The biggest disadvantage of OTAs: Gil McLachlan

The biggest disadvantage of OTAs: Gil McLachlan

In an era of fierce competitiveness between travel agents and Online Travel Agents, there’s a lot of opinions going around, but few are as significant as travel greats like Gil McLachlan.

Founder of McLachlan Travel Group, Gil McLachlan, is an industry stalwart, with plenty of experience under his belt, so when he talks OTAs, the industry sits up and listens.

And chatting to print editor Tara Harrison recently, McLachlan admitted he’s cynical of OTAs.

“But not for the reason people might think – that I’m an out-dated musty geriatric with cobwebs across the door afraid of competition,” he promised. “It’s the opposite.”

McLachlan was at the forefront of digital transactions in the 90’s, as the first agent to sell cruises online as well as creating content for the first iterations of Expedia, Yahoo, Tourism Australian, Travel.com.au, and Verizon.

McLachlan soon learnt that the computer’s biggest disadvantage is it can’t see the look in your eyes when you’re booking.

Online transactions also lack accountability and consumers need someone to blame is something goes awry.

“Webjet is a good model, though if they keep adding more product, they’ll be selling bananas at this rate.”

McLachlan has a prediction on the future of OTA’s. “In the end they will compete to open their own stores and in the end it’s not going to happen.”

As for traditional models, McLachlan says trust has been lost in many industries, so it has never been more paramount and a referral is your best goal.

“Our private clients only know our agency is there by being introduced. It is so busy and level of trust so high, we sometimes don’t have time to quote. In an industry claimed to be price-dependent, that says a lot.”

And a number of other travel agencies are following suit, creating beautiful in-store experiences you can’t get online. Check them out.

Conceding that OTAs do offer one positive, McLachlan said online bookings give the industry an elimination of low value product, leaving the high value transactions for the agent’s taking.

McLachlan believes there is a threshold – clients are comfortable spending less than $5000 online.

“Under $5000 per person our best customers will book anywhere. As we creep over that we come into our own more,” he said.

“Travel does not lend itself comfortable to online sales with the exception of the simplest transactions. For those that scoff, ask the investors in OTA’s.”

McLachlan is confident on the future of the industry, despite knowing that even he exists as a middle man.

“There are only two secure stakeholders – the consumer and the end provider. All the rest of us need to find a way to justify our existence.”

“Agents used to be the conduit between suppliers and we have to be certain that we are fulfilling our obligation to be trusted provider.”

Email the Travel Weekly team at traveldesk@travelweekly.com.au

    Latest comments
    1. …tell that to the new age users… who cannot be bothered if they’re paying more for nothing or something… what matter is their revolutionary cutting edge, high tech digital cool toys… gil mclachlan may be a travelbiz wizard but even god can get it wrong sometimes…

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