Completing the trinity will see travel agents recover, says Robin Lawther, senior director of Expedia TAAP at Expedia Partner Solutions
As we continue to feel the repercussions from the first national lockdown in the UK – where travel agencies and accommodation businesses saw the sharpest decline in turnover of any sector – getting travellers traveling again is paramount.
We cannot solve new problems with old solutions, our journey to recovery will have to start with innovation and agility.
Since the onset of the pandemic, one thing has become abundantly clear: good customer service is no longer enough.
Of course, it will always remain a key part of successful business, but it must be paired with innovation to properly secure and manage bookings, and pivot operations according to customer demands.
For online and retail travel agents working hard to bounce back, three things must now be offered to customers: flexible payments, timely refunds, and a service they can trust.
Operating on a flexible payment basis may seem counterintuitive when a solid bottom line is a means to recovery, but it will birth something far more fruitful for the future: trust.
As travellers battle to navigate a traffic light system for international travel, and constant changes in government regulations, they require travel agents that help them feel confident taking a trip again.
Offering flexible payments and refunds is one of the most straightforward ways to achieve this.
It is a trend in travel that has steadily grown in recent years, with the pandemic accelerating its adoption.
The Property Collect payment option from Expedia Partner Solutions is available on more than 500,000 properties on Expedia TAAP and allows travellers to pay for the accommodation part of their holiday when they check into the hotel.
This payment option has seen strong year-on-year growth. In 2019 around 15% of travellers made use of the ‘pay later’ option. In 2020, with covid, that climbed to 20%. Following the advent of the pandemic, almost 30% of travellers have already made use of this option in 2021 so far.
As for refunds, nearly 70% of our hotels offer refundable rates. This has been crucial to our travel agents retaining good customer relationships and loyalty.
This trend is also indicative of a change towards a ‘buy now, pay later’ culture among travellers. In the same way other industries have adapted to retain customer loyalty over lockdown, such as retail with extended returns, deferred payments, and express deliveries, this evolution in travel is likely to continue beyond this pandemic.
With all of this said, there are hurdles that will inevitably need to be tackled. The recent removal of Portugal from the UK’s green list was one example of a big hit for many travel agents and indicated that we will experience fluctuations for the foreseeable future.
What we cannot do, however, is shy away from meeting these challenges head on.
As an industry, it’s important that we work together to build trust in travel and offer travellers flexibility across the travel ecosystem – putting the consumer first will ultimately be the route to recovery, and, in-time, bottom line growth.