Study highlights inefficiencies in leisure agencies
Leisure agencies are less productive and have greater operating costs than both travel management companies and consolidators according to the latest results of Amadeus’ study into the day-to-day operating costs of a travel agency.
Research from the distribution giant shows business travel agents are 80% more productive than leisure counterparts over a year in terms of the number of tickets sold per full-time employee.
Consolidators were 109% more productive than leisure agencies.
The study also revealed £41.80 as the average cost of selling a ticket for a leisure travel agency compared with £32.40 for a business agency and £23.10 for a consolidator.
The research showed that almost a third of a leisure travel agency’s operating cost is spent during the search, proposal and negotiation stage.
Amadeus UK & Ireland managing director Stephane Durand said: “There is an opportunity to try and get that process done using more online booking tools and reduce the time it takes to make a booking. However, some of it is because leisure customers are more emotionally driven and might be less experienced and less sophisticated than business travellers.”
Durand added that leisure agencies have already acknowledged the need to improve by updating and automating back-office systems and finding better ways to integrate existing systems and access content.
Amadeus has been working with management consultancy Hermes on its ‘Show Me The Value’ project since last year to discover areas where agents should be more efficient and what role technology could play.
The ongoing study involves four leisure agencies, six business travel specialists and five consolidators.
Report by Linda Fox
Phil Davies
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