Mixed reaction to Dnata’s plan

Dnata Holidays’ decision to rationalise its portfolio and ditch the Axis Holidays wholesale brand has generated a mixed response from travel agents and suppliers.

While some have criticised the tour operator’s strategy for confusing the customer and the trade and encouraging direct business, others have welcomed the move.

“I think scrapping Axis Holidays is a wise decision because it was never relevant to the travel trade from its inception and remained an unnecessary link in the shrinking supply chain,” explained Rajesh Thomas, business development manager, Via Dubai Holidays.

He said the brand had “a severe identity crisis with respect to its uniqueness and exclusivity”, and warned the same fate could await Dnata Holidays unless the company “reinvented its B2B business model”.

Thomas continued: “Considering the current business policy of Dnata, I don’t foresee losing clientele to the company, just by its wider presence, as unlike air tickets, holiday products are not offthe- shelf products.”

But one industry professional, who preferred to remain unnamed, said ditching Axis would “cut out the middle man” (the agent), and encourage direct business.

“Previously, (before Axis Holidays was established), there was a reluctance to buy anything on a Dnata voucher because you would give that to the client and they would think, ‘why not go to the Dnata office and get it cheaper?’” he said.

“There are so many Dnata shops so why would I buy from a travel agent again if there is a chance of getting a better deal?”

Dnata Holidays plans to specialise in 25 destinations and focus on four- to five-star deluxe properties. The company will operate a parallel pricing policy for consumers and the trade, and will continue to wholesale, but under the Dnata Holidays banner.

But some suppliers have questioned whether agents and customers will buy the company’s products and packages.

“It depends on the product really; if they have products that either no one else is selling, or they are selling at a better rate, then yes, people will use them,” said Naz Musa, managing direct, Holiday Autos Middle East.

“The other issue is buying power. You’ve got Emirates Holidays in an enormous building [on Sheikh Zayed Rd] with a big buying team, purchasing everything from around the world, and next door [at Dnata Holidays], you have a few people buying a few hotels. If you are a hotelier for instance, you are probably going to give better products to Emirates Holidays [because of the brand association]. If that is the case, then why not just have one set of buyers?”

He said he was unsure how Dnata Holidays’ new strategy would benefit suppliers, including car rental companies.

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