The availability of Internet based travel services has revolutionized the travel industry, in the provision of a viable source of on-line travel providers. This 'new market' raises the question of whether the traditional travel agency will eventually become obsolete.
The trend for on-line bookings had increased during 2005 and 2006 but the latest research has identified a slight decrease in the number of travelers booking on-line during 2007 and 2008. Although revenue has remained on an upward cycle it appears that a percentage of travelers are returning to off-line sources for a specialized service.
Jeff Grau is a senior anaylyst at eMarketer, a company specializing in Internet market research and trend analysis. In a report for eyefortravel.com, published in September 2008, Mr Grau was noted as stating that "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 on-line travel agencies. This, in turn, is spurring a renewed appreciation for the expertise and personalised services offered by traditional travel agents."
(http://www.eyefortravel.com/news/industry-analysis/ online-travel-sites-are-steering-customers-back-offl ine-travel-agents)
This awareness of the ever-evolving travel industry is echoed in the results of other leading market research and analysis consultants. PhoCusWright is a leading authority on market research within the travel industry. According to their analysis of a recent study into the U.S travel agency marketplace during 2007 "the dramatic shifts upending travel distribution have both imposed and facilitated tremendous change among agencies. Once the primary means by which consumers purchased travel, agencies have seen a substantial amount of their business primarily sales of stand-alone flights, hotels and car rentals shift on-line and supplier commissions erode. As a result, agency owners and managers have had to rethink their strategies, retool their businesses and reinvent their tactics. The typical leisure agency today is focusing on more complex travel such as cruise, vacation packages and independent itineraries, where commissions are still relatively high and more experience and expertise is needed to facilitate the consumer's purchasing decision. Many of these agencies now charge fees on air or try to avoid selling air at all".
(http://www.phocuswright.com/research_publications_b uy_a_report/475)
The traditional high street travel agency has witnessed a decline in profitable sales, forcing the closure of a number of businesses, but off-line agencies have adapted their operations in line with current market trends.
Due to the existing "stale" technology used by on-line travel services, in reference to the current booking engines and user tools for navigation, travellers have been returning to traditional travel agencies. Over the last decade travel agents were overtaken by Internet sales and were commonly viewed as a diminishing outlet for travel services, with the risk of eventually becoming an outdated and obsolete source. The Internet encouraged high street agencies to streamline their operations to maximise their key benefit in providing travel expertise with a personal touch. It has been necessary to evolve operations to retain and regain their customer base.
At the present time travel agents are co-existing with on-line travel providers. Their percentage of sales and customers has decreased but they remain a valuable consumer asset. This may change in the coming years, with the emergence of the new and innovative Internet websites like Tripology and Zicasso, which are two examples of an Internet based travel provider that is striving to provide a personal service tailored to the traveller.
If the level of service meets with expectations then this new technology could again alter the sales ratio between the Internet and the High Street, but at present there remains a niche market who still prefer the personal touch that is afforded through a travel agency.