Sunday, 20 January 2019

Travel agent: a job of the past?



It may sound provocative, but the title is maybe not too far from the reality as at 28 years old, I have never booked a single trip with a traditional travel agent. Even worst, once I went to ask for advice, but ended up booking my trip online. Shame on me, I know. I hope that this post will be my redemption. 


With a degree in Tourism Management in the pocket and a lot more maturity, I have now a better view of the added value brought by travel agents. But first, let’s put the situation in its context.



WHEN THE STORY BEGAN

We have to go back to the 19th century, when a guy called Cook, Thomas Cook, started to organized trips for his clients. Then, with the paid holiday, this market exploded as more and more people were able to travel. Before the internet, being a travel agent meant:


  • Give advice to clients
  • Book tickets (transport, entertainment) and lodging
  • Organize trips



DISINTERMEDIATION AND OTHER SURPRISES THAT BROUGHT THE INTERNET


With the entrance of Mr Internet, John Smith didn’t need Lisa the travel agent to book his flight to Miami, and Swissair could also sell tickets directly to him, poor Lisa. No need to move anymore, John had just to turn on his PC.


Lisa also had to face the arrival of the OTA, the online travel agencies, such as Expedia. She realized that she was now competing against giants that are existing only online.

Day after day, Lisa was losing energy. It was harder to open the doors of her agency every morning. When she was showing the different possibilities of trips to her clients, she often heard this sentence “but when I visit Kayak.com the flight that you are showing me is 150£ cheaper!”


When her niece showed her that she organized her trip entirely by herself, jumping from travel blogs, Tripadvisor and Airbnb to Facebook, Booking.com and Instagram. It was too much for her. 83% of trips of UK customers are booked online in 2017?! Does her agency have a chance to survive?


Channel through which UK customers booked a holiday in 2017

TODAY…


Hopefully, Lisa didn’t lose faith in her job. She is now aware that the competition has increased and that she has to fight harder. Today, she has now a solid strategy.

  • In addition to her brick-and-mortar agency, she has now a website 
  • She tries to maintain the contact with her customers thanks to a regular newsletter and a Facebook account
  • She works with influencers
  • She knows that she has to put forward her expertise



…AND TOMORROW


Lisa doesn’t want any other bad surprises. She is now taking part of an online master in Marketing with the University of Exeter, which is a good tool to help her to forecast the future challenges her job may face. She read about Artificial intelligence, and how it can help a company to customise its offer, for example how a reception staff, with data on the spa use of John Smith, might propose him a particular service. However, Lisa was relieved when she read, in the same article, the following: 


A spokesperson for ABTA, which represents UK travel agents and tour operators, says almost a fifth of Brits still booked a holiday in a travel store last year and that although artificial intelligence can help with targeted marketing, “it can be hard to beat the human touch”.


Lisa decided to update her profile on LinkedIn, changing her current role from Travel Agent, to Travel Advisor, after reading a post on Forbes. She completely agrees with the statement that says that “Travel agents represent a dying business that no longer serves customers. Travel advisors, which provide a professional service, are the future.” She knows she has to differentiate herself from the sources of information and services that can be found online.

Lisa is also trying to understand her customer better. She saw on the following graph that people between 35 and 44 are the most likely to use her services. 

Age groups and their preferred methods of booking holidays UK

She is also relieved when she reads on Skift that more travelers are using agents than a few years ago, and that research showed that 19 percent of travelers used an agent in 2016, up from 13 percent in 2013. 


This is why Lisa decides not to give up. She will invest in technologies, as recommended by a marketline report. She believes in Augmented Reality and Virtual Reality, by showcasing locations and hotels through in-store headsets or even via mobile devices at home.



Model Figure Standing on Map

4 comments:

  1. Hi Joanne,
    I like the way you wrote your blog, the novel style, I wrote about the same
    subject. Interesting to see that we have some matching points, but also both
    found some other information. You mentioned that often the guests found it
    cheaper somewhere else, funny thing, when I was reading about travel agencies
    the one thing which came up was that thanks to their great business
    relationships, they can often offer you a (much) better bargain than you can
    get online (https://www.tripsavvy.com/reasons-to-use-a-travel-agent-3259812).
    Additionally, I think what you said that many, mainly Millennials, are booking
    themselves is true. However, I think Lisa should not focus on getting everybody
    in her agency, but focus on a specific target group/persona as well as certain
    (exotic/special/adventurous) destinations which she wants to offer. Indeed,
    then she would become a personal advisor who offers a customised trip, and I
    reckon, that will still work in the future. We all still need that human touch
    in some way! What do you think?
    Regards, Lisanne

    ReplyDelete
    Replies
    1. Hi Lisanne,

      Thank you for your comment, have a look at my first post as well, there is a small game ;-)

      Regarding the perception of price, I think it depends of the offer. For a two-day trip in Paris, a city that I know well, I think that, with the commission I will have to pay to the agency, the service will not be worth.

      For sure the human touch is essential, I would like to go to Asia, and I basically know nothing about this destination, for sure I will book via an agency. There are too much information on the internet, I want to rely on professionals.

      Best wishes,

      Joanne

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  2. Hi Joanne,

    Really enjoyed reading your post. Thank you.
    I find it really interesting that even with digital tools such as skyscanner for flights, bookings.com for hotels and Uber for transport. People are still using agents to book their holidays..

    Then I realized that if I were to book a holiday for my family I would for sure go to an agent. This is why:

    1) Atol protection

    2) I would want to make sure that the holiday I booked was suitable for my kids ( wouldn't want to accidently book a hotel in the middle of a clubbing district)

    3) I think that the personal touch from the service side is great and helps you to get excited rather than a cold website booking.

    Why do you think people still use agents?

    All the best,

    Reza

    ReplyDelete
    Replies
    1. Hi Reza,

      Thank you for your comment.

      I agree with what is said in this Forbes article:

      https://www.forbes.com/sites/johnnyjet/2017/11/06/do-people-still-use-a-travel-agency/#33c975255e6a

      It is basically saying that if my trip is complex, I should better ask professionals. Same for other industries: I like cooking cookies, but if one day I am getting married I will not bake my wedding cake myself! nor will I build my own house or cut my hair myself!

      Delete