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Are Travel Agents Still A Thing?
By Savannah McAlpin
Tuesday, 28th October 2014
 

There was once a time when you couldn't book a flight without a travel agent, my, my, how times have changed; 

Increasingly, people are thrilled to be using travel sites such as Expedia, TripAdvisor, and Booking.com to make their own travel arrangements cheaply, quickly, and from wherever the heck they like.

Naturally, one would think that travel agents have completely vanished, but it turns out this is not true. Yes, they are decreasing in number, but there are still those traditional travelers who want to sit down for afternoon tea with their reliable travel agents.

In the United States, there are about 13,000 travel retail locations, down from a peak of 34,000 in the mid-1990s.

With the Internet teeming with competition, travel agents needed to make a change and add more unique offerings to their services. It seems like their evolution has been successful too--according to CNN, travel agents account for 95 billion in revenue.

As an American Society of Travel Agents (ASTA) spokesperson told skift, “Travel agents started moving toward becoming niche marketers a little over a decade ago, looking at things like cruises, group tours, luxury travel, adventure travel, etc., to become specialists in selling.”

Travel agents tend to target people who value expertise over saving money. So, who are these people and where are they traveling?

One of these things is not like the other.

The four major groups that use travel agents are big money makers, Millennials (what?!), Baby Boomers, and corporate travelers. They tend to opt for three types of trips: ocean cruises, all-inclusive vacations, and luxury travel. Cruise line and tour operator sales remain a lifeline for agents catering to the leisure sector, according to PhoCusWright.

The Daddy Warbucks of the world are more likely to use travel agents because they desire assurance and convenience--they want that added layer of security; to feel like a professional is looking out for them.

According to a MMGY global study, last year 17 percent of Americans making $125,000+ per year booked one or more trips with an agent, and 24 percent of those making $250,000+ used an agent for booking.

According to a skift news report, 55 percent of affluent Americans in both the $125,000 and $250,000 income brackets primarily book travel through a supplier’s website, while 28 percent use an OTA, 10 percent use an agent, and seven percent book by phone with the supplier.

I do see the appeal for high rollers making 250,000 a year. Maybe these hard workers spent their early years plotting their way across the globe and are all researched out. Now they have the means to hire someone to do it for them.

However, for me, a 22-year-old, completely infatuated with travel, I enjoy the research phase, investigating all of my options; knowing exactly what I am getting.

With this mindset, it interested me to come across an MMGY study that found a shocking 28 percent of Millennials used travel agents between February 2013 and February 2014. Additionally, 21 percent of those aged 69 and older, 15 percent of Americans aged 36 to 49, and 13 percent of people aged 50 to 68 used agents during that period.

With Millennials being so techy, I was stunned that so many use travel agents. Still, the most dominant form of booking for this savvy generation, is online, either through OTAs (41 percent) or supplier websites (47 percent).

A Millennial perspective.

When planning a backpacking trip through Europe, half the fun is exploring, getting lost in the twisted streets of Venice, and figuring it out as you go. Most Millennials aren't big on structure, we like to wing it and live in the moment.

As far as all inclusive trips go, do you really need a travel agent? It’s all inclusive, what is there to plan? I can figure out how many margaritas I need under a cabana in Puerto Vallarta all by myself!  The beauty of all inclusive vacations is that they are easy.

Baby Boomers are probably the main hand that is keeping travel agents from drowning. They have money to spend and are looking for interactive, unique experiences, which travel agents can provide. Their need for relationships also explains why they feel so comfortable using travel agents.

Travel agents are extremely advantageous for business travelers. It is crucial for business travelers to stay organized and travel efficiently.

Let’s say a business traveler’s flight takes off and immediately has to re-land due to fog, delaying the flight by hours. If they didn't have a travel agent they would not only be stressed, but most likely be out of a flight.

On the other hand, a travel agent would be tracking this and be able to change their customer’s connecting flight promptly, completely stress-free on the traveler’s end. Avoiding an automated call line is always a plus. Travel agents are great for business travelers, they provide assurance and peace of mind.

What’s ahead for travel agents?

It’s hard to say what will happen to travel agents in the future. I would have bet on their downfall years ago with the proliferation of travel technology. Then the recession in 2009, where they lost almost a quarter of their revenue. You don’t survive that without being savvy.

Travel agents are experts at what they do and have the ability to create smart travel plans geared towards whatever you are looking for. After what they have gone through already, I don’t see them disappearing anytime soon.

Maybe what they offer will change. Instead of simply planning and booking trips, they will offer additional products and services, such as money exchanges. Travel agents that embrace technology to better their clients’ experience have a greater chance of survival.

www.buuteeq.com 

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