Abacus Regional Conference Touches Upon Vital Industry Issues

Charmaine Fernz provides exclusive coverage and elucidates ways to tackle current industry issues

The recently concluded Abacus Regional Conference cum Top Agents Recognition Trip for Southwest Asia and Indochina 2004 in Bangkok, Thailand from October 11-14, 2004, at the Amari Watergate saw excellent participation and pertinent issues being discussed to keep abreast with global trends worldover. This year the annual conference as compared to the last year had a common theme called ' Rewarding Partnerships' and rather than being one big affair was split into three separate regions for better focus and understanding of the market. North Asia had their conference in Japan, while South East Asia and Australia / New Zealand conducted the same in Hanoi, while Southwest Asia and Indochina had the event in Bangkok. The well-structured one-day conference touched upon pertinent topics like low cost carriers, crisis marketing for travel agents and the evolving world of travel all topics that are in some way or the other affecting the travel industry globally.

Taking Off In Style

The conference took off with Kenneth Low, vice-president, South Asia, Abacus International Pte Ltd (AIPL) welcome delegates with a short and brief address followed by Don Birch, president & CEO, AIPL talk on the subject - 'The Truth Behind The Numbers'. Birch explained that, "The low cost revolution is driving many a government to liberalise the travel industry and the skies too. These carriers are creating the need for more travel and have also changed the pricing structure of many airlines. India is a classic example of this change. Another example is Cathay Pacific's advantage on the Singapore-Hong Kong route wherein they cashed in on the low cost opportunity threw in a lot of aircraft and good prices and earned the benefits of this revolution.

"Though these carriers are driving the business of many network carriers, the flipside to the story is the fact that probably these carriers would not even survive. Some of the reasons being that a lot of network carriers are bringing down their margins, simultaneously, one needs to realise that, if there are more than one, how would they compete? The answer being one would bring in more services, which would not make them a low cost carrier. Another significant issue is the effects of e-commerce on the travel industry, which is a gradual process. The reason for its success is its natural process and Asia is no different, very soon this growth will be seen gradually in the market as 10 -12 per cent of business transactions are done online,"

Taking the discussion a step further, Krishnan Sattiraju, deputy director - airline solutions, AIPL spoke about the fact - 'Are Low Cost Carriers Here To Stay'. The presentation though brief touched upon the truth that there has been a paradigm shift in travel and Asia Pacific, though in its infancy is fast becoming a hot bed for low cost carriers. This would be due to factors like high population density, close proximity of various major cities and the increasing demand for cost-effective travel. The characteristic of low cost carriers was simplified into three sections its distinct culture, distinct product and service offerings and last but not the least the simplified operations. However there were several challenges that lay ahead both for the airline and the travel industry alike. Some of which would be fragmented travel distribution in the country, restrictive regulations on international routes, and high charges at gateway airports as there are not many secondary airports in Asia. On the travel side, one would not have the necessary content available, low or even worse, no commissions, dilution of business and last but certainly not the least fee-based services, which amounts to a management fee concept for services rendered.

With destination marketing growing by leaps and bounds the worldover, it is necessary to plan right. Dr David Beirman, director, Israel Tourism Office Australasia and SW Pacific and author of 'Restoring Tourism Destinations in Crisis - A Strategic Marketing Approach' addressed the audience on Crisis

Management for The Travel Agent. Beirman elucidated several examples of destination like Sri Lanka, USA and some South East Asian destination who were affected by crisis and how the industry bounced back to action with the help from all verticals of the travel trade. It is necessary that there is government and industry initiative to address an y issue, it should not be one sided, a unified marketing approach between all sectors of the industry was vital and most of all a high level of positive media involvement was necessary.

The industry should also use the services of universities and consultants in times of crisis as they have the analytical power and provide reliable market research, which is cost-effective. The industry also needs to identify their segments right be it the stalwarts, those who give 80 per cent of business, or the middle range, who waver and last the diseffective, one who could do no good. Travel agents should consider getting into consultancy and eventually become destination travel consultants, as in-depth knowledge of destinations is a USP for an agent. This would only be possible if you know more than your competitors, understand thoroughly what you are selling and instead of buying business - win it. Finally, an agent need to realise that even a GDS can help him become a travel consultant as they are enablers providing necessary data information, when required.

Working It Out

With a well-rounded up first half day, the second half of the day saw optional interactive workshops which were based on various topics. There were two workshops spread across the afternoon with two optional topics per session, which delegates could opt for. The session 'Travel Agents Road to Profitability' saw Brett Henry, principal, Sabre Travel Network & Airline Solutions speak on the evolution of the GDS in the world of travel. He mentioned that, "The advent of the CRS in 1985 bought in transparency of prices and has evolved over the years bringing with it travel marketing, merchandising and front, mid and back-office operations. Based on the type of business ie performance-based, preferenced-based or neutral you operate, one needs to identify where does your business stand. The focal point one needs to bear in mind is that marketing is the process of finding and keeping customers."

The sessions also highlighted how agencies can be profitable in an environment like today where commissions from airlines are slowly moving away and consumers are going directly to the internet. How technology if adopted in the right way is crucial to an agent's business and could be very beneficial as well as profitable.

Joe Lim, manager - travel extensions, Abacus International Pte Limited touched upon the topic - 'Hotels - Resources Mobilisation and Demand Generation' that dealt with latest developments in the hospitality industry, the current trends and the best possible revenue opportunities available. He also touched upon how one could get access to comprehensive hotel pricing, which could be used to optimise one's business.

Damion Breust, deputy director - content development, Abacus International Pte Limited kept the agents attentive to the latest product on offer - The Abacus TravelNetwork. This product is supposed to hit the Indian market within six months to a year and the objectives are clear - to provide suppliers the most cost-effective distribution and to provide Asia Pacific end customers the best value-added and comprehensive content.

The last but certainly not the least, the topic 'Global Technology Trend - What Does It Mean To The Travel Industry in Asia Pacific' touched upon the fact that with the technology trend in the US and Europe that is changing the travel industry landscape, how this same trend will influence the Asia Pacific region. But more importantly, the question is whether the Asia Pacific region is ready for this change. The session touched upon methods on how travel agents can be better prepared to deal with the situation and the changes to come.

The Perfect Unwind

The After a hard day's work, all delegates were treated to a star-studded awards night which was themed in perfect 'Oscar' style with a sumptuous dinner and the traditional Thai Calypso Show. It certainly doesn't end out here, to further enhance the experience all delegates were provided an option between a traditional 60-min Thai Body Massage or a half day tour. Though the former option was just irresistible, the latter was definitely exciting. The city adorned with temples takes one breath away with its humongous Reclining Golden Buddha statue that is 46 metres long and is built with five tonnes of gold. Just truly amazing. In a nutshell, one could conclude the event as an event worth its while…

And The Awards Goes To….

These three agents from India (out of total 20 winners across the South West Asia & IndoChina markets) were recipients of Top Agents Performance Awards for the Financial Year 2003. Details below:

1) K V Abdul Nazar, chairman & MD, Akbar Travel of India Pvt. Ltd.

2) G Senthilkumar, managing director, Asveens Air Travels Pvt. Ltd.

3) Kassam Patel, chairman, Atlas Tours & Travels Pvt. Ltd.

The remainder two pictures are group pictures on-stage of all winners.