“Offline needs to differentiate from online”: Travelport MD talks apps, fragmentation and OTAs
It’s no secret that Aussie travellers are increasingly relying on technology for almost every aspect of their travel experiences.
From researching to booking to the bombardment of Instagram photos to make your friends jealous, tech platforms are becoming more prominent in the travel experience, and industry, every day.
New research from Travelport has shown that travellers rely on technology for not only a smooth booking process experience but are also confident that booking online would ensure them getting the best deal available in the market.
Travelport’s Travel Prospensity Study revealed that a whopping 83 per cent of respondents are confident that they will get the best deal when booking online.
We asked Travelport’s managing director for Australia, New Zealand and the Pacific Islands, Scott Barber what the implications of this research are for agents.
Barber told us that what he found most interesting about the research was that the second highest stat revealed that a majority of people want a one-stop-shop above all else.
“It’s not just about booking the cheapest flight with that one website they are actually looking for somebody to take care of them in totality,” Barber told us.
“For me a travel agent is still your best one-stop-shop. They’re selling a depth and breadth of content no one supplier will be able to supply.
“And then the one-stop-shop isn’t just about the booking the trip, it’s the entire lifecycle. That’s where people don’t value travel agents enough because they think once the booking’s done that’s the end of the service, very often people only realise the value of travel agents when things go wrong.”
Barber said the real value of booking through an agent becomes plain when bad weather or cancellations hit and travellers are able to pick up the phone and talk to a real life person who can do all the rebooking for them.
“If you booked it directly through the website and try to rebook yourself, you’re either in a long hold queue or a long queue at the airport,” he said.
But that doesn’t mean brick and mortar agents are out of the woods when it comes to their fierce competition with OTAs.
“The OTA space is expected to grow from 12 to 15 per cent by 2021 so we will see growth in the online sector in Australia,” Barber said.
“Interestingly the supplier direct will stay static so the ones that are gonna shrink a little bit is the offline agents. That said they’ll still account for 58 per cent of the market.”
“There’s absolutely space for the offline agents, but you do need to be aware that online if growing and it’s coming from the offline sector so if there are offline agencies that don’t have a strong online presence they need to think about that, similarly if you haven’t thought about mobile strategy, you need to think about that also.”
According to Barber, the biggest challenge in the industry right now is fragmentation. Everybody wants a piece of the traveller.
Once their trip is booked, they will typically be bombarded by all these different players asking if they’ve thought about insurance, their transfers, lounge access, tours, the list goes on.
“The trick is to take the total trip, the home to hotel and back again, as being your opportunity,” he said.
“Maybe six months ago when [the traveller] were looking at their flight they weren’t interested in the extra legroom or the extra bag, but now two days before they’re packing they might decide they need that extra bag.
“Unless you’re talking to your client throughout that entire lifecycle, somebody else is.”
That’s why Travelport bought Dublin based mobile company MTT and turned them into Travelport Digital. The company now builds itinerary applications to allow their travel agency partners to speak to their travellers throughout the entire trip.
“So it’s the travel agency that’s maintaining the relationship and that goes back to the brand, you’re then building out your brand as being very trusted throughout the entire trip,” Barber told us.
When you think about it, said Barber, online is generally perceived as giving travellers more access. After all, you can have it anywhere, on any device at any time of day.
“It gives you some transparency. You’re seeing lots of different options that maybe you wouldn’t have got if you’d have walked into a travel agent because the screens not facing you,” Barber said.
“Online is growing for very good reasons so if I was an offline agency I would be thinking of ways to differentiate from online and I think it’s value in experience.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Latest News
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
Malolo Island Resort opens brand new Spa
Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.
Visit Sunshine Coast reveals new brand identity
If you were looking for another reason to visit the Sunshine Coast then this is it.
Sofitel launches brand campaign starring Sex Education’s Gillian Anderson
We can confirm the content of this video is less spicy than Sex Education.
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!