A bad economic downturn. Airlines not paying commission to travel agents. Travel information and bookings widely available on the internet.
Is the concept of working with a travel agency really going the way of the dinosaur? Not necessarily – the smart travel agents are adapting to the needs of the new consumer who is better informed than ever and wants the best deal with the least hassle.
Relating to the economy, Jeremy Likins, the branch sales manager at the Pleasantburg office of AAA Vacations says “2010 was our best year ever despite the recession. It seems that people are not giving up their family vacations. And we are having a good year now.”
Dennis and Linda Long of Linda Long Travel reiterate that “2011 has been strong until September. September 2011, the travel business slowed down for bookings in 2011 but on the bright side, bookings are very strong for 2012.”
In 1995, airlines started cutting the fees they paid to travel agents. By 2002, 8 of the ten largest airlines cut the commission to zero. The commission had not cost the consumer – it was paid by the airlines as the price of having a travel agent handle the process.
With this revenue gone, agencies are now charging a fee to clients for booking airline reservations. But think about it – many industries are becoming fee based, with banks leading the charge. The only place to get information before the internet explosion was those gorgeous travel brochures that were available at your local travel agency, and network television ads with beautiful people in them. But the world has come to our homes, offices and phones with more information and opportunities than most of us can absorb.
With the economic downturn, no airline commissions and information floods, does a travel agency have a role in the new millennium? It would seem so as travel agents still sell 85% of all cruises, 70% of all tours and packages; 50% of all airline tickets; 30% of all hotels; and 25% of all car rentals. But that role has changed, as adaptation is the key to survival.
THE EVOLUTION OF A SUCCESSFUL TRAVEL AGENCY
Instead of being decimated by the internet, travel agencies are learning to work with it and make their own websites another source for information. American Society of Travel Agents (ASTA) president and chairman Chris Russo says “rather than being pushed out of business by the internet, as many predicted, travel agents have embraced it and are leveraging its power to enhance their operations…many are also using the internet and some form of social media for marketing.”
Donna Childress, a travel specialist with AAA Vacations “has lots of clients who do their research and then come in and ask me questions about it. There is no problem in being well-armed with information when you come in or call us; it does not cost a thing to talk!” The AAA website (www.aaa.com) has valuable travel information and Pleasantburg manager Jeremy Likins wants consumers to know that “we do more than change tires at AAA! We have a lot of client-travelers, but since we do no advertising some folks think that we are primarily for roadside assistance.” Linda Long Travel (www.lindalong-travel.com) clients use their website “to get information on trips and for social networking through Facebook.” Their comprehensive site has a travel blog that references some of what is going on in the world of travel and AAA Vacations’ site has videos of travel tips.
But both of these local businesses see the internet as a tool rather than a competitor. “When you have got the right people,” according to Likins, “you will always beat technology. The internet is a powerful tool but it needs to be backed up by a person.” This is reiterated by Dennis Long as he talked about a “trip to Hawaii that a client almost booked herself for $6,000 and we were able to get it for her for about $3,500.” This point also proves that travel agents can sometimes beat any price with their preferred providers and also have clout that can be used to the travelers’ advantage for high demand vacations.
The one point that runs through all the data and conversations about travel is the “personal touch.” The American Society of Travel Agents has a slogan: “Without a travel agent, you’re on your own” and that can be a scary place to be. Not only do travel agents have clout to offer, they are problem solvers when you need it. It just takes one time being burned by the lack of personal service and the consumer quickly remembers what it was like to have a person to call for help. As personal service becomes scarcer in general, there is one place you can turn to for it: your local travel agency. So when something happens, remember that neither William Shatner nor the gnome is going to be on the end of the call you make for help.