Forum for the Singapore Travel Industry

[admin]

In my analysis of the local travel industry, I noticed that staff salary has gone down significantly in 2003 and then started to climb up gradually. What happened was salary has increased correspondingly with sales growth. However, there has been no indication that the companies are making use of these staff more efficiently by increasing their productivity level. By that, I do not mean longer hours for the staff, but rather producing more work at a shorter period of time. Without this, the staff salary will continue to increase. In time to come, labour cost would become unsustainable and may cause the business to go into the red. And this also can happen in situations where sales are still growing. It is not strange for travel agencies to fold up their businesses even if the sales are good.

To forestall that, business owners must make sure that as the salary of staff increases, the productivity of the staff also increases correspondingly. This ensures that staffs are adding more value to the business while their salaries increase.

[Vincent]

Salary scale in this industry is low considering the service we have to provide and the tons of paper work. Do not think it will ever match other better yield industries.