Clued In On The Business

Susan George finds out how, in an era of cut-throat competition, non-IATA agents manage to get their clients to keep returning to them

The travel industry in India is today an extensive network, with ticketing filtering down from the big names in major metros to agents often operating in nooks of little villages and towns. Yet, while much of the segment remains unorganised – sub-agents outnumber IATA agents by four times – the smaller travel agent remains indispensable to the industry.

IATA-accredited agents depend on sub-agents’ business, especially in getting clients from smaller towns and cities, where large travel agencies cannot be set up. With IATA agencies having the backing of large corporate clientele, as well as accreditation from the apex body in air transportation, half their battle is won. On the other hand, sub-agents run businesses without the stamp of credibility that IATA offers travel agencies. How do sub-agents manage to draw new clients, who may be wary of non-IATA agents? How do they keep their clients coming back to them in a world of cut-throat competition? Express Travel & Tourism spoke to a few sub-agents – some with sound infrastructure backing and others who operate in small offices, where technology has little place – to find out what keeps their businesses ticking.

Roping Them In

Setting up shop can be an intimidating task in any field. When the industry is plagued by seasonal lulls, and characterised by intensive competition it can take on an even more daunting veneer. While some agents rely largely on word of mouth and personal contacts to increase business, others knock on new doors, seeking revenue from additional businesses. The target group for many sub-agents remains the corporate sector, as business is more regular, and the volume of tickets demanded much more
substantial.

Sub-agents have perfected the art of hard sell, aggressive marketing becoming second nature to many of them. Sam from Suja Tours & Travels has been in the business 18 years and recalls the time when he was starting to establish a name for himself. "When I first broke into the business, I went in for door-to-door canvassing to attract clients. Today, I still market my business aggressively, mainly by directly approaching offices. It is extremely hard work as I bear all the responsibility myself. It would be an ideal situation to have a second person who would share similar views as me, and would promote the business wholeheartedly." He covers the gamut of industries, from IT to banking, visiting offices for potential clients about three times a week. "I also market by word-of-mouth, and through customers and friends," he says. Ahamed Salih, partner at another non-IATA agency, says that he never expects walk-in clients. "We're located in a very remote area, on the third floor of a building. Mainly it’s through friends and relatives that we make contacts."

A Maheen, partner, Shihara Travels, adopts a "networking" approach to drawing new clients. Maheen has now been in the business about three years and books about 100 air tickets a month. "At any one time, I have two or three IATA agents that I work for," says Maheen. While Shihara has not gone in for IATA accreditation, Maheen has several "agents" coordinating the ticketing in small towns and villages in Tamil Nadu. "I have a large number of sub-agents under me who network in the villages. My business is centred in Tamil Nadu, and these agents get orders from clients in villages who are travelling abroad. It’s easy to identify sub-agents to work for me, as the industry is such that one agent will recommend another and so on. I have built a web of contacts who keep my business going," says Maheen. While Maheen does have a loyal "direct" clientele, he says that more than half his business is generated through the network that he has initiated.

Keeping Them Hooked

While getting new clients is important for kick-starting the business and keeping the agency going, there is no substitute to a loyal client base. Retaining an old client’s business can be a huge saving on both time and money that otherwise has to be invested in marketing the agency to potential clients. Infrastructure-wise, many sub-agents often fall short of IATA standards, finances being the chief restraining factor. Several agencies are not equipped with computers, and thereby have no access to CRS. However, many have found more-than-adequate remedy through providing quality service in terms of getting tickets on time, door delivery of tickets, and one-on-one rapport with clients. Understanding the customer’s psyche is key, say sub-agents, and one way they apply this practically is by prompt delivery of tickets, thereby lessening travel stress. When it comes to servicing existing clients, Sam believes that punctuality with delivering tickets is key. Says Sam, "Punctuality is very important in the business. If the client knows that he will receive his ticket on time, no matter what the situation, that will keep him loyal to you as a travel agent." Another tactic that travel agents employ is that they don’t overtly state their non-accredited status, "As soon as I get an order from a client, I go to the IATA agent and get the ticket from them. I make the bill in my name, and hence the customer thinks he is getting the ticket directly from me. That way I build my credibility with the customer," says Sam.

He also runs a small greeting cards shop, and an STD booth within Suja Travels & Tours agency, to draw new customers in. "When we say travel agency, people want all the facilities. Otherwise, they will say, ‘How can you run a travel agency without an STD booth?’" says Sam. Salih puts is very simply, "If service is good, they will come back."

Building a rapport with clients is extremely important, he avers, adding, "People may go to IATA agents, but some big agencies don’t show respect to customers who come from a different background." Operating his agency for the past three years, Salih says that he provides services on par with that of IATA-approved agents. "We have access to Galileo software, so there are no major disadvantages of being a non-IATA agent. We have a PNR number, just like any IATA agent and the customer will not be able to tell any difference," says Maheen.

Additionally, he says he offers rates that are comparable to other IATA-approved agents. Sub-agents seem to realise the importance of not spreading themselves too thin – working for just two or three IATA agents, rather than a whole host of them, will ensure a larger volume of tickets from each agency and thereby cheaper rates. "I give the IATA agency good business, and they in turn offer me discounted rates. So, my customers come back to me, and by word-of-mouth I get more
business."

Another tactic that keeps the cash registers clinking is that of differential pricing, in terms of commissions charged by the agent. While the standard charge stands at 1 per cent of the ticket price, agents may charge less in order to offer more competitive rates. "Depending on the client and how much I want their business, I charge only 100 or 50 rupees, and may not charge the 1 per cent that I’m entitled to," concedes Maheen.

Conclusion

While the travel business continues to be riddled with problems for non-IATA agents, it is also accommodative of them. Sub-agents have learned to function effectively, within limitations imposed on them due to lack of finances, and a perceived lack of credibility. Sub-agents have become an indispensable part of the industry, standing testimony to the fact that their aggressive marketing techniques and quality business practices have paid high returns.