Mergers & acquisitions result in “less independent” agents: Fred van Eijk

Mergers & acquisitions result in “less independent” agents: Fred van Eijk

Fred van Eijk, who, up until yesterday, was the Managing Director of Travel Counsellors Australia, isn’t one to shy away from the big issues in the travel industry, and today is no different.

Travel Weekly caught up with him for an exclusive pow-wow on everything from acquisitions to the home-based VS brick-and-mortar battle.

See also: Travel Counsellors farewell Fred, nab industry expert as new MD

Following on from the many, many acquisitions and mergers that happened in the travel agency industry last year, van Eijk thought that these shifts could see agents become more restricted in their ability to help clients.

And wasn’t it a busy year?!

Flight Centre gobbled up hotel management firms, global agencies and Sydney-based Travel Partners – hell, even OTA rival Webjet got in on the fun! And then just as we were closing down for the year, Helloworld reveals its mega deal with Magellan.

giphy (11)

So what were Fred’s thoughts on all of this?

“The agency acquisitions are not necessarily a good or a bad thing, but rather just a shift in the industry that we’ve seen in Europe,” van Eijk told TW.

“Mergers and acquisitions tend to lead to a number of retail stores closing and agents seeking new opportunities in the home based model.”

According to van Eijk, these types of business moves can “result in agents becoming less independent in what they can offer their customers”, what with all the company politics and head office restrictions.

“Directional selling and preferred suppliers restrict an agents’ freedom to choose the product that is best for their client,” he said.

“As the only truly independent home-based model, Travel Counsellors agents are not dictated by suppliers or the business, providing them the ability to offer what is best for their customer, not the corporation.

“Some home-based business models are doing it better than brick-and-mortar models because they do show genuine care and offer a personal service,” van Eijk added, when we quizzed him on the mobile VS in-store rivalry.

“However, as the only truly independent travel company, Travel Counsellors provides the customer an even better offering.”

As for future threats to travel agents in general, van Eijk felt that OTAs are only bad news if your agency or offering isn’t up to scratch.

“OTAs are only a threat to travel agents who are not bringing added value to the table and not showing enough care, expertise and passion for their customers,” he told TW.

“OTA’s will be a continued threat to the agency models that are not offering that personalised level of service.”

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]