Roundtable participants gathered at Emirates Towers in Dubai to discuss online distribution issues. Roundtable participants gathered at Emirates Towers in Dubai to discuss online distribution issues.

If a travel agency has different information about a company to what the company is representing online, specifically in terms of price, then that is not good.

Raffles Dubai's Sfeir raised an issue about agencies that had the facilities to allow clients to book online.

"I would like to see the figures for what percentage they manage to book online," she said.

"I would be fascinated to see how much they mark up the price because in that instance you may have an agreement with them, but as a hotel with its own website and booking portal you actually have the instance of the trade driving the customer away from you to book with them, which
is ridiculous."

Hilton's Epsom noted this issue.
 

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"It's all about the contract," he said. "I think the contracts and agreements we may have signed with travel agencies years ago regarding online sales were not strict enough because it didn't represent anything like the volume of business it does now. Those sorts of contracts must now be tighter and more restrictive."

Accepting evolution

So if the consensus is that online distribution will have a continuing and growing impact on booking cultures and trends in the travel industry, the next question is what are the travel agents supposed to do about it?

"Travel agents in this part of the world are just going to have to accept that online distribution is going to take part of their business," said Holiday Autos' Musa.

"Of course, their business still has a part to play, but I think there is some level of denial with some of the travel agents. I don't think they have accepted the degree that these online channels change things."

Jumeirah Group's Fasching agreed that agents would "remain important" but insisted that they would have to work harder in light of the new challenges they faced by competing with online options from an increasingly web savvy market.

"Travel agents need to identify niches," he said.

The key is that travel agencies have to be able to sell things to the clients that online options can't cater to.

"GCC clients still want to be able to talk to someone prior to booking, so there will always be a role for travel agencies; it's just about them making sure they can maximise that role and give the clients what they want rather than just being booking agents."

 

Key points made

Online distribution will never fully replace travel agencies but it will take an increasing percentage of the market share.

Companies within the travel industry acknowledge the importance of maintaining strong relationships with travel agencies but accept that the internet and online distribution is a channel that must be exploited.

Some travel agencies have not accepted the reality of online distribution and the impact that it will have.

Travel agencies that cannot offer additional services or who lack industry knowledge will eventually expire.