A new dawn for Dnata

Dnata Holidays has undergone a series of changes in the past year and, at times, appeared to lack direction.

Key staff members either resigned, or were made redundant or replaced, and when a Dnata Holidays 2006 brochure failed to hit the racks in January, the industry started to question its future.

But finally, following months of speculation as to where the business was heading, Nick Sheppard, manager for Dnata Holidays & product development, broke the silence, and revealed a clear cut strategy for 2007 and beyond, in an exclusive interview with ATN.

“I think in the past, the business was a wholesaler more than anything else. What we are creating now is more of a tour operator. We will wholesale and retail, so we will be selling exactly the same product to the consumer and the travel trade,” he explained.

“We are looking for a healthy mix [of business]; a 50/50 [split between consumer and trade] is always healthy.”

Having said that, Sheppard revealed plans to ditch the company’s wholesale brand, Axis Holidays and instead, sell its products to the trade under the Dnata Holidays banner.

“The Dnata brand is so well known in this market. It is so strong and so well established and it has a great reputation, so the idea is to build on that and invest the effort and money in leveraging the strength of the brand, rather than diluting our efforts across two brands,” he explained.

“There is nothing going out with the Axis brand on it any longer. We will be launching our new brochure in December or January and I guess that is really the cut off point when we say the Axis brand is no longer.”

The launch of the long awaited Dnata Holidays brochure will mark the dawn of a new era for the tour operator, which has drastically streamlined its portfolio to offer the “25 most popular destinations from this market”.

The hit list includes Oman, Egypt, the UAE, Jordan and Morocco in MENA; the UK, France, Germany and Austria in Europe; honeymoon hot spots such as the Maldives, Seychelles and Mauritius; and Asian favourites such as Thailand, Malaysia and Australia.

“We just looked at the market, did our research, and identified the most popular destinations. It’s as simple as that,” explained Sheppard.

“The most discerning travellers” will be Dnata Holidays’ target market, and to that effect, the forthcoming brochure will feature four- and five-star properties only.

Many suppliers have questioned why Dnata Holidays would opt to focus on 25 destinations that its sister company and competitor, Emirates Holidays, already sells.

“Why not specialise in niche markets, instead of competing in the same market as Emirates Holidays?” asked one ATN source.

But Sheppard argued that by rationalising the Dnata Holidays portfolio, the tour operator had taken the first giant step towards specialisation.

“I think we do specialise in the sense that we are focusing on the most discerning travellers and the best hotels and resorts around the world,” he said.

“Once we have this established in the market, and as the business grows, we will be introducing other niche products.”

These could include golf and spa holidays, or “anything considered top end”, he revealed.

“It will be driven by the market, so any product that the most discerning traveller might like,” he added.

Sheppard emphasised there was “space for healthy competition” in the UAE market.

“In terms of the destinations we are featuring, they are ones that most of the travel trade are selling,” he said.

“The choice of airlines [we offer] is also our USP. We are the GSA for a number of airlines and we work closely with them.”

When asked if Dnata Holidays was therefore shunning the mass market, he replied: “It’s not a case not wanting [this market], but I think in order to succeed, you do have to specialise. Our general focus is the five-star deluxe. If anyone wants another product or a destination we don’t offer, it will be available in Dnata agencies throughout the region.”

There are currently 50 Dnata outlets, including corporate implants, across the UAE, Kuwait and Saudi Arabia, but plans are afoot to double this to 100 within the next four years.

But Sheppard claimed Dnata agents were not given preferential treatment when it came to selling Dnata Holidays products.

“In terms of what we pay Dnata outlets, it’s the same as what we give everyone else. We pay 10% commission,” he said.

And neither do Dnata outets favour Dnata Holidays products, Sheppard claimed.

“They push Dnata Holidays the same as they would any other product,” he said.

“If you go to any Dnata outlet or our holiday lounge, they will sell you any destination, product or airline, just like any other travel agency in the world.”

There is no fixed date for Dnata Holidays’ brochure launch, but Sheppard revealed it would feature approximately 200 pages and be valid until the middle of January 2008.

He was reluctant to provide details of special features or value propositions, but conceded that early booking offers or “value adds at certain times of the year”, were likely.

“When we are contracting with our partners we are looking for some unique opportunities, but we are not focused on the price conscious. It’s a quality offering,” he said.

Marketing activities are also planned, including trade and consumer advertising, and a brochure launch evening dedicated to the trade could also be in the pipeline.

But suppliers have questioned whether agents will be willing to sell a Dnata Holidays branded product, which may encourage clued-up customers to book direct.

The idea of Axis Holidays was to provide agents with an independently branded product that was not recognised by the consumer and therefore did not compromise their ability to sell it.

But Sheppard argued that Dnata Holidays’ parallel pricing policy would ensure travel agents were not disadvantaged.

“So if a client came to Dnata Holidays, they would get X price, and if they went to a travel agency, we would offer exactly the same price to the travel agency. The only difference being is that the rate to the travel agent is commissionable,” he explained.

“I don’t think the travel agents will have any resistance because of our pricing policy and [the experience and knowledge of] our staff. I think they will be keen to work with us. The trade is the most important channel as far as I am concerned.”

Dnata Holidays has appointed a five-strong team to support the travel trade and is also planning fam trips, which Sheppard said he would police in order to ensure the right agents participated.

“We will try to immerse people properly into the culture of the country, so that they come back with some real knowledge that they can share with their clients,” he said.

A new Dnata Holidays web site, featuring a trade and consumer portal is also being developed and its core function will be dynamic packaging for both parties.

“It will give agents and consumers all the functionality they need; they will be able to book cars, flights, hotels, transfers, insurance, and print off vouchers. The only thing they won’t be able to do is issue tickets,” said Sheppard.

“It will be a very content rich environment with lots of images and information for the trade to share with the client.”

The site, which will also allow consumers to pay online, will be launched in the second or third quarter of next year.

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