"Most travel worldwide is for business purposes; you have to know how to capitalize on that" — Erez Shamul heads one of the world's 20 largest business travel companies

Erez Shamul is an Israeli entrepreneur and businessman, chairman and principal owner of the Telma Travel and Tourism Group, one of Israel’s largest and most intriguing tourism companies. In the current episode of the radio program “Seeing Far,” hosted by Aviv Cohen and Merav Miller, which focuses on investments, finance, and the impact of tourism on the real estate market in Greece, Shamul talks about how the company he manages and owns has grown into one of the world’s largest in its field, the use of technology in the tourism industry, and the things that bring him joy.

How does one build a career in the tourism industry? How can AI be integrated into an industry that resists adopting new technologies? And what impact does tourism have on the real estate market? In this episode of “Building Far,” the radio show hosted by Aviv Cohen and Merav Miller, which focuses, among other things, investing in Greece and investments in Athens, the program hosted Erez Shamul, an Israeli entrepreneur and businessman. He is the chairman and principal owner of the Telma Travel and Tourism Group, one of the largest, most prominent, and most interesting tourism companies operating in Israel, characterized by continuous expansion and investment.

Personal Background and History – Half Carmelite, Half Falash

The story of Telma begins in the late 1970s, says Shmul, who describes himself as “a kid from Haifa’s Carmel neighborhood, who used to be one of those Haifa residents who took offense if asked why they didn’t move to Tel Aviv.” Nevertheless, he also spent quite a bit of time in the village of Migdal, which his great-grandfather helped found over a century ago. Thus, he describes himself as “half Carmelite and half a farmer from Migdal.”

The family’s entry into the tourism industry began when his mother worked at Elbit and was in charge of the company’s travel department in the late 1970s. As a child, he would wander around the offices and, even then, absorbed the concepts and terminology of the tourism world. Later on, his mother took the idea and turned it into an independent business—a small travel agency they opened to serve the travel needs of corporate clients, which was run as a family business for years. Toward the end of the 1990s, Shmul took the reins of the company.

Business Growth and Global Presence

Shmul took the company from a small travel agency with relatively low volume. “I’ve gone through the entire journey from ‘prehistoric tourism’ to the most modern tourism available, using world-leading technology.” Over the years, he managed to grow Telma from a company worth just a few million dollars to one with over half a billion dollars in revenue on the eve of the pandemic. Today, the company is one of the top 20 companies in the world in the business travel sector, with numerous plans for acquisitions and mergers in the near future.

Business Tourism vs. Leisure Tourism

Shmul explains that the global tourism industry is divided into two-thirds business travel and one-third leisure travel; in other words, most of the people on planes around the world are traveling for work. Telma specializes in business travel.

"The company manages large corporate client portfolios much like investment portfolios—nurturing, adjusting, optimizing, and constantly updating them with the latest technology," he explains. In addition, the company works with major aggregators and other large global travel companies with which it has commercial agreements. Its operations include the fully electronic purchase and sale of vacation packages, airline tickets, and everything related to travel.

Technology, Forecasting, and AI

Shmul emphasizes that all tourism “traffic” today relies on optimization and forecasting systems that can predict the future. He admits that “it sounds crazy, but the reality is even crazier.” The company currently has AI systems that can predict, at any given time, the exact moment when it will be right to buy a ticket—from three to four months in advance up to six months. For example, if someone visits one of their websites, the system performs a meta-search (comparing prices with competitors) and sets a price. At the same time, it activates a prediction system that tells it whether to buy now or postpone the purchase to a specific date in the future (for example, in 10 days at a certain time) because the price has dropped, sometimes by hundreds of dollars.

This technology, considered the world’s best prediction system and the most advanced company in the field, is Israeli, and Shamul was its first investor. Shamul notes that he is not afraid of technology and AI, but rather embraces and invests in it. “Unlike most in our industry who try to suppress technology and ignore the future, I have always done everything I can to be part of technological development,” says Shmul, who currently serves on about four to five advisory committees worldwide and in Israel and is involved in initiatives and deals in the tourism industry.

Overcoming Challenges and Global Expansion

Shmul refers to the major challenges the tourism industry has faced in recent years. “Since the onset of the pandemic in the first quarter of 2020, we haven’t had a single normal year of operation. The pandemic lasted until the first quarter of 2022, and the war began in the last quarter of 2023,” he notes.

“The biggest challenge for them,” says Shamul, “was to support the agents and make sure they didn’t lose hope, because the challenges they face every day are ‘superhuman’ in terms of survival.” Flight cancellations resulting from events such as missile strikes undo months of work and take a heavy toll on the agents, both mentally and commercially.

The main lesson learned from that period was the need to operate increasingly on the global stage, where the next wave of competition lies. He explains that today, people look for prices on global platforms and not just through local agents. Therefore, Telma has expanded into international markets and is making acquisitions, primarily in the United States and the United Kingdom. This move allows them to be less affected by the vagaries of local conflicts and to better cope with future pandemics by utilizing alternative supply chains.

A Passion for Music and Building a Community

Beyond business, an area that has always fascinated him is music, and he is involved in both the rock ’n’ roll and electronic music industries. He has been working with the band Mashina for many years, advising them on financial matters and branding strategies. “I met Shlomi Barak from Mashina in Turkey 25 years ago and saved him and his friends from losing a water polo game,” he shares.

Shmul was involved in music from a young age, initially playing cassettes and records at class parties in Haifa. He later became a Haifa-based DJ who spun records at clubs and parties, while also serving as the lead singer of a rock band. He played alternative, post-punk, acid house, and electronic music. When the business world drew him in, he promised himself he would return to music once life became easier.

Two and a half years earlier, after turning 50, he returned to it. “I learned the new systems of DJing, production software, and performance tools. I started playing at home, and I got feedback that my sets sounded good, like those of famous DJs,” he says. He began experimenting with close friends, and within less than a year found himself among the top tier of DJs in Israel, performing on lineups alongside all the famous DJs in front of audiences of 400–500 people.

He is also part of a community of people aged 40 to 55, which numbers over 500 members. “This community brings a lot of color into the lives of many people, including helping couples who had lost hope to stay together.” This demographic, which he says missed out on the first wave of electronic music and parties, “is now finding a comfortable platform, a welcoming environment, like-minded people, and high-quality music.”

Hawaii, Surfing, and Personal Goals

When asked about his favorite destination, Shamul answered without hesitation: Hawaii. “Not just because of the surfing. In terms of excitement, it’s the most thrilling place in the world; the nature there hints at what the world looked like during the age of the dinosaurs. The power of the Pacific Ocean is unlike anything else, and there are animals like big sharks—far more than you’d find in Hadera.”

Tips for Entrepreneurs and Investors

In conclusion, Shmul shares a tip for entrepreneurs and investors. “It’s very important to be creative. I took risks and jumped in even when it wasn’t easy, so it’s very important to take the plunge and not hesitate.” However, he also notes that it’s crucial for businesses to always be managed properly and for everything to be monitored and controlled. He has sometimes found himself rushing ahead only to discover gaps in the infrastructure that was supposed to support growth.