Business is out there for everyone

FOR MANY in the travel business, the move towards web-based disintermediation in the mid-1990s sounded the death knell for the High Street agent. Airlines cut commissions from 10 per cent to 5 per cent and eventually to zero, as consumers became web-savvy and independent, and bookings moved online.

The launch of online booking engines, such as Travelocity that launched in 1996, Lastminute.com (1998) and Expedia (2001) further dampened the spirits of the traditional agent. Now, the consumer could find flights, hotels, car hire and a whole host of ancillary services at the click of a mouse.

Agents were forced to either embrace the digital revolution or truly earn their booking fees and commissions. The role of the ‘order taker’ was obsolete.

“Twenty years ago a customer couldn’t book anything himself. Now the customer is empowered across the internet but that brings its own problems as to what to choose and what is right for me? The internet is slowly creating flaws, including ‘can you trust it?’ The role of the travel agent is trust, impartiality and good advice whereas before it was ‘Tell me what you want and I’ll get it for you’,” remarks David Speakman, chairman of Travel Counsellors, a franchise of 1,300 independent home-based travel agents.

“Many independent travel agents have already undergone major changes. Our business is completely different to how it was five years ago, and five years before that. Every year we adapt to consumer habits and new ways to communicate or promote our business, because if you don’t you risk being left behind and stagnating,” agrees Oliver Broad, director, RB Collection, an independent travel agency with a shop based in Lichfield.

GETTING PERSONAL

The customer is now more aware of what is out there, where they want to go, how they want to travel and what experiences they wish to have. For those wanting a tailored itinerary, independent agents provide the key to a bespoke holiday and eliminate some of the risk of getting it wrong by booking solo.

“The role of the travel agent was to find, from a plethora of different tour operators, either the right price or the right thing for the customer. That finding represented 90 per cent of the job. Now, the finding is very small. It’s about creating a relationship and discovering what the customer really wants. That’s where the travel agent will score. The customer can disintermediate everyone; but do they know the right visas they need, for example? We give comfort to people. Trust, care and impartiality; those are the three things that differentiate the travel agent. Travel agents that just transact on price are dead,” says Speakman.

Broad from RB Collection also agrees that a personal service is now more important than ever.

“Service is certainly getting more personal and this is where independent travel agents can win over the larger corporate companies. I heard recently one of the big two have changed their sales policy focusing less on sales targets and more on service. Well, that’s what my family has been doing for nearly 80 years. However, we can go one step further by getting to know our clients within our community and offering a wider range of products and services to look after their every travel need,” he explains.

RB Collection began in 1936 selling coach tickets. Today, the fourth generation on the Broad family runs the agency, which has since been awarded Luxury Travel Agent of the Year, Small Central England Travel Agent of the Year and Small High Street Travel Agent of the Year.

INFORMATION OVERLOAD

For independent agents such as Broad, or the 1,300 travel counsellors located across the UK and abroad, it is not uncommon for consumers to bring the internet to them.

“Consumers are extremely savvy nowadays. They bring in their own research and sit in front of you with their iPads, and so to be able to offer completely independent advice in a society of information overload is a really important selling point and one which independent travel agents should shout about from the rooftops,” says Broad, who believes agents should be embracing the digital age.

“It is an opportunity and if you haven’t adapted and embraced it by now I would be extremely concerned about your business model,” he warns.

Travel Counsellors spends about £1.5 million ($2.4 million) on technology a year. “We go to the internet. That’s our model,” admits Speakman.

“However, we differentiate by building a trusting relationship. We want to be positioned by researching and recommending.”

MULTI-CHANNEL BUSINESS

Thomas Cook, Europe’s second-largest travel company, offers High Street travel agencies, as well as owning a number of tour operators, airlines and booking website Hotels4u.

Its business model has rapidly evolved over the years to become a multi-channel business.

“We see ‘omni channel’ as the future with our customers navigating across channels and devices. The High Street remains a key part of that offering,” says Lucy Green, head of retail strategic development, Thomas Cook.

“We believe we should be there for our customers when, where and how they want – that means stores, web, phone and mobile devices,” she maintains.

“The digital age creates a great opportunity for all channels. The point of difference for Thomas Cook is to provide for the customer in any way they want and continue our digital innovation to engage our customers.”

WHAT NEXT?

The consumer is the one in the driving seat when it comes to the future of travel retail, whether the transaction is done purely online, through a High Street shop or via one of the many home-working agents offering a more bespoke service. However, what does seem certain is that there is business out there for everyone, providing the product and service is right.

“We know that we have a great model for the future. There is a future for travel agents but there is no future if you are just transacting,” concludes Speakman.

Speakman at WTM seminar:

By Sarah McCay