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Selling Non-Air Services through the GDS has been identified as one of the future trends of the travel trade. Reema Sisodia takes a closer look at how the travel fraternity can exploit this option

Change is the only constant, goes the saying. New revenue generating systems and techniques are the present global order’s realities. With technology churning out new surprises at the tick of the clock, acceptance of this ‘Schumacher’ era is a must. But mere acceptance is not enough; timely and strategic implementation of new age economy fundamentals is what matters. Travel agents need to explore new age technology options and look at alternate non-air service options such as hotels, cars, insurance and cruises that are just a click away on their GDS. Going beyond traditional channels and embracing new distribution channels is what the travel fraternity needs to do. Anne Tan, head, hotel associates and new channels, Abacus International PTE LTD, at the recently held Abacus International Conference (AIC) 2002, at Bangkok, said, “The message for travel agents the world over was to look at non-traditional segments of revenue generation. The stress is on exploring these new channels at ‘no additional cost or investment’. Solutions were also offered like going beyond traditional channels and embracing new distribution channels. There is money in ‘leveraging non-air solutions’. These channels of trade are all there in the system. All one needs to do is look at them with seriousness and implement them in your new business practices. The CRS system offers a host of non-air services.”

The Existing Situation
As per research findings of Navigator 2003 presented by Express Travel & Tourism, not many Indian travel service providers have redefined the meaning of a travel agent extending from their primary function of revenue ticketing to the more lucrative services of a travel consultant. Only a negligible per cent of the travel service providers apply the CRS’s abundant utilities to augment business revenue, whilst enriching the clients travel experience and adding value to their clients.

The travel service provider’s decision to use the services of a given CRS provider is not influenced by the product or utilities it offers but by the incentives floated by each segment. For a travel services provider currently the evolution to a travel consultant does not seem to the top priority activity. There could be many reasons for this mindset, like pre-occupation with the tough market conditions, which must be occupying a considerable portion of their mind, reluctance to change and adopt the newer and value-added features provided by the CRS software and in some cases, sheer short-sightedness. However, with better times to come in the very near future and things looking up, it is expected that more and more of the travel service providers will gradually accept the newer features of CRS as a good way to enhance business and start using these to gain the customer satisfaction.

The present market conditions highlight the following factors:

• Non-air distribution business has been relatively untapped. There is a world of opportunities right in front of your computer screens; all you have to do is tap them
• No clear leader has emerged in the non-air electronic travel distribution system
• Majority of non-air bookings are still made via telephone directly to suppliers
• There are many consumers who are directly buying avenues for air travel
• There is a trend of airline commission cuts. An ever-changing environment where commission caps rule
• MNCs are consolidating Travel & Expense (T&E) purchasing and profits are thin.
• Consumer demand for value-added service is on an increase. The consumer of the present era is aware, well informed and better travelled.
• Corporations are consolidating purchasing and travel compliance policy.

Emphasising on the relevance of these non-traditional services to India, a member at the Abacus headquarters, said, “These pointers hold immense significance to the Indian market. No one can afford to ignore alternate sources of income. Travel agents need to incorporate these practices in their daily business. Orientation programmes and exposure to the above mentioned systems have to be infused in the organization culture. Training needs to be imparted and awareness built up regarding these unexplored options available.”

Why Look At Non-Air Options
Value add for using non-air services is predicted to reap rich rewards. The following are the reasons why non-air options promises to be a lucrative option:

New Profit Source
These new business options will prove to be new revenue sources as traditional methods of earning are phased out with time. Commissions earned through non-air services are more attractive as compared to air services. Earnings through air selling is decreasing while selling hotel rooms is becoming a lucrative option. Travel agents need to get out of the traditional mould and look at selling alternatives through the system. Cruise bookings is also increasing with respect to both leisure and business segment.

General Insurance companies, which include travel insurance, is also on a rise both nationally and internationally - one more avenue for demand.

Revenue From Selling Complementary Products
Apart from selling air tickets, there are a number of services that can be offered to the client to attract business. Complementary services would include theatre, theme parks, events, dining, ground transportation, renting of apartment hotels, etc. Providing visa and health information would also fall under the bracket of complimentary services that a travel agent can provide. On-line PNR retrieval with further links to information on destination maps like weather, driving directions, currency conversion etc. can be provided.

Cross selling of products such as cars, hotel rooms, cruises, conferences, events for corporates also will reap rich dividends.

Increasing Efficiency And Cost-Savings
By incorporating these selling practices, the travel agent can increase efficiency and save on costs. Since the system works as a one-stop shop for all travel related issues, it reduces unnecessary detail and bottlenecks. All services being available under one proves to be advantageous both the client and the travel agent. Speaking about one of the Abacus products, Behram Dastoor, country manager, Abacus Distribution Systems (India) Pvt Ltd, said, “ AbacusSpace is the perfect example to explain this concept. As this solution provides seamless integration, travel agents have the world at their fingertips. It has all that it takes to increase efficiency and productivity besides being a highly secured system.”

What Agents Have To Say?
Though the general consensus is that non-air revenue solutions is a viable option, travel agents feel prices offered on the system need to be competitive since everything ultimately boils down to the cost factor. Suresh Bathija, managing director, Global Travel Agency Pvt Ltd, said, “The bottom line is what are the rates being offered. If the prices put up by suppliers on the system are more than that of travel agents, then it would not make business sense. It is also very important that the system be upgraded on a last in-first out basis. Technology is here to stay and it is important for the travel fraternity to exploit the facilities it has to offer. Change in mindset has to take place, if greater the CRS has to become an effective source of non-air service solutions.”

Supporting his viewpoint, Nikesh Tewari, head operations, ITL Holidays, said, “It is very important for CRS systems to offer competitive prices. Once this happens, this option would save much time and definitely boost efficiency at the workplace. It is time the Indian audience, from the leader to the staff at the first rank of service, realises the potentials of technology, which can only come with more awareness and interaction with GDS service providers by getting constant information and orientation regarding their systems.”

Adding further Bijoy Abraham Verghese of Phoenix Travel Service said: “Staff training is another important element to provide impetus to this segment of service. They need to understand the system and the facilities available on the system, since they are the ones who deal with the clients directly. Hence an orientation or a training programme would definitely help in this venture.”

What Needs To Be Done
The mindset must change. The option of only selling air-tickets need to change. One needs to be aware of the non-air services that can be booked through the CRS. The staff need to ask that vital question to the client, “What else can we do for you?” once the air bookings are made. The mindset of the 21st century travel agent needs to change, they should understand the importance of technology and the benefits associated with it.

The CRS must provide agents with the most lucrative prices and offers on the web. Dastoor said, “One can witness a steady shift in the mindset of the suppliers. Hotels and other service providers are increasingly looking at GDS as an effective means of increasing their distribution network. Where traditionally they would display the rack rates on the system, now things are changing.” Across their products, GDS providers should integrate customer relationship management tools to create interest, drive sales, and close sales by the various suppliers. This value addition will ensure continued interest from the suppliers in the future and help them move towards customer database marketing.

According to Seema Luthra, GM-Galileo India, the need of the hour is to develop the profile and servicing capabilities of the Indian Travel Service Providers, so that the end-consumer gets improved services, a really stupendous task, considering the current mindsets of the travel service providers.”

The GDS solutions should be further enhanced to cater to the increasingly challenging environment posed to the travel service provider.

Following are a few quick pointers that can be adapted by a GDS to empower his service users:

• Provide access to high commission content and access to web fares.
• Equip travel service providers with breakthrough yield management and relationship tools to manage a pay for performance environment.
• Extend agency reach to deliver services to their customers anytime, anywhere, anyhow in an affordable
  manner.
• Provide new business tools to enable agencies to pool purchasing power and offer flexible contract solutions.

Conclusion
Most GDS are of the opinion that, non-air business is strategic to the growth of their business. With an objective of building new lines of business, they aim to provide a healthy mix of corporate and leisure travel content to expand channel distribution for both suppliers and agents. Initiating associate programmes geared towards helping suppliers understand the advantages of e-distribution and also conducting joint marketing programmes with them are also on the anvil. Mentions Karun Budhraja, senior manager, marketing & corporate communications - Indian subcontinent, Amadeus India, “Travel agents need to look at non-air services with greater seriousness. Non- air services are bound to take off in the coming years. India is opening up as a tourist destination, hence there would be more demand for car rentals, cruise-liners and hotels in the future. Hotels across all categories are also looking at the GDS to position and promote their products, which further highlights the growing importance of booking non-air services through the CRS.”

In the words of Nasrulla Tejani, managing director, Travel Post Pvt Ltd, “With revenue from airline ticketing and reservation fast eroding, CRS proves to be an effective medium for exploiting the non-air services. CRS is a great tool toward customer service excellence, which will play a key role to differentiate yous from competitors.”

Hence, there is more to the GDS business than air services. Time, tide and technology waits for no man. There is a whole new world of non-air services opening up and if exploited, the going looks good for both the GDS and the travel agent.