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Join us or struggle, the small suppliers' dilemma

Wednesday, 11 August 2010

Unaligned travel suppliers need to lift their game or change tactic to survive future agency and wholesaler mergers, according to an e-Travel Blackboard source.

"For us to compete with the big guys, we're almost forced to approach the huge industry groups and beg for preferred status, but to get there you've got to cut a deal which means you make almost nada," the owner of a Cairns tour operator told e-Travel Blackboard.

"How can a small operator like me compete…unless I specialise my service and that means cutting my share of the market," they said.

"It's meager times."

According to Travelscene American Express General Manager Jacqui Timmins her company does push the use of preferred suppliers, but the process to become a preferred supplier is focused on the quality and value of the product.

"If there's a product that meets all our criteria we discuss a commercial agreement [with the supplier] that will best benefit out members and their clients," Ms Timmins told e-Travel Blackboard.

Ms Timmins urged delegates to use the company's preferred suppliers at the Travelscene American Express National Consultants Conference held in Cairns last weekend, impressing on members the network's success depended on strong relationships with their preferred partners.

"When you support others that are not preferred suppliers you are weakening the network," Ms Timmins said.
  
Travelscene American Express incentivise consultants to use preferred suppliers through the Quantum Consultant programme which sees agencies awarded Quantum points when a Quantum partner is booked, the points redeemable for a range of goods.

"Booking with preferred suppliers gives you as a consultant better rewards," Travelscene Hills Travel Centre Senior Consultant Tracey Jenkins said.

Other consultants at the conference agreed, many only using preferred suppliers, while the few who claimed to have previously not paid much attention to their preferred suppliers, said the conference reminded them of the benefits of this.

"I've always focused on what the client in front of me wants and tailored a package accordingly, preferreds or not, but I am now moving towards booking preferreds as much as possible because of the value they present to my client, myself and my agency," a conference delegate told e-Travel Blackboard.

"I guess I'm damned if I do partner up, and damned if I don't," the owner of the Cairns tour operator said.

Ms Timmins did not comment upon whether the proposed merger between Stella Travel Services and Jetset Travelworld Group would affect the preferred supplier selection of Stella partner, Travelscene American Express, though many at the conference doubted any significant ramifications.
 
Source = e-Travel Blackboard: G.A
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