Report reveals airlines’ squeeze on agents

THE airline industry’s move to direct selling could ultimately lead to the end of agents, research has claimed.

Travel agencies have reacted furiously to a report published last week highlighting the airline industry’s dramatic switch away from agents to their own websites as the preferred booking tool.

The research, which polled 107 of the world’s major carriers, revealed sales through airlines’ websites have doubled to more than £30 million in the past 12 months. Direct web sales now account for around 10% of the world and 11.2% of European markets.

Traditional airlines plan to sell the majority of tickets direct to the consumer on-line within the next three years, while direct corporate sales are set to double within two years. Seven out of 10 carriers now use their websites to sell tickets compared with only 40% in 1999.

The report, by airline technology provider SITA and Travel Weekly sister publication Airline Business, shows airlines are not only snubbing the trade but muscling in on its core business. Almost a third of airlines already offer packages, hotels and car hire with many more planning to follow in the next few years.

Scheduled Air vice-president of sales and marketing David Hall is concerned the trend could spell the end of travel agencies. “Agency after agency will fold up and down the country and there will not be an agency community,” he said.

“Only the big boys will remain and even they will be squeezed.”