WE PRIDE OURSELVES ON ETHICAL PRACTICES

Mobin Udash

Managing Director

Muskan Travel & Tours Pvt. Ltd.

How do you perceive the current state of the Nepali travel market?

The Nepali travel market is currently facing significant challenges. Despite the ample potential it holds, there is a lack of excitement and growth within the sector. One of the main reasons for this is the limited support from airlines to local travel agents. There is a stark contrast in pricing between international airfares found online or abroad and what is available locally within Nepal. On top of that, airlines do not provide commissions to travel agents when issuing tickets. As a result, agents are forced to add their own markup, which ultimately raises the cost for the customer.

This creates an intense level of competition among travel agents, many of whom are struggling to survive. A lot of agencies are reliant on annual incentives, often issuing air tickets without charging any service fees. This kind of practice is detrimental to the entire industry. It's a bad cycle that makes it increasingly difficult for travel agencies to maintain a sustainable business model, and in the long term, it could hurt the industry as a whole.

The trade is shifting towards online sales. What possibilities do you see in this transition?

While the shift towards online sales is certainly a growing trend globally, Nepal presents a relatively smaller market for aggressive online travel agents. There are already a few startups focusing on online ticketing, which makes it increasingly difficult for new players to enter the space. However, one key factor to consider is that people in Nepal still place a strong value on personal relationships and trust. The concept of "People to People" connections is very much alive here. Public relations are vital, and people tend to prefer doing business with those they know and trust.

Another issue is the payment structure. Many transactions still involve credit, and that often makes online sales more competitive, as instant settlement is usually required in this space. The online trade practices haven't been fully developed yet, so the market is not quite ready for a complete shift to online platforms. However, there is hope for the future. As technology and market trends evolve, online sales could definitely become a viable solution for the Nepali travel industry.

What do you think airlines should do to improve the situation?

Travel agents play a crucial role in selling airline tickets, and if they are restricted from selling or not given the necessary support, the whole concept of travel agencies becomes meaningless. To create a level playing field, airlines need to treat all travel agents equally. Currently, many airlines tend to focus primarily on the larger travel agencies, offering them extra perks and annual incentives. This creates unnecessary competition, where agencies are focused more on hitting sales numbers than on delivering quality customer service and ensuring profitability. This practice makes doing business more difficult for smaller or mid-sized agencies that might not have the same resources.

For a more balanced approach, every airline flying to Nepal should allow ticketing by any IATA-accredited travel agent here. Otherwise, it raises the question: Why would someone open a travel agency in Nepal? What's the point of putting up a bank guarantee for IATA accreditation if airlines are not going to support the agents equally?

Airlines are also not serving their customers or travel agents well enough. They're too focused on maximizing revenue through expensive airfares and providing little support. This creates a strained relationship, not just with the customers, but also with the travel agents who rely on them to make the system work smoothly.

How does the competition among travel agencies impact customer service in Nepal?

The pressure to meet sales numbers has a significant impact on the ability of travel agencies in Nepal to focus on customer service. Travel agencies are often forced to prioritize quantity over quality just to survive. This results in agencies issuing more tickets than they can realistically manage, leading to overburdened staff who are under constant pressure to hit targets. As a consequence, customers aren't treated as well as they should be. Communication is often poor, and customers aren't properly notified of important information.

In the travel business, 24/7 customer support is essential, especially when dealing with clients in different time zones who might need urgent assistance. For example, if a customer needs help at midnight Nepal time due to a change in their travel plans, the travel agent should be able to provide that immediate support. Unfortunately, this kind of service is rarely offered due to the lack of proper compensation or service charges. Currently, the industry doesn't practice service charges, which makes it difficult to provide quality support around the clock. Without a clear financial incentive for agencies to invest in customer service, the overall service quality suffers.

How is Muskan Travels different from other travel agencies?

At Muskan Travels, our philosophy is to build lifelong relationships with our customers rather than focusing solely on profits. We cater to a diverse range of clients, from lower-class laborers traveling to the Middle East to upper-class business travelers. Our approach is tailored to meet the specific needs of each customer, ensuring they receive the best service whenever and wherever required.

We pride ourselves on ethical practices. We don't overcharge our customers, nor do we sell tickets at a loss just to play the numbers game. Instead, we are driven by a commitment to values and ethics, which fosters long-term relationships and ensures customer satisfaction. This focus on trust and personalized service sets us apart in the competitive Nepali travel market.