Golden era of travel still going strong, says Flight Centre MD
The travel industry will continue to boom over the next 20 years, Flight Centre managing director Graham Turner has predicted as he underlined customer relationships as critical to the company’s success.
Speaking at the CAPA Corporate Travel Summit in Sydney, Turner highlighted more airlines, increasingly competitive fares and a wider choice of onboard product as major drivers of travel industry growth. He also referred to the onward charge of cruising, particularly river cruise, as another important contributor.
“We’re in the golden era of travel now and that will last for at least another 20 years,” he said. “It’s a great industry to be in.”
And while the “online threat” has long loomed over the retailer, and travel agencies in general, he was confident FLT’s “killer theme” strategy has positioned the company well both for survival and success.
Offering special products, comprehensive information and a blended travel model that enables customers to transact 24/7 and via the channel of their choice is the basis of the action plan.
“We’re moving from being the middle man or travel agent to being a very successful retailer of travel, even in corporate,” Turner said.
The killer theme and its seven “mini themes” will continue to be rolled out over the next five years.
“We're really quite focused on 2020 now but we also have a story of where we want to be in 2035,” Turner continued. “Not to say we'll get everything right, but unless we have a plan for the future, it’s hard to work towards something.”
While Turner indicated that OTAs have "tended to level out in terms of their use", he admitted the internet remains an ongoing challenge.
But much of that change has already take place, he continued. However, he stressed that it would be businesses’ ability to react to change that would determine their success or failure.
But the "really key thing” is to be "close" to the customer, he insisted.
"The focus for us will be well and truly on working closely with customers and delivering them a personal service," he said. "It's about being entwined with the customer, at one with them – their interests are yours and yours theirs.”
But he advised other businesses against simply trying to copy the Flight Centre model.
“I wouldn't necessarily try to copy what we do,” he said. “It’s about people and our leadership. Our culture is different.”
He warned that the culture of a business is very hard to change, citing Flight Centre’s own experience expanding into overseas markets through acquisitions as an example.
“But once you have it more or less where you want it, it’s hard to lose as well.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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