THE CHANGING WORLD OF TRAVEL
The internet almost derailed travel agents, but they’re rising again
With the onset of the internet, many people found they could book trips using online travel services or by simply searching the web and making flight, hotel and ground transportation arrangements for themselves.
The self-bookers nearly grounded the travel adviser industry.
“In the 1970s, when airlines were deregulated, they reported that there were 12,000 travel agencies in the county (affiliated with the airlines),” said Roger Block, president of Travel Leaders. “That jumped to a high of 45,000 in the late 1990s.”
“Today, we are back down to approximately 14,000 airline associated agencies,” Mr. Block said. He suspects there are another 10,000 more brick-and-mortar travel agencies that do not sell airline tickets. “Those types of agencies specialize in tours and cruises,” he said. Travel Leaders, headquartered in New York City, is the largest network of travel agencies in North America and has more than 600 affiliated agents in the Pittsburgh region.
More than two decades after the internet made do-it-yourself travel arrangements easier and 9/11 hit the airlines hard, travel agents — now often called advisers — are making a comeback.
“From 2001 through 2019, Avenue Two Travel’s sales have grown at an average compound annual growth rate of 15%,” said Craig Bush, chairman and CFO of Avenue Two Travel, based in Villanova, Pa., with agents in Pittsburgh. It is an authorized Disney Vacation planner and specializes in luxury travel.
While plenty of people are still using travel sites such as Trip Advisor, Trivago and Priceline, the industry has found a way to survive by selling the personalized expertise that’s hard to replicate through a website. And many travelers, including those in Pittsburgh, are crafting a combo strategy.
“We can arrange U.S. trips (flights, hotels, car rentals, fishing guides) without help, but anything overseas requires local knowledge that we don’t have we use our travel agent,” admitted Charles Buffington, of Squirrel Hill.
The role of travel advisers today is to use their knowledge and experience to cut through incredible amount of information and options, and craft a trip customized to the client at the best price.
“Our job as travel advisers is to help you create the perfect trip — to help you make a memory that is worth the cost,” said Christina O’Toole, of Avenue Two Travel, who counts Mr. Buffington as a client.
“Often, Christina will find a better airfare and an upgrade at the hotel that was not offered online,” Mr. Buffington said.
Ms. O’Toole has been in the business for three decades, so she’s seen the shifts. “I had my own agency for 12 years in Pittsburgh called International Travel Service,” she recalled.
“It was way back in the day when we handwrote airline tickets,” she laughed. Back then, agents would ask people if they wanted to be in the smoking section of the plane.
“The business has evolved quite a bit since then.”
The heyday was 40 years ago. “In the 1980s, the vast majority of travelers booked through a travel agent,” recalled Mr. Block.
The trend that he and other agencies are seeing is the return of consumer to the travel expert.
“They are coming back especially for complicated trips,” he said. Of course, what is complicated to one person may not be to another.
“I remember being overwhelmed by the crowds in Florence [Italy] one trip and deciding to leave a day early,” recalled Mr. Buffington. “I emailed Christina [O’Toole], and she shortened our Florence hotel stay (without charge), moved our rental car up by a day and got us into our next
hotel a day earlier than planned — invaluable.” He’s clearly a fan. “Just try to buy a rail ticket from Como to Venice on your own or find a nice but not overpriced hotel in Vienna,” challenged Mr. Buffington. “Sure, Rick Steves has suggestions, but Christina [O’Toole] has come up with super places that all seem to give us a better room than what we’ve paid for.”
The business equation
Airlines eliminated commissions as more people were booking online themselves. “That was the travel industry’s bread and butter,” Ms. O’Toole said.
“Delta was the first airline to start the reduction of commissions — first to 5% and then zero,” remembered Mr. Block.
A lot of consolidation of agencies followed with many smaller companies going out of business. “We had to start charging fees to recoup the loss and people resisted that move,” Ms. O’Toole noted.
Because they don’t make a commission on a domestic airline ticket now, there is a standard ticketing fee. “It can range from $35 to $50, but that covers any schedule change or cancellation — you still have our services and we work on finding you the best options,” she said.
Travel agents will get updates from the airlines which enables them to act quickly to minimize the inconvenience of a weather delay or a strike or a mechanical failure. If you have booked your own ticket, you are on your own.
“There is a snowball effect when a plane is delayed or cancelled, and we work our magic to make sure all your connections are smooth and the hotels are all made aware of your change of plans,” Ms. O’Toole said.
If you are planning a oncein-a-lifetime trip with many moving parts, you will pay a planning fee. “With us, that can range from $50 to $250 if it is a group,” she said.
Milestone trips have become very popular. “People turning 50 or 60 or an anniversary — those are popular trips right now,” Ms. O’Toole said.
“You are paying for expertise and peace of mind because with travel for some there is so much anxiety,” she said. Avenue Two Travel, which also has packing guides for novice travelers, is part of the Virtuoso network, a luxury travel group limited to the top 1% of travel providers.
Travel agents can also focus on special requirements, such as a gluten-free diet.
“Our role is really to find out why you have chosen a destination and what you want out of that trip,” said Mr. Block, the Travel Leaders president. “It could be to golf, to look up ancestry or a gourmet experience.”
An advantage travel agencies have over many DIYers is they know where the hot spots are and how to get the most authenticity out of those destinations. That can help when people are investing their hard-earned budgets in what is supposed to be an enjoyable experience.
“We did a survey of our Pittsburgh members and found year-over-year sales increased 7% last year,” Mr. Block said, “and 82% of travelers surveyed expect to spend more in 2020 than they did in 2019.”
Where are Pittsburghers going?
The majority of Pittsburgh travelers head to Walt Disney World in Orlando, Fla., and on various cruises, according to the same survey.
“What was a little bit more unique was the Galapagos [Islands] is showing up as a place people want to go,” said Mr. Block. “Italy is also making a comeback among Pittsburgh-based travelers.”
River cruising in Europe has always been popular, but Mr. Block found people are already booking Christmas market cruises as far out as 2021.