Reinventing Travel Agents Into Travel Retailers: One Giant’s Attempt At It
Flight Centre, one of the world’s largest travel agencies at $14 billion plus annual revenues, does not want to be called a travel agent anymore. And who can blame it, with the media and consumer battering the agent business gets in face of migration to digital services.
For one, it is changing its name to Flight Centre Travel Group, to convey that it has moved way beyond just flights in the leisure sector (bad margins) and now gets about 30 percent of its overall revenues from corporate travel.
Secondly, it does not want to be called a travel agent anymore, and will kill for it. Sort of. In its latest annual results presentation for analysts day earlier this week, the Australia-based company said it has come up with a “killer theme”: its migration from travel agent to a travel retailer.
The main point: we don’t want to sell third party products, and just be the middle agent, we want to create our own branded products with exclusivity built into those, and become a retailer.