Question

Topic: Customer Behavior

Future Of Etourism: Travel Agents Vs. Online Booki

Posted by Anonymous on 4/13/2007 at 5:54 AM ET 250 Points
About 10 years ago experts where absolutely convinced that the future of eTourism is clear and that Travel Agents will eventually disappear. The product retailing for tourist products was clear and simple: product provider (hotel, airline), tour operator and online sales were the only involved in the picture.
Today, although online sales have increased, travel agents still prove to be unique due to the human factor. Furthermore, travel wholesalers have emerged and in some cases more than 4-5 intermediaries are involved in the development and the retailing of a given product/service.
How do you see the future of eTourism from now on? Do you still think travel agents will eventually disappear?
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RESPONSES

  • Posted by adammjw on 4/13/2007 at 10:29 AM Accepted
    What's seems to be the way to go is combining online&offline presence on the market. I see that a growing number of initially online businesses not only made themselves available to the public via 0800 numbers, but even set up brick&mortar shops to address different segments of customers. You will see them in hypermarkets and sometimes even downtown. I would not say that Tourist Agents are doomed, they just have go use e-commerce proficiently.

    Rgds

    Adam
  • Posted by michael on 4/13/2007 at 11:28 AM Accepted
    The key, for any travel related company, is to be visible at any POS. Agents won't likely disappear but they may continue to decrease in number.

    In addition, the more people travel, the more they want to travel to different places. They may use an online provider for someplace they've been before, but the agency community would be called upon when someone wants to try something new.

    So....when everyone has been everywhere...the agents are gone.

    Michael
  • Posted by Tracey on 4/13/2007 at 12:23 PM Accepted
    I agree with Adam. For my basic travel needs (booking an airline ticket with just 1 destination, going to a city I've been before), I just book online. However, if I have more complicated needs, I find a travel agent helpful. If I've never been to a city before and I want to make sure to get the right hotel in the right area, a travel agents' knowledge can be helpful. (Yes, I could look online for that, too, but it would take longer and there's a lot of bad advice online). Or, if I had a multi-destination trip, I would use an agent for booking.

    As a result of the online travel industry, my expectations for travel agents has grown. I expect them to be able to do more than I could by just booking online. I expect them to recommend best options.
  • Posted on 4/14/2007 at 6:02 AM Author
    Ok! Let's suppose, a combination of online bookings and travel agents is the best final outcome. But for the moment there are many travel agents, and very few online reservation sites. The picture should be looked at globally and not locally.
    Can you define which services should be sold online, and which should be sold via travel agents? Also how can travel agents and online reservation sites fight the modern approach of airlines and hotels of selling their products at their corporate web site, for a price that is lower than the price that travel agents offer? I believe everything could become very messy!
    Another question! I recently read a report on this issue, suggesting the alternative of online 3D travel agents, that will actually offer in a way a combined service. What do you think of the idea, and would you use it if it is fast, easy and convenient?
  • Posted on 4/15/2007 at 5:07 AM Author
    Let's not fool ourselves! Global warming and pollution are not issues that will affect anything in the future.
    All companies care about is profit. Until there are resources of petrol, thing will not change. After petrol eventually runs out, maybe a new method of travelling will emerge. Overseas trips will increase!
    Marcus, what you are saying is great, and a nice way to think of the future. But I think it is unrealistic, for the moment.
    Anyhow, Good Luck! Hope there are more people like you, that think about the future of our planet!
  • Posted by adammjw on 4/15/2007 at 5:25 AM Accepted
    I'm not so sure it has to go the way you see it. Why global online services when local ones these days suit consumers' tastes much better and are quick to modify the copy and contents. If you go online in any country you will see how many of them serve the customers. The most sophisticated of them specialize in holiday breaks, incentive trips or some destinantion only. They are more tailor-made than the global ones and not more expensive.
    I do not think you put it the right way" which services should be sold online and which by travel agents". These are just two ways to address different customer segments or same customer segments but different needs they might have.Depending on the destination or kind of trip you might book online or have more sophisticated expectations as to extra info, support or face-to face.
    If airlines and tour operators go online with their offers at prices lower than those reasonably quoted by agents they will kill their own business at the end of the day.
    3D travel agents are nothing more than technologically improved agents who honed their marketing skills.Still it will in no way eliminate the need for a live person contact.

    Adam
  • Posted on 4/15/2007 at 5:50 AM Author
    So you are suggesting too that overseas travel will decrease? I don't think that will be the case, as we are witnessing globalization and decrease in travel prices.
    I don't think that when travel becomes more affordable it will decrease.
    The way I see it individual reservations will be sold online (hotel+airline), while predetermined tailor made tours and excursions will be sold via travel agents. Don't you think?
  • Posted by adammjw on 4/15/2007 at 5:59 AM Accepted
    I do not mean overseas travel will go down or disappear.
    What I think is that more and more people would like to have a favorite agent operating online and brick&mortar to attend to their needs, whatever they might be.
    So why book at say Orbitz when you can do it effectively via the agent you know and trust.

    Adam

  • Posted on 4/18/2007 at 3:50 AM Author
    Thanks to everyone. The info I gathered was very usefull!
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