Why Role of Agency Never Diminishes For Getting Cheap Flights?

 

Why shall a person go to the travel agency for flight booking? Why, despite all the facility of travel booking through the ecommerce medium, the agencies are still going strong and the airlines are still dependent on agencies? In the past, when ecommerce was not even heard of, it was the agency close to the person’s home or office which was the best option. The airlines did not had much of presence, except for a few offices in select cities where it was fruitful to have an office. Instead of investing in large scale infrastructure, the airline thought it much more prudent to market its flight through agencies which were the nearest to the consumer.

The beginning of ecommerce proved to be a great leveler in that airlines could use the same technology to reach out to the consumers. The importance of the physical geographical location of the agency, which was top factor in earlier marketing efforts, was lost in due course of time as more and more people began using the internet for making flight bookings. Now the airlines could directly pitch for cheap flights through its own website. Anyone who made direct bookings using its own platform could be showered with more exciting deals and offers, just for the sake of leaning away customers from agencies to self and to garner more new customers. This looked ominous for the agencies at one point of time as airline tickets were getting increasingly booked directly through the airline website, bypassing the agency. The role of agencies was diminished as was their percentage of commission.

But, it must be said to the credit of the agencies that they have fought the battle well and have survived in the face of immense heat of competition. How? At first, the agencies realized that the new way of life is going to remain predominant for a long time in future, so it is good to be a price maker to being a price-taker. Second, the agencies had the knowledge and skills to operate at the local level. So, hotels and vacation packages, which have always been USPs of agencies were again reinvented to stay in competition. The airlines also diversified into one or the other of the travel segment, offering various products such as hotels, car hires and vacation packages, the agencies have their own forte here.

There is another significant manner in which the agencies attract customers. This is its unique capability to provide alternative and multiple product options to the passengers. The customers are more likely to trust the agencies for seeking options and choices since airline will not provide these as it would amount to promoting its competitors.