et's face it, many of you tried to
write off the travel agency distribution system over the past
several years. The Internet looked like the promised land where you
could connect directly with consumers you thought had been
intercepted by agents for too long.
The Web, you thought, would be a much lower-cost distribution
alternative and would make marketing and pricing adjustments easier
to accomplish. What's more, it would be a great outlet in which to
dump last-minute, unsold product, you thought.
But your expectations haven't been met, and many of you finally
have to come to understand that a large percentage of Internet
shoppers are bottom-feeders interested only in the lowest
rates.
These days, the stagnant economy, persistent fears of terrorism
and concerns about the lingering impact of the Iraq war have
weakened your business -- and Internet bookings aren't bailing you
out.
With the war in Iraq at an end early enough to permit at least
partial salvaging of the spring/summer travel season, you need to
take notice that there are thousands of salespeople out there
called travel agents who have unique relationships with their
customers.
You need to recognize that travel agents not only can deliver
badly needed business but can deliver it at rates that enable you
to make a profit.
You need to become aggressive in encouraging agencies to work
with you at this critical juncture, a few weeks after the end of
the war and not too late to stimulate more vacation travel during
the peak months.
Some of you never abandoned the travel agency system and didn't
get seduced by the siren song of purportedly less-expensive Web
distribution. You stayed with your agency marketing programs and
reaped the benefits. But too many of you turned your back on
agencies, and now you find it harder to enlist their support.
In better times, many of you didn't think you needed
intermediaries much. You became overconfident and greedy and went
after more direct business. In these difficult times, travel agents
suddenly reappear on your radar screens as conduits to incremental
business.
Those of you who reduced your reliance on agencies in the past
and now are coming back looking for support will get it, provided
that your programs offer good value to the public.
But those of you who remained steadfast in your support of
agencies will be the big winners.
Agencies always are on the lookout for good values for their
customers and are willing to consider new suppliers and old ones
coming back to the fold.
But they reserve a place of honor for those of you who have been
there through good times and bad.