How Travel Agents Can Survive The Digital Age
When it comes to physically booking a holiday, would you prefer to do it in-store or online?
It is that time of year again, when people are breaking into their savings to pay for the holiday they have been saving all year for.
Online research has shown that 52 per cent of consumers believe that holidays are better value for money when booked online. So it is hardly surprising that Travel Agents are having to close.
The Travel Agents’ story
Anthony Cork, at Wilkins Kennedy, said: ‘Travel agents on the high street were once the first and only port of call for booking holidays, but the tide has turned, and we are now seeing online booking services and price comparison sites taking over.’ He also added: ‘Technology has helped. Superfast broadband makes booking a holiday easier by letting you go directly to hotel websites to knock off another hundred pounds. The need to consult with a travel agent is rapidly disappearing.’
How Travel agents have evolved
Back in 2013, Thomas Cook announced they were making around 2,500 staff redundant and closing 195 stores. Since the decline of high street travel agents, travel companies have been trying to compete with the internet and have found themselves needing to improve quickly.
In 2015, TUI announced it would roll out a new concept store format to more than 120 stores around Europe. Their aim was to inspire customers planning their next trip with interactive tools such as interactive world maps and iPads, and hopefully boost in-store bookings.
However, Thomas Cook adopted the Samsung virtual reality headset, becoming the first in the industry to do so. Marco Ryan, the chief digital officer at Thomas Cook, believes the technology is not only boosting package holiday sales but is also essential to the brand’s future strategy. He also added:
Before, travellers just had a brochure or information on the website to inform their choices. Virtual reality allows them to get a true sense of the hotel and the excursions they can go on – it’s been a real game-changer.’
Thomas Cook is still aiming to target 50-60 per cent of sales to be made online across its market within three years as it continues its digital transformation. However, Marco Ryan insists that stores still have an important role to play.
One Thomas Cook store stated that one in ten customers who try the headset go on to book holidays immediately after, which is likely to expand across many stores.
What Is Expected For The Future?
With travel brands already digitising and virtualising their offer, it’s hard to imagine how much further things can evolve. However, there certainly seems to be more possibilities beyond bricks and mortar. Thomas Cook’s Ryan said, “There will be future deals with companies such as Xbox, so people can experience holidays through gaming at home, and you’ll see people really collaborating”.
Tom McQueen, Managing Director at the tech-focused agency Futurice is worried that virtual reality may become negative for companies. He recently stated In the future, people might take ‘virtual holiday’ experiences so deep and immersive that there will be no need to leave their home’’. Eleri Evans.
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