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TTD: Internet is replacing travel agents, says Thomson
Thomson is now selling 50% of its holidays and flights online and says the internet is replacing agents as the most popular way to book travel.
“Travel websites are effectively becoming virtual agents. The days when people picked a holiday from a brochure and walked into a travel agent to book are over,” said sales and marketing director Miles Morgan at a press conference today.
Last year, the online market accounted for 38% of Thomson’s business. Reaching 50% puts Thomson three years ahead of its predictions for online growth.
The operator said 30% of its online sales are for packaged holidays, but the increase in online business has been driven more by people building their own holidays, buying their flights, hotels and villas separately.
The operator claimed there was still a role for agents in the future, despite cutting back the number of its high street shops by around 100 to 748 in the last year and scrapping commission.
Morgan said traditional travel companies were now overtaking the online players like Sabre, Expedia and Cendant when it comes to travel bookings on the internet.
“Two years ago their competitive advantage was technology but now we have reached a level playing field and have possibly even overtaken them. The difference is we have the product,” he said.
“We own product, half of our product is exclusive to us. We have the stock to satisfy our customers’ needs.
“You only have to look at Expedia’s shocking results last week to see the ‘dotcom darlings’ are dying.”
His claims are backed up by a new indendent report by PhocusWright. See separate story.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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