Agents losing turf to travel Web sites, travel association says

To Whom It May Concern:

We came across this information in the trades, in the form of a press
release, and thought it would be of interest to this newsgroup as well.


A recently released Pacific Area Travel Association (PATA) report has
revealed travel agents, long gatekeepers of travel and price information,
are being replaced by online booking engines that provide hotel and travel
services, connecting anyone anywhere.

The report, Total Tourism Survey: The Industry Speaks, claims that smaller
players have benefited enormously from the new technology. "The technology
enables them to transmit information directly to consumers and finding more
creative ways to target repeat travelers.

"The mushrooming of low-cost carrier airlines can certainly be attributed
partly to the technology revolution. Travel agents and global distribution
system operators now have to radically alter their business models"

A Center for Asia Pacific Aviation (CAPA) report in India says travel agents
in India now have to accept a reduced commission of 5 percent, down from 9
percent previously. "It's only a matter of time before it is completely
wiped out."

Kapil Kaur, from CAPA's Indian office say airlines are now offering frequent
flier miles if tickets are booked online."

More experienced and well-traveled customers who are in the market for just
flight ticket and accommodation are increasingly relying on travel Web sites
to make reservations. International travel websites are also now
distributing travel packages via the Internet.

Apichart Sanary, president of the Association of Thai Travel Agents (ATTA)
estimates direct online reservation in Thailand is now about 40 percent of
the total business transacted, an increase of 10 percent compared to five
years ago.

John Watson, CEO of a travel agency told the Bangkok Post, agents still have
an important role to play. "Customers want to have direct contact with a
person who will get back to them when they have problems with their trip.

"The reservation websites have never been able to replace traditional travel
agents over the past 10 years, and I don't think they ever will.

"Travelers who are not cost-conscious want more than just making a
reservation. They want details on how to make their trips as pleasurable as
possible. Agents can add value to their operations by using the Internet
technology," added Watson.

Industry analysts point out travel agents need to evolve if they are to
remain a viable part of the industry. Agents need to start offering any and
every available service a traveler requires and become a travel advisor
charging a fee for the service, rather than earning a commission.

"Most travel agents are still living in a well."


John Sisker, Agency