OTAs top among travel agents' key concerns

According to recent surveys conducted at Amadeus' Power Breakfast events held across Asia Pacific, the key concerns faced by travel agents are the competition from online travel agents, the general travel downturn, and ways to generate more revenue in 2010.

The majority of respondents from Hong Kong and the Philippines felt that the competition from online travel agents was the most pressing issue, while respondents from Japan see the general downturn in travel as their key challenge.

Travel Agents from Hong Kong and the Philippines had different views from Japanese travel agents on the strategies that would be most effective to overcome these challenges in their respective markets.

The majority of respondents from Hong Kong and the Philippines indicated that widening their target groups to generate business and adopting new technology would be critical in revenue and profit generation. Whereas most travel agents in Japan are exploring ways to implement cost cutting measures such as streamlining resources, work processes and operational expenses to best maximise profits.

It is interesting to note that these two tactics cited by travel agents in Japan scored the lowest responses amongst agents in Hong Kong and the Philippines.

"It is clear that different markets have their own unique challenges for our travel agency customers," said Peter Smith, Vice President of the Business Solutions Group, Amadeus Asia Pacific. "And even when they are facing the same challenges, their responses and strategies will differ."

The majority of travel agents who participated in the Power Breakfast surveys highlighted that Amadeus' strong reputation for providing innovative solutions was the key deciding factor in their selection of a technology partner.

In the same survey, respondents also identified customer loyalty as a critical factor in reviving business in the travel industry. "Travel agents can harness the power of technology to differentiate themselves from competitors and keep their customers coming back," said Smith.