SOUTH Africa’s retail agencies
continue to stay relevant,
while almost 700 UK high
street agencies closed last
year as a result of stiff OTA
competition.
Industry experts told TNW
that the closures, reported by
UK-based research firm, Local
Data Company, reflect a trend
in UK consumer behaviour
that won’t be felt by the South
African travel market.
“The UK market has
become very online-savvy
compared with our local
market,” says Andrew Stark,
md of Flight Centre Travel
Group South Africa. “We have
85 productive high street
locations in the UK compared
with the 110 retail outlets in
South Africa. South Africans
still buy their travel from
people and we don't foresee
our Flight Centre operations
slowing down.
“Our focus is on retaining
our key locations and
developing a balance between
our online presence and brickand-mortar
operations.”
Otto de Vries, ceo of Asata,
says the local market can’t be
compared with the UK as it
is on a smaller scale. “While
we also saw a reduction in
high street travel agencies
a few years ago, the market
has since stabilised and is
predicted to remain stable.
“We attribute this to the
South African market’s ability
to adapt to new technology
and its focus on corporate
travel over leisure. The rate
at which the market grows,
or remains stagnant over the
next few years, will depend on
how much expendable income
the local economy allows for
and how much of this is used
for travel.”
