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Win-win partnerships and new selling strategies
are key to sustaining businesses and achieving success through the
current downturn, according to Peter Smith, Vice President of
Amadeus Asia Pacific’s Business Solution Group.
Speaking recently at a corporate
travel event in the Philippines, Smith recommended that
travel agencies should look for new collaborative
opportunities and explore different selling strategies
to stay ahead in today’s competitive and challenging
marketplace.
“The travel agency channel remains an
efficient and profitable channel and an essential sector
of the industry, with many opportunities for growth,”
said Smith. “Amadeus is committed to helping travel
agencies improve their bottom line, particularly during
the current downturn.”
Smith suggested four key
areas where travel agencies should focus their
attention:
- Cost and Efficiency
Awareness:
“In today’s economy, cost awareness is crucial,” said
Smith. “Many travel agencies in Asia are recognising
that Amadeus’ technology can help to improve efficiency
and cut costs, through our Quality Control and
Applications Server Based solutions. At the same time,
agents must consider offering more value-based travel
options for travellers who are now very
budget-conscious.”
- Airline Alliances: Low
Cost Carrier (LCC) travel is increasingly becoming the
first choice for many travellers around the world today.
In Asia Pacific alone, over 30 low cost airlines have
emerged during the past decade and are growing at an
unprecedented pace. “In addition to their partnerships
with national and major full-service carriers, travel
agents can work with LCCs and secondary carriers to
package a destination and offer value deals to more
regional destinations,” said Smith.
Competing
with the Online Channel: Airlines are driving more
business to their websites in an effort to cut costs,
and consumers are looking for lower prices by booking
direct on the Internet. So far in 2009, Amadeus has seen
online travel agency bookings in Asia Pacific grow by
21% compared to the same period last year. Many travel
agencies are concerned about this trend, seeing it as a
significant business hurdle for 2009. However, there are
actions that travel agencies can take to combat this
threat, primarily by establishing their own online
presence.
Industry
Cooperation:
Airline consolidation is increasingly common in Europe
and the USA as carriers recognise that ‘going it alone’
may not be the right strategy for survival. Smith
recommends that travel agencies should also seek
partnerships that will benefit their business and the
industry as a whole. “If travel agencies work together
with tourism bodies, industry associations and
government organisations, they can create attractive
joint-promotions and packages that will boost travel
volumes and create more business for all.”
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