India Turns A New Leaf

It has been on the Indian scene as a CRS player since 1995, but Abacus, arguably, Asia-Pacific’s leading travel facilitator has yet to make its impact on the Indian travel trade, says Reema Sisodia

Stuart Crighton

Analysing the listless presence of Abacus in India over the years, one can attributed this failing to a number of factors. A constant change of guard at the top level management, inconsistent strategies, a rather non-aggressive business approach and also the fact that they are pitched against competitors who already enjoy a huge chunk of the Indian CRS business pie, could be a few of the factors that went against this player. These factors gave the wrong signals to the Indian travel trade about the seriousness of the company with respect to the Indian market. The sudden changes and jerks have worked against Abacus, especially with respect to relationship building and continuity. Says a leading travel agent and veteran of the trade from New Delhi, "Their presence in India has been very low key, while their competitors have gone all out to capture the market. Despite being strong footed in the Asia Pacific market, they have been unable to make strong inroads into the Indian market. India was probably not on their list of priority, which in a way definitely went against them toward building the necessary confidence.

Probably they do have exclusive products to offer but unfortunately it hasn’t come into the forefront." Industry sources thus attribute Abacus’ sluggish performance in India to both, internal and external factors. However all is not yet lost, Abacus is back with a new action plan, they may be stirred but are certainly not shaken!

Once again they have undergone a re-branding and a re-positioning exercise and are making no mistakes this time. A new look and new logo (initiated at the headquarters) and a completely new image of Abacus is now ready to be unleashed. The headquarter has identified the current time as most suitable to unveil their re-positioning plans and strategies to navigate Abacus’ growth. Speaking on the company’s present strategies and future plans, Stuart Crighton, head- South & West Asia, Abacus International Private Limited, says, "Abacus India has been traditionally small in the Indian market. The initial journey has been rather slow and there has been a series of changes that have taken place over the time frame of their innings in India. All this led to too much of indifference as I guess the market was not too sure as to what our real intentions were. But, the picture today is completely different. A transition has taken place steadily and surely, with India emerging as one of the top priority markets as against its previous image of a market with latent potential. For long we sat on the fence, testing the waters and taking our time to decide and identify the most effective strategy. Not any more, today we have our focus right, our plans well in place and our strategies effectively chalked out. We have a whole new approach to make our presence stronger in the Indian market, which would be laid out systematically. In short, we are serious about India, and are therefore adopting a focused approach to improve business here." The company’s restructuring process and renewed brand positioning has resulted in bringing in fresh blood in the organisation.

Restructuring The operations

In December 2002, a major re-engineering process took place. Decentralisation was the order of the day. The Singapore headquartered operation was spread to its regional areas. Abacus International expanded the roles and responsibilities of its key executives in its ongoing role as the premier facilitator for the travel and leisure industry in the Asia Pacific. Three regional operations groups were formed to focus on driving sales and increasing market share across all markets. Each region today is led by an Abacus vice president, who heads the regional operations and who reports directly to the president and CEO, Don Birch.

Each of the three regional heads will be responsible for aligning relationships between Abacus International and their National Marketing Company (NMC) partners. There will be a greater emphasis on localising Abacus’ solution offerings and driving performance standards, as well as co-ordinating sales structures over the three regions.

India operations

India means serious business for the company. From the previous non-aggressive approach without an effective sales force to the present time new team and focus in place, the company has identified great promise in the region. Along with China, India has been positioned as a critical growth market. Furthermore, they aim to develop a strong and robust subcontinent business that complements the already mature market that exists with Abacus throughout the Asian region.

Locating the headquarters for South & West Asia within India was a move that to an extent endorsed their seriousness about the Indian market as a long-term market. Adds Crighton, "We were already making the necessary investments to secure our position and further elevate our exposure to the travel community at large. The advantage of moving the regional office to India has resulted in decentralisation. Decision-making would therefore be quicker and this would in turn result in a much more dynamic Abacus. This is our year of investment, in research and suitable manpower. Our plans with respect to India is long term. We do not intend to sprint but grow within the region steadily but surely. We are not in a hurry. We want to prove our selves and deliver instead of just making tall promises."

The company has chalked a steady plan that spans over a five year period till 2008 to make inroads and ultimately concretise their position in the Indian market.

India Expansion Plans

The company aims to further strengthen its infrastructure base with an aim to open new offices in new areas. Explains Vijay Kesavan, regional sales manager, South & West Asia, Abacus International Private Limited, "As part of the regional set-up, more office will be opened to keep pace with growth, but there is no time frame for implementing these plans. We have a year ahead to get things in order. We are not rushing. Giving service and value to their customers, developing confidence in the market, to be transparent in our business, being available 24x7 for our customers is what we aim to provide. This will definitely lead to more expansion in the country. As of now, we are focusing on markets in the North, South and West of India. In the South we are looking to further strengthen our position by opening more offices in Kerala." At present the company does not have a wide network as compared to its competitors, which to a large extent hampers its growth.

Strengthening its network base is also an important element identified. Explains, Niranjan Gupta, managing director, Navras Travels, Bangalore, "Commitment is the key to success. We need to wait and watch in terms of their performance in the market. We would also be interested to see how committed they are with their infrastructure in Bangalore. In this business, service is an important aspect and is in fact the only the kick back. It is the back bone of the business. Being loyal to a particular provider is also to an extent a relationship building exercise. Today the business is extremely tough and hence survival will depend on a number of factors, amongst which value added service will play a crucial role. Any company, if it offers services that would be an advantage to the business would be welcome." Adds Heena Munshaw, managing director, Beacon Holidays, "Any thing that adds value to your core products is always welcome." Planning to increase market share in India, Crighton reveals, "We have already started making the necessary investments to secure our position by educating the travel agent community about our comprehensive range of product offerings as also elevate our exposure to the travel community through our marketing activities. As a CRS headquartered in Asia, we also understand the needs and requirements of our agents, not only with respect to their size, but also the kind of business that they operate. We have understood and identified that every agent had a different requirement and are constantly creating personalised solutions that fulfil that particular need of the travel agent."

Hence the Abacus team in India insists that the re-branding exercise along with the new logo is not a case of ‘old wine in a new bottle’ but rather a strong signal of a lot of exciting things to come from the Abacus stable in the near future. For them the bold design of the logo reflects Abacus’ leadership role in the industry and the simple typography symbolises the greater control that it has from the experiences garnered over the past 15 years. The generous space portrays the growing confidence in their new role and the vibrant red colour represents the Asian energy, all intertwined with the shape, which signifies the constant forward movement of our company.

In conclusion, Crighton, adds, "It is a part of our re-positioning exercise to create a distinct brand identity and character. It is also an affirmation of our strong industry relationships and our ability to foster new ones. Our new brand also sends a message to our customers and partners that we remain vibrant during these challenging times, and will continue to demonstrate the entrepreneurial passion that has made us what we are today. In line with the logo change, we will leverage our existing brand strengths and create a sound and objective basis for brand portfolio management. Abacus is taking the next step in its growth path as Asia’s leading travel facilitator and the logo change is a visual representation of this growth." All we have to do now is wait and watch. Will this new mantra deliver or will it be just a feel good and dramatic change without much value.