InteleTravel has unveiled plans to launch its own tour operation after “negotiating the acquisition of a UK tour operator”.
Speaking on a visit to the UK, president and chief executive James Ferrara told Travel Weekly he hopes the move will boost agents’ earnings.
“We want to do something that gives our agents more margin in the sale and not leave them beholden to the 10%-15% commission they get selling other operators’ products,” he said.
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“We do negotiate better rates for our agents but it’s always in that kind of range. So instead, we’re looking at creating our own product through the acquisition of an existing tour operator, which would mean a doubling of the margin.”
Ferrara said InteleTravel’s own tour operation would not replace the agency’s relationships with tour operator partners but would rather “add to the portfolio”.
He expects agents to continue to sell the holidays that are right for their customers, regardless of the earning potential, adding that he would “start with a mix of short and long-haul land‑based product and see what it develops into”.
Ferrara said details of the acquisition would be revealed soon, adding that the operation would initially launch in the UK with potential to extend to US agents, as the operator being acquired already sells in America.
Asked what he might call the new arm of the business, Ferrara said: “We had a brand years ago in the US called InteleTravel Escapes, so we could resurrect that.”
But he said agents would be able to white-label the system so they could sell it under their own brands.
Ferrara said the company is also planning to launch in Germany later this year, as a springboard to branching out into other European countries, and in Canada in 2024.
“The plan was for the UK to be our beachhead into the EU, but the British public had other ideas [voting for Brexit],” he said.
“So we had to revise that plan and will start now in Germany, which makes sense because of the size of its cruise market and its economy.”
More: InteleTravel agents report increased customer spend
InteleTravel UK agent numbers top 13,400 as sales ‘soar’
InteleTravel hails training as sales and booking values rise