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Guest Comment: Operators must take a long-term view and sell to agents online
By TravelOptions’ managing director Michael Johnson TravelMole’s recent agent survey highlights that the internet is now a crucial part of the selling environment. It also gives operators thousands of reasons to sell online through agents. With all levels of agency staff researching holidays online, operators who do not consider this a key part of their distribution channel are missing the opportunity to secure a vital market. What is more, it can level the playing field for small- to medium-sized operators, who lack the giants’ distribution advantage of in-house agency chains. An effective web presence will also open up the self-packaging market to operator’s who can sell their travel components individually through agents. Operators’ long-term internet strategy should be to ensure their website becomes a valuable tool in the travel agency consultant’s selling process. The benefits to operators of selling through agents online are two-fold: it creates more routes to market and increases the opportunities for sales, and it reduces costs dramatically because viewdata is bypassed, especially as operators no longer face network charges simply when their product is searched. Flight-only operator Teleticket is an example of the route to follow, with online bookings through the company’s TravelOptions-powered website accounting for 65% of all agent business. Agents are offered real-time commission-winning bookings, and can earn revenue on added-value services including car hire, insurance, for airport parking and airport lounges. Operators should not be deterred by the level of investment involved, as low-cost solutions which deliver full e-commerce functionality are available, enabling every shade of operator to compete online. With the industry certain eventually to migrate from viewdata to the web, the more forward thinking operators should be looking to build agents into that new distribution opportunity. Teleticket, for instance, has taken the decision that they will not invest in viewdata, but concentrate resources on online sales. There are short-term and cost reduction benefits to enjoy, and a long-term competitive advantage to secure. The future is online, and the future still includes the agent.
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