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TAANZ - Travel Agents Association New Zealand link to website

T. 09 524 6178      F. 09 524 6179     E. contactus@taaccounting.co.nz

Competition puts pressure on margins and profits

Competition between Corporate Travel Agencies is putting increased pressure on margins and hence profitability. Corporate Travel Agents say that the Air New Zealand owned Tandem Travel is targeting their clients with deals that are hard to compete with. The comments are “what other industry is there where a supplier competes directly with its own customers to take business from them”.

This strategy put increasing pressure on independent corporate travel agents to reduce margins as Tandem can offer all the products and services that they can at reduced prices. How can travel agencies compete with their own supplier? They in turn are looking to buy better from their suppliers, to become more efficient and offer better service.

Perhaps now is the time to re-evaluate your suppliers and what they offer? Have a look at your systems and ensure that they are the most efficient? Benchmark your business against the best in the industry?