Abstract
The purpose of the paper is to explore the supplier relationship practices of travel agencies in Gauteng. Gerber (2008) indicated that the current level of relationships that exists between travel agencies and their suppliers in Gauteng are fragmented and impact negatively on the ability of travel agents to deliver a quality service to their customers. It is against this background that the research was undertaken. The target population for this study was 228 travel agencies of which 134 managers and/or owners participated through personal interviews in the completion of questionnaires. The results indicate that the owners and managers of travel agencies are of the opinion that the level of trust between themselves and their suppliers needs to be strengthened. The stimulation of open channel communication between themselves and their suppliers could enhance the strengthening of a long-term relationship between the parties.
Highlights
The current economic recession, globally depressed travel markets as well as maturing domestic markets are creating increasingly competitive conditions for travel channel partners
Current trends in the travel industry indicate that the majority of suppliers in the airline, hotel and car rental industry in South Africa prefer to stimulate direct on-line sales to eliminate or reduce dependency on intermediaries
Travel consultants – driven by travel agency managers who are under pressure to Journal of Transport and Supply Chain Management | November 2009 produce more profit while cutting costs – are expected to be sales people, experts on an impossible number of products, money handlers, technology experts and relationship managers all rolled into one (Viljoen, 2009:8; Bendix, 2008: 9)
Summary
The current economic recession, globally depressed travel markets as well as maturing domestic markets are creating increasingly competitive conditions for travel channel partners. The current threat of direct marketing via the Internet, especially in terms of the distribution of supplier products such as those of British Airways/Comair, South African Airways (SAA), the City Lodge and Holiday Inn hotel groups as well as car rental companies such as Budget Rent-A-Car, requires travel agencies in South Africa to market themselves as a value-adding extension for the products and services of airlines and hotels. These suppliers were the first, since 1 May 2005, to drive direct marketing sales via their websites, thereby attempting to reduce the role of travel agencies in the distribution of their products. Through the delivery of a quality service to customers and an increase in the sale of airline tickets and hotel rooms, the travel agency industry in South Africa can ensure its future existence in a highly competitive market
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