Why Use A Travel Agent?

By: David J. Wardell

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Spring 97

Matrix News

David J. Wardell (1997)Why use a Travel Agent?

By David J. Wardell

 

Today, travel can be booked and ticketed any number of ways:  telephone, fax, mail, on-line–direct with the supplier, a reservation center, an on-line service company, or a travel agent.  The combinations are intimidating to many agents as well as to their customers.

What’s more, many people are predicting the demise of travel agents.  "Now that direct, on-line booking has become practical", they reason, "travel agents are a vanishing breed".

Won’t everyone be booking directly through The Internet or some other channel?  How can agents continue meeting the needs of their customers if they’re going to be bypassed any day now?

Before addressing the role agents play in travel distribution, let’s get a few things in perspective:

First, the number of people booking electronically is very small.  Despite what you’ve heard, nobody knows how large the ‘on-line’ market really is.  The most recent scientific estimates put the number of people using The Internet more than one hour per week (which isn’t much) at about 7 million in the U.S.

People have been able to book electronically for the past 13 years if they really wanted to:  the fact is that there aren’t long lines waiting for the chance to cut out their travel agents.

People have been able to book electronically for the past 13 years if they really wanted to:  the fact is that there aren’t long lines waiting for the chance to cut out their travel agents.  As more people get some kind of on-line connection, the number of people booking travel will grow.  But that’s a case of a rising tide lifting all boats, rather than an emerging new market.

Second, on-line booking isn’t particularly efficient.  Recently, a major television program asked a number of airline passengers what they paid for their tickets.  As you could predict, everyone had a different price.  The "best" price was found by someone after 8 hours of research on The Internet–he save $20 more than anyone else.  It doesn’t take much to conclude that the effort was disproportionate to the result.

My last trip took me two minutes to book through a travel agent.  My ticket arrived next morning with the lowest available fare–and I was upgraded to first class on the return for the same price.  It’s hard to argue that the direct booking could have added anything.

Isn’t it true that some airlines offer "last minute" heavily discounted seats through The Internet?  Yes, but that’s irrelevant to the direct, on-line booking question.  The fact that people can save money by using those services proves that selling cheap things at the last minute benefits somebody:  whether they used an agent is not the point.

Third, most people strongly want to use agents.  There are a few intrepid souls who insist they book it on-line themselves, but I liken this phenomena to the people who stand in line at the ATM machine when the bank’s lobby is empty; there’s no reason for it, they just want it that way.

Several studies have concluded that if you tell customers they must not use their travel agent in order to use an on-line service, they want no part of it–a fact some travel industry vendors forget.  Your customers value your services.  They also want the support a travel agent provides:  if you booked it yourself, who can you call at 3:00 a.m. when the hotel doesn’t have your room?

Perhaps it’s time to gently remind your customers why they use your services:

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Expert knowledge that they don’t have and do not have time to acquire

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Advocacy (you’re looking out for their interests)

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Convenience (there is no better way to book travel than an agent)

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Simplicity (the most complex device you need is a telephone)

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Recourse (if something goes wrong, you’re there with them)

As the travel industry evolves, there will always be new ways of doing business and opportunities for agents to highlight ways their services deliver a superior result.  The agents with something to worry about are those who add no value and have nothing to sell.  The most aggressive estimates say that in the next five years, 20% of travelers might book direct electronically–which means 80% won’t.  Most people will be happily using travel agents for a long time to come.

 

 

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Copyright © 1974 - 2008 by David J. Wardell.  All Rights Reserved
Revised: Saturday, January 12, 2008 02:34:12 PM