Growth at Expedia’s Agent Program
by Harvey Chipkin |
Travel agents once viewed OTAs as the enemy. Many still do.
But Expedia for one launched a travel agent program—Travel Agent Affiliate Program TAAP)—five years ago in a bid to partner with agents.
TAAP has experienced rapid growth in the last two years, according to Linda Lossing, the U.S. head of the program.
For Expedia, the program is a way to align with a resurgent travel agency community and for agents, it offers access to Expedia’s global inventory along with TAAP-only deals and tools, said Lossing.
Travel Market Report spoke with Lossing about TAAP, its relationship with agents, and recent developments in the program.
Tell us about TAAP’s recent growth:
Lossing: TAAP has been part of Expedia since 2008, in the U.S. since 2010. But it’s only in the last two years that we have seen such rapid growth in affiliates.
In 2013, we had about 12,000 agents registered in the U.S; in 2014 that number is over 14,000. All of the agents are vetted to insure that they are legitimate travel professionals.
To what do you attribute that growth?
Lossing: There are two reasons. First are referrals from current agent partners. Second are our marketing initiatives, which include eblasts, trade shows, educational seminars, social media and promotions. We do a lot of promotion through Expedia’s main site.
Why would an agent want to register with TAAP?
Lossing: For one, agents have access to our global inventory. If a customer comes to an agent and says they can get a hotel cheaper on Expedia, the agent can offer those same rates.
We offer an itinerary builder that agents can easily use through the GDS. We recently introduced TAAP-only deals. As soon as agents log in they see these deals. Those deals are in addition to our In The Know program where we send out eblasts to TAAP partners alerting them to promotions. If a client finds a better rate for any booking within 24 hours, we will match it.
We attend agent conferences and partner with ASTA, NACTA and other agency groups to sponsor seminars and other educational programs.
What commission does TAAP play?
Lossing: We offer a standard commission of 10% with volume enhancements.
What does Expedia get out of a partnership with agents?
Lossing: We are seeing the growing importance of agents and want to be part of that. A recent report showed that in 2013 one in eight travelers booked through an agent and in 2014 it was one in five. [Source: MMGY Global Portrait of American Travelers.]
Travelers want guidance in getting the best vacation experience. When an agent’s business grows, we grow as well.
How many affiliates regularly book through TAAP?
Lossing: About 40% of affiliates book through us at least once a week. If an agent is not active for a year we will contact them to make sure they are still interested.
What are TAAP affiliates booking?
Lossing: The vast majority of bookings are for hotels – about 60 to 65%. But air bookings are also strong and car bookings are up significantly. Activities are also growing – like Disney vacations. Altogether, it’s 80% leisure and 20% business.
What kind of agents—in terms of their size and what they sell—are TAAP affiliates?
Lossing: Our partner base runs the full gamut – traditional agencies, host agencies, independents, home-based. And we have recently added TMC’s.
To meet the needs of all of them we need to create solutions that are customized to the agency. That is another way we are becoming more customer-centric and using the best of what Expedia has to offer.
What about the view that Expedia, an OTA, is a competitor so agents shouldn’t work with you?
Lossing: I know there is scuttle in the agent community that we are trying to take agent business away. It’s the opposite.
One way for Expedia to grow is to work with—and not compete with—agents. For instance, we do not store any customer information, no credit card numbers, etc. Our customer is the travel agent.
What about the idea that changes to a reservation can be difficult for agents to make and can lead to mistakes?
Lossing: For one thing, 70% of changes to hotel reservations can be made online and we are working to make that even more efficient.
Are there any new developments at TAAP?
Lossing: We will be introducing Spanish capability. Also coming is enhanced reporting in several ways including tracking of commissions. There is also reporting that will group the travel of individuals who may have worked with multiple agents in a large agency. The enhanced reporting in general will give an agency a better picture of travel patterns and trends.
We also recently introduced Search Map which uses Google Maps to search for properties near where the agent is searching. The agent can instantly see the rate and how far the hotel is from a location.
We are also looking to expand on a program where agents will quickly be able to see how much commission they would earn on a booking.
What does the future hold for TAAP?
Lossing: We see a hefty growth curve. The U.S. is such an untapped market. It will come down to providing the best technology and matching it with customer service.
This is a customer service industry. We need to balance technology and customer service — primarily using technology but having personal support as a backup. An agent can always pick up the phone and call us.
