Sunday, May 24, 2009

Agents in Australia need to evolve or they will disappear

Agents and wholesalers need to start immediately changing (or I prefer to say ‘reinventing’) the way they do business with their customers and operate if they want to survive into the future. They will disappear if they don’t!

Agents need to join together as one and start immediately communicating with consumers the value a travel agent provides to their travel. That the travel consultant (or as they are now calling them in the USA/Canada ‘Travel Coincierges ) provides value, expertise, convenience and personal service to their customers. As opposed to booking their travel via the Internet and directly with the suppliers.

If they want to book a quick flight or week-end getaway….then tell them to use the Internet for it is normally an unprofitable booking for the agent anyway.

‘Travel planning is not about bookings or places…..It’s between people. The travel industry is a relationship business and travel agents in Australia don’t seem to understand this as much as their counterparts in the USA/Canada. Travel agents are the invaluable link between travelers and their destination. Agents are customer advocates. Agents are there for our customers before, during and after a trip and when the unexpected happens (one of ASTA’s motto’s and one that is printed on thousands of cards that have been distributed to every agent in the country).’

‘Agents need to work together in conjunction with organisation’s such as AFTA to assure consumers that agents provide value. Jointly both organizations need to create a national PR campaign that promotes the value of agents. Working together agents can help consumers make the right travel choices and encourage them not to use the Internet or book directly with suppliers. Both Internet and direct supplier bookings will continue to rise if agents don’t do something about it and start promoting their value and building strong relationships with their customers.’

Agents need to also better sell and promote themselves as ‘travel specialists’ or as they call them in the US now ‘concierges’ NOT travel agents. Remember…..agent means an agent for a supplier which we know agents aren’t. Over 95% of agents have been successfully charging Service Fees since 1995 including for fees for itinerary planning.

They also seem to have access to a great variety of on-line travel tools and information resources that Australian agents haven’t seen yet. ‘We are now going to start bringing some of these tools to Australia over the next couple of months. This will make an agent’s job much easier and provides greater value for their customer's experience.’

Agents also need to ‘look outside of their box’ they operate in. They need to find new ways of making clients loyal to them and also not just book the ranged of suppliers and wholesalers that are available in Australia. They need to ‘look outside the box’ and start booking suppliers directly not just to become more competitive but to offer a greater choice…..AND to specialize. ‘There is an amazing amount of great products and destinations out there. But agents in Australia think they can only book a wholesaler or supplier that is based in Australia. This is incorrect. There are so many more options you can give your clients if you look at booking overseas suppliers. This includes resorts, hotels, tour and ground operators. This will allow you to perfectly match what your customers want and save them lots more. ‘

Almost every agent in the US and Canada is a specialist to a destination or group or destinations and they actively promote themselves as one. They are not a travel specialist for EVERY destination or type of travel. Agents in the USA/Canada are also finding niche markets and specializing in them such as art, fishing, sports events, culinary tours etc. ‘Agents usually produce a CV’s on themselves on their area of specialization and where they have traveled to.’
The above brings the question of the value of agents in Australia belonging to a franchise chain and the value of the Franchisor’s name. In the US the most successful agents do not trade under a franchise name. They all trade under the owners surname, travel specialty, or other name. This makes them unique and assists them in promoting themselves to the market they want and not compete with a similar named agency. However they all belong to a buying consortia of some type.

Agents in the USA and Canada do things very differently to agents in Australia and have survived the Internet, direct bookings with suppliers and world events such as hurricanes and terrorist bombings. Agents in Australia need to start changing the way they do things NOW or they will dissappear. They need to start thinking outside the box.