These days, many travelers handle all their arrangements via online resources. So, it’s no surprise that the travel agency industry has been forced to drastically change how it operates. For example, a traditional source of agency revenue was commissions from the airlines for making reservations. These and other changes have significantly altered the travel management environment.
Technology Innovations
Technology changes now allow the average person to perform tasks previously the exclusive responsibility of a travel agent. The biggest change is the online booking of transportation and accommodations. Another significant trend is the flood of online information in the form of articles, blogs, and reviews. In the past, travelers depended on travel agents for this type of information.
Although these innovations have disrupted the travel management business, agents have also benefited from technological advances. For example, computers and mobile phones make communication between agencies and travel services companies easier.
Communication with travel agency clients is also easier. However, this has also raised travelers’ expectations since they now expect 24/7 customer service from travel agents.
Evolving from Agent to Advisor
The travel agency industry has fended off obsolescence by leveraging its greatest asset: its experience and expertise. Travelers can take a do-it-yourself approach for simple trips, but for more complex or far-away travel, they may be better off engaging with a travel professional.
Also, industry terminology has evolved away from the word “agent” to “advisor” since there is a greater focus on advisory and customer services.
A View from the Trenches: Jim Bendt – Pique Travel Design
The move from agent to advisor is precisely what Jim Bendt, owner of Pique Travel Design in Minneapolis, experienced. With 15 years in the travel business, Jim entered the industry during a time of immense transformation. “What I liked about it at that time was the industry was going through a change where it was less of a transactional model which is what the internet is today, and it became much more of a professional service model.”
It’s About Taking Personal Care of Each Traveler
Jim agreed that today’s consumers can handle many travel tasks independently, but that does not mean travel professionals don’t add value. “What the internet doesn’t do is give professional service and advice. I guess the best analogy I would use is that there used to be stockbrokers. There are now wealth advisors. So, travel’s the same thing as where there used to be travel agents, but now we’re travel advisors bringing more of that professional consultancy aspect of things.”
In some ways,, there is almost too much information online. Jim believes a travel advisor can help sort out what really works. “What we find is that there’s a portion of the population that loves to dream and anticipate travel but doesn’t love the logistics of doing all that research trying to sort through what reviews are accurate and which ones aren’t, and they would prefer to work with a professional who can help guide them through that.”
He added, “Travel advisors are really meant for people who appreciate working with somebody and having that human connection. What we like to do is listen and understand what our clients are like and what their travel DNA is, and then have conversations about the possibilities. A lot of times, they come to us without an idea, but we can help design amazing experiences they didn’t know existed.”
Growth of the Travel Niche
Despite the upheaval of COVID-19, Jim noted that most agencies survived and are now helping to manage a post-pandemic travel surge. “Looking at all my peers that are out there, I was expecting that we would see a lot of people get out of the business. Yet, I don’t know of one travel agency peer that has closed. And if anything, all of us now are seeing rampant growth.”
The introduction of client fees was a significant change in the transition from agent to advisor. Previously, most agency revenue consisted of commissions from travel providers. Now, it’s common practice for travel advisors to charge a fee. However, Jim feels consumers receive a lot of value from those fees. “What that does is it covers our upfront time to work with our clients to design that initial itinerary, but that’s the only upfront fee that they pay. And then the remaining portion of the trip is compensated by our hotel partners that we work with.”
Future Trends in Travel
As for future trends, Jim feels confident that travel advisors will continue to offer great value. “I love it when there’s always something new, and the pundits say that that’s the end of the travel agency industry. Artificial intelligence which is all over the news right now and the way that we view things is technology is a good thing. I don’t view online travel agencies like Expedia as competition because they offer a different service promise to clients than what we do. Same thing with AI. If we say, ‘Hey, design an itinerary to Italy’, and I look at them logistically and ask, ‘Who would want to be bouncing around this much? That doesn’t make any sense.’ So, we think there will always be a need for a travel advisor since people want to have that human connection.”
Let’s Have a Conversation:
Do you always plan the trips you go to? If so, what tools do you use? What do you like most about travel advisors? Is there a downside to that type of travel planning?