Computicket plans cutbacks in staff, outlets

Johannesburg, 19 Jan 2001

In what could be SA`s first precedent of a company being forced to take its traditional business where the money is, Computicket will cut back its staff and outlets, to focus on its more profitable online offering.

The drastic reductions will be made in favour of electronic and self-service delivery. The move comes as a result of a sweeping change in consumer behaviour, says William Marais, COO, M-Web e-media, which owns Computicket.

"Consumer buying behaviour in our industry has changed dramatically. Ticket sales are moving electronic and people are using the physical Computicket outlets to a lesser extent. Today`s consumer wants to buy tickets over the phone, collect tickets at e-swipe machines or book on the Internet," adds Marais.

"By consolidating outlets and implementing convenient, accessible and easier ways of delivering tickets to consumers we will have an operation that is more nimble."

Changes would require a reduced physical Computicket presence and staff complement as well as a consolidated national call centre. Consequently, the company will propose staff cut backs that are expected to be carried out in the next two months.

The company will continue to grow the Computicket brand as an online ticketing service. Future plans include distribution via cellular phones, mobile handsets and interactive television.

Computicket is also pursuing the use of electronic ticketing machines in the forecourts of petrol stations as well as retail stores. The percentage of Computicket customers who currently purchase tickets via the company`s call centres will be unaffected.

The company`s application service provider model will carry on business as usual, making its ticket booking system available to event managers, stadiums and such who can run it on their own networks.

Despite the M-Web company`s well-known brand, it has been losing market share to Ticketweb.

Findings in Ernst & Young`s recent Global Online Retail survey indicate that Ticketweb, Computicket`s closest competitor, and a relative newcomer to the ticketing industry, is fast gaining significant online market share.

The survey found that of a sample of South African online consumers, 20% chose Ticketweb as their second favourite Web site, with Computicket`s 14% bringing it in as the country`s fourth favourite site.