Travel Agencies… Promovacances wants to promote and shake-up the traditional agency

TourMaG.com – Is the development of the agencies network a priority for Promovacances? And what is the objective in terms of openings?

Eric Poueys: The travel agencies channel is a strong axis of development for the group. The rate of openings is constant, with almost one opening monthly.

Today, the perimeter of our network reaches 40 agencies. We’re expecting to open two more by the end of the year: one in the Parisian region, and another in the West of France.

The goal is to have between 75 and 80 agencies in the next 3 years.

TourMaG.com - What geographical zones are you aiming at?

E.P.: We’re trying to create platforms around Lyon, Nantes, Toulouse, Bordeaux, and Marseille.

These cities correspond with major departure airports for Promovacances, on which we increased our offer. We’re also expecting to expand our network in Paris and Ile-de-France, where we already have 26 sales outlets.

TourMaG.com - Are these agencies business buy-outs or new creations?

E.P.: We’re opting, generally, for creations. We’re particularly careful to select the adequate spot after an in-depth study of the location.

To do so, we analyze the trafic in the zone based on online sales, along with the location itself: attendance, boutiques located in its proximity…

We prefer busy shopping centers, with locations close to boutiques related to leisure and pleasure.

However, we’re not opposed to buying out agencies. In Toulouse, for example, the new agency is a business outlet of Nouvelles Frontières.

TourMaG.com Are you interested in the franchise?

E.P.: Yes, and our project on the subject is almost finished.

The first contracts should be signed by the end of the year, and the first openings of Promovacances franchised agencies - between 5 to 6 business outlets - are scheduled for the 1st semester of 2015.
We’re aiming to have around twenty franchised agencies by 2018.

This franchise is an addition to our development. Despite the rate of opening one agency monthly, we still need a franchise “channel” to speed up development.

This also enables us to reach territories on which we're little known: in the North and the East.

TourMaG.com - For these franchises, are you aiming at mini-networks that already have some fame in their region?

E.P.: We want to focus primarily one new entrants. Our concept provides an easy entry into the business. But we’re open to everything.

TourMaG.com - Precisely, what is the concept of the Promovacances agencies?

E.P.: We have a team that works on opening new agencies. We have created very elaborate window displays, that change every week.

The products advertised are chosen based on research and reservations done on the website and in relation with the agency’s catchment area, and the prices are updated daily.

The agency has 3 people per store outlet, with permanent contracts. We emphasize internal promotion. The employees from inside the ranks already knows how the company functions and its products.

Then we hire people on location. These new entrants undergo a 15 day training session in Paris, followed by a 15 day training on location.

We also schedule many educational tours. These future study trips will include one third of our vendors for one month and a half.

Finally, our training service has created elearnings in partnership with tourism offices. To this day, our distribution network has 120 employees.

TourMaG.com - How much does the sales of Promovacances products in travel agencies account for?

E.P.: 70% of the products sold in our agencies are Promovacances products.

In terms of sales, everything is done to prioritize our production, on one hand because we have commitments, and on the other, because we’re familiar with it.

We’re also in the process of adding a dynamic package by splitting the flight rate of the classic offer to change the length of trip.

This option called “Flixi-Price” launched last April, allows the vendor to break up this package and recompose it while maintaing the industrial mechanic of processing the deal.

TourMaG.com - Who are the clients of Promovacances?

E.P.: We realized that the clients who come to the agencies are not the clients who use the website, it is a very small part.

There are two categories of clients, those that had a bad experience with purchasing a trip online, and those that have more complicated requests.

For example, for longer trips or numerous travelers. We provide reassurance and advice. The average sale is in fact higher in the agency than online.

I would like to specify that there are no limits between our different vending channels and that we welcome in our agencies all types of clients. Someone who started their file online can surely finish it within one of our retail outlets and vice versa.

But in reality, this happens rarely. One of our future challenges will be that of cross-channel management.

TourMaG.com - Major groups such as TUI, Thomas Cook, or others have rallied up and reduced the extension of their agency network. You’re doing the opposite…

E.P.: We have the benefit of not having a past, we’re starting with a blank page. We’ll write our own history, and the current results show proof that we’re on the right path.

As for openings, we’re in line with our goals. The groups that you mentioned made choices of the past, it’s more complicated…

TourMaG.com - How much do sales inside the agencies account for?

E.P.: Sales within the travel agencies account for 17% of our group’s turnover.