679 UK travel agents closed shop in 2017

According to a new report released by the Local Data Company (LDC), 679 high street travel agents in the UK, shut down from business in 2017. The main reason attributed for the closure of these brick-and-mortar travel agents was due to severe competition faced from online rivals. In terms of the highest number of business closures among high street sector operators, the biggest decline came from Pubs with 747 outlets shutting doors permanently, followed by the banking sector which closed 711 branches, whilst travel agency closures ranked a close third. 

The ‘high street, brick-and-mortar’ travel agent now faces a notable challenge from the rise of ecommerce. Many years ago, when people wanted to book a holiday they visited the travel agent. Usually located on a high street with heavy pedestrian traffic, the travel agent was the start of vacation plans for decades – until the arrival of the new (electronic) kid on the block.

When the first online travel agency (OTA) emerged on the World Wide Web in 1994, the majority of travellers avoided it. Fast forward 24 years and OTAs dominate the minds and wallets of many travellers causing a huge dent on the traditional model of offline travel bookings.

Research carried out earlier this year, by the RSM Group discovered that only 1 in 5 travellers booked their holiday trips through in-store travel agents. The head of travel and tourism at RSM, Ian Bell said: “The competition from online travel firms is not a new phenomenon but the pace of decline among high street operators is still quite alarming. Consumers are still choosing to visit the high street in large numbers, but the overwhelming majority prefers the ease and convenience of booking their holidays online.” He went on to add that “The remaining high street operators continue to attract a more mature clientele, but the reality is that there will be many millennials who have never set foot inside a high street travel agency. On the upside, our recent survey found little sign that people plan to curb their spending on holidays so operators will need to think hard about how they can connect with this new generation,”

In today’s fast paced world, people like to compare travel options, quickly, and in this sphere of operation off-line agencies cannot compete with OTAs. OTAs give travellers two major things – convenience and value for money. What the conventional travel agent can offer - which online agents cannot, is the face-to-face engagement where the traveller can sit down and discuss needs and get recommendations with a real life person. In addition, the role of the traditional travel agency will appeal more to the luxury traveller less concerned about the costs for a more tailored service.

While ecommerce will continue to steal an ever-great share of the high street agent’s lunch: all is not lost. The key is that things need to be different and those high street shops that have the right business model will stay open rather than face closure.

Shafeek Wahab, Editor - Hospitality Sri Lanka, consultant, trainer, ex-hotelier.

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