ITCs have had to rely on support from their franchisors to survive the impact of COVID-19, and some have stepped up in a big way.
Travel Counsellors is part of a global organisation and the South African operation learned from the experiences of its European counterparts who were first hit by COVID-19. Travel Counsellors South Africa gm, Mladen Lukic, says he is actively working with Asata to ensure that the travel industry is considered for the right help from government but, in the meantime, other support measures have been put in place.
All management fees have been suspended over the next few months and a global benevolent fund has been set up to provide financial assistance for TCs in dire financial situations across the globe.
A dedicated Travel Counsellors support/crisis team is in place to help individual TCs to get all their stranded passengers back home.
Brand leader of Flight Centre Associates, Chantal Gouws, says the ITC brand of Flight Centre Travel Group has also suspended its monthly fees.
“We are also assisting our ITCs with their commission recalls and covering a portion of this where possible. Times are tough for all and we need to try and help our people in ways that we can,” she says.
Tammy Hunt, md of eTravel, says the eTravel ITC business was set up with the lowest possible monthly fees to assist members maintain their fees in situations where there were no sales. “The actual monthly fees to our ITCs if they generate no sales are extremely low. That is not where the help will be needed. The most important thing we can do for all stakeholders concerned is to look very closely at our business and continue cutting spend where possible and look at how to regenerate sales,” she says.
Tammy says eTravel is trying to sign on new ITCs, which in turn will benefit all existing ITCs with growth toward targets for overrides, and this will be a big driver for recovery.