Fin-X, a division of Global Technology, together with IATA have assisted travel agents in re-deploying their commission structure by giving them additional income on all online foreign exchange and local and international calling cards through the IATA web portal.
"We have seen commission levels dropping all around the world and despite many agent challenging the courts, there is little doubt 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, there is now controversy around the future of the agent/airline relationship, with airlines using the Internet or pure direct selling to by-pass conventional distribution methods, with the end result of some travel agencies not receiving any commission.
Dave McWilliam, chairman of Fin-X, states, "Fin-X Online is more than an application service provider to the industry, it is a tool that can be used by local and inbound tourists to go into the relevant travel websites for information and booking accommodation, all through a single portal."
Fin-X was established with the aim of building and supplying connected, integrated solutions, and secure financial transaction messaging across all business sectors, irrespective of the different message formats and different computer systems.
Fin-X online 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.
Total market growth versus this dilution still leaves a healthy growth potential for the agents. This percentage is substantially below the predictions of 3 or 4 years ago when some airlines were expecting to have moved 50 percent of their business across to distribution channels other than agents by the end of 2001.
In the Southern African Region, R9.2 Billion is moved on an annual basis, with this joint venture allowing business to be extended to third parties such as tour operators, cruise liners, car rental companies, foreign exchange dealers etc as we have become experts in inter-company billing and settlement.
Major players have been Saambou who will be offering through this distribution channel, their financial products to not only the travelling public but to anybody who wishes to purchase financial services through their travel agent.
"We have recognise the systems for distribution have to change with IATA recognising the need to supply a better service with greater functionality for our customers be they airline or agent. We believe that if we can build into our product offering value added services that agents can utilise and then provide to their customers then we are looking at a win win proposition," concludes Henson.
Key players in this venture include American Express, Rennies Thomas Cook, Saambou bank and Tower.
"We have been aware of this trend and one of the most exciting openings for us has been the opportunity to be a partner in 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 our Group`s knowledge and ability in the development of systems that deliver financial services," concludes McWilliam.
Global Technology was founded with the vision of becoming the leading supplier of software solutions to the banking, insurance and financial services communities in Africa.
Share
Editorial contacts