Why are independent agents important in the era of acquisitions?

One sharpened pencil standing out from the other new pencil.

This month, Brisbane-based independent agency Savenio launched a ‘travel hub’, bringing a with it a more intimate environment for agents to book for clients.

The idea of the hub is to create a place for independent travel advisors to do business, network, meet with their clients and share skills and experiences under one and cooperative roof.

For Savenio General Manager David Brandon, the hub’s focus on independence is crucial following the recent wave of acquisitions which took place in 2017.

So how can agents stay independent and keep an intimate relationship with clients when the industry continues to consolidate?

For Brandon it’s as simple as putting the client first.

“Independence is the key to real success in the travel industry,” Brandon says.

“This means the freedom to really meet the client’s needs. And, in turn, by doing a better job by the client you are creating an opportunity for repeat client engagement which is good for everyone.”

Independence means not worrying about commissions and not being told where to buy from – it’s putting the client first and that means they are more likely to come back, creating more commission for you in the long run.”

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest comments

Ross says:
January 18, 2018 at 4:53 pm
Great article and i disagree with Robyn.
A buying group enters contractual terms with “preferred” suppliers and the substance of the arrangement is commercially driven – higher commissions through overrides in exchange for volume. In most cases, vertical integration also means a buying group owns its own product, like Flight Centre’s Backroads and helloworld’s Insider Journeys. Consequently, the network requires agency members to rack preferred, agent sales are tracked against % sales of preferred and is also vested in selling preferred because agency members themselves are provided overrides.
If buying networks wanted to supply clients with the best product suited to their needs, the buying group would enter into ‘preferred arrangements’ with all suppliers and just sell what suited each client. But this doesn’t happen because of obvious commercial and vested interests. More flexible agents like Magellan and its attempted acquisition by Helloworld is bad for consumers.
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robyn says:
January 18, 2018 at 2:03 pm
I disagree, you can still be in a buying group and be under the HLO umbrella and still be fiercely independent, clients are King, without them you dont have a business, i think you will find the likes of HLO are bringing on board product that agents need to do business.
You can also be just independent, there are alot of very small agents out there doing their own niche thing, dont over dramatise the ebs and flows.
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