AEG Travel Services

Pakistan
Presented By:
Mahrukh Rasheed
Muhammad Ali Jafri
Tayyiba Amir
Faiza Jawed
What is AEG Pakistan
o A Leading Travel Management Company in Pakistan
having three IATA approved offices in Karachi, Lahore &
Islamabad.
o Over 60 years experience in travel trade.
o Specializes in Business & Corporate Travel Services.
o International Ticketing
o Domestic Ticketing
o Hotel bookings
o Management of the Business Travel needs
o Leisure Travel & Vacation Tour Packages

Market Situation
o Market structure
There are few groups dominating the market of TMCs
(Travel Management Companies) indicating Oligopoly.


o Market size (Volume and Value)
The number of sellers is limited in the market; however,
buyers keep increasing over the period of time




oMarket Players
There are three types of players
in the industry, as following
1.TMCs Resourceful (also
termed as mega travel agencies
by Wikipedia)
2.Consolidators provides
shipments of goods for the
benefit of a client but does not
operate or own its own airplane,
lack the resources of TMCs.
3.Third Tier travel agencies
Every other type of travel agency.
TMCs
American
Express
Amadeus
BCD travels
CWT
Pakistan
Consolidators
Inter-fret
consolidators
7 seas
logistics
AMI Cargo
Services
Apex
Logistics
Third tier
travel
agencies
Every other
travel agency
o Growth rate
4% growth rate of the industry as well as AEG.

o Key driving factors for market growth
Presence of MNCs
Increasing corporate travelings.

o Current state of market and future potential
Market exhibits positive growth
Future potential lies in the religious segment.


Customer Analysis
Market Segments and Sub-Segments
The market for American Express is divided into four
categories.

i. Corporate segment that involves the
MNCs
Local Giants
SMEs

ii. Consumer segment
Industry AEG
Corporate 60% 80%
Consumer 40% 20%
o Relative market
potential of each
segment in the
industry.

Corporate segment is
the most prominent
and revenue earning
segment.
However, consumer
segment can also yield
fruitful results.


o Target Segments
The main segment is the
corporate segment
Customer Buying Behavior
o Buying Practices
RFPs, RFIs

Grounds to evaluate sellers and the key buying criteria.
Sellers are evaluated by the number of sales deals closed,
new customers development, market intelligence and
customers feedback.
Price elasticity
Competitive Product
Positioning
Relative positions of various
brands
o American Express:
Leading Travel
Management Company
in Pakistan providing
Business Travel,
Vacation Packages,
MICE/Group Travel,
Hotel, Car Rental
services.
In service for the last 63
years delivering
premium service to its
valued
clients/customers.


o CWT Pakistan
Standardized globally
deployed infrastructure
and technology
Provide unique, best in
class service and
assistance to all
travelers.
Established itself as one
of the leading travel
agencies in the country.




o BCD Travels
over 1300 employees
and 64 offices
nationwide
world renowned air
express services, an
IATA approved chain of
travel agencies, a joint
venture airport ground
handling Services
Company, an
Information Technology
and software house, an
ISP representing a
famous computer brand
in Pakistan
Customer perceptions with respect to
Value for Money
The customer thinks the price is too high in relation to
the value delivered for the product or service, then they
won't buy.

If they think the price is too low, then again they might
not buy - because, they may be suspicious of the quality
in relation to the price.

Competitive Product Pricing
o Pricing of various brands

charge higher than the other competitors .
innovative technology and unparalleled personal service.

o Pricing philosophies being followed
Premium pricing

o Discounting policies, and incentives
Volumetric discounts
Varies from client to client
Corporate discounts: discounts offered by airlines for
corporations, AEG act as a medium.

o Practices being used for
promotion of the
product/service
Social media and social
networking
Facebook, Twitter and
LinkedIn
o The promotion mix
elements being used
Personal Selling
WoMM
o Effectiveness of Promotion Techniques
Reaching customers is easy.
Large number of audience in low cost

o Promotion element receiving the most budgetary
allocation
Corporate events like screening of cricket matches

o Industry average for promotional budget
print advertising
design and printing costs for all print materials, such as
newsletters, brochures and press releases, direct mail
costs
Web site development
public relations
any other special events needed
Social media advertising

o Customer perceptions and responses to various
promotional techniques

Social media is the most effective technique for
promotion of the tour packages.
two way communication
instant feedbacks received by the customers.
Customers frequently use social media

Sales/Distribution Channels

o Distribution and sales channels prevailing in the market

Only medium involved in sales is their own hired sales
team.
Involves mostly personal and direct selling.

o Key channel being used by majority of the industry

Majority of the industry deploys its own sales team as a
sales and distribution channel.

Sales Management
o Organization and structure of the Sales force.

Flat organization
Decentralized decision making
Travel Manager
Head of Operations
Team Supervisors
o Division of Sales Geographies

AEG is currently present in 5 cities of Pakistan, being
Karachi, Lahore, Islamabad (IATA locations) and Sialkot &
Multan (Non-IATA locations).

o Handling Key accounts
o On site sales
o Off site sales
o Sales Planning Process and Rationale
Defining the
value of your
poduct/servi
ce
Analyze
position in
the market
Examine
pricing
strategy
Outline short
term and
long term
revenue
goals
Identify ideal
locations for
products and
services
Define
promotional
approach
Outline the
activities of
sales and
marketing
team
o At the beginning of the
year
Keeping in mind the data for
the last Fiscal year, they plan
their sales volume, number of
new inductees, commission
percentages, pay structure,
etc.

o Sales force controlling
measures
Sales cap allows controlling
sales force in the
organization, avoiding
malpractices.



oMeasures of performance
Main method of sales

i. via personal selling i.e.
through sales
representatives and
ii. via RFP i.e. sort of a
tender acquired by
corporations.
Sales Person Performance
o Hiring Process

Lateral Hiring
Onboarding
Select
Conduct interview
Attract best matches
Determining Ideal Salesperson Criteria
o Key personality
characteristics sought
in sales person
Market Intelligent:
Driven:
Confident:
Outgoing:
Assertive:
Funny:
Structured:
Relational:
Focused:
o Initial Training provided to
the new inductees

Trainings are provided to
sales people according to the
requirements. If a sales person
is coming from a different
industry, initial training
becomes inevitable. While, if
it is an experienced
salesperson, it is optional to
provide training to them.
o Pay structure
A 50-50 compensation plan is followed in the
organization.
After-sales Services /
Support
o Types of after sales services prevailing in the market
customer care survey or the customer evaluation of the
service
Contact clients when they have returned from their trip and ask
them for their feedback/comments.
Regularly send relevant offers/promotions out to existing clients.
Send greetings on important dates, e.g. anniversaries, birthdays.

o Competitive position of each brand with respect to after
sales service
Carlson Wagonlit Travel Pakistan:
CWT Pakistan believes that it is the process of contacting the
customer after the sale. It is useful for feedback, to offer further
products, to build the relationship & for personal evaluation.
BCD Travel Pakistan
Receiving, nothing, using information provided by clients on
resorts and hotels
Supportive role in dealing with clients complaints and
insurance claims.

o How critical are these services in getting and retaining
business?
After sale service is essential in retaining and satisfying
customers. Providing better after sale services to retain
and satisfy its customer. Making and retaining valuable
relationship with customer while using every aspect of
taking, retaining and enhancing customer.
Ethics
o Procedures and systems in place for maintaining work
ethics in the organization
Ethical business practices
The environment
Privacy and data protection
The People

o Ensuring compliance on work ethics
Benchmark
Training
Enforcement

Synopsis
o Issues being faced in the sales management of existing
products
Market Competition:
Pricing:
Customer retention:

o Innovative, out-of-the-box ideas for better managing Sales
Online Booking Mobile application
o Gaps in their existing sales strategies for new products
Sales department of the organization is relatively new
Employees can develop skills in depth and can progress with the sales
department.
The company can achieve economies of scale in that it can centralize
all the resources it needs and locate various experts in that area.
Theres good coordination within the function, and top management
can easily direct and control sales departments activities

Current market scenario in
Pakistan
Travel agencies have been helped by new tax policies. Travel agencies
previously received 9% of the fare price as commission, of which 10%
was required to be given to the Federal Board of Revenue as tax.
However, this commission has now been replaced by service charges,
which is 7% of the fare price, except this time agents are free to decrease
or increase their charges according to market competition.