make
mistakes and it’s about
working together to find a
solution rather than pointing
fingers because one day, the
wheel will turn.”
Aadil Esack, gm product
and marketing for XL Travel,
agrees issues need to be
resolved without the emotional
element. “Keep it professional
and mature on both sides and
you’ll always find a solution.
All parties need to be flexible
during a crisis to resolve
the issue amicably. Finger
pointing helps no one in the
long term. The same applies
to negotiations – as long as
each party does not treat the
proposal as an ultimatum,
it could be a very fruitful
relationship.”
The Travel Corporation
believes its offerings to agents
and consortiums are fair
and lucrative, says Teresa
Richardson. “We always aim
for a win-win situation and
this is evident in the generous
commissions we pay (on
the entire package) and the
rewards we give as a preferred
partner based on volumes and
targets.”
There will always be limits to
what can be done to reward
consortiums and agents,
but TTC likes to handle this
with good grace and mutual
respect, she adds.
Considering that OTAs
are becoming increasingly
aggressive, Thompsons
Holidays’ John Ridler cautions
agents against buying from
companies that are not the
original suppliers. “Issues can
take time to resolve. Changes,
cancellations and refunds can
be problematic.”
There are also times when
travel agents could feel
threatened in cases where
tour operators compete for the
same business, says Terry.
“Often hotel chains where
clients have stayed put the
guests on mailing lists and
target them directly.”
Sometimes agents do prefer
to deal directly with a supplier,
especially when the tour
operator has been unreliable,
adds Terry. “They may also
worry that the operator goes
insolvent and they don’t want
to take the risk.”
Mladen Lukic of Travel
Counsellors SA, adds: “Travel
Counsellors is always upfront
and transparent with partners
in terms of where we are
happy to work with a tour
operator and where we need
to go direct.”
AfricaStay sales and
marketing executive, Justin
Dobrovic, encourages travel .
Flexible coach touring like never before
TOUR operators and travel
agents generally work well
together, believes Club Travel’s
Jo Fraser.
“Retailers rely on the
knowledge and destination
expertise of operators, but
most importantly, the travel
agents are comforted knowing
that the tour operator will be
there if or when something
goes wrong.”
Tour operators do feel
abused, however, when many
travel agents come through
for the same client who is
shopping around to get expert
input and then, feeling more
confident, either the travel
agent or client books it directly.
“Since travel agents use and
at times take advantage of
this situation, it means a tour
operator can have a very high
quote versus booking ratio,
which they cannot sustain,”
says Jo.
Beachcomber Tours’
Terry Munro says there are
excellent travel consultants
who are a pleasure to deal
with, but there are also
those exceptions who are
unreasonable, demanding and
rude.
eTravel’s Tammy Hunt,
suggests that when relations
turn sour, it’s critical to get
out of the emotional bubble to
resolve the situation without
inconveniencing the client.
“Parties need to
compromise. We all make
mistakes and it’s about
working together to find a
solution rather than pointing
fingers because one day, the
wheel will turn.”
Aadil Esack, gm product
and marketing for XL Travel,
agrees issues need to be
resolved without the emotional
element. “Keep it professional
and mature on both sides and
you’ll always find a solution.
All parties need to be flexible
during a crisis to resolve
the issue amicably. Finger
pointing helps no one in the
long term. The same applies
to negotiations – as long as
each party does not treat the
proposal as an ultimatum,
it could be a very fruitful
relationship.”
The Travel Corporation
believes its offerings to agents
and consortiums are fair
and lucrative, says Teresa
Richardson. “We always aim
for a win-win situation and
this is evident in the generous
commissions we pay (on
the entire package) and the
rewards we give as a preferred
partner based on volumes and
targets.”
There will always be limits to
what can be done to reward
consortiums and agents,
but TTC likes to handle this
with good grace and mutual
respect, she adds.
Considering that OTAs
are becoming increasingly
aggressive, Thompsons
Holidays’ John Ridler cautions
agents against buying from
companies that are not the
original suppliers. “Issues can
take time to resolve. Changes,
cancellations and refunds can
be problematic.”
There are also times when
travel agents could feel
threatened in cases where
tour operators compete for the
same business, says Terry.
“Often hotel chains where
clients have stayed put the
guests on mailing lists and
target them directly.”
Sometimes agents do prefer
to deal directly with a supplier,
especially when the tour
operator has been unreliable,
adds Terry. “They may also
worry that the operator goes
insolvent and they don’t want
to take the risk.”
Mladen Lukic of Travel
Counsellors SA, adds: “Travel
Counsellors is always upfront
and transparent with partners
in terms of where we are
happy to work with a tour
operator and where we need
to go direct.”
AfricaStay sales and
marketing executive, Justin
Dobrovic, encourages travel
agents to qualify their clients
to tour operators correctly.
“The operator is then able
to offer the agent what they
have requested, or provide
alternative options that
meet or exceed their clients’
expectations.”
Karen Donkin, marketing
and product manager,
Serendipity Tours, does not
see the strong relationship
between travel agent and
operator changing in the near
future.
“Both complement each
other with the main goal to
keep the customer happy and
coming back for more.”
Flexible coach touring like never before
EUROPAMUNDO Vacations
offers an affordable threeto four-star coach touring
option that brings levels
of flexibility not seen
before in the South African
market, advises Karen
Donkin of Serendipity
Tours, new GSA in SA for
Europamundo Vacations.
“The itineraries are
amazing value since they
have many inclusions,
flexibility and every
departure is 100%
guaranteed. I’ve not seen
a product like this in our
current market and it will
introduce a new market
of coach travellers to the
world.”
According to Karen,
the local retail trade
responded well to the
recent training sessions,
launches and workshops
held in Johannesburg,
Durban and Cape Town.
“The agents love the
flexibility of the tours and
guaranteed departures.
That, coupled with the
great prices, is a good fit
for this market.
“Packages do not
include flight bookings
and, due to the flexibility
of options and circular
nature of trips, travellers
can start and/or end
their trip at any point on
the tour. “Passengers
select the most
convenient dates, begin
at the most suitable
airport and continue
on their travels for as
long as they wish. Upon
arrival, a private transfer
enables guests to join
the group.
Flexible coach touring
“Guests can also extend a
stay in a particular city even
if it is mid-tour, to return
at a later time. “If a client
wishes to spend more time
in a place, they can also
add extra nights before or
after the tour. This is all
done and quoted in real
time via the website,” says
Karen.
Europamundo Vacations
does not compel anyone
to buy an entire tour, she
says. “Passengers can
book just the part of the
tour they want, including
a single day only. Clients
have the possibility of
joining any tour, at any time,
and for whatever length of
time. They can go on their
own trip independently
and include in it whichever
part of the Europamundo
Vacations tour they like
best.”
She says a dedicated
team is ready to assist
the trade with any quotes
and queries. “We pay 12%
commission if the quote
comes via the call centre
and 13% if the agents do it
themselves online.”
Agents need to keep an
eye open for exciting new
sales incentives in coming
weeks.
More meaningful experiences from TTC
ONGOING research and client
interactions have shown that
travellers are looking for more
meaningful experiences, says
TTC’s Teresa Richardson.
“They want to go beneath
the surface and immerse
themselves in a destination.
They want out-of-the-box
experiences with a wow factor.
They’re also looking to leave
behind a positive impact.”
TTC has answered these
calls by offering experiential
encounters through Trafalgar’s
Be My Guest programme,
which celebrates its 10th
anniversary this year, and
through sustainability-driven
experiences across all brands
via TreadRight initiatives. The
one-of-a-kind journeys through
the Chairman’s Collection
curated for Luxury Gold leave a
lasting impression.
“For example, an experience
with Be My Guest in Hawaii
lets travellers experience
the farm-to-table movement
on the O’o educational
farm in Kula. Guests get to
#maketravelmatter as the farm
supports community wellbeing
and bio-farming.”
Teresa adds: “For the first
time in our TTC history, we
had a 10% Early Payment
Discount (EPD).
“Our EPD ended in January
and we went to great lengths
to educate agents about this.”
She says booking early not
only gets a client a seat on the
coach or a bed on the cruise
of their choice, but it also gets
them the discount on offer.
Book AfricaStay’s Sugar & Spice – get 15% comm
CHANGE is happening in
the industry and the nature
of tour operators will evolve
over the next few years,
believes AfricaStay’s Justin
Dobrovic.
“We are adapting to the
new reality to forge stronger
relationships with the travel
trade.”
He says the general
public has become
extremely well educated
about travel. “They
understand travel
concepts. Clients have
become tech-savvy and
have the ability to compare
prices at the touch of a
screen.”
There is still, however,
that element of uncertainty,
and clients need
reassurance that someone
is attending to their every
requirement. “This is why
it’s imperative that travel
agents and tour operators
remain focused on
mastering their expertise
in a certain area or product
and, in doing so, match a
client with the holiday that
is right for them.”
In 2018, AfricaStay
launched Holiday Packages,
a division exclusively for
travel agents, he says. “We
are offering our expertise
and unbeatable rates
for a selection of quality
destinations throughout
the Indian Ocean islands
and Africa to our loyal trade
partners.”
Clients will continue to
shop around and agents
need to be on top of their
game, booking smartly,
says Justin.
“We all know the travel
industry is fast-paced and
highly competitive. Our goal
is to become the smart
choice for all travel agents.”
Agents must look out
for the new Sugar & Spice
campaign offering up to
15% commission on a
selection of packages. CHANGE is happening in
the industry and the nature
of tour operators will evolve
over the next few years,
believes AfricaStay’s Justin
Dobrovic.
“We are adapting to the
new reality to forge stronger
relationships with the travel
trade.”
He says the general
public has become
extremely well educated
about travel. “They
understand travel
concepts. Clients have
become tech-savvy and
have the ability to compare
prices at the touch of a
screen.”
There is still, however,
that element of uncertainty,
and clients need
reassurance that someone
is attending to their every
requirement. “This is why
it’s imperative that travel
agents and tour operators
remain focused on
mastering their expertise
in a certain area or product
and, in doing so, match a
client with the holiday that
is right for them.”
In 2018, AfricaStay
launched Holiday Packages,
a division exclusively for
travel agents, he says. “We
are offering our expertise
and unbeatable rates
for a selection of quality
destinations throughout
the Indian Ocean islands
and Africa to our loyal trade
partners.”
Clients will continue to
shop around and agents
need to be on top of their
game, booking smartly,
says Justin.
“We all know the travel
industry is fast-paced and
highly competitive. Our goal
is to become the smart
choice for all travel agents.”
Agents must look out
for the new Sugar & Spice
campaign offering up to
15% commission on a
selection of packages.
Continual hotel revamps keep Beachcomber ahead
BEACHCOMBER Tours has
close ties with its hotels and
knows the availability at any
time, says Terry Munro.
“We can always assist the
travel agent in choosing a
hotel that best suits the
needs of the client.”
He says it is important for
hotels to keep upgrading
their products. “We are
spoilt at Beachcomber,
since these continual
refurbishments are what the
travelling public expect.”
Some new upgrades
include:
• Victoria Beachcomber
Resort & Spa – newly
completed deluxe groundfloor rooms.
• Paradis Beachcomber Golf
Resort & Spa – villas have
all been beautifully redone.
• Dinarobin Beachcomber
Golf Resort & Spa –
upgrade to the lobby area.
• Mauricia Beachcomber
Resort & Spa – the
standard and superior
rooms as well as the
two-bedroom apartments
have been redone.
• Shandrani Beachcomber
Resort & Spa – will
undergo an extensive
resort refurbishment in
2020 when it closes from
May to October 2020.
Photocap: Trend alert
With the current economic situation and pending
elections, South African travellers are wary and price
sensitive, says Club Travel’s Jo Fraser. “They are
looking for more bang for their buck in inclusive
packages. They’re also eco-aware and interested
in alternative destinations where they can learn,
experience and appreciate something new without the
overcrowding.” She says holiday packages for singles
are becoming more popular as well as cultural and
adventure packages to remote destinations that are
off the beaten track.
What’s in the pipeline for KZN?
TRAVEL agents and tour
operators should work
together to promote
and successfully sell a
destination, says Phindile
Makwakwa, acting ceo of
Tourism KwaZulu-Natal.
“We have a number of
special developments in
the pipeline, including a
world-class game lodge in
Hluhluwe-iMfolozi Park.
“There will also be a
major announcement
on the Tinley Manor
development, which we
believe will definitely
change the face of
tourism in the province.”
Phindile says there
has been an increase in
the number of women’s
groups travelling to
KwaZulu Natal shores.
“There is even greater
potential for us to grow
this exciting market.”
Top incentives from Topdeck
TOPDECK is running an
agent booking incentive.
Book eight passengers and
win a free Europe or USA
trip of up to seven days.
Book 12 passengers and
win a free trip of up to 12
days. Book 18 passengers
and win a free trip of up to
12 days including flights to
the value of R10 000. Book
40 passengers and win
a free trip of your choice
and bring a friend free, or
have the option of a flight
included to the value of
R10 000.
The seller must be the
primary traveller. Bookings
must be from two different
brochures. Free trip
excludes travel in July. The
qualification period is from
January 1 to December
31, 2019. The free trip is
subject to availability and
clearance from Topdeck
operators. All Topdeck
travellers must be between
the ages of 18 and 39. The
free trip is not transferable
and other exclusions and
further T&Cs apply.
