Become a Home Based Travel Agent

8 Reasons Travel Agents Will Prosper in the 21^st Century
By Tom Ogg

When Infosys released their white paper regarding the impact of the Internet and the future of travel agents in March of 2006, the outlook was extremely grim. You may read the white paper by clicking HERE.

Much like the decision IBM made by allowing Microsoft to create operating systems and software for P.C.s thinking that the future was in manufacturing P.C.s and not software, this report misses the entire point as the confluence of the travel industry and technology evolves.

The report projected the rapid and complete disintermediation of travel agents from the distribution channel based on the idea that consumers and suppliers would come together with no one in between.

Nothing could be more incorrect, as it turns out. Here are 8 reasons that travel agents are better off today than ever before.

Search: More than anything Google has ushered in an environment critical search. Travel agents representing every nook and cranny of the Earth can now count on being located by clients looking for advice and help. While consumers can also find individual properties offered directly, consumers have proven they want an intermediary with expertise to guide them.

The flaw in the report is that it failed to see what consumers wanted, rather than the evolution of technology.

Settlement: Up until recently, a travel agent doing business globally was faced with serious costs in settling transaction. Paying across currencies globally is a complex and daunting task for a small travel agent. Today PayPal, Google Checkout, Xoom.com NTC and many other solutions have made it easy to collect in dollars and pay in pesos, yen, euro or any other currency for that matter.

The flaw in the report is that it foresaw only major suppliers could settle using legacy settlement processes. Today settlement is simply not an issue even for the smallest of travel agents.

Communication: The establishment of commercial quality VoIP systems allowing for free and high quality global communication has changed the landscape for a; small travel agents. It is now possible for the smallest travel agent to transact business globally without a substantial investment in communications. VoIP and email have replaced telephone and snail mail and enabled global communication.

The flaw in the report is obvious; lack of vision.

Specialization: Small travel agents specializing in specific markets and products can share a level of expertise from an unbiased perspective that consumers want. Consumers want to deal with travel agents that know the product.

The flaw in the report is that it viewed travel agents as orthodox business models that are not able to change as technology made progress available.

Translation: With tools like Google Translate, Yahoo Babel Fish and many others (Google Translation Tools) travel agents can now communicate across virtually all languages on their websites, in email, documents and general correspondence. Communicating in social media and blogs in several languages is easy.

Vertical Integration: At the very heart of the report is the disintermediation of travel agents while suppliers dealt directly with consumers. Nothing could be further from the reality of today and in the future. While vertical integration has been a function of technology, it has been travel agents that have integrated upward by utilizing the various technological advances as noted above.

The flaw in the report was the legacy distribution model basis of the thinking that created the white paper. It envisioned travel agents as simple intermediaries intercepting distribution flow, rather than as a dynamic force capable of creating distribution channels.

Digital Bundling: Also known as Dynamic Packaging, this evolving technology will allow small travel agents the opportunity to bundle dissimilar products and services into one consumer package. It will allow a travel agent with a specific area of expertise to put together, price and deliver a unique combination of vacation elements into a simple to understand package for consumers. Once requiring a sophisticated supplier with destination knowledge, contacts and expertise, now even the smallest travel agent will eliminate the need for such suppliers.

Personalized Service: When all is said and done, a travel agent’s capability to provide knowledgeable and personal service to a client has been advanced by all of the above factors. Using search to market, VoIP to communicate, global settlement, language translators to communicate globally will vertically integrate using digital bundling solutions and become a market specialist for a very narrow niche, which they dominate. All of this will happen because at the very core of any travel transaction is the element of knowledge and service.

The next time you read about the demise of the travel agent, maybe you should send them a link to this article.