The Hindu Business Line : Rail Europe to tap smaller towns through sub-agents

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To pay lower commissions to such sub-agents compared to its regular GSAs whose commissions range between 6 and 15 per cent.
Looks at making India an outsourcing hub and serving as a back-end to its worldwide operations.

Mumbai , Nov. 25

Rail Europe is planning to induct mid sized travel agencies as sub-agents from smaller towns and cities. Considering the company has its network of general sales agents (GSA) who reach out to their sub agents, the European rail company wants to give further incentives with added commissions to such sub-agents by directly roping them under the company.

Sub-agents

Speaking to Business Line, Mr Gopi R. Iengar, Area Manager - India and South Asia, Rail Europe, said, "We intend appointing more mid sized travel agencies as sub-agents and intend paying them commissions between 4 and 13 per cent."

Besides Rail Europe would also be providing added infrastructure to these smaller travel agents by setting up terminals with direct access to Euronet - its rail reservation system.

General sales agents

"We feel in the smaller cities, our GSAs are not strong enough when there is potential to get business. Our estimates show that such places can generate turnovers between Rs 15 crore and 20 crore."

Tapping into smaller towns and cities, Rail Europe intends reaching out to nearly 300 such places across the country. "It would be incremental business and by appointing more sub-agents, we would not be cannibalising our existing business," says Mr Iengar.

However, the Europe-based rail company would be paying lower commissions to such sub-agents compared to its regular GSAs whose commissions range between 6 and 15 per cent.

With western India comprising the bulk of its bookings, Rail Europe is now planning to expand its operations in the southern markets.

"While it is cities such as Mumbai which have the highest demand for our rail passes, we are focussing on the southern markets this year, targeting cities such as Chennai and Hyderabad," Mr Iengar says.

Rail Europe has existed as a liaison office in the country and now will be converting itself to a wholly-owned subsidiary of its parent company in Europe. Providing a range of rail products, its main offering is its Eurail pass. The pass gives access for rail travel across the European countries.

Besides, there is also a possibility of making India a service hub for the European rail company.

"We are looking at making India an outsourcing hub and serving as a back end to our worldwide operations," says Mr Iengar. With a turnover of Rs 50 crore, Rail Europe is expecting to grow its business by 20 per cent in the Indian market.

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