Air Execs to Agents: We Never Gave Up on You
by Andrew Sheivachman /There’s been plenty of bad blood between the airlines and travel agents since commissions were cut in the 1990s. But yesterday airline executives told ASTA delegates there’s still ample ground for the two parties to work together.
“None of us has ever said we are giving up on travel agents, ” said Steve Smith, Japan Airlines’ vice president of passenger sales.
Smith was one of the executives on a panel held during ASTA’s Global Convention in Miami. Called “How to Make Money with the Airlines,” the session was moderated by Mark Murphy of travAlliancemedia.
Many agents voiced their concern that, in a world dominated by online booking, airlines aren’t incentivized to forge relationships with agents. The airline executives disagreed.
Survivors or innovators?
“People use the word ‘survivor’ in this industry when they should really say ‘innovator,’” said Jeff Fehlis, managing director of global agency sales for Delta Air Lines.
That puts agents and airlines in the same boat, he said. “Across the travel spectrum, we have all had to reinvent ourselves.”
Online distribution may not represent an existential threat to travel agencies either, panelists suggested.
“There’s a whole generation who know only this,” said Fehlis, holding up his mobile phone. “You need to be there when they go to book, because there is a lot of noise and competition out there.”
Position youself
Other panelists said agents should appeal to a more profitable clientele by positioning themselves as seasoned travel advisors.
“You need to find a way to differentiate yourself from everyone else,” said Smith. “Have you asked yourself what your business is doing differently than everyone else’s?”
Smith suggested that agents visit destinations to learn their intricacies.
Deliver high-end customers
Specialization was a major topic of discussion.
By positioning themselves as more than order-takers, agents will build their clientele, giving them leverage to negotiate with the airlines for group business.
“See if you can bring volume or high-end leisure customers,” said Smith.
Mark Cavaliere, senior vice president of global sales development for South African Airlines, also urged agents to differentiate themselves.
“Your greatest opportunity is to offer something consumers can’t readily get themselves in an online market,” he said.
“As younger travelers get dependent on automated and digital forms of shopping, there is a tremendous opportunity.”
A focused strategy
The executives agreed it’s more important than ever for agents to be precise in their business strategy.
“You need a tight strategy on what suppliers and consolidators you use,” said Cavaliere.
“We have to be much more surgical about where we can use different levers in the distribution channel.”