FEW issues in the travel industry create as much debate as that of distribution. And rarely in an increasingly high-tech environment does the debate not have the Internet and digital TV as its focus.
Opinion is divided over how central a role technology will play as a means of getting product to the masses. But the fear for those who fail to embrace the changing booking habits of the consumer is that they will gradually fall behind, maybe not immediately but certainly in the next two or three years.
ABTA is determined to use its conference in Cairns as a springboard to educating its more stubborn members – largely independent agents – that technology must be taken seriously and regarded as an opportunity to expand their business.
The association will also strive to convince those agents who regard it as a threat to view it more as an opportunity.
ABTA chief executive Ian Reynolds said he will use his speech at the conference to drill home the message to agents.
“Everyone will be effected by e-commerce,” he said. “There are some members who build their entire business on the Internet but equally I feel many still put their head in the sand and think it won’t effect them.
“In the short term they may have been proved right. But British Airways estimate that 50% of its business will be on-line in three or four years and EasyJet say 60%. While the impact will undoubtedly be slower for the more sophisticated package holidays, it is only a matter a time.”
Reynolds predicted around 10%-15% of package customers will choose to book through the Internet or on digital TV – a level which could mean the difference between success and failure.
“This is the most modest estimate,” he said. “Is there any member who can afford to ignore that? It is this margin of business that could mean an agent moving from the black into the red and running at a loss.” ABTA president Steven Freudmann, in the last of his three-year stint at the helm, will also urge agents to turn technology to their advantage.
Despite conceding that so far it has had little impact, he insisted the threat is looming.
“Agents must look at it as an opportunity,” he added.
“Airlines have their own Web sites but naturally they only have one choice of airline and people like a choice.
If customers go to an agents’ site they will get that choice.”
conference plans
ABTA chief executive Ian Reynolds and president Steven Freudman said important lessons had been learnt from ABTA ’98 which have influenced the way this year’s conference will be run.
1: The association is striving to increase audience participation from the floor in Cairns which was desperately lacking in Spain. To encourage debate, written questions can be submitted in advance for those who do not wish to ask questions in front of fellow delegates. TV presenter Alastair Stewart, who will be chairing the debating sessions, will also pick on companies and individuals, to get a response on the topic in question.
2: ABTA’s primary objective is to avoid the poor timekeeping which prevented consumer affairs minister Kim Howells from making his speech in Spain last year. This year a new lighting system on the podium will flash when speakers are nearing the end of their allotted time.
3: Welcome speeches by the host country on Australia and the state of Queensland, will be kept to a minimum.
4: Individual presentations will be kept to a minimum as panel discussions tend to create more debate.
5: Sessions will not run into social events as companies invest a lot of money on functions which allow delegates to socialise and network.