Travel Agents: A Dying Breed? Not So, Experts Say

Travel agents used to be the go-to people for booking flights and mapping driving directions. But those days are long gone.

Instant access to travel Web sites like Orbitz and Expedia coupled with the popularity of GPS devices have led some to question whether technology has replaced the travel agent. But industry experts believe just the opposite: Technology has given travel agents the opportunity to excel in ways they weren’t able to before.

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For travel agents, being able to communicate with clients at every hour of the day while having access to quick and timely research has become essential, said Joanie Ogg, senior vice president of global sales at Travel Counsellors, an independent travel agency based in the United Kingdom.

“The Internet has actually been the best tool to a travel agent that we could ever ask for,” she said.

Much has changed since the industry’s early days, when airlines relied on travel agents to book reservations and paid them commissions for doing so. In the mid-1990s, airlines began cutting those commissions, forcing agencies to adapt.

“Travel agents recognized they were going to have to move the pendulum and find a way to be important to our industry and still be a profitable business,” Ogg said.

While some agencies sank under the loss of commissions, others swam. The simultaneous rise of online ticket Web sites allowed agencies to focus less on reservations and more on providing the consumer with quality advice and information. Agents across the country began to close their storefront offices, choosing to work from home to avoid overhead costs and capitalize on emerging online capabilities, said Ogg.

Today, travel agencies account for nearly $110 billion in sales, or 41% of all travel booked in the U.S., according to a recent survey released by travel market research firm PhoCusWright. And that’s not including online travel agencies, which might bring that to 60% or 70%, said William Maloney, executive vice president and COO at the American Society of Travel Agents [ASTA].

“Travel agents are still a vibrant force in the industry,” said Maloney, who believes a resurgence in the travel agent market is likely, given that small businesses -- especially those so technologically integrated--are primed for job growth.

So, if it’s not airline bookings, what’s generating sales in this market? According to the experts, a shift into niche and specialty markets has proved very profitable for travel agents. There are certain kinds of travel excursions that people aren’t going to plan without consulting someone with experience, said Mike Pina, director of public relations at AAA. Some of these specialty travel areas include adoption travel, health travel, volunteer travel and grandparent travel -- all of which require detailed itinerary planning and instruction, he said.

Some web sites are starting to catch on. Visitors to Tripology.com, for example, submit information about the kind of trip they’d like to go on and are then matched up with three real travel agents who specialize in that specific kind of trip (considering budget, destination, special needs, etc). After talking to the agents via phone or e-mail and viewing customer feedback, the consumer can then decide who she/he feels can best help them, and arrange the trip with that agent at the agent’s own price. The site costs nothing for the consumers requesting its services, its merely a matchmaking site for travelers and travel agents.

Since its launch in June 2007, more than 28,000 requests have been submitted to Tripology, said Brett Krasnove, the company’s vice president of product development. The secret to its success? Being able to hook consumers up with the information and advice that only a person with experience can provide.

“With the decline in the economy, if [people] are going to spend money on a vacation, they want to make sure that it’s spent right,” Krasnove said.

Another reason to work with a travel agent: security. A good travel agent will be reliable and able to guide you through any delays or mishaps on your trip. The agent can make changes to your reservation without you having to spend hours on the phone trying to fix your online booking, said Jo Dubiel, a certified travel consultant.

The Bureau of Labor Statistics is expecting little to no job growth in the travel agent sector through 2016. But for those on the front lines, like Dubiel, who serves as the online facilitator for Gatlin Education’s travel course offered in colleges across the globe, that’s just not true.

Dubiel has said the number of students she sees in any given course has doubled because of the flexibility a travel agent career offers. She has seen it open doors for foreign students who “know the problems of international travel and are looking to specialize within their own built-in market,” as well as retirees, those looking for a second income, and those who are bilingual.

“There will always be a need for knowledgeable, professional assistance in planning a business trip or long dreamed about vacation,” she said. “The agencies and their agents who have found their niche market and specializations will be sought out by people seeking their own rewarding experience.”