Many travel agencies in the Middle East have seen a dip in corporate bookings as companies tighten their purse strings because of economic uncertainties. Quality and transparency are needed to stay ahead of the game
TTN’s Jonna Simon talks to IAIN ANDREW, divisional senior vice president at Dnata Travel Services.
What kind of start to the year have travel agents had?
There have been some significant changes in our industry at the start of 2009. We are seeing companies merge and redundancies are on a bigger scale than ever before in Dubai. In the corporate travel market, many companies are downgrading their travel policies, meaning they are travelling less and spending less. I don't forecast any major shift within the next two quarters of this year.
Do you think that during the recession period web bookings will increase?
Historically this region has lagged behind many other parts of the world in terms of Internet usage and we do still have a long way to go to catch up. However, more and more people are discovering the ease and convenience of booking online and our new websites are proving to be very popular with customers locally. Due to the demand we are about to launch our first website in Arabic.
Which markets for UAE residents are still busy?
We are seeing a move away from longer haul destinations to people looking for better value trips closer to home. The Far East is doing particularly well, because that region offers superbly luxurious accommodation at very good money value. The Indian Ocean destinations are also currently doing very well. In the last ten days we have seen bookings pick up significantly in the leisure sector.
How do you consider the future for travel agents here?
I believe the future for travel agents in the UAE is good. There is likely to be consolidation in the market, as a result of the current economic climate with some unprofessional agencies being driven out. But that can only be good for an industry in which historically it has been easy for new players to set up with little thought for standards or legitimacy. Those agencies which are left will be stronger, fitter and leaner and ready to take advantage of the opportunities that will be available.
Emirates Airline has introduced zero commission. Does this sound a death knell for travel agents?
Zero commission is something which has been around in other markets for some time. Travel agents have had to adapt the way they do business, but it simply means a move away from commission fee to a transaction fee, which is not a major problem for our industry. The transaction fee focuses attention on the quality of the services the travel agent provides and the agents need to be able to demonstrate they can offer value for money.
What strategies has your company adopted to weather the economic storm?
At Dnata we have been able to exploit the benefits of lots of good foundations that have been laid over the past few years. Our recent strategy has been one of product and geographical diversification.
One good thing to come out of this crisis is that airlines and hotels are willing to offer better deals which in turn allow us to offer more reasonable fares to our customers. We are making some keenly priced offers, which is driving the pick-up in sales as hotel offers are ranging from 30 to 50 per cent.