N.M. Shafiq, operations manager at Regency Travel in Doha talks recruitment problems and explains why the agency’s one-stop-shop concept is a success.
Regency Travel is one of Doha’s largest travel companies. Is further expansion on the cards?
We already have 22 offices in Doha, including implants [in companies] and we are opening eight more outlets by the end of the year. We are basically looking to open offices around shopping malls; one will be opening in the City Centre Mall in about six months, and we are looking at other malls as well.
We might go with a kiosk, or something similar to what we have in our main office. We have just won the PSA for Virgin Atlantic; we are the GSA for Kingfisher Airlines; and pretty soon we will be the GSA for South African Airways. We will be representing them in Qatar.
How many members of staff do you employ?
At the moment we have 157 staff but we are looking to double that number as soon as possible. The problem is finding good staff in this region – it has become a nightmare. Though you have high salaries because of the escalating rents in Doha, the [high] cost of living here is discouraging people from working in Qatar or the Middle East.
Have salaries reflected the increasing rents in Qatar?
Salaries have really gone up, in fact we have increased our salaries by 40% and upwards. We have even doubled the salaries of some employees but it’s still really difficult to find staff. That is the story across the GCC, but we are feeling the pinch because our operation is quite big and we have to open new branches and new locations and need the manpower.
We are looking at new [source] countries like Ethiopia, as well as the Philippines, India and Sri Lanka. We’re also looking at Africa. You get some really good people from South Africa and North Africa, particularly Arab nationals, but getting them on board is a nightmare. Many Arab nationals are choosing professionals other than travel.
What’s the current state of the travel agency business in Qatar?
There are about six of us [travel agencies] sharing about 70% of the market, and we don’t offer discounts. Qatar has enforced a 0% discount policy – absolutely no discount. On July 4, 2005 Civil Aviation enforced the policy stating that travel agents must not offer discounts to clients, be they ‘walk-ins’ or corporates. We sent letters to all our corporate clients informing them of the ‘no discount’ policy and since then profits have actually doubled.
There are a few travel agents that undercut [and discount] still, even after the policy, but then they need to survive. If they don’t offer it they won’t even get the business they are getting. It’s not really affecting us because it is a very small segment; unprofessional competition you could say.
Previously we were not actually giving discounts; although people called it that, we were parting with our [airline] commission.
How does Regency set itself apart from the other big travel companies in Doha?
We are the only agency in Doha to open 24/7 every day of the year. We are also the only travel agent in Qatar to have a proper reception and two professional ladies who walk customers through to the counter. You don’t just pick up a ticket and go sit and wait to be served; you are personally attended to and taken to the member of staff that can help. We also have exclusive first and business class lounges, which none of the other agencies have.
First and business class passengers are taken to the lounge where they are seated comfortably and served hot or cold towels, canapés, soft drinks and snacks etc. Since we started doing this the number of clients booking first and business class has increased and we have seen a huge improvement in the quality walk-ins. If you come into the office from 8pm to 11pm, you will see Ferraris in the car park.
We also have our own camp in the desert that can accommodate 250 to 400 people. We do a lot of corporate parties and product launches.
How does the one-stop-shop concept work?
We have a telecommunications counter, a foreign exchange, a bank, a counter for Avis Rent a Car, Air Arabia, and a Starbucks. By the end of next month we will have a Nokia stall displaying the mobile phone company’s top-of-the-range products.
Dnata [in Dubai] is purely travel, whereas we span travel requirements. We have a gift shop, you can rent a car, exchange your currency or get a phone card – you can even buy a coffee. I don’t think even Dnata has a first and business class lounge?
What is next for Regency Travel?
We have started focusing on our leisure travel now – that is where you can make the money. We already have an exclusive tours department that even offers spa packages, and we have exclusive desks for cruises, sports and MICE tours, Hajj and Umra, air charters and medical tours.
We have a professional doctor who mans the medical tours counter. Very soon we will be PSA for Trafalgar (coach company), Costa Cruises, and two other cruise companies.