As part of the strategy to make more
sales, provide customers with better service and have good bargain from
airlines, four major players in travel agencies business have merged.
The travel agencies that have merged are; Dees Travels, Finchglow Travels, Quantum and Touchdown.
With this merger, the travel agencies in
the country are gradually toeing the trend in the development climes,
where airlines, and other companies are merging not only to be able to
compete, but to also provide customers satisfactory services.
The development is coming just as
aviation experts, analysts and stakeholders in the aviation industry
have been calling on domestic airlines in the country to consider the
option of merging to withstand the competition posed by international
airlines and also provide quality air service to their passengers as
obtained in other parts of the world where even bigger airlines merge,
despite their capacity.
The Vice President, Lagos Zone of the
National Association of Nigerian Travel Agencies (NANTA), Mr. Yinka
Ladipo, confirmed this in an interview in Lagos.
According to him, “Just as you have
mentioned, it is no longer secret that these travel agencies have come
together to form one. With the trend we are witnessing of the
consolidation, at the end of the day, we might likely have just 15
travel agencies in Nigeria in years to come,” he said.
Explaining further, Ladipo said when
two, three and four travel agencies merge, there is bound to be increase
in ticket sales, adding that with the merger, the travel agencies can
go to airlines, negotiate the percentage they would collect based on
their strength.
According to him, “Consolidation is when
two, three or more agencies as possible, come together to relate with
the airlines. For instance, let me say five agencies coming together,
the sales per billing period (Per Billing Period is every two weeks), we
have a sale of some million naira. I have a sale of 150, travel agency C
has a sale of 170, by the time we put our sales together, instead of me
standing alone with my N150 million sales. When we all come together
with our sales, we can actually give an airline N700 million sales per
month. We can meet with the airline and negotiate our discount
percentage. The airline can say it will pay 10 per cent while we ask for
15 per cent. At the end of the day, we agree at 10 per cent”.
He added that with consolidation, there
will be something to show for it, instead of collecting 5 per cent on
individual sales, adding that with the consolidation, everybody will
benefit because the five travel agencies coming together will have a
good deal.
He said that with this other smaller
agencies that do not have much volume of tickets,as the travel agencies
that have merged can buy tickets through consolidated agencies and
instead of collecting service charge, when they buy, they get discounts.
The Vice President stated that with this
development, the N700 million given to the airline every month can
increase to N1 billion in two, three months, adding that at the end of
the day, it will be a win-win situation for all the stakeholders; the
agencies, airlines and the passengers because the passengers will pay
less. “
On the likely challenges, Ladipo said
that for the consolidation or merger to succeed, the travel agencies
which are parties to the merger must reduce rate of credit sales since
airlines are paid every two weeks
