What’s next for travel agencies in this brave new world of travel?
The only constant in life is change. And we’ve certainly seen plenty of that in recent times. But that doesn’t mean change has to be something that simply happens to us in the travel industry. Travel agencies and TMCs are now in a position to really embrace, and drive, change to help generate growth across the entire travel ecosystem, and to create enhanced experiences for the end traveller.
What is driving this need for change?
A whole host of trends, needs, and challenges are coming together right now to accelerate change.
Firstly, there’s a strong demand for travel. Travellers want to travel, for leisure and for business, despite rising prices and staffing issues within the industry.
But while this desire to travel exists, travellers are frustrated at key stages of their travel journey – from shopping, booking and payments, through to pre, during and post-travel touchpoints. In recent Sabre research, nearly half of global travellers said a key challenge in purchasing travel was having too many steps in the booking process. Meanwhile, more than a third said they didn’t feel they had enough options while shopping, and just over half said the ability to shop for all components in one place is important to them.
Among these evolving expectations of today’s travellers are a higher level of personalization, richer content, greater transparency, and convenient payment methods.
What is clear, then, is that there are a great many opportunities for travel agencies to step in to solve these traveller pain points, especially as the pandemic has ensured that the traveller increasingly appreciates the value of the travel agent as a trusted adviser and problem solver.
The challenge for travel agents, however, is to create this additional value for travellers at the same time as sustaining, growing, and futureproofing their own businesses. And, to do so at a time when, despite ongoing recovery, the travel industry continues to face clear challenges.
What form is change taking? And how is it tackling these pain points?
Meeting changing traveller expectations while creating revenue growth for the travel industry is why Sabre is forging ahead with our ambition to modernize travel industry standards, and accelerate retailing transformation, standing shoulder-to-shoulder with IATA in a shared vision of an Offer and Order model – a new world of retailing – for the future.
Offer and Order is the natural progression of NDC, or New Distribution Capability. And, while NDC is often spoken about in terms of benefits for airlines, the new world of Offers and Orders also has myriad benefits for travel agencies, enabling agents to find the right offers for the right travellers more easily.
Many agencies are already plugged into Offer and Order-based retailing through NDC. So far, thousands of Sabre-connected travel agency offices in 49 countries have activated NDC capabilities through Sabre. And, as industry recovery continues, interest is growing among agencies in how NDC can create efficiencies, increase revenue, and enhance travel experiences.
However, in terms of NDC adoption, these are still early days.
Agencies can expect to operate in a world of hybrid content for the imminent future; working with both traditional and NDC content for years to come. That’s why Sabre is focused on going “Beyond NDC”.
So, what does the future hold?
Moving beyond traditional constructs, such as the Passenger Name Record (PNR), to a retail-driven model underpinned by Sabre’s NDC offers and orders will open a world of opportunity for travel agencies, positioning them in a position of strength amid the current state of flux.
The vision that IATA and Sabre share is an end state in which agencies are far better equipped to give their customers the choice of tailored products and services they want and expect. Processes will be streamlined, and automation increased to improve efficiencies, reduce operating costs, and increase profit margins. All of this will free-up resources, so agencies are able to focus on core business activities that add value for their business, and for travellers.
Agencies will be able to better navigate the travel supplier labyrinth on behalf of travellers, sourcing the right choices that offer the most value to each traveller, and offering invaluable support when issues arise.
From this, travellers can expect an experience this is more personal and engaging; an experience more closely aligned to what they have come to expect from retailers in other sectors. They will benefit from travel experiences that meet and exceed their expectations, meaning that both travellers and travel agencies will get greater value per travel dollar spent than ever before.
