With record sales and now Atol certification under its belt, InteleTravel has ambitions to become the most profitable homeworking agency in the UK. Sasha Wood reports from the InteleTravel conference.
InteleTravel’s entrance into the UK homeworking market five years ago caused a stir – a furore even. The legitimacy of its operations, in particular its recruitment, was repeatedly questioned. It was branded – written off even – as a multi-level marketing business, a pyramid scheme, something its senior leaders have always refuted.
But with Abta membership and an Atol certification has come acceptance; whether those protestations were fair, or any more than an act of collective self-defence and solidarity on the industry’s part, it is all a thing of the past for boss James Ferrara. At InteleTravel, they do – and always did – things differently.
“To try to protect against new ideas or new competitors never works – it’s like railing against the storm," Ferrara tells TTG at the company’s annual conference. "Our place right now is as a leader in the travel agent homeworker space. We are certainly the biggest homeworking agency by number of agents – no one even comes close. But we are not the biggest homeworker agency yet by travel sales – and we will be."
His confidence is reflected in the buoyant atmosphere at the conference, held at Belfast’s historic Assembly Buildings, which comes off the back of the company recording record UK sales. “2021 turned out to be our best year ever globally," says Ferrara.
"Prior to that, it had been 2019. When a lot of businesses were beginning their pandemic recovery, we came back fully recovered. And then 2022 became our new best year ever. With the growth rate in the UK, we doubled our business in terms of travel sales.”
Although the UK has been the most successful of the company’s markets in the past few years, that success has been “hard won” according to Ferrara, who reflects candidly on the challenges InteleTravel went though to get the company going here. “It took two years to get to our Abta membership and another two years to get to our Atol,” says Ferrara, “So we are fully committed to the UK market.”
Bullishly addressing the questions around the legitimacy of InteleTravel’s business model during the early days of its entry into the UK market, Ferrara stresses these quickly dissipated once the business received the traditional validations. "You have to look to yourself and change," he continues. "I think people learned that lesson. We got Abta and most of them quietened down.
"A few said, ‘you’ll never get Atol’, and we got Atol. We haven’t heard a peep out of anyone since. We’re here, and we’re here to stay."
Setting the record straight, Ferrara highlights how InteleTravel has always used PlanNet Marketing for its recruitment, and offered no incentives to its franchisees to recruit new agents – a charge previously levelled at the business.
“There’s never been any compensation for recommending agents at Intele, only PlanNet Marketing," he explains. "We pay PlanNet Marketing a recruiting fee every time they get someone. That was a big thing that had to get worked out – people didn’t understand our business model, but we had to show Abta exactly what we were doing, and they got over it very quickly.”
Perhaps encouraging agents to sell primarily to family and friends was misconstrued, but ultimately, Ferrara credits the business model with the company’s rapid pandemic recovery and subsequent success. “The most important thing is the business model – it’s the fact that our agents are selling to people they know, people they have relationships with, from some other life they have," he says.
"They’re not sitting in a high street office doing just this, they’ve got this rich life of trust bonds with other people. That’s the kind of selling that they do – it’s your brother-in-law who is your travel agent. Those are the last bonds to break – those are the ones that hold on the best. I believe that’s how our agents were able to perform the way they did during the pandemic when other types of marketing weren’t working.”
In fact, Ferrara reveals InteleTravel’s agent headcount actually grew during the pandemic. “Our model has actually come into play even more during the pandemic," he continues. "People were reprioritising and got used to the idea you could be productive from home. We got a lot of interest during that time – 2020 and 2021 were big new-agent years for us. We had a lot of new agents as a result of this shift in mindset.
“We’re already at twice the number of agents that I ever projected for the UK market. There are 11,500 agents in the UK, almost 80,000 worldwide.”
The growth of its relationships with core suppliers is another sign of the company’s positive trajectory. “We have at least eight new suppliers on board this year and the partnerships are coming along well. We have more training event sponsors than we can accommodate at this point,” Ferrara explains.
Geographically, the business plans to expand further, according to Ferrara. “For us the next opportunity is to expand the markets," he says. "For people in the UK here, they want to be able to sell to friends and family in France or in Ireland. Ireland will be next – we’re quite close. Then Canada, then western Europe. Our strategy in western Europe is proprietary at the moment but we will move into the markets one country at a time."
InteleTravel’s recently-acquired Atol is a mark of its ambitions. Ferrara says the company spent six to eight months preparing to sell the packages and putting the training and technology in place. In the two months since it launched Atol-protected holidays, agents have already sold more dynamic packages than he initially predicted.
“We projected very low numbers for the use of Atol certificates and we’re a bit ahead of that so it’s interesting to see,” he says. “Ultimately, we’re going to use it to expand the business. There is a longer-term plan for us to develop more of our tour operation because it makes the margin wider on sales.”
But aside from increasing its depth and share of the market, the company is focused on nurturing new talent with the use of technology too. “I think we are and will be a great source of new talent to the industry – we’re bringing in young people because our model is attractive to them," Ferrara tells TTG, proudly.
"That’s something the industry has needed – young blood. We’re pushing the envelope on technology and we’re doing some things other agencies hadn’t been able to do. New recruits always go straight into training – the first bit is automated, the next bits are live. We’ve run 62 webinars already so far this year. And when we have webinars, they come to them in droves. We have 500, 600 agents on a webinar. From a supplier’s point of view, that’s a great opportunity."
Ferrara doesn't shy away from InteleTravel's place as a disruptor. But as the business matures into the UK market, Ferrara has his sights on a new tag. “We’re a creative force in the industry in general, in that we’ve brought in new ideas and options," he explains. "I think we’ve been a bit of a disrupter. I see us as a fierce competitor in the UK market right now, but there’s plenty of business for everyone."
Find contacts for 260+ travel suppliers. Type name, company or destination.