Finding Frustration Online, Consumers Return to Agencies

Frustrated by the myriad choices online, travellers are once again recognizing the value in booking with traditional travel agencies, and they’re going offline in search of customer service.

Toronto, ON (PRWEB) July 8, 2006 -- Constantly changing fares and a dizzying number of vacation packages to sort through have made online travel planning confusing and time-consuming. Frustrated by the myriad choices, travellers are once again recognizing the value in booking with traditional travel agencies, and they’re going offline in search of customer service.

The Internet began to take off in the mid-90s; at the same time the airlines started cutting agent commissions. Travel agencies faced weakened revenues while travel websites promised consumers access to the same ticketing databases used by agents -- at discounted rates.

Over the next decade, agencies faltered and many went out of business, unable to compete. Those that remained were forced to become more efficient. With fewer competitors to contend with, many have branched out and thrived in niche markets, such as corporate or adventure travel, while service and ticketing fees have offset some lost revenue.

Despite the inarguable increase in Internet travel bookings, more consumers may go online to research travel options than to actually book trips. As Scott Stewart, owner of Peterborough, Ontario’s Carlson Wagonlit/Stewart Travel points out, “Statistics cannot differentiate between bookings that are made by consumers and those made by travel agents, resulting in misleading percentages” that suggest the demise of the traditional travel agency.

Stewart says his agency has actually experienced continuous growth over the past five years. He acknowledges that some clients have left to book online, but says he finds many return eventually.

In the past, travel agencies earned the vast majority of their revenues from commissions, and as a result offered their services to consumers at no charge. That scenario may have led to both consumers and agents taking the value of their expertise for granted.

Increasingly, however, travel agents have recognized a couple of things. First of all, their knowledge has value and offers time and often cost-savings to customers leading busy lives. They have also realized they are in a competitive business and must promote their services as well as provide high levels of customer care.

Even with service fees tacked on, a travel agent’s knowledge can often result in finding a lower fare for cost-conscious clients. “Just last week a new client called and booked with me for the first time,” says Irene Neustaedter, manager of Winnipeg’s Around the World in 80 Ways. “I did some research for him and quoted him a price – he was surprised and told me he hadn’t seen a price online that low.”

Neustaedter admits that her agency has seen a downturn over the past few years. “We lost a lot of corporate accounts because we didn’t have online booking capabilities. But we’re adding those functions to our website to bring them back. Clients will be still able to book online, but will now have the agency behind them.”

More Canadian consumers are recognizing that having an agent behind them can be a godsend when something goes wrong – the failure of Jetsgo and last year’s devastating hurricane season offered compelling object lessons.

Agents also offer advantages to travellers because they are familiar with arcane fare restrictions and supplier conditions. Neustaedter comments that many of her clients have had negative experiences online, especially when purchasing tickets. “People click ‘accept’ to terms and conditions without reading them, and are then unable to make changes or get a refund. They realize that booking with a travel agency gives them someone to fall back on; agents are their safety net.”

Rising household incomes, time-pressed families and the huge bulge of boomers entering retirement and looking to travel bode well for a retail travel industry once seen as going the way of the dodo. Online agencies are boosting their customer service capabilities, but it comes at a price and will reduce their ability to undercut traditional agencies. And many of those local bricks-and-mortar agencies are adding their own Internet presence and booking capabilities, giving consumers easy access for simple transactions, but providing the peace of mind of a local presence. If the skies are darkest before the dawn, the first rays of light may be shining through.

###