Supplier Relationships Crucial For Asian Travel Agents
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www.abacus.com.sg.Supplier relationships – the ability of Asia ’s travel agents to secure access to an assured supply of quality travel content such as airfares, hotel rooms and rental cars – have emerged as the most critical business issue facing the region’s travel agency businesses today according to a new survey commissioned by Abacus International. Abacus commissioned an independent research company to carry out the survey, with a total of 1,629 travel agents from 13 countries interviewed over the period 13 August to 21 September 2007. Almost half (48%) of all the agents surveyed said the relationship with suppliers was the most critical issue affecting their business today. This concern was especially marked in Thailand with 90% of agents there registering their concern about supplier relationships, while agents in Hong Kong and Indonesia (both 79%), Philippines (63%) and Taiwan (51%) echoed those sentiments. Don Birch, President and CEO of Abacus International said that despite the buoyancy of Asia’s travel market, competition had increased among agents and the survey shows they are focusing on optimising their relationships with suppliers – with 81% of travel agents in Asia electing to work with different suppliers where possible. Increased pressure on profit margins from both suppliers and competitors was identified as the second most critical issue for those questioned, cited by 25% of travel agents as their most pressing concern, while matching technology to business requirements (18%) and staffing and resourcing issues (9%) completed the major issues affecting business today. Surprisingly, cost control did not emerge as a pressing issue despite the vast opportunities for travel agents to manage their cost. Instead, travel agents are looking at developing new revenue sources. “In this competitive environment the majority of travel agents recognise that they are more likely to see positive results by being proactive and focusing on what they can change, their supplier relationships, rather than agonising over external pressures,” said Mr Birch.
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