Mumbai : Up till now travel agencies have been involved in multiple areas of business for e.g. corporate, leisure, MICE, retail - all at the same time.

Lack of focus on a specific client type has meant that agencies have been unable to create specific values critical for client loyalty. For example, the aspects which a retail client values are different from what a corporate client values in a travel purchase.

Airlines have made this comfort zone shrink further by repositioning the role of a travel agency in its distribution network. Airlines have been finding it difficult to distribute their inventory in a profitable way using the travel agency distribution network as various incentive schemes which were structured differently for different `client types' were getting overlapped and in most cases airlines got hit by a double whammy.

As a result, now, airlines are using strategies like market share deals, client-type specific deals and commission cuts to force travel agencies to decide if they want to be a retail travel agency buying out of a consolidator or corporate travel management company working as a critical bridge between the airline and the corporate. It's a tough new position that travel agencies need to take.

Ritika Modi, Regional President, UNIGLOBE Travel South Asia said, "Airlines are changing and are looking at more cost efficient ways to distribute their inventory. They are choosing to reward travel agencies on performance which is based on market share, as well as the nature of the agency's clientele. So, for example, an airline would reward a consolidator differently from a corporate travel management company."

"The pressure is on travel agencies to adapt and it is proving ineffective for travel agencies to be all things for all people. They have to pick a business positioning for themselves - a difficult choice as this would involve an influx of technology, people, processes, sales and marketing among other things," added Ritika. "Most travel agencies will find the UNIGLOBE Business Building Franchise Programme a good solution to this Business Dilemma since travel agencies continue to be independently owned and benefit by being in a large group with a common client focus and positioning," elaborated Modi.