Travel agents that have been hard hit by falling commissions as a result of airlines adopting Internet-based and direct selling alternatives have been thrown a lifeline.
Fin-X, part of JSE-listed Global Technology, and IATA (International Air Transport Association) have developed a solution whereby travel agents can earn commission on foreign exchange ordered and local and international telephone calling cards sold through the IATA web portal.
"We have seen commission levels dropping all around the world and, while many agents are seeking legal recourse, it is unlikely that the trend will ever reverse," says Mark Henson, regional director for Africa and Middle East at IATA.
IATA`s core business has been the processing of settlements between airlines and travel agents, however, the controversy around the future of the agent/airline relationship, means that alternative revenue streams have to be explored.
Comments Dave McWilliam, Chief Operating Officer of Global Technology: "Fin-X Online is more than an application service for the industry, it is a tool that can also be used by local and inbound tourists to go into the relevant travel websites for information and booking of accommodation, all through a single portal."
Fin-X Online, he says, is the first of its kind in the world and has enabled the many partners to get together to provide a better and more cost effective service to the travel agents and their clients. Key foreign exchange partners include American Express, Rennies Thomas Cook, First National Bank, Master Currency and Tower.
Henson adds that the potential for market growth for the travel agents remains healthy, despite the dilution of business from the airlines.
"This dilution has proved to be substantially below the predictions of three or four years ago when some airlines were expecting to have moved 50 percent of their business to distribution channels other than agents by the end of 2001.
"We have recognised that systems for distribution have to change. IATA is in the process of supplying a better service with greater functionality for our customers - be they airline or agent. We believe that if we can build value-added services into our product offering that agents can utilise and provide to their customers, we are looking at a win-win proposition," says Henson
"Fin-X has been aware of the dilution problem. This venture is one of the most exciting opportunities for us as we are now affiliated with IATA`s expansion into providing e-commerce-based financial services for the travel industry and its clients. IATA`s skills and experience in travel and transport are being brought together with Global Technology`s knowledge and ability in the development of systems that deliver financial services," concludes McWilliam.
Share
Editorial contacts