Earlier, there was a clear distinction between a travel agency and an airline company since a travel agency offered complete travel packages whereas the airlines only provided its customers with cheap flight tickets. As the business based on the internet picked up pace, the airlines realized the scope to diversify and also reduce their dependence on the travel agencies for getting more number of customers.
Since the facility of booking flight ticket online being provided right on the airline website, it became easy for the people to make the booking of their flights directly on the airline websites rather than going through the agencies. The demand for cheap fares from a large part of the population resulted in the airlines re-thinking about the commissions that they had to pay to the travel agents.
So, the airlines were doing all that they possibly could to meet the requirements of the people of low-cost travel along with getting good growth of their business. This also made the critics to think that it was the end of the travel agencies. But, this has remained far from true till now. It is a fact that there has been an increase in the competition because of a number of players entering the fray of ticketing online. Many of them have also closed due to more competition and less profitability.
Despite the increase of commerce in the internet, the airlines have been unable to generate more occupancy rates. Their physical reach have not been to the extent the travel agencies have been able to penetrate. This offline reach is a very important distinction since these travel agencies have a much closer interaction with people which also helps in their brand awareness among the people.
Better reach to the masses also helps quite a bit in the creation of credibility and goodwill as the people can easily approach them for their complaints and queries. This is the point where the agencies overcome the airlines and gives the people more confidence in having interaction with the people and taking their services.
Large agencies are also able to establish their hold at many locations and this also increases their reach. Therefore, if the airlines have optimal booking levels on the sites, then the reach of travel agencies also provides them with more markets which can be explored and the business can grow. So the travel agencies accentuate the growth of new markets where cheap air tickets are something that are sought by passengers.
Martin Wynn
