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  1. 1. Online Travel Agents
  2. 2. How Travel Agencies Work <ul><li>Online agencies – same as traditional but the information is all online so people can do their own searching and booking at home </li></ul><ul><li>Easy to use, and could save up to thousands of dollars </li></ul><ul><li>Consumers can just print what information they need at home </li></ul><ul><li>Disadvantage of them though is that they may impact greatly on the traditional travel agent business </li></ul><ul><li>The 4 site models: 1. Merchant, 2. Direct, 3. Advertising, 4. Community </li></ul><ul><li>Results from hotels and travel companies show that online deals and systems are very popular </li></ul><ul><li>They reduce costs, increase profitability, improve efficiency </li></ul><ul><li>Can find deals that can't be found anywhere else </li></ul>
  3. 3. How is the internet being utilised by travel agents? <ul><li>In order to counteract the threats of reduced business due to the internet, travel agents have had to use the internet to their advantage </li></ul>
  4. 4. <ul><li>How? </li></ul>
  5. 5. They went online too!! <ul><li>Travel agents have got their own websites </li></ul><ul><li>Allowing costumers to use their service from the comfort of their own home </li></ul><ul><li>Many are now offering features that online only travel sites don't, to stay in the race </li></ul><ul><li>Call back service Quote request forms </li></ul><ul><li>This is saving time and money for agents. They use the internet to find the best deal for customers, without the need for face to face sales </li></ul>
  6. 6. Advertising <ul><li>A strong internet presence. </li></ul><ul><li>Advertising on large, well known sites, with links. </li></ul><ul><li>Social networking sites like Facebook and Twitter. Using it as a platform to register users and send promotions directly to their account and e-mails. </li></ul><ul><li>Advantage, internet advertising is an inexpensive form of 24/7 advertising. </li></ul>
  7. 7. Software <ul><li>Programs and travel guide subscriptions that integrate with the agents pages, booking and inquiry pages. Providing live updates regarding general information, current affairs and news, travel threats, currency, climate and government announcements. Activated when the destination is selected. </li></ul><ul><li>Linked directly to a list of preferred business by the agent in that location. </li></ul><ul><li>Current software travel agents can bring up all the flights with seats on the day you request, not just the seats available to the online travel agent or search engine you are using. Eg Travel booster, Globe track, Dolphin ect. </li></ul>
  8. 8. <ul><li>Advances in technology mean travel agents can have all aspects of the business through one specially designed program/data base. </li></ul><ul><li>Thought internet access and password system, travel agents can go directly into Hotels, Motels and even some online only agencies system. </li></ul><ul><li>The internet is now the tool for keeping the business relationships. </li></ul><ul><li>Its faster, cheaper, and conformation is instant. </li></ul>
  9. 9. Research <ul><li>Agents are able to keep up with travel trends. </li></ul><ul><li>Monitor which sites get the most hits </li></ul><ul><li>What destinations are getting the most hits </li></ul><ul><li>Stay in tune with what customers want </li></ul><ul><li>Provide deals on what's in demand. </li></ul>
  10. 10. Why it is being utilised ? <ul><li>Main reasons are: </li></ul><ul><li>The ability to provide valuable information, </li></ul><ul><li>The opportunity to reach a wider audience, </li></ul><ul><li>New advertising benefits </li></ul>
  11. 11. Source of Information <ul><li>Travelers and suppliers can gather info on traveling and possible business transactions </li></ul><ul><li>Compare offers before committing to a purchase </li></ul><ul><li>In effect save money </li></ul><ul><li>Customers can read reviews left by other customers. </li></ul><ul><li>Information constantly being reformatted - easy to read </li></ul><ul><li>Efficiency - Eg. no longer receive printed tickets </li></ul>
  12. 12. <ul><li>Even sites such as Twitter are becoming increasingly popular, go-to site for hotel recommendations </li></ul><ul><li>Survey showed that 46% internet users, use Twitter </li></ul><ul><li>- figure jumps to 60% when counting people who buy travel online </li></ul><ul><li>Companies see this as a great advertising opportunity </li></ul><ul><li>Self-promotion to many ‘would-be’ vacationers at home </li></ul><ul><li>Youtube also very popular for travel videos and agency advertising </li></ul><ul><li>Jetstar - Tokyo To Goldcoast & Sydney </li></ul>Greater audience can be reached
  13. 13. New Advertising Benefits <ul><li>More exposure to customers </li></ul><ul><li>‘ Billboard Effect’ </li></ul><ul><li>Generate bookings through OTA and also, own hotel site </li></ul><ul><li>Creates brand awareness to customers </li></ul>
  14. 14. The Outcomes of Utilisation <ul><li>Many online travel agencies and host agencies (Webjet) are working together to provide more marketing materials and experience </li></ul><ul><li>This increases an agency’s bookings and sales as it gives more exposure to travel customers </li></ul><ul><li>recent study conducted at Cornell University involved using the website Expedia to advertise JHM Hotel, as apposed to just using the properties own website </li></ul><ul><li>Increase of 20% in reservations when the property was displayed on Expedia </li></ul><ul><li>Using the Expedia website which raised rates (2-3%), allowed the hotel to make more profit </li></ul>