Domestic airfare sales for travel agents a “thing of the past”
The news that Jetstar is bypassing travel agents and selling through alternative sources continues a trend identified in the Stollznow Travel Monitor.
“Domestic airfare sales are rapidly moving away from travel agents and sales through the travel agent channel could soon be a thing of the past” says Stollznow Research Quantitative Director Neil Stollznow.
According to the Stollznow Travel Monitor, in late 2004 travel agents were responsible for 40% of domestic airfare sales. In August 2005 this had dropped to just 27% of sales.
During this period there has been a corresponding increase in sales through internet. Sales rose from 47% in 2004 to 57% in 2005. Also on the increase are sales through other ‘direct’ methods with airlines.
Fortunately for travel agents international sales are showing a slower migration to online sales. In 2004 travel agents sold 70% of international airfares according to the survey. In August 2005 this had dropped slightly to 62% of international sales.
“Our 2004 survey was taken in late November so Christmas bookings might have had an impact on the findings. However the message is clear for travel agents; value add or watch your business slowly decline” says Stollznow.
“Once there was little alternative to purchasing airfares through a travel agent, now airlines are actively encouraging bookings direct from the ‘desktop’. The travel agents that will grow and prosper are those that deliver a service, rather than a ‘booking terminal’.
The Stollznow Travel Monitor is a annual survey of 1,000 Australian households in all states of Australia. 1,312 people took part in the 2005 survey.
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