Agents who focus on complex itineraries for cruising, tours and luxury holidays are most likely to prosper in the coming years, according to the boss of Gold Medal Travel Group.
Simon Applebaum, managing director, said agents need to look at their business models and where they can add value for customers, because holidaymakers can easily book traditional short-haul beach packages themselves.
He told a Travel Weekly webcast that the B2B group is investing in its specialist brands – Pure Luxury, Incredible Journeys and Cruise Plus – because these sectors offer great growth potential and urged agents to follow suit.
“We’re not focusing on low-cost air and short-haul destinations – the seven or 14-night stays and the traditional space that Thomas Cook operates in – because we don’t see that as where the agents should be,” he said.
“The strategy that I’ve outlined is not only about our internal strength but it’s where I see the value of agents.”
In three to five years’ time, agents who sell mainstream packages won’t be able to add much value for consumers as those holidays are easily booked online – whereas cruise, touring and adventure itineraries are more complex.
“When an agent sells that product, they’re adding so much more value to that customer…we should be moving where agents add most value and guiding our partners towards that place,” he said.
“We’re supporting that with marketing collateral to help them drive that business.”
He said many agents have been selling short-haul beach holidays in the wake of lockdowns because lots of consumers are seeking trips closer to home – but in the longer term, more complex itineraries will be in greater demand.
“The consumer won’t see why they would use an intermediary to book that [short-haul] product when it’s available at the lowest price on a website and it’s five clicks away…it’s point and click,” he said.
“If we’re looking through a three-to-five-year lens, the agents that prosper will be the ones that really put their weight behind more complex itineraries.”
Commenting on the group’s investment in Cruise Plus, he said agencies such as Miles Morgan Travel are seeing younger clients coming into stores as they want reassurance and expertise from a high street agent.
“With cruise-and-stay, there’s very little offered direct to a consumer. There’s a lot of researching that we can do and expertise we can give to customers,” he added.
The same applies to the complexity of adventure travel and touring itineraries offered by Incredible Journeys, said Applebaum.
He said the operator can liaise with partners in resort to tailor-make a tour or work with touring such as G Touring and Intrepid Travel to offer itineraries.
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