Reynolds warns of direct-sell threat

Reynolds warns of direct-sell threat

DIRECT selling by operators is a bigger threat to travel agents than the Internet, according to ABTA chief executive Ian Reynolds.

Speaking at the Digital Distribution in Travel conference in London, Reynolds told delegates agents can survive the boom in e-commerce. However, he predicted that in the next five years, direct selling will account for 40% of sales while 15% of bookings will be made on-line.

Reynolds said there is clear evidence certain products sell better on-line than others.

“I would conclude there is a difference in e-booking propensity between different sorts of products,” Reynolds commented.

He said low-cost flights, car hire and hotel accommodation sell well over the Web, but package holidays and other costly products do not.

“If something is the same cost as a CD or a book, they are easy to sell. But there are lower bookings of package holidays, cruises and tailor-made holidays. These are more complex and costly,” said Reynolds.

He added consumers needed reassurance before parting with large sums of money, and this is not possible over the Web. Reynolds acknowledged there has been a large growth in Internet sales, but made it clear new technological advances are already posing a threat to the Web.

“Digital TV will over take the Web,” he said.

nFull conference report next week.