Travel agencies survive in era of web-based bookings
15. Mar, 2007
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Alaska – The advent of travel Web sites that allow ticket shoppers to view an array of fares and itineraries would have seemed the death knell for the travel agent industry.
Not so, say those in the business.
The marriage of travel and technology over the past decade has left traditional travel agencies with no choice but to change course and re-invent ways to compete.
The face of travel changed in 1996 when online travel giants such as Travelocity unveiled dozens of options and convenience for travelers. Roughly 560 million of today’s 2 billion airline passengers around the world now use the Internet to purchase tickets, according to technology firm SITA Information Networking Computing. In the United States, transactions on the Internet will account for more than half of all travel bookings in 2007, according to a report from PhoCus Wright Inc., an independent travel research firm.
Travel agencies have some stiff competition, especially when it comes to corporate travel. GetThere, an online corporate travel reservation technology, announced 10 million online bookings, accounting for more than $8 billion in combined travel bookings for 2006. GetThere estimates the system collectively saved companies more than $600 million in airfare in 2006.
Despite the competition, travel agencies are holding their own by embracing online technologies. According to the American Society for Travel Agents, 98 percent of ASTA agencies subscribe to a consumer online service or an Internet access provider to help them better serve their clients. Before the boom in online booking, agents would simply take orders over the phone, said Mary Peters, vice president of ASTA. Technology is a positive development because it has forced those in the industry to be more interactive, Peters said.
“The travel industry has adapted, I think, above average to any other industry in using the knowledge the clients have before them, because it is something to talk about, it is not one-sided anymore,” Peters said. “Now we are a true travel professional, we are doing what we set out to do many, many years ago, and that is to be travel professionals.”
Alaska-based USTravel is one agency thriving in the competitive climate. The agency has stepped into the technology arena by launching a newly designed Web site, investing in online technologies to serve clients and sending weekly e-newsletters highlighting a variety of vacation offerings.
“I think technology has really just helped spark us to be smarter about the way we are doing business. We certainly have taken strides to invest in technology ourselves. We really pride ourselves on the fact that we can provide our clients with online booking tools,” said Lilly Shelden, director of marketing for USTravel Alaska.
The investment in technology appears to be working. USTravel Alaska does most of its business on the corporate side and has clients ranging from sports teams to those in the fishing industry, as well as more traditional businesses. Shelden says while technology is crucial, customer service is also a driving force behind its success.
“We certainly are continuing to make strides in providing the top quality in personal service — really getting back to basics and really focusing on the fact that those relationships are very important. We can provide a service that a computer cannot. We’re there for our customers every step of the way,” Shelden said.
Many Anchorage businesses bypass using a travel agency to save money; however, some businesses say the benefits of customer service and efficiencies travel agencies provide is money well spent. Mikunda Cottrell & Co. Inc., an accounting and consulting firm, says travel agencies are good for the bottom line. Mikunda Cottrell purchases about 30 tickets per month and does extensive travel to rural Alaska to do audits for villages and cities throughout the state.
“Because we travel mostly to remote areas, USTravel has connections with smaller air carriers and knows the ins and outs of Bush travel. Not using USTravel would mean having to hire another administrative staff member with some travel experience to handle flight arrangements. That would mean paying that person a salary and benefits. Ultimately, it saves us money,” said Michaela Teater, office coordinator for Mikunda Cottrell.
Source: www.alaskajournal.com
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