Olivier Masson
30 July 2007
Port Louis — Businessmen have always formed part of the marketing mix of travel agencies. But in a context of hard times approaching for agents, some have developed special services for corporate customers.
Lounge facilities in airports are one of the advantages that are proposed to frequent flying corporates.
The small but smart premises of Budget Travel at Sir William Newton Street in Port-Louis appear to the newcomer like a mix of discreet hospitality and commitment - what one finds in most well established travel agencies. But even in his recessed office, Sudh Mulloo, Budget's managing director, has one particular attention. To his ID phone: when a familiar number appears, it is out of question of letting it ring more than twice: "I was once spending my holidays in Saint-Tropez when a director called. I picked up and he asked why I had split his group on two different flights. As I knew what he was referring to, I reassured him: they were to embark on the same aircraft but through two different companies."
This juggling is no stranger to an experienced agent like Jimmy Tan Yan, Cathay Tours director, on the upper end of Sir William Newton Street. If Cathay Tours does not have a separate department for corporate customers such as Budget, they have one staff entirely dedicated to them. "It is a good marketing mix, along with classic leisure customers", says the director.
For Sudh Mulloo, the corporate client needs "special treatment, just like VIPs". If they come to the agency (this is not always the case), they have to be welcomed in a special office, without any risk of being disturbed. They also represent very good business, and an enviable proportion of Budget Travel turnover.
Travel agents are facing increasing difficulties as the spectre of lost commissions gets nearer: "Some airlines have suppressed commission while others have delayed the measure and reduced it from 9 to 7%", explains Sudh Mulloo. Travel agents are thus starting to ask for a service charge. British Airways, which also works as 'ticket provider' charges
Rs 2,000. "Since we base our business on added value, that is service, we do not fear to do so", points out Jimmy Tan Yan.
Flexibility
If service is needed somewhere, it's particularly when dealing with corporate business moves. It is useless to ask agents to disclose the corporate name that has just called. Corporates may be single individuals or entire groups in companies. But confidentiality is the key word, both for Sudh Mulloo and Jimmy Tan Yan. "They demand flexibility", adds Budget Travel MD, who, with his two specialised staff, answers at any time to any last minute change.
This has a cost too that the big boss is ready to pay for him or his executives. "First-class or business-class tickets have a flexibility that you will not find with economy, leisure tickets, which are focused on reduced costs with more rigidity. So you can change the dates more easily. But any kind of error can be fatal and you can lose a client who needs to be attracted and kept", indicates Jimmy Tan Yan.
In this respect, any serious travel agency has to propose frequent flyer programs to hit the mark. "Not only the agent has to monitor mileage points or schemes like Skyward card. But he will do the follow-up to enable a client or group to be included on a special list", adds Sudh Mulloo.
To enable a corporate to qualify as regular business traveller on airline companies, the travel agent has to get evidence that his client and the members of his group spend at least Rs 400,000 per annum on air flights. In other words, he will be have to look at the number of trips the customer has made and the latter may not always remember. The agent has computerised unmistakable access to all international flights.
Then a list will be settled with the number of people who will benefit from special conditions by airlines. The list will be displayed or modified through a special four-digit pin code. "The airline can then provide the corporate company with special corporate travel rates", explains Sudh Mulloo. "We may have to make a last-minute entry and it is on such occasions that we have to show our difference", explains Jimmy Tan Yan.
Airlines are more or less corporate-friendly, displaying advantages both at check-in and on board. "The culture of adaptation is essential for a successful story with this kind of clients; so both airlines and agencies benefit from sharing the same frame of mind", stresses Sudh Mulloo. Some corporates don't necessarily travel in business class: they can be going for simple training courses or seminars.
To achieve that, not all travel agents have the know-how. Sudh Mulloo has worked as an executive for Air Mauritius for 35 years. Whereas Jimmy Tan Yan has more than 20 years in the business. "You may never meet my client if I fail. He can shift to a competitor at any moment with pin code and deal."
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