‘Be a travel advisor, not an agent’
Deepak Mehta, Managing Director, Sachiya Travels (Jaipur), feels that though traditional travel agencies had already been facing challenging times by being unable to cope with in-demand OTAs, now may be a time to resurrect themselves as the latter fail to
Before delving into the present reality of the COVID-19 and its impact on traditional travel agencies, it is important to acknowledge that their survival is already being challenged due to the advent of the next generation as present and potential customers. Armed with smartphones and fast internet whilst exhibiting ease and deftness in use of technology, they have been slowly changing the manner in which business is conducted. It is fair to say that a travel agent’s advice on travel had already begun to be questioned and countered by these new, techsavvy customers, who have at their disposal a plethora of choices available on the internet.
A quantifiable value addition, which is the main premise for any business, was clearly missing and the qualitative value addition was not acknowledged until the COVID-19 pandemic, when people stuck with online bookings and needing to return home were left stranded by online booking platforms. People all over the world, desperate to get home or wherever they felt safer, were confronted by pre-recorded messages and computer-generated emails expressing the inability to resolve their issue due to high volume being experienced. It was at this time that the factor of reliability and dependability of orthodox travel agencies and tour operators came to the forefront by providing their customers with solutions, alternate routes and sound advice. This, of course, should be a positive driver of volumes at our agencies post situations of exigency such as this one (COVID-19), but will it be enough to get the confidence of our old customers back? No, I don’t think so. It is imperative that travel agencies must look for viable solutions for sustainable survival.
The way forward
In the coming months, as the world recovers, there is little doubt that leisure/holidays will be the last priority on the minds of people who would themselves be struggling to secure their own financial stability. The natural recourse would be scrambling to cut down on recurring costs.
For agencies catering to both business and leisure travel, working from home may be detrimental to their credibility and perhaps result in losing their business travel customers. In order
vto escape such an eventuality, they should opt for relocating offices to smaller commercial spaces with lower rentals/opportunity costs. They would also need to lower leverage costs by optimising credit facilities at a comfortable level, thereby limiting any losses that may arise in case of a default.
Perhaps the only way for airlines, hotels and other intermediaries to contain the damage that results from this would be to be as transparent as possible with clients and keep financial exposure towards suppliers and customers to the lowest.
vGreater investment in technology, MIS, structuring of work flow should be done to improve efficiency of work so as to maximise compliance and minimise errors. Structuring of work flow would involve human resource management.
vFor travel agencies dealing with only leisure travellers and specialising in fixed departure tours, the coming six months will be very difficult. The first viable move for such agencies would be to do away completely with establishment costs. They can work from home and maintain virtual connections with customers.
vFor agencies dealing in inbound tours, the coming year or two look extremely grim. Early 2021 may see stimulus in inbound business due to movement from Southeast and East Asia, hence, the way forward for them would be to tap the domestic tours market.
vThe leisure outbound/ domestic travel industry will recuperate and resurrect as soon as the lives of people are back to normal. Their vacation
vplatter should have more resort and experiential products on offer.
Travel agents should strategise to create personal offers for customers as per their preference and requirements. The role should change to being a travel advisor instead of a travel agent. Providing free-of-cost information to a customer on anything should be done away with altogether.
v(The views expressed are the author’s own. The publication may or may not subscribe to the same.)