Are Travel Agencies On The Way Out?

Are Travel Agencies On The Way Out?


July 7, 2023 | Eul Basa

Are Travel Agencies On The Way Out?


The scandal involving the Thomas Cook collapse drew a lot of skeptical attention to the travel and tourism industry. The agency giant, which has been around in some form or another since 1872, went out of business in 2019, leaving 60,000 travelers stranded mid-trip at the time.

It’s a tourist’s worst nightmare. Luckily, airlines and other businesses pulled together to get those weary people home in the biggest repatriation effort since WWII.

But now that the mess has been cleaned up, the Thomas Cook fiasco has us wondering: is this the beginning of the end for travel agencies in general?

anete-lusina-rFKBUwLg_WQ-unsplash-300x200.jpgPhoto by Anete Lūsiņa on Unsplash

I’ll be honest: I’ve never used a travel agency in my life. My parents did - they no longer do - and I know a few people at least who wouldn’t dream of going abroad without one.

They are in the minority. Since the advent of the internet, cheap flight aggregators, Airbnb and other services that render the need for middlemen obsolete, travel agencies have been dwindling in influence. At one time, they were the gatekeepers between you and your destination. Not anymore. 

Why is that?

Planning a trip yourself is part of the fun

It’s not just that booking your own hotel and airfare is cheaper if you do it yourself; self-directed travel allows you to be more nimble and spontaneous than the red blazers at Flight Center.

Part of their job is pushing vacation packages that take all the guesswork out of exploring the world. However, today’s traveler wants to do that work. Finding mt own flights, the best ways to get from the airport to where I'm staying, and piecing out all the details that go along with planning a trip is how I feel closer to my destination before I even get there.

Advertisement

This kind of research, where I might stumble across a great restaurant while mapping out the streets around my hostel, enriches the experience from the get-go.

wanaporn-yangsiri-o7wNBwl8sFk-unsplash-300x200.jpgJen Batler

Advertisement

Apparently, I'm not alone. In MMGY Global’s Annual Portrait of American Travelers Survey, only 16% of travelers report using an agent or an agency. That’s down from 17% and 19% in the previous two years. Many people have become reluctant to use one because they don’t want to pay more for “one size fits all” travel offers.

Do you really need a travel agent?

Recently, I read an article about why we still need travel agencies. I’m sure it was written by a travel agent, but I considered the arguments in good faith and easily dismissed every one. Here they are:

Advertisement

  • They provide additional perks, like chef’s dinners and a better seat on the plane. Guess what? Those perks are there for the taking, and you can access them without paying an agency commission.
  • They can save you time and money. This argument assumes that someone traveling for leisure doesn’t have time to spend five minutes booking a flight online. And these days, a Google search will tell you the cheapest hotel option in 0.
    Advertisement

    002745567783 seconds.

  • They’re there for you if things go south. Listen up, fellow snowflakes: if we can’t get ourselves on another flight after missing the last one, the whole generation is doomed, just like the boomers predicted.
  • They provide a human touch. Here’s my favorite part: “Travel agents are more than itinerary-fillers, they're people who care about what you want and how you feel”. Anyone who’s worked in customer service knows this is patently untrue, and anyway, no one cares about my solo vacation to Honolulu more than me, Karen; no one. 

joshua-earle-8MbdD0pHXGY-unsplash-300x200.jpgPhoto by Joshua Earle on Unsplash

Advertisement

Leaving on a private jet plane

While the industry is undeniably narrowing, there is still one aspect in which travel agencies find themselves useful, and that’s luxury travel. Access to exclusive hotels, cruises, and vacation packages allow agents to offer top-of-the-line trips when money is no issue.

Advertisement

This is backed up by the latest industry trends, which suggest that while people are spending more on travel ($307 billion so far in 2019), the actual number of businesses is steadily shrinking.

So while cookie-cutter vacation pushers like Thomas Cook may be facing the end of an era, there’s still room for boutique agencies catering to those who want a streamlined travel planning experience. For most of us, however - the other 84% - the appeal of travel booking is in figuring it out on our own.

Advertisement

 

istock-685853708travel-passport-map-960-1530022429604-300x200.jpgPixabay

Advertisement

READ MORE

20 Realistic Finance Tips for Young Adults

Discover 20 stress-reducing finance tips geared toward assisting young adults in efficient financial planning. From negotiating utility bills, to setting up auto payments, learn how to cut unnecessary costs and boost your savings quickly.
January 29, 2024 Miles Brucker
Adidas X Kanye West Yeezy 750 Boost Light Grey

Who Knew Sneakers Could Cost As Much As Your Mortgage? Here Are The World's Most Expensive Kicks.

Do your sneakers cost more than your dinner payment? That's cute. Some of these kicks could pay your whole house’s mortgage.
January 27, 2025 Miles Brucker
CEO_internal

CEO Michael Mayo Shares His #1 Tip For Up And Coming Leaders

Speaking on Becker Healthcare's podcast, CEO Michael Mayo shared his #1 tip for up-and-coming leaders: "Always be a lifetime learner."
January 3, 2023 Eul Basa
airlinescovidinternal

(How) Will Airlines Survive COVID-19?

As the crisis continues, airlines are hemhorraging money. Will airlines survive this crisis? And if so, how?
January 7, 2021 Eul Basa

The Least Desirable Jobs

Discover 10 jobs that pay well that nobody wants to do. From working with lifeless bodies to crab fishing, find out why these jobs are not desirable and how much they pay.
January 11, 2024 Allison Robertson
Internalfb Image

How To Live Big On A Small Budget

Living big doesn’t always mean spending big. These practical tips will help you keep more cash in your pocket. We’ll show you how to do more with less.
January 15, 2025 Alex Summers


Disclaimer

The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.





Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team