Guest Comment: Where do suppliers stand on the independent question?

Guest comment by Neil Wood, event director for ITEX and Luxury Travel

In the run up to the ITEX show, the event for independent agents and operators, I have had quite a number of conversations with the independent sector. A growing concern, and hence I ask the question to suppliers, is how seriously do you take the independents?

In one recent conversation, I told the agent of a well known operator who publicly expresses great support for the independent travel trade, telling anyone who cares to listen that they are the important backbone to their market, but who cannot afford the time and effort to attend a show to meet them. It’s certainly not the money that is an issue, so I asked the agency why they thought that was the case.

It was with a hint of regret that the answer came back – “They’d rather sell direct and we suddenly become their friends when there are places to be sold”.

So, those suppliers, I have a scenario to put to you. Imagine yourself in a position of buying a product – any product. You have a choice of products, but all are similar. It’s a personal decision, and you are faced with someone who seems to take a genuine interest in you and your decision. The second person you meet makes no bones about being your “friend” only for the duration of your decision? There’s a definite feeling of being used and so your answer as to which product you buy can be personal (I am imagining that the answer was to buy from the genuine person).

We are all realists and understand that business is not always about personal feelings. But can you honestly say that your decision would have been purely based on an objective view of the product?

Now, let’s get back to the travel trade. Surely building good, solid relationships with the people who can choose whether to sell your product or not is a good thing? Margins are always important in any business, but you have an opportunity to build relations with 62% of a market that can sell your products through 400,000 staff to countless millions of customers. Your overachievement of budgets could be in their control. For example, our title sponsors Travel Trade Extras have made it their business to support the independent networks, and the results of that commitment in the brands first year are immense. They have seen very impressive revenue growth through portfolio development (giving the trade the products they need to develop their own business), credible brand development (via a strong a supportive CRM philosophy) and partner development (delivering good products at competitive rates to members).

The independent agents and operators are a vital cog in the travel industry, and ITEX provides a forum and treats them as the serious buyers that they are – perhaps suppliers should consider that fair-weather friends could become long term partners?

Think carefully and ignore a key group at your peril. As with voters in elections, you might not get everyone’s vote, but if you don’t at least try to be inclusive the results will become clear in the longer term – by which time it’s tough to change direction and gain that support. Will your business disappear from ignoring a key group? Unlikely. Does it get damaged? Perhaps. Does it improve by taking them seriously? You can’t tell, but marketing is about probabilities, and the probability of a business achieving greater long term growth from entering positive relationships with 62% of a market is surely greater than not.

So suppliers, is it a case of fine words indeed, or fine words and deeds?

Neil Wood is Event Director for ITEX and Luxury Travel

Business Design Centre, London

June 9th to 11th, 2004

Ticket hotline 01923 690632

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