In a complete about-face from the long-held positions that the Internet was the preferred distribution choice, some operators now believe travel agents will prevail as suppliers’ favoured sales channel.
On Holiday Group chief executive Steve Endacott said: “There has been a lot of focus on moving sales online, but I think the pendulum is going to swing back the other way.”
TUI corporate director of strategy Thies Rheinsberg agreed and said in future agents are likely to be responsible for 50% of tour companies’ sales and would retain that place in the future.
Rheinsberg said that percentage might be slightly lower in the UK than on the Continent because British holidaymakers are web-savvy and more accustomed to booking online.
A recent survey shows that Internet bookings in the UK have more than doubled to 31.6% between 2004 and 2006 and this is increasing fast.
Operators know online sales are increasing, however, agents will continue to be a sizeable sales force for them when it comes to package holidays.
Endacott and Rheinsberg said there are two major reasons for the change of heart. The first is that the cost of online advertising has become too inflated, which means the online model is not economically viable.
The second reason is that we are living in an ageing population and, although older people are comfortable booking online, most still prefer to book through an agent.
“Much of our customer base is in this age group, so most holidaymakers still want to talk to someone when booking a holiday,” said Rheinsberg.