SINGAPORE – Supplier relationships – the ability of Asia’s travel agents to secure access to an assured supply of quality travel content such as airfares, hotel rooms and rental cars – have emerged as the most critical business issue facing the region’s travel agency businesses today according to a new survey commissioned by Abacus International.
Abacus commissioned an independent research company to carry out the survey, with a total of 1,629 travel agents from 13 countries interviewed over the period August 31 to September 21, 2007.
Almost half (48 percent) of all the agents surveyed said the relationship with suppliers was the most critical issue affecting their business today. This concern was especially marked in Thailand with 90 percent of agents there registering their concern about supplier relationships, while agents in Hong Kong and Indonesia (both 79 percent), Philippines (63 percent) and Taiwan (51 percent) echoed those sentiments.
Don Birch, president and CEO of Abacus International said that despite the buoyancy of Asia’s travel market, competition had increased among agents and the survey shows they are focusing on optimising their relationships with suppliers – with 81 percent of travel agents in Asia electing to work with different suppliers where possible.
Increased pressure on profit margins from both suppliers and competitors was identified as the second most critical issue for those questioned, cited by 25 percent of travel agents as their most pressing concern, while matching technology to business requirements (18 percent) and staffing and resourcing issues (nine percent) completed the major issues affecting business today.