I See Opportunity Here: One-On-One With Stephan EKBERGH, CEO, Travelstart




Mr. Stephan EKBERGH, CEO, Travelstart is an astute entrepreneur with a keen sense for achieving milestones, changing stereotypes and breaking barriers. In this exclusive interview with Ewos IRORO, he shares the vision of the company and offers insight on a number of pertinent industry issues.   
 
Tell us about yourself and professional industry experience?
I've been an entrepreneur since a kid. It's in my blood. So, self-employed for most of my life with 15 travel start-ups over a span of 30 years. I was the pioneer for online travel in Scandinavia and brought Travelstart to South Africa. From here, we started our Africa roll out. Work aside, I am married with four kids and a dog. Africa is my home since 10 years.

Could you take us through the vision of Travelstart, how it began and how it eventually entered the Nigerian market?
We started Travelstart in Scandinavia in 1999 and ran it there for several years. I started Travelstart in South Africa in 2006 and from here decided to expand into more   emerging markets as I saw the need for an online travel agency in this region

What was the motivation to come into the Nigerian market?
The opportunity that this market presents, on an e-commerce front and also volumes it presents within the region. Also, I see the Nigerian market as being an underserved market, with poorly managed customer service. I see an opportunity here.

Since entering the Nigerian market, what has your performance been like?
We are satisfied with what we have achieved thus far though we still have a long way to go. We have had more than a threefold growth since we launched in 2012. We are proud of having the largest Facebook following in travel in Nigeria.

Who are your target customers and how are you reaching out to them?
Our target market is the online community. People who are seeking convenience, people who want to save time and money and are able to do all of this from the convenience of wherever they want to be.

How is mobile changing the travel industry in Nigeria?
Mobile is just another distribution channel and is definitely the future. Nigeria has major mobile potential and we have already seen solid growths of mobile bookings on this platform.

What are some of the challenges you have encountered in the Nigerian market and how are you addressing them?
Lack of basic infrastructure like cheap & available bandwidth for easy connectivity that will give unrestricted access to internet at an affordable cost. Secondly, Credit Card penetration is quite low in this market as compared to other developed markets and for e-commerce to thrive, the Nigerian government and our financial institutions must provide the customers with the security and confidence to transact with their credit cards online. Due to the peculiarity of this market, a lot of Nigerians are still quite skeptical about booking online and this has informed Travelstart to use all possible online and offline marketing channels to create more awareness for the brand in the market. This will most definitely give the customer the confidence knowing that we are only a step away from them.

What is your vision for the Nigerian market?
To become the number one online travel agency

How are you partnering with airlines in Nigeria to further extend your services and reach to customers?
We are leveraging on the good relationships we have with all the airlines operating in this market to give our customers good ticket deals that are competitive. We also partner with the airlines on our campaigns and competitions by giving back to the passengers where they have the opportunity to win a free airline ticket which is our little way of appreciating our esteemed passengers for standing by us all through these years.

What do you think the Nigerian Government has to do to promote inbound tourism in the country?
Government is already doing a good job by remodeling the airports which is a positive step in promoting tourism. Government should also provide enabling environment where a customer can actually come into the country, rent a car seamlessly with his credit card without having to be chauffer driven. Government also needs to invest in security so that tourist can move around freely without fear. There is lots of interesting tourist destinations in Nigeria that need to be revamped by the Government for tourism to actually thrive in this market. When all these factors are adequately taken care of, it will assist in boosting the Nigerian economy.

The online Travel Agency business is growing in Nigeria with more and more people embracing the idea. What impact, if any, could this have on the services of regular travel agents and what do you think the future holds for them?
Traditional travel agents need to adapt to the changing times or else they will disappear. As people become more comfortable and familiar with transacting online the services of a traditional agent will be less sought for. With online offering the lowest fares at the convenience of your decided time and place, this will be increasingly the way to book travel.

Where do you see Travelstart five years from now?
The number one online travel agent in Nigeria

How has e-commerce affected the Nigerian Travel Industry and the behaviour of customers to its acceptance?
Very early days still to provide a full picture

What makes internet a critical channel for air travel practice?
The internet facilitates saving time (think of no longer sitting in traffic to get to an agent - you can do it all yourself) and convenience (any place, any time).

What changes would you like to see in the Nigerian Travel Distribution market?
Better functioning airports, higher uptake in credit card payment, more distribution possibilities of Low Cost Carriers (LCCs) via Global Distribution Systems (GDS).

How do you find time to relax?
I take weekends off. I spend time with my family on our wine farm outside Cape Town. And of course I drink some wine whilst doing so!

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