The age of the travel “agent” is no more as the changing needs of customers, not the internet, have irrevocably disrupted the travel landscape, says Travel Counsellors managing director Australia David Hughes.
Speaking at the Travel DAZE conference in Sydney this week, Hughes stressed the industry no longer needs travel agents, but instead “travel advisors”.
“It’s not the internet that has disrupted things, it’s customers,” he said. “By holding onto old models, we’ve forced customers to find other ways to fill their needs.”
As a result, that has opened the way for a wave of disruptors such as Air bnb and Uber.
“We have to make sure their expectations are being met, if not, they’ll find another way to do it,” he continued.
Hughes predicted that zero commissions would become the status quo within the next five years, meaning agents would have to look for different ways to add value to transactions. This approach would also help them stand out from online competition, which is primarily price-driven.
“There are people that are driven by price, but there’s also a whole other group of people who want the experience and are willing to pay for it. They’re willing to pay service fees and be looked after.”
Hughes said Travel Counsellors aimed to tap into this market segment, not only by acknowledging the needs of the customer, but also by providing its staff with the tools and support to cater to those needs.
“We need to understand the people that are delivering to its customers and ensure we are looking after them,” he said.
“We need to adjust thinking around where we are in industry at moment.”
Looking forward to the future, Hughes predicted a thriving although different travel trade, despite the various challenges currently in its path.
“Perhaps we are already at the stage where people going to become extinct may already be extinct and we are all evolving forward into something new,” he said.
