I have been hearing more stories than usual about the frustrations of online travel engines’ customers lately. Some of the horror stories I have read about include two couples that faced dropped bookings when they arrived at the airport.
One had booked a flight and the other a whole vacation package and both were told that there was no record of payment (even with a confirmation number!) and they would have to pay for their trips again. The details of their efforts to recoup their cash after the trip are a nightmare of frustration, inept and rude customer service and stonewalling. One story stretched over several months.
So I was not especially surprised when I read some recent reports by eMarketer (a market researcher about Internet commerce), travelsense.org, and the Wall Street Journal’s Smartmoney.com about the decline in the number of people booking online and the increase of people booking through travel agents.
Proof of this can be seen by the Expedia Corporation’s 4th quarter earnings report for 2008 which showed a $2.76 billion loss! To understand why those booking through online engines (i.e. Expedia, Hotwire and Orbitz to name a few) is so risky for the traveler, you need to understand just how they work and what happens to YOUR money when you book online.
A typical online travel site operates through exclusive contracts with various travel suppliers. A travel supplier is an airline, car rental company, hotel, resort chain, or a cruiseline. The online site agrees to supply a specified quota of passengers for a specified period of time. As long as they make that quota, the online site receives the airline seat or hotel room at a lower specified rate, and isn’t required to make payment usually until after you have traveled.
The online site will almost always require you to provide full payment upfront. So, you might ask, if I’m required to make full payment upfront and the online site doesn’t pay until after I travel, what happens to my money? One of 2 things happens to your payment, it either goes in the bank and earns interest for the travel site company, or it is used to pay the invoices of those that have traveled before you.
Two major developments have happened that has put the online travel industry into serious trouble, and thus the innocent traveler that believes he or she has gotten that great travel deal. First, the trend of more and more travelers switching back to real professional travel agents, which I just pointed out a few paragraphs above. These sources are reporting that online travel bookings are down as much a 28% in 2008 compared to 2007, and travel agent bookings have risen by as much as 20% in the same time period.
The second is the current economic downturn we are experiencing in the United States. When fewer travelers are booking trips, and even fewer of those are booking online, you can see why Expedia has an almost $2.8 billion loss. When any online travel site company begins operating at such big losses, and the aforementioned contract passenger quotas are not being met, the traveler that books online is putting themselves at a great risk of the travel supplier cancelling their contracts with the online travel site, and thus cancelling the traveler’s reservations which the traveler has already paid in full!
As a professional travel agent, I don’t have quotas or contracts, I search for the best price at the open market rate with numerous tour operators, cruiselines and travel suppliers to provide our customers a worry-free travel experience at the best price. People who book with me know that I back up the travel packages I sell and should there be any problems (like canceled or delayed flights or missing reservations) I fix them. I only book my clients through reputable tour and cruise operators (like Apple Vacations and others) that are stable and provide excellent service. My clients know that when they provide payment for a travel package, their money goes straight to the travel supplier, and their booking is secured. Their money isn’t used to pay for others travel, or held to make interest.
Here are 10 good reasons why you should use a professional travel agent.
1. The best value for money
Travel agents tell you about all available choices, about special promotions and advise on the quality and value of a particular product.
2. Maximum choice
Travel Agents give you a wide variety of travel options and quotes from competing travel suppliers.
3. Convenient one-stop shopping
Travel agents save you time and money by handling all aspects of your trip from air tickets to car rentals, coach and train reservations, accommodation and activities.
4. Customer advocate
If you experience any problems during your trip, a travel agent will act on your behalf to put it right.
5. Expert Guidance
Travel agents are experts in understanding the intricacies of the travel business and will ensure you get maximum advantage of what’s on offer
6. Personalised services
A real professional travel agent is not some impersonal voice which might be hundreds of miles away. We understand what you want and provide value.
7. Professional advice
Our job is to make sure you get where you want to at the best price and in the most pleasant way.
8. Timing savings
Travel agents have all the information at our fingertips and can pull up all your travel-related options in seconds.
9. Trust
A professional travel agent is not some anonymous website. We’re a local business. You know how to reach us and who we are.
10. Satisfaction
Unbiased information. Travel agents work for you, the consumer, not for the airline or any other travel supplier. Our only objective is to get you the best value and satisfy you completely so you will come back and see us again!
Before your next vacation, call a professional travel agent! You don’t want to show up at the airport and find your reservation isn’t valid! Because without a travel agent, you’re on your own!