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Travel Agents R.I.P.?

By Linda Weber
04.23.2001
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This kind of expertise is what travel agents believe gives them a competitive edge over Web-based automatons. "All I have to do is talk with you for 15 or 20 minutes and I'll know where to put you in Venice," boasts ASTA president Copeland. "A Web site might give you a $600 room for $500, and that looks like a bargain. But you may be able to go around the corner for $200 with breakfast included."

As offline agents find ways to stay relevant, online competitors such as Expedia and Travelocity face their own crunch. Northwest and KLM recently withdrew all commission agreements with Internet agents. If other airlines follow suit, the online sites may have to start adding service charges to stay profitable. They also face competition from Orbitz, the major carriers' Web service, due to launch in June (assuming it passes muster with federal antitrust officials).

Many consumers have settled into a routine. They use travel Web sites to look up flight schedules and prices, then turn to offline agents to book the trip. "How comfortable are consumers spending $8,000 for a vacation online?" asks Kate Rice, an analyst at Phocuswright, a travel industry research firm. "Online agencies haven't established deep customer loyalty." For example, a Phocuswright survey of travelers who use online sites found that 20 percent couldn't recall the name of the sites they visited. "On the other hand," Rice says, "I'll bet those same people remember the name of their travel agent."

In fact, the Internet has become a powerful marketing tool for agents like Poe. "Only 10 percent of our clients are local now," she says. "The rest come to us from referrals, word-of-mouth or our Web site." Last June, E-Gulliver.com, a Web site that connects prospective travelers with geographic specialists, put out a call to agents asking them to register their names and specialties on its Web site. "We were expecting 160 agents to sign up with us by the end of last year," says E-Gulliver CEO Deslie Webb. "But we have more than 1,600."

"There are a lot of people who have money but not time," says Poe. "When you pay for my time, I'm going to give you something of value." For travelers who want to know just how beautiful a Venetian sunset will be from the balcony of that room with a view, a real live agent - not a search engine - is still their best bet.

Linda Weber is a writer in San Francisco.