Old-Style Travel Agents Still Alive and Kicking, Despite Numerous Predictions of Their Demise

With so many online travel agencies, it became common to hear how the offline travel agent had gone the way of the dinosaur, amidst bankruptcy and downsizing. So why are these obsolete travel agents still selling 51 percent of all airline tickets, 87 percent of all cruises, 81 percent of all tours and packages, 45 percent of all car rentals and about 47 percent of all hotel stays?

It's because they're sentient human beings, they're offline and frequently offer the best deals. According to Fast Company:

As travel technology leaders have observed, when it comes to disappointing travelers, software is rarely the limiting factor. The technology powering Expedia, Orbitz, et al., is pretty advanced e-commerce stuff. However, what's driving them is a strategy that invests in sophisticated margin logic and multi-level algorithms to get you to see, click, and buy what they want you to.

But this is where the rubber meets the road, literally -- when the next volcano explodes and your shoes stay glued to the ground, stuck in whatever far-flung limbo you happen to be, no computer is gonna proactively re-book you or find you a hotel so you can avoid curling up indefinitely on the terminal carpet hoping to find a way to get home. Except for the odd HAL 9000 in the movies, computers just don't give a fig.

The only obstacle to more people using offline travel agents is experience. Younger people have booked all their adult travel online and are used to it, many have never gone to a travel agency or though of going to one -- except for what many in the industry call "watershed events," such as honeymoons, destination weddings, a once-in-a-lifetime journey or a very expensive trip. From TravelPulse:

Here's how that agent in New Jersey handled the concerns of this particular honeymooner. The woman went with her fiancé to the agency with the intention of booking a land-based vacation to a Caribbean destination. She was concerned that her trip was scheduled to coincide with the hurricane season, which potentially could impact her honeymoon. The agent shared the various hurricane guarantees provided by many of the resorts in the Caribbean, but she could tell her customer still had concerns.

The agent asked her client about her other travel experiences, which turned out to be quite limited. She then asked if the client had ever taken a cruise or even considered one. She suggested a cruise in the Caribbean as a solution to the client's concerns about getting rained out at a resort by stressing the ability of a ship to literally get out of the way of inclement weather. This turned out to be a key selling point for this particular customer.

So what do brick-and-mortar travel agents have over their online counterparts?

• The human element. Despite our attraction to electronics and gadgetry, computers still can't replace human interaction, especially a human with years of experience dealing with airlines, cruise lines and tour operators. Unlike computers, they know the human pitfalls and loopholes the customer will be experiencing.
• Customer loyalty. Offline travel agents make their living by keeping their customers satisfied with their services. Their one-on-one interactions create a customized itinerary based on their preferences and needs. At the opposite end of the spectrum, online travel agencies offer the lowest prices and have no loyal customer base because what they offer is essentially no different than any other OTA.
• Education for the customer. Part of the travel agent's job is to educate the customer on their choices, some of which they might not have realized. While many customers would pass up a packaged tour or cruise, a travel agent may be able to show why both options can be attractive.
• Value. For those spending more than $1,000 a person on a trip this summer, a travel agent may be a sensible investment. With more expensive travel, customers are less likely to begrudge travel agent their fees in return for a painless vacation. And if there are problems on the trip, travel agents can make sure restitution is made.

Photo: Telstar Logistics
Related:

• If Travel is Down, Why Are Travel Websites Doing Well?
• Orbitz's Commission to Travel Agents Could Pay Off . . . for Orbitz