Kenyon, a Co-op Personal Travel Agent based in Kent, is far from the only agent whose job has been made more difficult by post-Covid consumer trends and habits, as well as renewed competition from online travel agents and direct-sell businesses that are available around the clock.
Data from TTG’s latest Travel Agent Tracker, covering trading in the three months to 30 September, reveals that price matching – in particular – has become one of the biggest issues for travel agents, highlighted by nearly three in five (58%) of respondents to the latest Tracker, up from 47% in the second-quarter of the year.
In fact, during Q3, price matching supplanted price increases as agents’ biggest headache, and the problem has consistently been ranked by Tracker respondents as one of their biggest issues this year (Q1 – 56%, Q2 – 48% and Q3 – 49%).
One simple question in the Q3 Tracker sums up the conundrum for agents succinctly – has the travel industry become more competitive in recent years? The answer? Yes – 92%, No – just 8%.
Many agents are understandably wary of getting involved in a race to the bottom on pricing, citing the ongoing need to strengthen their businesses on the other side of the Covid crisis.
But they’re conscious too of the impact the cost of living squeeze is having on consumers, of changes in post-pandemic booking patterns (the market remains very late) – and aggressive pricing by OTAs.
While Kenyon says people have reverted to booking online out of pure convenience, Braunton Travel owner Sue Hunter believes holidaymakers have become more comfortable booking for themselves again now features of Covid-era travel such as passenger locator forms and destination-specific restrictions are things of the past.
"They were coming to travel agents during and immediately after Covid – now customers think everything’s OK,” Hunter says.
Agents are also frustrated by customers’ attitudes towards their work, failing to appreciate the amount of time and effort that goes into crafting a holiday.
For Anna Kelly, this is especially challenging. She works for Manx travel agency Mann Link Travel so when preparing a holiday for a client, she also needs to arrange travel to mainland UK.
“We go out of our way to search for the best connections from the Isle of Man to the UK, as it takes a lot of time to find the best cost-effective departure port,” Kelly adds.
"But clients take this information and go online, comparing our prices with major players such as Tui and easyJet holidays before booking online. It can be very frustrating because not only is it a waste of time but it’s also a waste of money."
Hunter agrees: "Losing clients to the online market isn’t always the case. We haven’t lost an awful lot of clients, but it jars a little bit when you’ve spent a long time looking for stuff and customers take that information and do it themselves."
‘Bad reputation’
Some agents tell TTG they have given in and started discounting to price-match tour operators and online quotes to avoid losing clients, while others have remained steadfast.
“I get people coming to me with prices that are the same as our net price – I just can’t sell at that rate,” says Travel Counsellor Michael Dearn who has nonetheless found his clients are typically keen to book with him owing to the personal service he offers.
“I find the majority of people will still go ahead and book with me even if I remain steadfast in sticking with what I have quoted,” he continues. "I would suggest agents keep up the good service; I pride myself on being there at the end of the phone before, during and after travel.
Kenyon, meanwhile, says she’s happy to price-match – on her terms. "I’m happy to price-match a holiday, but I’m not going to do two weeks of work to make about £20. I price-match Jet2holidays and easyJet holidays, that’s all – I don’t touch the OTAs.
"I’ve definitely lost customers to the online market, but if I think I’m going to make £50 and do all the work, then I’d rather not bother. I’d rather lose clients than work for free. I’m 59, this is my actual career, it’s not a little side job.
“There are a lot of really good professionals, and then there are other people on the bandwagon who have never worked in travel and are just selling anything for literally £20. They’re giving the industry a bad reputation, unfortunately.”
‘Worth and value’
One perennial bone of contention is trade-friendly operators undercutting agents with their direct pricing; several agents told TTG that while they accepted the rationale for this, they wished some of the major players would make it easier for them to match direct pricing – or just offer price parity.
"If it was easier for us to price-match, then you would avoid people going online because you could immediately tell them, ‘We can match that price for you’,” says Alex Osborne, sales consultant at Lincolnshire-based Holidays by Design. "But it’s just becoming more difficult, because you have to take away so much commission to be able to price-match with OTAs.”
Hunter urges other agents not to undersell themselves when a client asks them to match an OTA. "They should highlight their worth and value, all the stuff they do in the background that customers are completely unaware of – pre-booking seats, ensuring everything goes smoothly, and so on.
"Agents might be surprised by how much customers value them rather than discounting just to get a sale."
