Are travel agents past their sell-by date?
Posted in General on January 26th, 2010 by Andy Jarosz – 7 CommentsThis was the title of last night’s debate organised by CIMTIG and held in central London. I was keen to hear this discussion and went in to the event dubious as to the value of the high street travel agent in the wired world. I wrote in an earlier 501 Places post how I had not used an agent for 10 years and was interested to hear from travel agents whether they could offer something that might cause me to re-evaluate my view.
The debate inevitably focussed on the battle between high street travel agencies and the internet. John McEwan, chairing the debate, quoted statistics that compared the number of high street agencies in the UK in 1999 (9,000) with 2009 (6,000). Although at first glance this represents a sharp decline in the number of UK agents, the picture becomes clearer when you consider that there are over 2,000 home workers across the country. Another figure quoted was the 2,435 UK travel agency websites. The figures suggest the demand is still strong, and indeed both the online and high street agencies represented on the panel reported strong sales in recent months. What is clear is that the model of selling holidays is changing, and the internet is playing a major part in that change.
Nothing surprising there perhaps. What I found most interesting was the moves described by Jackie Steadman of Traveltime World, who spoke about the way their offering has evolved to meet the needs of their customers. She spoke of the need to understand quickly what their customers were looking for by profiling them on arrival in the shop, and the ability to deliver this. One extra that her group offers to travellers is a chauffeur service to and from the airport, and for the return trip the driver will have the customer’s favourite newspaper waiting in the car and even stop off for some milk on the way home. But best of all he will engage in conversation with the customer, illiciting feedback on the customer’s holiday experience which is fed back to the company. He even asks where they might be thinking of going next, and this enables very specific marketing to that customer in the following weeks and months.
That sort of innovation is critical to give agents the edge against the online world. As Lawrence Hunt of Lowcost Travel suggested, his mass market model allows for a margin of £50 per booking, while the model that Traveltime World operate requires margins of nearer £200. As was generally agreed by both the panel and the audience, high street agents can no longer expect to survive by selling ‘bucket and spade’ holidays at the cheapest prices. They need to offer something more.
Product knowledge, as I alluded to in my previous post, is critical. Many agencies have to balance the need to invest heavily in training their staff against the reality of regular staff turnover and subsequent lost investment in their people. Do you send your new staff on a fam trip to the Caribbean only to see them leave within a year? But if you don’t, how will they will able to offer valuable advice to prospective customers about that destination? Even without the trip, how much time and money do you invest in training? How do you create a working environment that encourages the best people to stay?
These are the real issues being faced by agents, and I have a bit more understanding for their business and the challenges they face having heard the debate. I also have a lot more respect for the efforts that some of them are making to evolve in the face of a very different travel world. One thing is certain: the wishes and needs of the travelling public will continue to shift, and the successful business will be those that are innovative enough to change their business to meet these needs. The internet has created a low-cost business model that is hard to match on the high street. But there is still a real opportunity for those business that excel in making the travel experience a delight, and they need to start that experience from their first contact with the customer.












