ill more brick-and-mortar travel
agencies close their doors this year? Yes. Will there be fewer
sellers of travel as a result? Well, hold on a minute.
The fact is we don't know how many sellers of travel there are
-- and no one knows how to count them. What we do know is that a
substantial portion of the agents who used to work in
brick-and-mortar outlets still are in the business. We know this
because suppliers tell us they're there and host agencies tell us
these people now book through them.
These agents, former owners and employees of agencies, now are
independent salespeople, many of them working from home and either
splitting commissions with host agencies or making direct
arrangements with suppliers.
It's no longer valid to measure the agent market by counting ARC
agencies. That number continues to decline, giving a false picture
of the distribution system. Unfortunately, the consumer media tend
to use the ARC numbers to underscore what they describe as a
rapidly declining industry.
To counteract this impression, all of us need to shift the
conversation from talking about travel agencies to talking about
sellers of travel, some of whom are not in physical outlets. We
don't know exactly how many total sellers of travel there are
because we can't see the ones who aren't in brick-and-mortar
locations. But we know that the total number of sellers of travel
remains in the hundreds of thousands.
And let's not forget the people who are working for the major
online agencies. We tend to think of Expedia, Travelocity and, yes,
even the dreaded
Orbitz as representing a world apart. But a significant portion
of the people working at these companies come from the traditional
agency business and for years worked as brick-and-mortar
agents.
The distribution system is changing rapidly, with more former
agency owners surrendering their ARC licenses, GDS contracts and
obligations to landlords in order to concentrate on what they do
best: selling travel.
These agents add substantial volume to the industry total,
particularly in the tour and cruise categories. The rise of host
agencies, offering these former owners and their employees safe
havens and a range of services, is making the transition
easier.
Although the structure of the industry has changed, the power of
the distribution system remains intact. Let's not forget that
sellers of travel continue to represent the largest distribution
channel for travel and transportation suppliers.
And let's remember to measure the trade in terms of sellers of
travel, rather than ARC licensees.