Disintermediation continues - now newspapers are in on the act

Yep - another mouthful of a word (see definition) - but it really means “cutting out the middleman”.

A few years ago the flow used to go something like (for an example tour going to Turkey)

1. Consumer reads about Turkey in a newspaper or magazine
2. Consumer contacts a travel agency for a set of brochures (from multiple tour operators featuring tours in Turkey)
3. Consumer decides to book (via the travel agent), tour operator gets contacted by the travel agent
4. Tour operator uses a Turkish “ground handler” to provide the local services (although some tour operators are their own ground agents)

Travel agents have become increasingly concerned that tour operators are “moving in on their turf” (i.e. going direct to consumers - rather than selling via agents). However the agents have to see it from the tour operators perspective -as now with the web - ground handlers are increasingly setting themselves up to go direct to the marketplace - missing both the tour operators and their associated travel agent network.

The next logical step is now happening - and the original “trusted” sources of impartial travel advice are looking to retain (or regain) some of their readership losses that have occured to companies like WAYN and TripAdvisor - for example see the newly launched TravelMail (OK you can’t see the site yet - as I write this - so you will have to be happy with some screen shots instead)

Could the next flow look like this?

1. Consumer reads about Turkey in an online newspaper or online travel magazine - like TravelMail
2. Consumer books direct with a Turkish based travel company

Therefore my advice is that you have to own the delivery of the product - if you want to ensure that you are going to be in the travel business in the long term. Other areas will survive (but it is difficult to say what areas those will be)

Practical tour operator tip
If you run your own tours - make sure this really clear on your website. Put up lots of photos of your tour leaders (wearing branded clothing)….. as a tour operator, this is your edge.

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