How online booking has changed the landscape travel agent
Elisa Fernández-Arias, provided by
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How online booking has changed the landscape travel agent
Travel agent jobs have dipped sharply, dropping about 70% between 2000 and 2021, according to the Bureau of Labor Statistics. The proliferation of online travel companies has made it easy for deal hunters, armchair travelers, and business travel planners to track information and find the best deals at their fingertips. But don’t count out travel agents yet—many are seeing a resurgence as travel recovers from the COVID-19 pandemic.
TravelPerk used BLS data to analyze the decline in US employment of travel agents over time, comparing employment to a timeline of online travel resources that have propelled online bookings.
It’s important to note the differences between the various booking option services available to customers. Travel agents help clients in planning their trips by arranging travel with suppliers. Examples of their suppliers include package tours, travel insurance, railways, cruise lines, car rentals, airlines, hotels, and so on. A travel agent’s clients include corporations, groups, or individuals, who often have very different travel needs and expectations. Business travelers, for example, are spending 50% less on travel than pre-pandemic, but as they steadily return, many have concerns including mitigating costs as in-person conferences restarting and anticipating changing entry restrictions, especially for international travel. Leisure travelers may turn to agents to recommend lower-risk—but still scenic—vacation destinations.
Travel agents can own their business or work for an agency owned by someone…
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Travel agent jobs experience a drastic decline
The internet has significantly impacted travel—fundamentally transforming the experience itself and upending the way the industry functions. As traditional operators struggled to adapt, new brands began to emerge. The industry’s digital disruption started in the ’90s and has continued steadily.
In 1994, Travelweb.com, the first comprehensive worldwide hotel properties catalog online, appeared. It would soon include a feature allowing customers to make online bookings. Then, in 1995, the Internet Travel Network was claimed to oversee the first online airline reservation. ITN was the forerunner of GetThere, the reservation system for corporate travel.
In 2000, it sold to Saber, which ran an automated airline seat reservation system. Also in 1995, Viator Systems—now known as Viator—started a travel technology business that helped provide bookings for excursions and destination tours online.
In 1996, a new player entered the online travel bookings world: Expedia. This online platform was Microsoft’s foray into online travel. This attempt has been incredibly successful, given its spot as one of the world’s top online travel agencies. At a time before e-commerce was widely adopted, Expedia consumers gave price comparisons for flights, cars, and hotels—and the means to easily and safely book them on the site. The website’s first…
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The 2000s further accelerated changes in the travel industry
Tripadvisor was founded in 2000 and had a mission to help people make better travel decisions. The company organized hotel listings, making them more searchable, and ranked hotels based on travelers’ reviews. With this information at their fingertips, prospective travelers could book using the recommendations of other travelers instead of a travel agent.
After Sept. 11, it took nearly three years for airline travel to return to previous levels after a high of 65.4 million passengers in August 2001. As the travel industry dealt with the downturn in business and leisure trips, these online platforms became the saving grace for operators like hotels and airlines who needed to sell large amounts of available inventory. The travel industry’s reliance on these platforms remains to this day.
Another shift came in 2003 when IAC purchased Expedia. IAC’s constellation of websites, led by Barry Diller, attracts up to 2 billion monthly visits in 190 countries. In the first quarter of 2003, Expedia’s net income quadrupled to $26.9 million with a revenue of $198.8 million, signaling a further rift between travel agents and their customers, who are now planning their trips online.
Even though Priceline launched in 1997, it wasn’t until 2004 that its popularity surged with the acquisition of Active Hotels, a European online hotel reservation service. The following year, Priceline also bought Booking.com, cementing its share of the profitable European travel market. Also in 2004, the online home-sharing platform CouchSurfing…
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COVID-19’s impact has been predictably significant
In 2021, the number of international arrivals is 1 billion less than before the pandemic. World Tourism Organization experts believe the travel industry will not fully recover until at least 2024. Worldwide spending on tourism and travel was less than half in 2020 than what it had been in 2019. Employment was also heavily impacted, with 62 million people working in the worldwide tourism and travel sector losing their jobs in 2020.
Despite the gloom and doom of the pandemic, it looks like some recovery might be on the horizon for travel agents. The BLS projects a 20% increase in demand for travel agents from 2021 to 2031, outstripping its 5% growth projection for all occupations.
Some have reported a marked recovery in business, even compared to pre-pandemic levels. A flash poll conducted by the American Society of Travel Advisors in early March 2021 revealed that in 2021, 76% of travel advisers saw an increase in customers versus pre-pandemic times, and 80% have fielded queries from those who have never used a travel adviser before.
Because of the constant changes in restrictions and rules, travelers began reaching out to travel agents who could help them plan their trips. More travelers have looked to travel agents who can help with business trips, cruises, and other plans…
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TravelPerk used Bureau of Labor Statistics data to analyze the decline in US employment of travel agents over time.