Trade

Travel trade transformation, all through last decade

By Rubina Aman

The travel industry has seen some of the most profound changes in modern business and it’s taken just one word to dismantle the status quo: Internet.

A travel agency functions by providing travel and tourism-related services on behalf of the suppliers, including airlines, hotels, cruise lines and car rental businesses. They turn out into a hair-pulling, anxiety-inducing process of calling, price matching and booking into a streamlined means of securing a getaway.

The internet has transformed the way we think about domestic and international travel. However, it didn’t emerge without warning and reflect a broader change in how consumers are empowered to get what they want, when they want it. The business model of travel agencies has changed, mostly due to the rise of online booking but also due to the popularity of telecommuting, which has rendered many business trips unnecessary.

For travel agents, the likes of Airbnb represent consumers assuming total control of what has traditionally been ‘left to the experts’. The usual traveller today can search for and book an affordable, secure, well-located room at his own discretion.

Online hotel booking didn’t begin with Airbnb, but its human-to-human value offering has challenged the personalised service that travel agents have relied on to attract business.

The new technologies have empowered consumers like never before, yet these same empowered consumers have recognised that perhaps their flight deals aren’t the best, their Airbnb hosts aren’t the most accommodating and their itineraries aren’t the easiest to navigate. Yet the travel agency model persists and those who see its digitalisation as an opportunity not a threat, are flourishing.

The reply to travel agent’s selling point today is simply removing the inevitable human error associated with do-it-yourself bookings.

Travel agencies have always leveraged personal service as a selling point for their business. They collaborate with the traveller, in crafting a trip that is tailored to wants and needs. They also leverage their existing personal relationships with suppliers, like hotels and airlines, to deliver this package

Streamlined travel management platforms allow agents to remove the guesswork involved in free online booking tools. It’s the responsibility of travel agencies to communicate this point clearly and with data-based evidence.

For corporate travellers, enlisting the help of an agent is an absolute no-brainer. It’s no secret how complex business travel can be, especially when navigating unexpected changes to itineraries and strict corporate travel policies.

Hence the market is still demanding traditional travel agencies when there are easier and cheaper options? According to Statista.com, over half of consumers in the United States reported that travel experiences planned by agents were better than those that they had planned themselves.

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