BUSINESS NEWS
COMMENT: MARLOES DE VRIES, MINTEL ANALYST THE TRAVEL INDUSTRY AFTER THOMAS COOK
Travel agencies remain relevant but must adapt to changes in demand
Tomas Cook was criticised for not innovating enough at a time when people are more likely to book holidays online. Yet the 555 shops left by Thomas Cook’s
collapse were quickly snapped up by Hays Travel, and other major travel players are investing in premises on UK high streets. What should we conclude from these contradictory signs? It’s true that most UK holidaymakers now
book their main overseas holiday online. Research for the Mintel Report Holiday Planning and Booking Process: UK, May 2019 found 83% did so. However, 12% still book in-store. There are four key reasons why some
consumers continue to book in an agency. One, there is the number of options available.
Consumers increasingly feel overwhelmed by the abundance of choice on offer – 21% of UK holidaymakers feel the process of researching and planning holidays is ‘a hassle’. Agents can help travellers cut through the clutter. Two, high street agents are more likely to be
favoured for complex, high-value bookings that can be time-consuming to arrange and involve high expenditure. Examples include luxury holidays, cruises and multi-centre holidays. Mintel found 23% of UK travellers who took a luxury holiday booked in-store, rising to 32% of those taking an ocean or river cruise. Three, almost half of UK consumers believe
travel agents are useful when taking a new type of holiday or visiting a new destination. Consumers’ increased desire to share stories via social media, in addition to growing visitor congestion, is fuelling demand for more exclusive experiences. Four, trust. While travel intentions remain
strong, many holidaymakers are being cautious, and brands that radiate trust are likely to resonate with consumers. More than one-third (35%) of UK adults agree things are less likely to go
Agencies require in-depth destination knowledge that reaches further than can be found online
wrong with a holiday bought from a travel agent compared with online, while 31% trust the quality of a holiday more from an agent than online. Even tech-savvy millennials (people aged 20-39) are open to receiving personal advice.
What do travel experts need to succeed? In an increasingly digital world with an abundance of travel options, agents have an opportunity to present a more convenient, warmer and personalised alternative than search engines and automated filtering systems online. However, agents have to adapt to changing holiday behaviour. Demand for flexibility is on the rise. Half of those booking independent holidays in the 12 months to February 2019 mentioned ‘flexibility’ as a key reason for booking travel and accommodation separately, an increase of eight percentage points on the previous year. This growing demand to customise holidays
requires agents to be flexible and offer choice. Furthermore, holidaymakers are increasingly looking for new and exclusive experiences. This can vary from finding a spot few tourists know about to dining at a good local restaurant. To help travellers find these experiences, agencies require in-depth knowledge that reaches further than can be found online.
Holiday behaviour is also becoming
more diverse with travellers increasingly looking beyond beach holidays. Less common holiday types such as cruises and special-interest holidays provide
growth opportunities and agents with expertise in lesser-explored areas can expect to prosper. The demand for experiences has also impacted
the planning and booking process, with travel agencies being redesigned to let the holiday experi- ence start from the moment people enter the shop. While enhanced shopping experiences can help
attract more consumers to stores, the core selling point of agents – welcoming and knowledgeable staff – should remain the top priority.
What it means Z Agents able to tailor holidays to consumers’
unique requirements will remain relevant. Z Shops with specialist knowledge should benefit
from rising demand for new experiences. Z Te in-shop experience can atract new
customers, while investment in high-quality staff and specialist knowledge will help brands stand out.
travelweekly.co.uk
5 DECEMBER 2019
71
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