Strategic Investment Alternatives for the Travel Agency Sector in Kenya in the Face Of a Turbulent Global Environment

A Journal article by Dr. Paul Katuse, a Lecturer at the Chandaria School of Business in USIU- AfricaThe highly unpredictable and competitive environment has had a profound impact on the travel sector, with travel agents, who had a very fruitful relationship with the airlines increasingly facing reduced incomes due to the increased use of the internet by travelers and the removal of agency commissions by airlines. This has resulted in travel agency owners and managers searching for strategies to adopt in order to survive the turbulent business environment. This paper explores the alternative strategic business options available to the Kenyan travel agency owners / managers in the face of this turbulent environment and suggests the most viable for adoption. The author uses desktop research, through the International Franchise Assessment Model and Uniglobe Travel International as case to analyze the franchising as a strategic option for travel agents. The findings indicate that Kenya is an acceptable destination for franchisors to invest in and the benefits of Kenyan travel agents adopting franchising as a business model are enormous making it the best option for them. The study recommends the create of awareness about franchising in the country, the enactment of a franchising law to guide and regulate the business and promote the development of the franchising business in the country