V. Prasad CHALLAGALLA
Président, United Federation of Travel Agents' Associations (UFTAA)

"Only what customers want"

What is the current-day leisure traveller looking for and how the industry needs to adapt? Consumers buy goods 33% on price, 33% on brand and 33% on quality. And how does a typical leisure traveler buy? 85% he/she buys on price being hypersensitive to expenses. This creates a margin pressure for operators, whereby it is difficult to differentiate from competition. So what is the operator’s market response? It is tempted to cut price and reduce services but it will then confront with the customers who want certain value too. A dilemma to face.

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