Travel agents being replaced by concierges?

Not so long ago, travelers seeking professional help had to turn to bricks-and-mortar agents, but travelers are increasingly finding they can look online for a variety of concierges or personal assistants.

Airlines and credit cards are increasingly posing a threat to the traditional agent.

"An emerging breed of concierge providers are offering virtual assistance to time-crunched professionals at an affordable rate," said Shaivali Shah, a customer relationship consultant at the professional services firm PwC. "This is creating stiffer competition for those who provided these services … to find new ways to stand out."

Examples:

— Spirit has partnered with MyAssist to provide trip-planning logistics, reservations and even event tickets. The price is $9.99 per trip.

—JetBlue offers a free “Concierge on Call” in a joint arrangement with Allianz Global Assistance.

— Air Canada has concierges who provide airport assistance and also make last-minute arrangements such as hotels and even restaurant bookings.

So what has this meant for the travel agent community?

Travel agents have alarmingly viewed the drop in their numbers. In 2002, there were 29,522 travel agencies certified by Airlines Reporting Corp. (ARC), which processes airline ticket transactions. Last year, there were just 14,052.

But agents are not going away, in part because many are still profitable. A majority, or 55%, made a profit last year, which was up from 53% compared with four years ago, according to the American Society of Travel Agents (ASTA).

Many now operate as independents or are home based, while others have chosen to specialize in one aspect of travel or other such as cruises.

The latest PhoCusWright study finds leisure travel agencies are facing a new threat: a recruitment crisis.

“The issue of age is alarming,” said Douglas Quinby, senior director of research and co-author of the study.
While the agency industry has been graying for a long time, the aging has escalated in the five years since PCW conducted its last study of the distribution landscape.

With so many veteran agents at or near retirement age, the industry will see many of its most productive and experienced professionals leaving the scene during the next few years, the study noted.

“These new entrants are not as productive – they don’t have the history and knowledge yet,” Quinby said. “Are they going to be able to step in and replenish the marketplace? This will be the real question over the next five to 10 years.”

Agents maintain, however, that whatever the future, they can continue to compete with concierges.

"We handle everything," David Rubin of DavidTravel in California told USA Today. "A concierge service is only handling a few pieces. We wrap our arms around the client."

By David Wilkening