"Online travel sites are steering customers back to offline travel agents"
Published: 02 Sep 2008
eMarketer has indicated that US online leisure and unmanaged business travel sales (including airline, hotel, rental car, vacation package, intercity rail and cruise) will reach $105 billion this year, up 12 percent from 2007.
Furthermore, from 2007 to 2012, sales will increase at an 11.6 percent average annual rate.
Even though online travel sales are growing, fewer travelers are booking their trips online.
"The fact that fewer travelers are booking online is not due to economic concerns—online travel bookers are an affluent demographic—it is caused by frustrations related to the planning and booking capabilities of online travel agencies," says Jeff Grau, senior analyst at eMarketer and author of the new report, US Online Travel: Planning and Booking.
Grau added, "This, in turn, is spurring a renewed appreciation for the expertise and personalised services offered by traditional travel agents."
According to eMarketer, in other words, online travel sites are steering customers back to offline travel agents—a complete turnaround of what has been happening in the category for the last decade.
"Not so long ago industry observers cast traditional travel agents as has-beens," said Grau. "Perhaps this has helped them to focus on what they do best: provide travel expertise and personalised service."
Customer dissatisfaction with online travel agencies (OTAs) stems specifically from unfriendly booking engines and navigation tools. With few points of differentiation, OTAs have a hard time building customer loyalty and have driven travelers right into the open arms of traditional travel agencies—and new online competitors.
"Mired in old technology, the OTAs have failed to keep pace with a newer and more innovative breed of travel websites built around user-generated content," said Grau.
Online travel communities are emerging to carry the torch of innovation.
"In addition, a new breed of matchmaking travel sites is bringing traditional travel agency talent online," according to Grau. "Sites like Zicasso and Tripology help travelers to exotic locales find travel agents tailored to their interests and needs."
Comments
Kilgore said on 3 Sep 08:
Well, this is an interesting turn of events. While I'm sorry to learn that some online travel agencies are losing their grip, I am pleased that some traditional travel agents have survived the battle of the past decade and may actually be thriving in a very competitive arena.
Although I have been an online booker since the dawn, and I am quite familiar with when to book with an OTA and when to go to an airline directly, in the past year I have found that a very sharp local travel agent can often get me a better price at a better time.
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