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The Impact of Technology on Travel Agencies

Planning a business trip or holiday escapade used to require knocking on the doors of every travel agency in your neighborhood. Afterward, you simply asked for prices, compared them between agencies, made your maths, and returned to the chosen agency to finish the trip. You might be able to handle everything by phone, then collect your tickets and travel plans at the location.

Those days are over. Business cannot be done the way it used to. Sales and marketing directors at travel agencies must be aware that the market scenario of their business has changed dramatically in recent years. Thus, new opportunities and threats arise, affecting the profitability of the business, for the better… or worse!

Technology impacts the business and the market in many ways. There is still the question: “Why would any travel agent want to return to inefficient, costly booking systems?”
Technology is impacting travel agencies in a number of ways today, ranging from client services to experiential travel. Taking away emotions, feelings and experiences is more important than the destination anymore.

Travel agencies must prepare for that and more. Travel agencies need to prepare for a new way of booking that doesn’t require their presence. It’s time to reinvent themselves again. We will change how we travel one step at a time, responding to client requests and needs.
As we proceed, we will explain what has changed, as well as how agencies can utilize these opportunities to streamline operations and become more competitive and profitable, while also considering the threats associated with these technological disruptions.

Technology overwhelms the travel industry, making it difficult to find the right fit for your business among the options. Travel agents may run into some obstacles, even the most tech-savvy agents.

Focus on what matters

The tourism industry needs to think about disruption, modernization, techie platforms, big data, roboticization, and artificial intelligence. The world of technology is changing rapidly, impacting industries like tourism and travel.

Ignoring it is slowing down the business. Let’s explore the seven fundamental IT changes affecting travel agents.

Usage of the Internet: Internet rules in the 21st century! All your actions pass through the web. With the widespread use of the internet, a number of conditions have been created that have been game-changers, both beneficial and detrimental to agencies. A modern travel agency is undoubtedly being shaped by the Internet. For travel agencies to survive, they must make considerable changes!

Make your own reservation: Tourism has also embraced self-service, making it easier to book a hotel, a plane ticket, or a week’s vacation. The rise of online booking may well be the biggest impact on travel agencies. Booking a trip is now easier than ever, because customers can go online, look for companies that offer that kind of service, and book their entire trip themselves. Customers can book airline tickets and hotel rooms directly from airlines and hotels’ websites. Travel agencies have to learn how to deal with that reality and reinvent themselves by offering differentiated, customer-driven services.

Client relationship reinvented: Creating a new kind of relationship between travel agencies and clients may be one way to accomplish this. Travel agencies have expanded the ways in which they can communicate not only with customers, but also with their business network and partner services by using platforms such as the Internet and social media. This way, data becomes available in seconds, transforming a process that once might have taken hours into an instant thing, boosting productivity and reducing dead time. Travel agencies have happier clients at the end of the day.

Build your social media presence: Social media won’t go away. The new world requires travel agents and agencies to “get a personality”. As early as possible, businesses should begin building their social media presence and incorporating social media into their marketing and communications plans.
Nowadays, social media is one of the most important tools. Brand awareness and customer relationships are already being built using it by major businesses. Now is the time to start using it?

Smartphones: A tremendous change is taking place in the way travelers interact with the tourism industry and travel agencies, as a result of portability and the ability to search, compare and book trips on the go. Furthermore, mobility is driving a demand for a 24/7 booking service, and customers accept nothing less. It’s time for travel agencies to adapt again.

Tech is not the enemy: A report from Accenture and the World Economic Forum predicts digitalization will increase profitability across the aviation, travel, and tourism ecosystem between 2016 and 2025. Digitization has long promoted efficiency and improved operational performance. These emerging technologies are now being leveraged by travel industry players to transform the customer experience. They are going to disrupt existing business models, innovate in new areas of service and create some new and exciting experiences.

Wrap up!

Increasing speed and agility are key to better spotting and responding to customer needs in the travel sector. Making clients happy and ensuring revenues grow is key to making the business profitable.

In spite of the fact that too many tourism companies still have legacy organizational structures and the old way of thinking and doing things, it’s time to modernize, and adoption of a tourism management platform is a good way to start!

Today’s “must-haves” include maximum efficiency, agility, and hyper-personalized services based on real-time data.

Today, travel agencies have amazing growth opportunities, allowing them to connect with more customers and generate more revenue; to generate more leads and sell more; to survive in a new, tech-savvy, and much more competitive marketplace.

jefftech

OTRAMS is a world leading Travel Technology Platform. It is a complete travel ERP system built to drive seamless operations for destination management companies, Online travel agents, travel agencies and wholesalers.

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