The global pandemic saw many mall agencies closing down for good. But it’s become clear since then that there is still a place for high-street travel agencies.
Although there are arguments that the brick-and-mortar model is a dying concept in the travel industry, WOLO Travel (#WeOnlyLiveOnce) and Flight Centre Travel Group (FCTG) have found many advantages and assured returns on their investments with shopping centre outlets.
Currently, WOLO has two brick-and-mortar travel shops, one in the Rosebank Mall in Johannesburg and another in the Centurion Mall. WOLO established its business in South African shopping centres post-pandemic with the intention of developing a reputation and ensuring its legitimacy as a new brand.
Due to COVID, other travel agencies had moved out of malls, leaving an opportunity for WOLO.
Why a travel shop in a mall?
“It just allowed us to give customers that peace of mind that we are legitimate. We have a store that is accessible to the public, allowing us to bring to life the products that we have on our website and social platforms, in the store locations… Being a new brand, it allowed us to bring that credibility for our customers,” explains Dominique Frick, GM of WOLO Travel.
In South Africa, FCTG’s shopping centre outlets dominate its leisure business and accrue 85% of its sales, says Euan McNeil, MD of FCTG South Africa. Despite the brand having fewer locations post-COVID, McNeil confirms that FCTG is delivering better sales now than it did pre-pandemic, with double the number of locations.
“For FCTG, the shop locations are alive and well. And if anything, COVID has reinforced the importance of physical locations,” says McNeil.
Mall challenges
WOLO’s biggest challenge in shopping centre outlets is the cost of rental, which Frick says is more than a regular commercial office rental.
According to McNeil, although the cost of a location can be a disadvantage, the importance of selecting good locations that will ensure a return on investment is paramount.
During COVID, when FCTG had to reduce its outlet numbers, this provided an opportunity to refine store locations to fit FCTG’s model, allowing it to retain its strongest outlets, says McNeil.
McNeil found that the other main challenge with shopping centre outlets is loadshedding.
“When outlets are spread across several locations, there must be lots of different continuity plans. While FC has made sure all its stores are operational during loadshedding, by giving them backup plans, sometimes they are reliant on the centre also having backup plans,” explains McNeil. “The outlets are also dependent on the network providers around that location being up and running.”
Despite this, both FCTG and WOLO view the expense of rental spaces as investments.
Human connection
WOLO uses the floorspace of its physical locations to reap the benefits of shopping centres’ retail culture.
“We have our products up on the wall, on TVs in the store, and on big table displays. So, customers can walk in, browse our products on the walls and displays and scan QR codes. It is more of a shopping experience that does not have that pressure to sit down,” says Frick.
Additionally, she says WOLO uses its website and social media platforms to provide details of the packages and inclusions it is offering. Although this content is often superimposed on generic imagery, WOLO also uses influencer-generated content and customer-generated content to attract clientele of all ages.
According to Frick, the shops allow human connection, which greatly assists WOLO with being able to develop these connections with its clients, who in turn offer them exceptional marketing content.
“They (WOLO clients) post heaps of photos and they are so happy to share those with us and happy for us to use them. So we have real-life South African customers on the trips that we are marketing, and they become part of the marketing of those trips, which just brings a little bit more credibility to the WOLO brand and products,” says Frick.
McNeil says the success of FCTG’s shopping centre locations post-pandemic, came as a result of increased demand for human interaction in the process of travel preparation and management.
“I think COVID probably reignited people wanting to speak to an expert about their plans,” he says.
McNeil explains that travel has become more emotive and is generally considered an expensive investment. As a result, FCTG has found that clients prefer to speak to agents in person, to discuss their options, concerns, preferences and what they want out of the trip.
“These details are often best explained through a conversation, as opposed to over an email with bullet points or requirements. And that's what the in-store environment helps to achieve,” concludes McNeil.
