It took more
than a decade for Tokyo air-ticket prices to be in sync with those in other
major cities. Gone are the times when Tokyoites had to pay twice, even thrice
as much as travelers abroad. Those with the inside scoop on how it all happened
can be counted on the fingers of one hand. One such man is Shorati Hadi,
President of HIT Travel. Tokyo Journal visited Hadi at his Ebisu office.
tj Mr Hadi, you were around when the very first shoestring
travel agency opened in Tokyo way back in 1985. At that time you were working
at one of the major travel agencies.
Hadi Yes, this is how it all started. A major travel agent (the one
I was working for at that time) opened a discount ticket shop targeting
foreigners. And as a result the entire industry changed. Today even JTB
offers discount tickets, last but not least because the Japanese customers
are more price-conscious now than they used to be. When we first started
selling cheap tickets from a little room inside a rundown office building
in Shinjuku, it was absolutely unthinkable that companies like JTB would
ever move into discount sales.
tj Were it not for the frugal foreigners, would the Japanese still
be paying through the nose today?
Hadi Cheap tickets were always available in other parts of the
world. Most notably in Bangkok and Hong Kong, places most foreigners would
visit to renew their visas. In the old days foreigners would buy all their
tickets outside Japan, even if it meant forfeiting one leg of a round trip.
In the end it always saved them money.
tj In the beginning there was only one discounter. Today there are
dozens. What happened?
Hadi The early bird gets the worm. But it didnt take long
for other entrepreneurs to follow. Before you knew it, discount travel agencies
had sprung up all over town. However, business for our agency was blooming.
I worked myself up from supervisor to manager to branch manager, eventually
being responsible for a staff of 60 representing 48 different nationalities.
Just imagine. Guys speaking 48 different languages, all with different cultural
backgrounds. And you have to find a way to motivate them all for a common
goal.
tj There came a day when you made a bold move and decided to go independent.
Today you are President of HIT Travel, one of the fastest-growing travel
agencies in Tokyo. How does it feel to be in full control?
Hadi It feels great. Here I am in my own office in Ebisu, selling
tickets to foreigners and opening my first branch office in Okinawa at this
very moment. This will make me the first in Tokyo to seriously offer domestic
travel packages to sunny Okinawa, where you can scuba all year round, enjoy
Chinese food, and relax on the beach. In short, for very little money you
can get away from the city
stress and be in a completely different environment. All without visa hassles
or expensive reentry permits. Why go to Guam, when
paradise is right at your front door?
tj What is the secret of your success? How can you offer better service
at better prices than most of your competitors?
Hadi From the travelers point of view the art of running
a successful travel agency may look quite simple. A guy walks into a shop,
buys a ticket, and thats it. In reality the secret of success is accurately
predicting demand being able to foresee travel trends, and then securing
blocks of tickets well ahead of time. Lets say at the beginning of
the year I commit to buying a certain number of tickets from a certain airline
to a certain destination. The higher the number I commit to, the larger
the discount I get. This in turn allows me to offer cheaper tickets to such
a destination than the competition can.
tj I guess this is what all other travel agencies are trying to do
as well betting on travel patterns and trying to get the best deals.
Hadi Apart from there being two types of agents, wholesalers and
retailers, this is basically an accurate description of how the business
works in Japan today. Learn to become better at this game or youre
out. Fortunately I have been getting better for the last 15 years.
tj So your customers are getting the best deals
because you are the best.
Hadi Exactly.
tj As a businessman you have the ability to show us the future. In
what direction is the travel industry headed?
Hadi In the discount market you have to work with extremely slim
profit margins. Companies that do not produce volume will not be able to
compete in the long run. If you have volume you can offer lower prices and
still generate enough profit to maintain a healthy business. This is where
management skills and experience come in. I see smaller agencies getting
squeezed out of the market. More and more shops will lose money if they
continue to stay open, but they will lose all opportunity to make money
if they close. It is the survival of the fittest. There will be a shakeout
in the industry that will affect companies on both the high and the low
end.
We need to demonstrate stability and reliability through good management.
Only through wise planning and solid business strategy can we continue to
offer the best prices and still maintain good enough profit margins to attract
capable staff.
tj Beyond good prices and reliable service,
what do your customers get from you?
Hadi They get the human touch. The customers must feel that you
are genuinely trying to help them. The fact that HIT Travel is doing just
fine in this department is evidenced by our large base of satisfied repeat
customers. Theoretically you could sell tickets from vending machines. But
in practice this only works for full-fare class. To compete successfully
my staff must work for the full satisfaction of their customers. Postcards
from all over the world from happy customers are witness to our personal
relationship with our customers. Thats what makes us happy and gives
us the motivation to provide reliable but also friendly service.
tj HIT Travel, the team that serves you with a smile?
Hadi Exactly.
Contact: HIT Travel
3F Miura Building, 3-16-10 Higashi
Shibuya-ku, Tokyo 150-0011
Tel: 3473-9040, Fax: 3473-9041
E-Mail: hit@mail.findex.ne.jp |
* Fax your ticket requests 24 hours a day * We are able to arrange tickets
the same day of your departure * English-speaking customer service staff
* Make payment by bank transfer from any Japanese bank - US$ also accepted
* Special Family and Group rates available * Earn points toward future discounts
*
Office Hours: Mon-Fri 9:30 - 6:30, Sat 10:30 - 5:00 |
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