Why Travel Agencies Are Still Going Strong Despite
There were times each and every clear distinction could be drawn between a travel agency and an airline to be the former offered complete holiday packages and not just a budget air tickets which however used to sell. As internet based commerce picked up, the airlines realized the scope of diversification and reduction of their dependence on the agencies for getting more customers. Since the facility of online booking of flights was provided right within websites of the airlines, it became very entirely possible that people to do flight booking on the airlines website directly, without checking the agency route.
The demand of cheap air tickets from a great section of the population resulted in rethink about fat commissions which the airlines used to pay to the agents. This was more possible now than any time before since internet-based commerce reduced reliance upon agencies for filling the seats of airplanes. The airlines were doing all those things ? could be done fulfill the aspirations of the people of low-cost travel by air and at once take the growth trail. This had made many critics to begin imagining the end of the travel agencies. But, so far this has remained clear of true. It is factual that there has been an increase in competition since a regarding players have entered the fray of online ticketing. Many of these have closed shop due towards same reason of more competition and less sustainable profitability.
However, some of the agencies are still going strong, helping flight booking on large scale. Is preferable to just these agencies carry on growing and gaining resilience?
Despite the associated with internet-based commerce, the airlines have not been able produce fuller occupancy apr's. Their physical reach in the different geographical markets has not been developed into the extent to which your travel agencies already been able to do. This offline reach is important distinction since agencies have closer interaction with every rather than the airlines which aids in developing their brand awareness among the masses. Closer reach also helps in generating goodwill and credibility since the people can approach these with their queries and complaints comfortably. This is a key point in which the agencies score over the airlines since when the people get in direct touch, it gives more confidence folks in interacting with the agency and take its services. Big agencies are in a position to establish their foothold at multiple locations and this assists in increasing their scope.
Therefore, even if the airlines drive optimal levels of bookings on their sites, the reach of travel agencies always gives them more markets to explore and business develop. So, the agencies fuel the growth of airlines in new market where cheap air tickets are sought by passengers.