The OTA business model changing the game

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The way travel agents react and adapt to technological advancements in the industry is more crucial now than ever.

As more and more travellers are transitioning online to book their holidays, it’s clear that a truly tech-savvy agent is a well-equipt one.

See also: Mobile vs in-store: Which agent model is best?

It’s becoming more obvious that agents need to emphasise their ability to personalise and provide experience to combat the online emphasis and remain relevant, but how can they use the tech transition to strengthen their businesses?

We spoke to Campbell Harris, the managing director of Global Journeys, who has adapted the traditional model of face to face interaction while incorporating all the benefits of tech.

Harris told us he set-up Global Journeys nine years ago to blend the benefits of technology with a network of experienced consultants to market and sell guided tours and river cruises online.

“Our model allows our clients to research, filter through, read reviews and make informed decisions on over 4,000 trips and 180,000 departures with a dedicated consultant assigned to every client,” Harris said.

“This model provides our clients with a breadth of product, choice and the flexibility that transacting online provides, but with support on hand if needed.”

The business model Harris uses still gives travellers the benefits of agent support while planning their holiday, but the if they prefer to be independent, the option is still there.

“If the client needs their [agents] support or advice, then they are there at the end of a phone or email, but for those clients that are happy to transact without guidance, then they can do that too.”

Last week, we reported on a recent survey which found that future travellers are most interested in booking with OTAs, closely followed by Smart Speakers (Amazon Echos and Google Homes), influencer accounts and augmented reality.

In the study, researchers asked future travellers which futuristic travel booking method they’re most likely to use.

Obviously, the entire test was hypothetical, but the results are still somewhat concerning.

The exact question asked was:

THE WAY WE BOOK HOLIDAYS HAS CHANGED. FOR EXAMPLE, MANY PEOPLE NOW BOOK ONLINE OR VIA APPS ON THEIR PHONE AND NEVER SPEAK TO A TRAVEL AGENT IN PERSON. WHICH OF THE FOLLOWING FUTURISTIC BOOKING METHODS WOULD YOU BE INTERESTED IN TRYING?

The top answer was ‘virtual travel agents’, also known as OTAs; which is also concerning, but let’s not get stuck into the OTA vs brick and mortar agency debate now.

Virtual travel agents were favoured by 46 per cent of men and 47 per cent of females.

Although, creeping in only 15-odd per cent behind virtual agents was ‘smart speakers’; your Amazon Echoes and Google Homes.

Speaking on these results, Harris said that the future of agents relies heavily on customization and specialisation.

“This segment of the market is likely to remain relatively free of dedicated technology for the foreseeable future,” he said.

“I think the pace of change is increasing significantly, and everyone in travel either needs to embrace tech fully…or not at all.”

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adaptation Campbell Harris global journeys ota technology