Surprise! OTAs Drive Business To Travel Agents

While Online Travel Agencies (OTAs) spend billions of dollars each year enticing consumers to book via their keyboards, the digital behemoths are actually a good source of new clients for travel agents, according to Nicole Mazza, CMO of American Marketing Group, parent of Travelsavers, NEST, and Affluent Traveler Collection. Speaking to reporters at Travel Market 2016 at the JW Marriott in Desert Springs, CA, she said consumers unhappy with the service levels they receive from OTAs end up turning to travel advisors for future trip planning.

She told the press, “Online disrupters like Airbnb and the OTAs come in very quickly (and) get a lot of attention. There is a misperception that they are taking business away from travel agents, but the fact is we gain business because they can’t compare to the service agents provide.” Asked if member agencies get new customers from unhappy OTA users, Mazza said, “We hear it all the time.”

Kathryn Mazza, EVP Sales of American Marketing Group added, “[Consumers] don’t want to be responsible for the whole trip-planning and booking process.”

Meanwhile, Nicole Mazza said that while 2016 looks to be a tough year for England, France, and Italy when it comes to North American travelers, advance bookings and requests for 2017 indicate that the traditional favorites could be in for a big year next year “if everything stays quiet.” River cruises are also battling the currents with the addition of extra capacity. She said overall concerns include declining yields, “as that affects everyone’s profitability, (and) once they go down, how long it takes to get them back up.”

The AMG executives said some European countries such as Croatia (with publicity from Game of Thrones), Iceland, Ireland, and Scotland are poised to have strong years. Other hot spots include U.S. National Parks, and exotics such as French Polynesia, the Mekong, and Bali. The strongest growth is in premium and luxury, both said, while the mass market remains soft in an election year.

“Multigenerational travel in the luxury space is skyrocketing,” Nicole Mazza added, noting her agencies are also seeing growth in luxury wellness and destination weddings.