AN INSTITUTION – XL Sandown
Travel’s leisure agency in Sandton
City Shopping Centre – is closing
its store front after 50 years and
relocating upstairs to the company’s
head office in the Sandton Office
Towers on March 1.
The iconic agency was the first travel
agency to open in Sandton with its
office located next to the Balalaika
Hotel. It then moved to Sandton City
Shopping Centre when it opened its
doors in 1973, where the agency
enjoyed exclusivity in the mall for 10
years.
In its new location, the leisure division
will be sharing office space with XL
Sandown Travel’s corporate touring and
incentive divisions.
The expense of running a high street
brick-and-mortar agency is a factor in
the decision to close its leisure store
front, with Nicola Brescia, md of XL
Sandown Travel, saying the agency
will now be able to redirect significant
funds currently locked into unproductive
rental expenses.
“On the occasion of its 50th
anniversary, the company is setting
sail in a different direction, focusing on
capturing new sectors of the leisure
travel market, while retaining traditional
and repeat clientele, with a strong
focus on technology.”
He adds that XL Sandown
Travel’s data research into resource
optimisation indicates that upward of
80% of its leisure clientele no longer
rely on the retail agency’s physical
presence in a shopping mall, but are
instead driven by customer experience.
XL Sandown will be introducing a
solution that marries customer demand
to technology that offers real 24/7
concierge travel solution, supported
by a knowledgeable and professional
travel team.
Marco Ciocchetti, ceo of XL Travel
and previously md of XL Sandown
Travel, says fewer people are heading
into brick-and-mortar offices as more go
online. He adds that pressure is also
mounting on traditional agencies as
airlines, hotels and other suppliers now
actively offer their services directly to
customers.
Commenting on whether the move
away from brick-and-mortar was a
trend, Marco says it all depends on
the agency’s business model. “Single
outlet stores rely heavily on repeat
business and this does not require an
expensive high-street location.”
As travel agencies are essentially
information brokerages that negotiate
rates and connect clients with services,
consultation fees are the basis of
an agency’s income. Many agencies,
especially those that do not have
sophisticated technology, have seen
sharp income decline from in-person
sales. The current primary focus for
most agencies is online sales, allowing
clients the ability to book their trips
without the constraints of office hours,”
he says.
Marco adds that the traditional travel
agency will see further evolution as
technology continues to advance, but
as long as demand for packaged travel
remains there will be a place for travel
agencies both online and off.
