Independent travel agencies could thrive in 2008: opinion by Wayne Darrock

The UK marketplace will see major changes in 2008. Meeting customer preferences and a higher level of expectation will be my key task.

It will be a year in which independent agencies will succeed if they are prepared to adapt, and invest time and research. By identifying niche markets and products and avoiding selling like-for-like product with multiple competitors, the year need not be what many predict.

The Internet will continue to take most package bookings. Customers wanting higher value, special interest and more complex itineraries will book with upmarket multiples and independent agencies.

Airlines will continue to consolidate and the new open-skies agreement will produce more choice and direct flights to the US. However, increased fuel costs will continue to push fares higher.

Small to medium-sized operators will suffer as their market share continues to diminish in favour of the dynamic packaging market. By examining their product differences and working more closely with agents these operators will survive.

Consortia will work more closely, sharing information and resources, while expanding their own products and specialist divisions.

One main focus will be to combat the increasing number of direct sell and online operators undercutting agents. Agents will work closer with operators to offer a level playing field between direct and agency pricing.

It will not be a year for the faint-hearted but, potentially, a great year for those prepared to adapt quickly to the changing marketplace.