TIR November17.pdf - Page 1



High-end
clients have
high demands,
read the Luxury
Travel feature
from page 8.
It is time to enter
the Delta flight
competition –
final question is
on page 4.
Discipline is key to
balancing life as an
independent, page 11.
Travel Industry Review
Published by TTG Southern Africa
ITC numbers and sales
expected to grow in 2017
BY SARAH ROBERTSON
ITC numbers and sales revenue have continued to grow
this year, with the sector generating between five and 35
percent of suppliers’ revenue.
Although the eTravel and
Travel Counsellors models
consist entirely of ITCs, traditional retail groups report
that their affiliated ITCs still
account for a relatively small
portion of their total sales
but that it consistently shows
growth each year.
Andrew Stark, Flight Centre Travel Group Managing
Director, said the group had
55 of what it calls Flight
Centre Associates. Although
small, Mr. Stark reported
they had shown 100 percent
growth over the past two
years and now contributed
five percent of the group’s
sales. The company aims to
grow associate numbers to
more than 100 by 2018.
eTravel has a portfolio of
200 ITCs and the group ex-
pects to have achieved sales
growth of between four and
eight percent for 2016. Jo
Fraser, Club Travel Franchise Director, also reported
growth from the company’s
independents, which now
number 330.
“Our franchise division
has grown by 30 percent this
year, with ITCs generating
32 percent of Club Travel’s
revenue,” she said.
Mon ica Hor n , Ha r vey
World Travel Product Manager, said it was difficult to
measure the exact growth
in ITC business due to individually-managed revenue
reports but it has definitely
seen an increase in business
from the group’s 50 ITCs.
Suppliers also reported
growth from independents.
George Argyropoulos, Cruises International Chief Executive Officer, revealed ITCs
now contribute approximately 15 percent of the company’s sales revenue.
“Selling cruises in an inte-
gral part of the product mix
sold by ITCs. Its high revenue/low volume proposition
allows ITCs to achieve high
revenues without the need to
hire additional staff to cope
with the volume of work, allowing them to keep costs
down and increase profits
by working from home or a
small office,” he explained.
The growth trend is expected to continue, due to
reduced overheads and the
flexible lifestyle that the ITC
model provides.
Ms. Horn explained that,
as economic conditions wors-
continued on page 2
Beachcomber recently took a group of agents to its Seychelles Sainte Anne Resort &
Spa. The group, pictured above, enjoyed a cooking class with one of the resort chefs.
Back row (l to r): Mashuda Joulay, Flight Centre Eastgate; Fiona Watermeyer, Aeroplan
Travel; Tracey Trautmann, Pentravel East Rand Mall; Tamaryn Kruger, Sure Stellenbosch Travel; Karien de Villiers, Pentravel Centurion; Justine Davies, Travel by Investec
and Nikki Briant, Beachcomber Tours. Front row (l to r): Tanja de Bruyn, Simply Travel;
Sandra Touzel, Pentravel Gateway; Bernadette Berriman, Pentravel Mall of Africa and
Andrea Vermeulen, Pentravel Fourways Mall.
Win with Delta & TIR!
Win two economy class flights to any city in the
continental US that Delta operates to... See the final competition question on page 4 and prepare
to enter online between December 1 – 30.
Kulula holidays sent best
wishes to the trade for the
New Year and a thank you
for the loyal support. Pictured left is the Johannesburg team, back row (l to
r): Tracey, Karen, Bongi,
Benson, Moses and Lemo.
Front row (l to r): Nathan,
Megan, Chantelle, Bev,
Mamagae, Gomo, Mosima, Lucille,  Michelle and
Zahedah.
SAT reveals strategy
under its new CEO
BY SARAH ROBERTSON
SISA Ntshona, SA Tourism’s
new Chief Executive Officer,
said last month that the current tourism strategy was in
line with the 2013 National
Development Plan and promised it would substantially
grow tourist arrivals.  
“Tourism currently contributes nine percent to our
GDP but the sector has been
identified as having the potential to contribute much
more in the long term. The
commodity market has traditionally been South Africa’s biggest income generator but as South Africa is
effectively a price taker in
this market, we have been put
under substantial pressure
from the finance minister to
grow tourism further in order
to diversify our GDP earnings… It is vital that we not
only grow tourist numbers
but also contribute positively
to economic growth in South
Africa…”
While a target for 2017
had not yet been finalised,
Mr. Ntshona said double digit
growth in the high teens was
an achievable figure. SAT’s
long term strategy is to grow
tourist arrivals by an additional five-million per annum over the next five years.
Four of the five-million
additional tourists are expected to be from internacontinued on page 2
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2016/10/12 11:57 AM

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