Travel firms see rosy prospects

CEBU, Philippines - Although some services of travel agency business have been affected by the growth of technology particularly the direct online booking, the Network of Independent Travel Agencies (NITAs) still sees promising outlook for the sector.

NITAs President Bobby Joseph said that the online booking of airlines, hotels, which also provide their own in-house packages for guests and travelers, travel operators still has the edge and this development has not threatened this sector’s profitability.

Innovative travel agencies managed to cope with the changing landscape of their business, and that they become more innovative and creative in their packages, said Joseph.

Aside from the bookings, or arranging land, air, sea packages, and hotel bookings to travelers, which are now largely taken over directly by the companies, travel agencies have a lot of services to offer, that make the industry still profitable, he said.

These services include; passporting, creating attractive travel packages, incentive tours, promoting convention events and destinations, inbound domestic tours, among others.

“The business is always viable. Players will just have to be creative and innovative and be updated with the technology,” Joseph said adding that one of the indicators that the travel agency business is still thriving, is the increasing number of entrepreneurs venturing into this business.

NITAs, a newly revived organization that helps the small travel agency players in the country, has a total of 240 members nationwide.

Joseph said it is important for the small entrepreneurs to be supported, while the industry is experiencing transformation in terms of product and service offering.

Likewise, tourism industry expert, Patria Aurora Roa agreed with Joseph saying that travel agency companies will continue to rake profits, as the existence of online bookings for inbound and outbound travelers only has limited service.

Tour packages, incentive and big group tours cannot be accommodated by airline’s online booking services, thus, this kind of demand will still be served by the travel agencies.

Roa, who is a retired Department of Tourism (DOT-7) regional director, said that a group of five for instance cannot be accommodated by the online booking offered by the airline and hotel companies.

This and other services that are uniquely offered by the travel and tour operators make the sector still profitable.

However, she warned that travel agency owners should also improve their services along with the evolution of travel market landscape, and the newer dimensions of travel services.

Roa said in order to survive, travel agencies should develop their own niche services, given the declining number of services that it can offer.  (FREEMAN)