Travel intermediation, a model in full transformation (I)

Date : 19/02/2013
Author : Forum Business Travel

The tourism distribution sector is witnessing, as a protagonist, the most radical and aggressive process of change in living memory since the end of the 18th century with the origin of the Industrial Revolution. A profound global, economic, social, cultural and technological transformation, a new way of seeing and doing things. Are we prepared (trained) for the change?

A clear example of the magnitude and depth of the changes we are facing has just come to us from one of the largest tourism groups in Spain, Orizonia, which has just publicly announced an insolvency proceeding.

It can be said louder (I have my doubts), but not clearer: “The transformation our sector is going through affects us all, large and small”. This should lead us to think that the problem may not be a question of size, but rather of focus. Once again, the saying goes: "size doesn't matter". What point are we at? Certainly, at a point of no return. However, to answer this question, far from investing in costly strategic analysis, I will sum it up very simply by answering these three simple questions: ?what??and ?who"who"n? and ?how?

"what"
Any travel agent we ask will tell us that their business is selling travel. It is hereí where the first evidence of the error arises and the necessary specialized training to govern the process of change.

The definition of "selling a trip" as a mere economic transaction of a ticket or voucher in exchange for money currently provides no value, is obsolete and could even be said to lack any value whatsoever;It is obsolete and we could even say that it lacks any practical sense because, nowadays, the sale of a trip can be easily achieved through the Internet, without the need for a travel agent.

However, everything would change if the business were not seen as the mere sale of tickets, but as a specialization in facilitating tourism experiences. The real possibilities of providing added value to customers will increase considerably when the sales service itself goes beyond the mere economic transaction.

Who?

Today's customer is much more demanding, much more informed. It is a customer looking for experiences, a customer that within the same trip can use a low-cost airline, stay in a luxury hotel, dine in a fast food establishment and carry a 700-euro smartphone in his pocket.

The time has come to change, to leave the comfort zone, to eliminate traditional and archaic management models, because they are no longer valid. We are facing a new consumer model, with new behaviors and new consumption habits. The time has come to provide a much more personal and highly specialized service of value, but "how?"

"How?"

This is a question that could well be the subject of another article. We will simply make an approximation of the issue and return to it later in future installments. Fewer and fewer customers see any value in going to an agency to be given a brochure, take it home, study it and then return to the agency to make the booking.

It is the travel agent who must go and meet the customer where he/she is. It is a reality that demand will rise again and that the global market will stabilize and grow above other sectors. We must not forget that the tourism sector is one of the main drivers of the economy, and an example to follow in the process of changing the production model that our country needs.

The UNWTO forecasts a worldwide growth of around 4% for the year 2013. So, is there a crisis or not? The answer is clearly yes, but with nuances. The deepest crisis is not of an economic nature, but the one resulting from the transformation of the current tourism distribution model.

Innovation and technology will play a vital role in this transformation process. Online planning and booking platforms, social networks, new mobile devices and interfaces for accessing information in real time and from anywhere will offer a completely new customer relationship and management model for which we must be prepared.

The biggest challenge we face lies in training and specialization. Currently, we do not have the appropriate experience and expertise to manage change. The market requires professionals with a set of specific skills that, today, have not been learned. The novelty and speed of change have not allowed for the adaptation of current professional and specialized training plans. Therefore, there is only one possible way forward: to continue learning.

We will be back in two weeks with a second installment in which we will expand on this topic from a more practical perspective, focusing on the key aspects of the education and training of travel agents. He will also give a brief introduction to the new models of self-employment and career opportunities.

Borja Rodríguez Niso
Business Development
www.velentis.com