Unlike many in the hospitality and tourism space, who spend
their career working solely in one particular facet of the business, I have
been fortunate and have been able to change verticals several times. At ICON
Park, it was attractions and restaurants; at Universal Parks, it was resort
hotels and theme parks; as a board member at the Grand Canyon Resort, I helped
promote an area of extreme natural wonder.
While on the Visit Florida board and
as chairman of the marketing committee for three years, I was exposed to
everything the State had to offer visitors. In my new role at Margaritaville at
Sea, I have entered the exciting field of Cruise Vacations.
I share that background to provide some needed context to
this article. The diversity of experience has exposed me to both the
consistencies and the irregularities regarding how third parties, be the
suppliers and destinations themselves, view them as OTAs, Tour Operators, or
Travel Advisors. The most common thread is that all channels are considered a
necessary evil.
Unfortunately, in the minds of many, selling through a third
party is seen as a problem or something that will be fixed one day. A core
belief often reflected in how they treat the respective channels - the
policies, commission rates, and permissions regarding the use of assets are
just some of the ways one can identify this philosophy at work in the
background.
Those who promote this concept are usually basing their
stance on erroneous information, and they are not even up to date on some of
the latest consumer research conducted since COVID-19, which indicates
consumers need much of what these third parties are adding or using as part of
their special sauce.
Additionally, the idea that third parties or the
"trade" will cost more than direct is a fallacy that has been
disproven repeatedly. Most companies that make that claim have not done a deep
financial analysis to determine if it is true; it is an emotional outburst
based on the fact that commissions or net rates are offered. They must include
all the costs of gaining business through their direct channels. Once an
accurate comparison is done, it always proves otherwise.
There are value statements for all available channels, and
they differ significantly. However, the consumer research conducted in the
post-COVID environment has indicated that Travel Advisors, or Travel Agents,
now have some distinct advantages over other channels. Obviously, not all
Travel Advisors are equal, and some will avail themselves in ways that leverage
their advantages and others will not; however, the main point is that given the
new mindset of the modern consumer, the proven approach of travel advisors
might align best. Here are a few of those shifts.
- Consumers
have developed a much higher standard of service levels. This
applies during their vacation and the booking process; consumers now
expect more responsiveness and customized options. Agents can deliver
these high service levels with immediate callbacks, offers to do research
or call locations, and validate concerns. Their often personal experience
with the consumer's selection allows them to give far more to the consumer
and make them feel very special.
- Consumers
are obsessed with authentic interactions. Again, much has been
written regarding the surge in authentic vacation experiences, but that
begins during the research and the consideration phase of the vacation
planning cycle. Advisors connect with the consumer on a personal
first-name basis, and the relationship adds an excellent level of
authenticity and, consequently, trust. The research indicates that
websites (or OTAs) need help to accomplish this, and often, the consumer
leaves frustrated, not by a lack of information but by a lack of authenticity.
- Consumers
Value Specialization. Research has also indicated that consumers are
now more drawn to outlets, vendors, contractors, and service providers
with specialization. Just look around at some successful and very niche
companies thriving because of this modern preference (Dollar Shave Club,
Butcher Box, Warby Parker). Travel Advisors have often developed a very
niche area of expertise that, when leveraged correctly, fits this sweet
spot very nicely.
As I mentioned at the outset, my new role in the Cruise
vertical is one that greatly appreciates the value of the individual Travel
Advisor. As an organization and individual, I am in a place that allows me to
develop and strengthen these relationships because I know that the result will
not just be more customers (or passengers). Still, how these passengers are
dealt with during the buying process will mean that they are happier, have more
precise expectations, and enjoy the overall experience more.
At the same time, this doesn't mean that ALL Travel Advisors
are equal and, therefore, a good choice for any supplier or destination. Travel
Advisors need to continue working on their skills and their expertise. They
must ensure they are adding value to consumer interactions. They must prove
their worth and articulate that proposition clearly as they work with their
suppliers. If, as a Travel Advisor, your conversations with suppliers always
focus on needing a better rate or commission or a unique inclusion that
differentiates you, then you are probably heading down the wrong road!
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