And in five years' time, what will become of travel agencies?

In a context in which the demand for travel will continue to grow exponentially, travel agencies will continue to play a relevant role and are expected to at least maintain their current market share, despite the emergence of new competitors. This is the prediction of a study recently published by Amadeus Spain and ACAVE, in collaboration with the University of Barcelona.

The study also predicts a moderate increase in the concentration of the sector, since a large part of it has already occurred in the present day. Experts also estimate that there will be an increase in online sales in physical agencies, especially in large ones, although small agencies are expected to be less effective in this channel.

Online agencies, moreover, will grow in the area of customized products. These intermediaries will have a greater participation in corporate travel and will grow the real dialogue with the client.

It also points out the convenience that small, physical agencies, as they are already doing now, should go deeper into their differentiation strategies, looking for factors that allow them to distance themselves from OTAs and other agents, according to the study.

SPECIALIZATION

In the next five years, analysts believe that agencies should increasingly move toward organizations that specialize in problem solving for clients,

and that are able to provide certainty of response when the need arises.

The improvement in customer service will be, therefore, another key in the coming years, which will imply giving more relevance to after-sales and offering a correct 24-hour service. Thus, says the report, it is necessary to have trained and specialized staff.

The authors confer in their document a high value to the prescriptive capacity of professionals in terms of advice and information, “in a context of lack of time of customers”, as indicated in their conclusions.

TRUST

The trend study understands that, in the future, trust in the agency will be a totally transcendental factor for its hiring. Therefore, the specialists are committed to prioritize the human contact that they already offer and delve into the quality and credibility.

The price of products and services, meanwhile, will continue to be a significant variable for an important part of customers in their purchase decision.

A very strong growth is expected in tailor-made travel and dynamic packages, which allow higher margins and possibilities for differentiation. Similarly, the offer of strong and unique emotional experiences, cross-selling and ancillaries will also grow. Last-minute sales will continue to rise, given the ease of contracting a mobile phone.

At the time of contracting, the consumer will be more informed, more demanding and less loyal, especially with regard to the ‘millennials’. This means that in the future the customer's co-participation in the design and production of their trip will grow. In this way, the customization of services at all stages of the trip will be more and more present.

The new competition for OTAs comes mainly from the gateskeeper, especially Google, with its great power in terms of available information, followed by direct sales by airlines and hotels, whose direct sales are increasingly more important;..., followed by the direct sales of airlines and hotels, whose direct sales through their respective websites have increased enormously, the offer of the collaborative economy, as well as sales by certain B2B companies, such as Amazon,,Alibaba...

DIGITALIZATION

The technology will not only have an impact on improving communication with users and suppliers, but it will also make it possible to increase the company's sales and service levels; It will also increase the productivity of the travel agent, simplify internal processes and generate more marketing possibilities.

As a result, agencies will increasingly focus on their core capabilities, which is expected to lead to greater outsourcing;of technology in the VPAs, mainly in SMEs, due to the high investment involved in trying to update their technology and the limited availability of resources to do so.