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Customer retention: a strategy for travel agents

Marketing campaigns seek to increase a travel agent's client base. Many companies have a clear strategy for doing this, often by discounting. However, new clients, unless they are fresh entrants to the marketplace were once someone else's. A key to success, if not survival, is by retaining as much of an existing client base as possible and in developing a strategy to increase the retained client base. A number of techniques will assist in this. Activity management focuses on effort, not results, to develop ratios of the amount of activity necessary to gain new clients. Relationship management helps build ringfences around clients, protecting them from predators. This includes both existing and newly won clients. Skill levels and attitudes of agency staff are crucial. Decisions should also be made about the quality of products sold, office presentation and the booking process. Finally, constructing a retention plan ensures that an agent is not in danger of losing a high proportion of existing loyal clients and having them replaced with a more fickle, price-sensitive client profile.

Key Words: Travel Agents • Customer Retention • Activity Management • Relationship Management • Sfaff.

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