I assemble and manage a weekly newsletter for travel industry executives over at Travel Career Connexxions. One of the ongoing themes being presented in industry news is the struggle between online travel agencies, traditional agencies and direct supplier (branded) websites. Are travelers buying direct (as the airlines and hotel chains would like them to do)? Are brick and mortar agencies doomed? What differentiates the major online agencies?

It seems that the stats can show whatever position the particular agency/supplier desires. Here are some headlines from previous issues of the newsletter (note- most of the stories are pulled from press releases, so the headlines should reflect the general sentiment of the industry as a whole):

  • Survey: Luxury Travelers Prefer “Human Touch” when Booking Travel
  • Survey: Most Consumers Not Buying Direct
  • Online Travel Comes of Age
  • Major Hotel Chains’ Internet Reservations Up 26.8% in 2005
  • Online Hotel Bookings Up, Challenges Ahead
  • 2006 Agency Bookings up 14% in February
  • Travelers Surf the Web to Research and Compare
  • Online Travel Sales Rapidly on the Rise
  • Research Shows Travel Agent Bookings Account for 80% of Room Nights
  • Consumers Prefer Online Agencies To Compare and Book Air Travel
  • Direct Booking Model Benefits Small Business Travelers
  • Study Shows One Third of Travel to be Booked Online in 2005
  • Travelers May Still Prefer Agents

So, as you clearly see, travelers prefer to book with agents, but don’t. Or do they? 66% of travel is booked offline? Only 20% are booked direct, which is a 27% improvement… I think..

I think the point here is that different travelers like to book in different ways. Traditionally the human travel agent was the gate keeper between you and all things travel. And some agents specialized in different types of travel (cruise, adventure, business, etc.). Every agent didn’t try to be all things to all people. And best of all, they each had an individual personality!

Then the internet came along and the online agencies tried to be all things to all people. It doesn’t work very well. Then came the niche travel sites. OK, good. Now the airlines, hotels, suppliers want you to book direct and bypass the middle man all together.

Still, the premise that online agencies as a whole can be all things to all people is false. For example, some people prefer to book direct. The first time you show up at a Laughlin, Nevada hotel to find out that Worry Free Vacations took your money but didn’t actually book your room and the hotel is sold out (true story), you’ll consider booking direct. Airfare is almost always cheaper when you book direct.

Then, there’s still the human travel agent. And it seems that luxury travelers may still prefer a human being when shelling out thousands of greenbacks for their exotic vacations. It makes sense to me. Isn’t it interesting that the internet has made self service the standard and human contact something that only the wealthy enjoy?

A recent Guideline, Inc. study shows:

  • 46% of luxury travelers prefer to use a live agent
  • 25% of luxury travelers consult with tour operators
  • 30% of luxury travelers prefer a personal service when booking

That’s the life. Here is a piece on the study:

Online travel suppliers need to build brand equity


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