Travel Counsellors has declared they want more control over product they sell, citing commission cuts in the UK as a precursor for a similar situation in Australia.
“What we have to do is get as close to the product as we possibly can,” Travel Counsellors global commercial director Kirsten Hughes said.
Addressing the Travel Counsellors (TC) conference in Melbourne this weekend, Hughes said that airlines give no commission in UK while tour operators are reducing commissions.
“Once they get more consumers direct they will cut the commission,” Hughes said.
To future-proof TC agents, they hope their technology platform Phenix will enable agents to become their own wholesalers and tour operators.
“We have to be in control of the relationships with airlines, hotels, DMC’s,” Hughes said.
“We want our customers to come back and say, ‘I want a Travel Counsellors holiday’.”
“Phenix makes us the wholesaler, it makes us the tour operator,” Hughes added.
Travellers also want experiences and the point of difference TC agents can bring is to come up with ideas that the traveller has not thought of themselves.
Travel Counsellors are investing $7 million a year into Phenix this year along with 90 IT staff.
The product team is also negotiating value adds that are appropriate for clients, whether it’s meeting the hotel general manager or in-room wine bottles.
“They will see this as a Travel Counsellors experience that they wouldn’t have gotten themselves or from Hotels.com – that’s the focus of the product team.”
