Value proposition and service offerings
The reason why travelers choose travel agencies is evolving. Although price sensitive travelers and corporations are here to stay, agencies will need to move from transactional to holistic relationships with customers: competing with other sellers and suppliers beyond the cheapest price (fares and fees) and adding even more value across travelers’ journeys.
In the short to medium term, early adopter agencies using modern retailing capabilities will have an advantage. Once new capabilities enter the marketplace, agencies can reposition themselves to focus on personalized offers, dynamic packages, on-demand AI-generated itineraries, and self-service and automated booking management. It’s up to agency leaders to decide how quickly and to what extent they adopt and adapt to modern retailing.
