TravelManagers’ trio of keys to success

TravelManagers' CEO Joe Araullo discusses his company's success, and which three key markets it will be channeling in the future.

TRAVELMANAGERS is celebrating at this week’s annual conference in Nusa Dua like few other agencies can at the moment.

Sales with the mobile advisor network’s agents are up this year, in what has otherwise been a sea of red for the travel agency sector.

Chief Executive Officer Joe Araullo announced on day one of the conference a growth of 4% in trading.

This is despite its much larger competitors such as Flight Centre, Helloworld, and others posting losses and profit warnings, following a tough nine months for the travel industry.

TravelManagers’ slight growth is less than its impressive 11% figure announced this time last year, but Araullo believes that the quality of the network is why the company is capturing market share from its competitors in an otherwise unstable travel environment.

Every month this year has been up on the prior corresponding period, Araullo told travelBulletin, except for May – the month after Donald Trump announced a series of steep tariffs.

While more stable niches such as luxury, cruise, and corporate do a better job of weathering the storm, travellers who take one trip every year or two find often avoid booking when global stability is threatened.

“If you’re that person that’s saved up [for travel], it’s easy to put it off,” Araullo said.

This means that those three niches are markets that TravelManagers is heavily targeting for the immediate future, as it attempts to reconcile greater value for its roughly 500 personal travel managers (PTMs), while singling out steadier market segments.

However, while it is possible we see a ‘Luxury by TravelManagers’ or ‘Corporate by TravelManagers’ in the future, Araullo said what is most important for the business is being able to back up the refocusing of its efforts with the standard of support its PTMs expect.

Araullo wants these topics to be more than just a conference talking point, or an announcement.

“It’s definitely a possibility, but I want to get the offering right first, because you can call yourself whatever you like really…[but] how do we prove that we do have the best offering for each niche?” he pondered.

“It’s the recruitment drive to tell everyone what we do, but it’s also for our current network to say, ‘we’ve upped our game’…if we actually want to focus on those three niches, we need to match our support and the tools that we provide our PTMs to ensure that they actually match what they need.”

Serving these markets in the future will be dedicated resources, such as specialised online booking tools.

TravelManagers’ cruise offering is already served by its Fastbook platform, with similar corporate and luxury programs set to follow in the future.

Also available to PTMs will be a dedicated BDM servicing each segment, and access to market-specific fares, like special corporate rates.

This week’s conference will additionally see special luxury workshops hosted, helping PTMs approach a sector of the travel industry which can be intimidating for newcomers.

The most mystifying part of the luxury sector is how to sell the product, Araullo explained, which is why TravelManagers has solicited the help of experts from Accor, as well as Signature Travel Network’s Lisa Harrison.

The slower start to the year for travel has not dampened spirits for this highly popular conference either, with TravelManagers welcoming its largest-ever attendance of around 500 suppliers, employees, media, and PTMs.

Araullo lauded the conference’s shift from weekend to midweek for this increase in numbers.

“The feedback we’ve had from this first midweek conference [is] that it’s such a gamechanger, and we’ve got record turnout this year,” he told travelBulletin.

Also considered for this year’s conference was its timing alongside school holidays, which has seen many attendees bring along their families to extend their stay in Bali.

The success of the conference, and the PTMs attending it, show there is now less doubt than there ever has been regarding the importance of a travel advisor.

“It doesn’t necessarily take the risk out, but make sure you’re getting the best advice,” Araullo said.

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