As consumers are growing more accustomed to a less personal and more flexible service, the Internet is gradually elbowing in on the European travel agents’ share of the market.
European Commission
In the European Union, about 36% of tour operators, 40% of package operators and 62% of hotels offer online reservations, according to figures compiled by the European Commission.
Travel agents moving towards online bookings
TUI.com, Europe’s leading travel group, decided not to attend this year’s edition of the ITB in Berlin, preferring to replace its stand by online tour operators. Another sign of the times is that 28% percent of European travel agents using the Internet receive over 25% of their booking online.
Dynamic packages
A new trend in online travel services is called “dynamic packaging”. As the name suggests, the customers create their own a la carte travel packages, choosing the flight, accommodation and other services themselves.
Expedia was the first company to launch, back in 2002, a dynamic package service. In Germany, Europe’s largest online market, this type of service, which currently represents 40% of the company’s business, is expected to reach 60% in the next three to five years. Thomas Cook, Europe’s second most important operator, has recently merged with the UK’s MyTravel, with plans to create an online agency covering the whole of Europe.
The death knell for traditional agencies?
Everything indicates that online agencies will not lead to the extinction of high street travel agencies. Many people, especially those belonging to the older generations and those allergic to technology, still appreciate the human touch.
