Company Model All offices are managed independently and IATA accredited with different IATA numbers. This ensures that we do not limit the expansion of our branches and make them dependable on the head office. Each branch is accountable within the respective laws of the countries. Market Share We have a large share of the market as we are able to provide most types of travel services under one roof. Customers prefer to book flights, hotel and tours with one agent rather then splitting services with other companies. There are only a few exclusive holiday companies in Kenya and we are one of the leading few. Corporate Contracts We is currently providing travel services to over fifty corporate companies on a monitored credit basis. We have contracts in place that stipulate our terms and conditions for the credit facility. Due to the large number of corporate companies that we provide travel services for, we have installed the latest accounting software at our head office and branches to ensure that we keep up to date with automated accounts. All the accounting staff are trained to manage and produce MIS reports and debtor and creditor analysis. These reports enable us to monitor sales from corporates and also helps us improve our services to them and negotiate for better fares and hotel prices for frequent travelers. Walk in Customers Apart from our corporate clients we handle hundreds of walk in clients a month who take advantage of our special airfares, holiday packages and safaris. Payment is made by cash or local cheques and credit is not offered to walk in clients. Airlines Due to the large turnover we generate for the airlines we have established good relations with most major airlines that offer us target based incentives and override commission based on annual turnover. We are also able to negotiate special incentive travel airfares to popular routes for our corporate and individual clients or groups alike. These fares are normally not available to the general public but by special appointment to us based on our performance. Hoteliers As one of East Africa’s leading holiday companies we have contract rates with all most major hotels and resorts in East Africa. These rates are combined to air packages and road packages and sold competitively in the market. Our contract rates enable us to provide cheaper quotes then most other travel companies as we combine the airfare and ground arrangements in-house which gives us an edge to provide cheaper quotes and undercut middlemen We are constantly recognised and awarded by the airlines and hoteliers for highest sales and best performance. Company Model Page 2 of 7 Marketing Our marketing division stays on par with the latest in media advertising. We have credit facilities with the following media organisations:- East African Standard newspapers Daily Nation Fox Theatres Nu Metro Cinemas Falcon Outdoor Advertising South African Tourism Mauritius Tourist Board Dubai Tourism Board Kenya Airways Holidays South African Airways Holidays East 106 FM Sound Asia 88 FM Capital FM Kiss FM Kameme FM KTN KBC We advertise and carry out travel campaigns regularly with the above media partners to effectively reach the widespread areas of Kenya and East Africa. We believe the success of our company has been mainly due to our aggressive approach in advertising and marketing. We set aside a substantial amount of funds every month for advertising. Due to the nature of the travel industry special offers from airlines and hoteliers are introduced almost every other day and it is therefore our objective to ensure that these offers are advertised to all our clients and the general public effectively and efficiently. Our marketing and advertising campaigns are very effective as they are all deal driven. As part of our marketing expansion we have partnered with South African Tourism (SAT), Mauritius Tourism Board, Dubai Tourism Board to jointly promote their destinations using our resources. This is done by a Joint Marketing Agreement (JMA) between us and the respective tourism boards to promote and market their destination in Kenya and East Africa. These tourism boards finance us to help them promote their destinations in our country. Due to the various types of publications, we have developed an in-house IT division with professional designers that design all our brochures, flyers and other advertising publications using the latest desktop publishing and designing software. This enables us to save on the high costs of designing in Kenya and enables us to design in-house and prepare them for printing. Raj Air Travel Group takes part in two of the biggest travel and tourism shows in Kenya; The Holidays Expo and the Getaways Exhibitions that are held twice a year in Nairobi. This is where we get to showcase our latest, affordable and attractive travel products to the public. Apart from the two trade shows we take part in we are invited annually to the following worldwide exhibitions on hosted invitations that take care of our flights, accommodation and transfers. Company Model Page 3 of 7 - INDABA – South Africa’s Biggest Tourism Exhibition held every year in Durban International Conference Center courtesy of South African Airlines - ATM – Arabian Travel Market in Dubai courtesy of Emirates Holidays - ITB – International Travel Fair Berlin (self funded) - WTM – World Travel Market (self funded) - Dubai Brochure Launch – Courtesy of Emirates Airlines - Kenya Airways Regional Awards – Courtesy of Kenya Airways. Apart from the above hosted invitations we constantly get invited to familiarization trips by local and international hoteliers to sample their products and we nominate staff of the relevant departments to attend these trips. We currently on average get invited to 15 – 20 fam trips a year out of which 5 – 6 are international. Information Technology and Intranet We have invested heavily in IT and our IT division is responsible for our entire intranet and computer system setup. We have installed six dedicated and twenty four hour broadband internet connections that use Linux servers and routers to distribute internet and email evenly to all our computers on our network. We have created a LAN and WAN which enables us to communicate to computers in our network and outside our network in other branches for accounting and monitoring purposes. We have reduced the cost of branch to branch and international telephone calls by using voice over internet protocols and chat channels. All our offices are currently linked through this service and are maintained by an in-house certified systems and networks engineer. All the computer systems are maintained in house and backup of the accounts are performed daily by the IT personnel. E Marketing As part of our commitment to stay on par with the latest technology we embarked on an email marketing campaign and using a software that allows us to send bulk email and manage our email database with subscribe and unsubscribe options. This software also deletes old and duplicate entries and processes emails using an advanced filtering process that identifies genuine address from non genuine ones and maps them accordingly. All our email flyers, bulletins and special offers are sent through this process to over 5000 local clients weekly. This is a very effective and professional way of advertising your services to clients who prefer booking online and via email as there are no major overheads involved in the process of email marketing. Major Suppliers In line with our business activities our main suppliers are hoteliers and airlines and both of which we have credit facilities with. The hoteliers are based on an LPO system for every booking that we make and then billed to us on a monthly basis. We have established an excellent credit rating with most major hoteliers in Kenya and East Africa and the hoteliers use each other for credit references each time there is a credit applicant. BSP Referred to as “Bank Settlement Plan” this body is responsible for collecting payments from travel agents that are due to all airlines at the end of the stipulated credit period. We have a two half billing period as follows:- -For all manual tickets, E-tickets and MCO’s issued between the 1st – 15th of every Month will be charged and reflected on the billing of the 25th of the same month. Company Model Page 4 of 7 -For all manual tickets, E-tickets and MCO’s issued between the 15th – 30th or 31st of every month will be charged and reflected on the billing of the 10th of the next month. The two billings as above are due for payment on the 15th of every calendar month. BSP therefore offer us up to forty five days of credit for the amounts we are charged, this is operated under the auspices of IATA. Refunds and cancellations Refunds for partially used tickets and unused tickets are also handled by BSP and reflected in the billing accordingly depending on the time of cancellation of the ticket and when we apply for it. The refund process normally takes between 30 – 45 days before it is reflected in our BSP billing. BSP is also responsible for issuing CIP’s which are plates that are issued for each individual airline allowing us to issue tickets for that respective airline. They also have the right to refuse authorization of issuing tickets for any airline. All IATA agents are authorized to issue tickets for any airline that operates or code shares out of Nairobi and the rest of the world unless otherwise instructed by BSP. Our ticket stock is also issued by BSP on a regular basis and these tickets are serialized and delivered to our safety deposit boxes at our bank. We are normally not allowed to house more then 100 plain airline tickets in our office at any given time for security reasons. These serialized tickets are punched into our reservation systems every time we receive fresh ticket stock and are issued from our systems in a ticket number and serial number wise order which can be easily traced and invoiced to our clients. Accounting We employ dedicated and professional accountants who are responsible for the day to day accounting of the offices. This together with the latest automated accounting software enables us to efficiently carry out all accounting activities at the touch of a button. Our accounts are linked through LAN and WAN to ensure that all branches conform to the standard accounting procedures set by the Company. All accounts are backed up by daily automatically through our accounting systems. E – Travel Accounting Software "e Travel 2000" Travel Product Suite is an enterprise-wide software solution for Travel Companies which streamlines and automates all business processes of a Travel Agency while demonstrating a guaranteed "RETURN ON INVESTMENT". With the INTERFACE to leading CRS like GALILEO, AMADEUS..etc, we upload all the ticketing data in to "eTravel 2000" to reduce human intervention (redundant data entry) and human errors and in turn save on time and resources apart from achieving core objectives like ONLINE INVOICING & ONLINE CREDIT CONTROL. Moreover "eTravel 2000" is developed using the latest ORACLE technology and is web enabled. Modules Financials - General Ledger - Accounts Receivables - Accounts Payables - Cash/Bank Management Company Model Page 5 of 7 Travel Operations - Sales and Refunds (Tickets, XO, PTA, MCO…etc) - Invoicing and Billing - Airline / BSP Reporting - Travel Accounting - Auto BSP Reconciliation - MIS Reporting - Interface to GDS (Galileo and Amadeus) Tours Management - Quotations - Booking and Confirmations - Supplier Confirmations and Service Vouchers - Invoicing and Billing - Tour Accounting - Link to Financials Optional Modules - Personnel and Payroll Management - Fixed Assets Management - Customer Management o Customer Profile Maintenance o Sales Force Automation OTHER FEATURES - Multi Currency Support - Multi Locations Support - Multi User Support - Financial Statements available in Arabic Benefits to Travel Agency - Interface with CRS/GDS to reduce the operations cost and manual redundant data entry. - GDS interface enables Online Invoicing and Online Credit Limit Review. - Better Customer Service as it enables faster response time to customers as all information is available at your fingertips. - Automation of Business Processes and elimination of redundant processes and human errors. - Developed using Oracle's latest Web based Technology for optimisation of Hardware and Communication Infrastructure. - Extensive MIS Analysis Information Company Model Page 6 of 7 IATA IATA - The International Air Transport Association - was founded in Havana, Cuba, in April 1945. It is the prime vehicle for inter-airline cooperation in promoting safe, reliable, secure and economical air services - for the benefit of the world's consumers. The international scheduled air transport industry is now more than 100 times larger than it was in 1945. Few industries can match the dynamism of that growth, which would have been much less spectacular without the standards, practices and procedures developed within IATA. At its founding, IATA had 57 Members from 31 nations, mostly in Europe and North America. Today it has over 270 Members from more than 140 nations in every part of the globe. Over 60 years, IATA has developed the commercial standards that built a global industry. Today, IATA’s mission is to represent, lead and serve the airline industry. Its members comprise some 260 airlines - the world’s leading passenger and cargo airlines among them - representing 94 percent of international scheduled air traffic. Representing… IATA seeks to improve understanding of the industry among decision makers and increase awareness of the benefits that aviation brings to national and global economies. It fights for the interests of airlines across the globe, challenging unreasonable rules and charges, holding regulators and governments to account, and striving for sensible regulation. Leading… IATA’s aim is to help airlines help themselves by simplifying processes and increasing passenger convenience while reducing costs and improving efficiency. The groundbreaking Simplifying the Business initiative is crucial in this area. Moreover, safety is IATA’s number one priority, and IATA’s goal is to continually improve safety standards, notably through IATA’s Operational Safety Audit (IOSA). Another main concern is to minimise the impact of air transport on environment. Serving… IATA ensures that people and goods can move around the global airline network as easily as if they were on a single airline in a single country. In addition, it provides essential professional support to all industry stakeholders with a wide range of products and expert services, such as publications, training and consulting. IATA’s financial systems also help carriers and the travel industry maximise revenues. … For the benefit for all parties involved: For consumers, IATA simplifies the travel and shipping processes, while keeping costs down. Passengers can make one telephone call to reserve a ticket, pay in one currency and then use the ticket on several airlines in several countries. IATA allows airlines to operate safely, securely, efficiently and economically under clearly defined rules. IATA serves as an intermediary between airlines and passenger as well as cargo agents via neutrally applied agency service standards and centralised financial systems. A large network of industry suppliers and service providers gathered by IATA provides solid expertise to airlines in a variety of industry solutions. For governments, IATA seeks to ensure they are well informed about the complexities of the aviation industry to ensure better, long-term decisions. Company Model Page 7 of 7 In Kenya and East Africa IATA plays a major role in the travel industry by offering credit to all travel agents that are IATA bonded and this credit facility is governed by BSP as earlier explained above. When opening a travel agency the main aim of that company is working towards being IATA accredited and this is a process which takes several years similar to the ISO accreditation in the manufacturing industry. A new IATA license costs between US$ 300,000 to US$ 500,000 depending on the specific agency which is determined by agency growth and performance, agency turnover to the airlines before IATA approval, relationship and recognition in the market , financial capabilities of the agency, past payment defaults to any airline and the company model of the agency. In any modern business credit facilities from your major suppliers is an added advantage to the performance of your company and with IATA we are able to provide credit facilities to our corporate and trusted clients without having to block substantial amounts of funds on their behalf and IATA makes this possible for us to achieve. With IATA recognition your business will always be on the path to success and a wide range of benefits and international recognition falls in place in line with your IATA accreditation. One of the main benefits apart from the credit facility are the perks and IATA provides rebated and discounted worldwide airfare to any destination that is being operated by an IATA airline. This is applicable to employees of the travel trade and holders of IATA cards. Employees of IATA accredited agencies are entitled to 50% off normal market airfares and owners and senior management are entitled to over 90% discounts on worldwide airfares, hotels and car hire. All our offices are IATA certified and we have 3 IATA licenses collectively worth US$ 450,000. All of the licenses have been released from the bank who were providing IATA with bank guarantees as per their requirements and remaining license is branch license that requires no bank guarantee. A bank guarantee is required by IATA for a new license that secures the airline their payment in the event that an agency defaults in payments owing to the airlines and the bank guarantee comes into effect. We has been operating smoothly for twenty years and the bank guarantee is NOT required by IATA as we have never defaulted.
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