• NEWS
    • PODCASTS
    • SUBSCRIBE TO OUR NEWS
    • ADVERTISE WITH US
  • EVENTS
    • EVENT PHOTOS
    • EVENT VIDEOS
    • THIRSTY THURSDAYS
    • CONFERENCES
    • NETWORKING
    • TRAINING & WORKSHOPS
  • JOBS
    • FOR JOB SEEKER
    • FOR EMPLOYER
  • COMMUNITY
    • SEARCH PEOPLE
      • Create a profile now
    • SEARCH COMPANIES
      • Create a profile now
  • EVERYTHING TD
    • About TD
    • What is Native Content?
    • Advertise with TD
    • Connect with Gary (CEO)
    • Connect with Chris (GM & Managing Editor)
    • Connect with Tory (Director of Sales)
    • Connect with Anthony (Sales -AU/NZ/SP)
    • Connect with Paul (BDM-Global)
    • Connect with Mintra (BDM-Thailand)
    • Connect with Devapriya (BDM-India & ME)
    • Connect with Carlos (BDM-USA/S.America)
    • Connect with Samie (BDM-USA)
  • SELF SERVICE
    • SEE ALL PACKAGES

Travel Daily Travel Daily - Informing, connecting and developing the world’s travel industry professionals.

  • MARKETS
    • Asia
      • China
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
        • Thailand
      • Vietnam
    • Australia
    • New Zealand
    • India
    • Middle East
    • UK & Europe
    • USA
  • SECTORS
    • Air
    • Cruise
    • Hospitality
    • HR & Careers
    • Luxury Travel
    • MICE
    • Technology
    • Tourism
    • Travel Agents
  • FEATURES
    • Sponsored
    • Travel Guides
    • Interviews
    • Podcasts
    • Guest writers
    • Incentives
  • TRAVEL GUIDES
    • Ponant Yacht Cruises and Expeditions
    • South Australia Tourism Guide
    • The Residence by Etihad Airways
    • Encore Tickets (Chinese Guide)
    • Affordable Luxury in Thailand by Centara Hotels
    • Rising Above the Oridinary by Conrad Bangkok
    • The Best of Thailand
  • FREE TRAINING COURSES
    • Traveluni Online Courses
Travel Daily
OTAs & Tour OperatorsTravel AgentsGlobal

Here’s why tour operators are dying

By Kristin Mariano On Jan 8, 2019
TD Editor
Share

John Prosser surprised her wife Paradissa with a two-week trip to China for their 20th wedding anniversary. However, three days prior to their departure, their travel agency Sinorama Holidays went bust along with their dream vacation.

John was devastated since it took him two years to plan and he has been working overtime since purchasing the trip that is worth thousands of dollars. The pair also spent hundreds for their visas and upgrading their flights.

2018 is an eventful year for travel agencies as a number of small OTAs and brick-and-mortar tour operators have bid farewell to the business. A lot of companies fell victim to the circumstances. All that is left from the liquidation are the heartwrenching tales of holiday-goers like John and Paradissa not being able to board their flight.

The Struggle is real

Based on my research, some of the travel agencies that went bust last year are:

  • Lee’s Travel
  • Exploring Vacations
  • Sinorama Holidays
  • Sinorama NZ
  • Bestjet Travel
  • Zuji
  • Venture Far
  • italktravel Tuggerah
  • Inca Tour
  • Hotel Connexions
  • Heffernan’s Travel
  • Omega Travel
  • Si Holidays

It seems that the trend has been going on for a while. In 2017, almost 700 brick-and-mortar travel agencies pulled down the shutters in UK high streets, according to Local Data Company (LDC). The report cited overwhelming competition faced by brick-and-mortar travel agents from OTAs as the main reason for closing the business. This is supported by the research conducted by RSM Group earlier this year, which found out that only one in five travellers or 19% booked their holidays through in-store travel agents.

OTAs give travellers two major things – convenience and value for money. For those who are simply looking for a quick fix without special requirements or appearance needed, online travel agencies provide the best service and price. However, we are now seeing that even OTAs are struggling and some raised the white flag when they went up against bigger brands.

Where did all the competition go?

Travel trends reveal that people are travelling more than ever, therefore, it is puzzling why travel agents are suffering. While companies are meek on the reason for their collapse, all arrows are pointing to fierce competition in the space.

While some companies are struggling, others are just getting bigger and bigger. Big players, definitely, have the advantage and the machinery to cater to travellers. Moreover, the advancement of technology makes it easier for people to book their travel. One can create an itinerary with just a few clicks.

It’s tough out there. Small companies will have to make do with super thin margins. It is hard to stay afloat.

Seeking opportunities

While this news is disheartening, it provides an opportunity for travel companies to recalibrate their businesses and gear them to their advantage. Here are some of the lessons we picked up from successful tour operators.

Know your clients

Who are using brick-and-mortar travel agencies? Americans and Europeans go to their trusted travel agencies to book their travel. People from the Middle East also prefer face-to-face transactions. Older Chinese transact with Chinese agencies that organise group tours that make travel cheaper.

Luxury and corporate travellers are also looking for a tailored service that only traditional travel agencies may be able to provide. Corporate travellers simply do not have the time to DIY their itineraries, meanwhile luxury travellers are less concerned about the money they spend for more personalised service.

Meanwhile, Asians usually DIY their travel using apps or rely on friends and families to tour them around the city. Modern Chinese travellers book online but rely on big Chinese OTAs like Ctrip, Fliggy, etc.

Bespoke offerings

One of the problems encountered by travel agencies is marketing the same products as others. A common mistake of businesses is to have a long list of inventories that do not go with the company’s brand.

Asian OTA giant Klook claimed that they are meticulous when adding new experiences on their platform. Klook’s COO Eric Gnock Fah said that not every tour or activities can be listed on Klook, they have a team that try out every new offering before putting them on the app. Same goes for AC Tours who told me in a previous interview that their products are “tried and tested,” literally.

ZUJIKlookLocal Data CompanyLee’s TravelExploring VacationsSinorama HolidaysSinorama NZBestjet Travel
Share
You might also like
Technology

Singapore Tourism and Klook ink USD 1.4 million deal to promote domestic tourism and…

OTAs & Tour Operators

Klook Home offers virtual interactive experiences and DIY kits

Tourism

Fear of loneliness holds back people to travel solo

Technology

Klook partners with West Japan Railway

Prev Next

Comments are closed.

LATEST STORIES

  • Loganair welcomes re-opening of tourism to Scotland’s islands

    The city is back! Maiden Hotel Week London in May to revive domestic travel

    1 in 5 Singaporeans have short term travel plans

    What you should not miss at Dubai Food Festival ‘Foodcation’

  • GoodnessofJapan! What's in store as JNTO extends campaign with Sumo star in India

    Israel to allow vaccinated travellers starting May

    Small ship expedition cruising emerges from COVID-19 as a clear winner

    The airline industry's recovery still has long way to go

  • When will Middle East travellers return to UK and what lies ahead when they return?

    Three new routes to Europe and ME for Wizz Air Abu Dhabi

    Turkey’s begins tourism staff vaccination programme

    Thailand approves 8 vaccines for foreign travellers

Vaccination Updates

Israel to allow vaccinated travellers starting May

Turkey’s begins tourism staff vaccination programme

Thailand approves 8 vaccines for foreign travellers

Qatar Airways welcomes first fully Covid-19 vaccinated…

Prev Next 1 of 37

Re-opening updates

Loganair welcomes re-opening of tourism to Scotland’s…

The city is back! Maiden Hotel Week London in May to revive…

India announces travel bubble with Sri Lanka

International travel in the UK could resume on May 17, says…

Prev Next 1 of 2
STAY UPDATED WITH THE LATEST TRAVEL NEWS, JOBS & EVENTS!
Join over 180,000 travel agents, professionals and executives subscribed to our daily newsletter.
You can unsubscribe at any time

Popular Posts

Loganair welcomes re-opening of tourism to Scotland’s…

How will the vaccine crisis affect border openings?

Regional Express to launch Sydney-Canberra flights from…

Standard International debuts two new Peri Hotel in Thailand

Prev Next 1 of 11
Search
Follow Us

Menu
  • News
  • Events
  • Jobs
  • Community
  • Subscribe
About
  • About Travel Daily (TD)
  • Advertise with Us
  • Privacy Policy
  • Terms of Use
© 2021 - Travel Daily. All Rights Reserved.
X
Travel Daily
GET THE LATEST TRAVEL INDUSTRY NEWS, JOBS AND EVENTS STRAIGHT TO YOUR INBOX!
Join over 180,000 travel agents, professionals and executives subscribed to our daily newsletter.
You can unsubscribe at any time
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Close

Welcome, Login to your account.

Forget password?
No account? Sign Up
Sign in

Recover your password.

A password will be e-mailed to you.

LOG IN

Welcome back, Log in to your account.

Continue with Facebook
Continue with Google
Continue with Twitter
Continue with LinkedIn

OR
Log in using your email
Forgot password?
Not a member yet? SIGN UP FOR FREE
Sign in

Recover your password.

Sign in

SIGN UP FOR FREE

(New User)

Be part of our community of seasoned travel and hospitality industry professionals from all over the world.

Continue with Facebook
Continue with Google
Continue with Twitter
Continue with LinkedIn
I want to
Only letters and numbers are allowed
Please enter a valid email address
Must be between 6-8 characters
Must be the same with Password
Already have an account? LOG IN
  • LOGIN / SIGN UP
  • NEWS
    • MARKETS
      • Asia
        • China
        • Indonesia
        • Malaysia
        • Philippines
        • Singapore
          • Thailand
        • Vietnam
      • Australia
      • New Zealand
      • India
      • Middle East
      • UK & Europe
      • USA
    • SECTORS
      • Air
      • Cruise
      • Hospitality
      • HR & Careers
      • Luxury Travel
      • MICE
      • Technology
      • Tourism
      • Travel Agents
    • FEATURES
      • Sponsored
      • Travel Guides
      • Interviews
      • Podcasts
      • Guest writers
  • EVENTS
    • Webinars
    • Thirsty Thursdays
    • Photos
    • Videos
    • Conferences
    • Networking
    • Training & Workshops
  • JOBS
    • For Job Seeker
      • Create a profile now
    • For Employer
      • Create a profile now
  • COMMUNITY
    • Search community profiles
    • Search Companies
  • TRAVEL GUIDES
    • Ponant Yacht Cruises and Expeditions
    • South Australia Tourism Guide
    • The Residence by Etihad Airways
    • Encore Tickets (Chinese Guide)
    • Affordable Luxury in Thailand by Centara Hotels
    • Rising Above the Oridinary by Conrad Bangkok
    • The Best of Thailand
  • FREE TRAINING COURSES
    • Traveluni Online Courses