This 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.
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My husband and I converted to booking our holidays over the internet years ago. And then, three years ago we went on holiday with some friends who don’t have a home computer. On their advice we went to the local high-street travel agency together. It was the most tortuous experience, and we vowed never to step into one again. It was difficult controlling 3 children under 3 for over an hour as the booking was made. However, there is a significant percentage of UK homes that don’t have internet at home, and for them, the local high street travel agent is the main way that they can book their holidays.
I have to admit that for our upcoming trip to Singappre, Australia (3 cities) and Hong Kong, we have used a travel agent, but done everything over the phone or via email. This has meant that we could research, consider, discuss and agree arrangements in our own time (and when the kids were in bed). Also, we didn’t have much spare time to plan the trip, so we relied on the specialist advice of the agent (who had been to all these destinations). As we did everything through the agent, we have a number of free trips or chauffuer thrown in – which we wouldn’t have got if we’d done it all ourselves.
I think that the profiling of customers is an excellent idea, but will it speed up the experience?
Thanks for writing a even-handed review of the debate. I also found your previous post interesting. I think many who write or blog on the subject of travel enjoy the lengthy process of researching destinations, lodgings and services as you reported. For many consumers lacking the knowledge base that you bring into the equation the Internet is often more confusing than helpful. There are many professional travel agents thriving in the Internet age by providing trusted advice that cuts through the online clutter. While you have the time and energy to do this research there will always be people who see the value of saving time by consulting with someone who already has the details they seek. There is a very low level of satisfaction reported by consumers with the online booking process. This is a great opportunity for traditional travel agents who find a way to put their message in front of those unhappy customers. Our industry has done a very poor job of countering the massive advertisement campaigns of the large OTAs. The travel agents and agencies who understand the Internet and social media and properly frame the conversation with consumers will be the ones who thrive in the years ahead.
If the travel agents and agencies who understand the Internet and social media and properly frame the conversation with consumers will be the ones who thrive in the years ahead.
This is a debate that has been raging in the travel industry for a while now and highlights the changing nature of the industry aswell as the online challenges that many high street agents face. Many small independents are in a position where they simply cannot compete online with the larger OTA’s, partly due to funds, perhaps inexperience of online marketing and also having the time to actually do it in-between serving customers.
To survive nowadays, especially with a reasonably good margin, a high street agent must innovate or carve themselves a niche in some way – as exampled by Jackie Steadman who arranges a chauffeur service for her clients as mentioned.
The independent high street agent has to set themselves apart and offer a service that no-one else can compete with. Buying holidays online is very popular now as we know but there are still some customers who value good customer service.
You mention homeworkers – our website (holidayholiday.co.uk) was set up originally as a result of us speaking to one of the largest homeworking groups in the UK, to enable them to be able to compete effectively online, not through their own individual websites as such but using a central website where they could load all of their offers into 24/7. It has grown over the years since but still supports over 200 homeworking agents all of whom have excellent knowledge of travel & are ABTA/ATOL bonded, but want to be able to get on with focusing on their customers, whilst we do the online marketing part!
Thanks to all for the great comments and constructive debate. It’s not always obvious from the outside that there are agents who share the same passion for travel and adventure as we, the prospective customer. Those agents who can get this across have a chance of even persuading the most independent minded travellers to start a conversation, and who knows, maybe even get their business.
My I add a short quote to your discussion for the travel agents defense? “As a professional travel consultant I can understand, anticipate and advise. Can your computer do the same?”
Thank you Marina for your input. For many people your point is very well placed. Like you say, a computer cannot do those things at all. My own choice to travel without the use of an agent is because I take the responsibility to understand, anticipate and find advice myself. I back my own ability to do so – and if I get it wrong, that will be part of my holiday adventure. It depends on a person’s outlook. Travel agents are not for everyone; but that probably a good thing for agents too