TIR Apr_May18.pdf - Page 12

ITCs diverting sales from the high street
W H I LE a precise measurement of ITC revenue is
difficult to determine due
to much independent sales
revenue being attributed to
consortiums, the independent segment has continued
to grow this year, accounting
for five to 15 percent of total
industry sales. 
However, many consortiums and suppliers are quick
to point out that the traditional high-street retail office
still brings in the majority
of revenue and that model
remained relevant due to the
face-to-face interaction demanded by many travellers.
Monica Hor n, Product
Ma nage r, Ha r vey World
Travel, said many customers
still preferred face-to-face
communication in accessible
shopping centres and office
Andrew Stark, Managing
Director, Flight Centre Travel
Group, commented that one
model would never replace
the other as they attracted
different customer bases and
George Argyropoulos, Chief
Executive Officer of Cruises
International, concurred stat-
Pictured at eTravel’s Open Forum last month in Cape Town (l to r): Truda Louw; Tammy
Hunt; CEO Garth Wolff; Avril Shackleton and Maree Adkins.
TIR Southern Africa

December 2016
ing that marketing to traditional retailers and ITCs had
helped Cruises International
reach the different market
segments. However, Garth
Wolff, Chief Executive Officer of eTravel, predicted
the ITC model would continue to divert sales from traditional offices.
“Our business model is
based on ITCs and if our
business is growing it has to
be coming from somewhere,”
he said.  
Ms. Horn maintained travel was largely relationshipbased and clients would often
follow a consultant.  
“It is not the location of the
agency but the calibre of the
consultant that retains clients. If a high-street consult-
HWT launches ITC model 
H A RV E Y Wo rld Tr avel
launched its ITC model last
month. It will comprise a
small number of ITCs, giving
the group the ability to offer
tailor-made services.
Managing Director, Marco Cristofoli, said: “Harvey
World saw a need for its own
ITC model as a means of retaining experienced agents
and growing its business.”
Travel agents will have access to the full suite of tools
needed to run and manage
their travel businesses, including the ITC platform,
ticketing and technical support. Mr. Cristofoli said that
through the BidTravel group,
HWT aimed to offer ITCs
networking oppor tunities
and access to special fares
and volume deals. 
ITCs will pay a monthly
fee, but no sign-up fee. Revenue split will based on volumes generated by the ITC. 
Initially, agents will fall
under HWT’s IATA bond
and will not have to contribute to the guarantee, however, Mr. Cristofoli said this
may change in the future.
ant becomes an ITC you will
find that his/her clients will
often follow them,” added Jo
Fraser, Franchise Director of
Club Travel.
Gaynor Neill, General Man-
ager at Cr uise Vacations,
confirmed a large percentage
of high-end bookings came
from ITCs who had longestablished relationship with
the client.

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