Expertise essential for running a successful travel agency

Johannesburg – If you are planning on starting a travel agency business, then you need to realise that although some people might view it as just selling air tickets, your customers will more than likely be interested in your expertise. In an interview Marion McPherson, former CEO of the Association of South African Travel Agents (ASATA), she reveals some secrets to success.McPherson says that if you are an entrepreneur who doesn’t have the skills or knowledge as to how the industry works, then it would be advisable that you team up with another agency so you can learn how the business operates.

“If you’re going to be selling your expertise, then you need to make sure you’ve got it and you’re good at it,” explains Marion McPherson. “That’s why franchising would be a good route to go, as the franchise can offer an advisory service, as well as the appropriate training. In addition, start ups tend to battle when it comes to establishing financial credibility and by joining a franchise this problem can be overcome.”

In today’s technological era where people can effortlessly book and make their own travel arrangements over the Internet, travel agents need to be better informed and able to make proactive recommendations based on their expertise and experience. Having continually dealt with these types of travel arrangements, they will be in a position to become value added advisors who make trips run smoothly with their lists of do’s and don’ts.

According to McPherson, the key to success for a travel agency is proactive selling.

“You need to build sustainable relationships with your clients and you need to show that you can offer continuity, while making their lives easier. There is always going to be a better deal at another agency, but if you have an established relationship with your client, then they will shop at your travel agency all the time.”

Once you’re up and running, McPherson says it would be beneficial to focus on your individual consultants. It will be important to spend time and money on training and development, as the success of your business will depend on the way in which your consultants are able to effectively interact with your clients. Training would include both travel knowledge, as well as soft skills such as communication skills.

Over the past 10 years, the travel industry has enjoyed buoyancy as South Africans have had increased access to a variety of destinations. In addition, the industry has moved from being commission earning to fee based. Although this change has been advantageous for travel agents, with many reporting better profit levels, it does place the onus on agents to offer value-added services.

“As a travel agent you will provide a variety of services, but chief among those will be proving that you are worth the fee being paid,” says McPherson. “Your client will want to know that you have some sort of standing that makes it acceptable for you to charge this fee.”

If you’re going to be running your business from home you can use the Internet, but in order to have the edge over your competitors you should have a global distribution system, such as Amadeus or Galileo. The CEO of ASATA points out that when it comes to issuing tickets, you will be required to have an IATA license, which stipulates stringent financial requirements.

“However, with the advent of technology and e-ticketing, this model is changing and it is becoming easier for a number of people to work together. A company might hold an IATA license, but it has a number of independent travel consultants who work from home. These independent agents work in their communities with their contacts and can charge service fees without having to worry about paying the IATA fees.”

McPherson believes technology is enabling SMMEs to take part in this industry and this presents a challenge for the industry’s association.

“We need to look at the industry as a whole because it is not a requirement to be a member of ASATA,” she says. “We are looking at bringing individual agents into the fold because we want to guarantee the consumer some peace of mind. We want to be able to guarantee that an agent has the appropriate financial backing, they have qualified staff, they adhere to ASATA’s rules of conduct and this will regulate they way they interact with customers.”

About the author

Leoni Benghiat wrote 138 articles on this blog.

Leoni Benghiat has a keen interest in travel-related topics and dabbles in all kinds of journalism – newspapers, magazines, websites, whatever publishing opportunity presents itself. Being a patriotic South African she feels the need to tell the whole world that South Africa has much to offer, even though some days might seem dark. And the wonder of the internet has made this possible – with the help of all the other South Africans in the travel industry, of course.

• Blog