Internet is emerging as a big spoiler of the airline-agency relations. The travel agencies used their outreach and multiple travel product options to attract customers to take their services of cheap tickets. The customer would not mind since they could find all their travel related requirements fulfilled at one place. As internet based ecommerce in the travel domain kicked up, the agencies smelled that these can go ahead to attract customers to their sites directly since the location advantage of agencies were largely eroded. Reduction and, in some instances, complete elimination of commissions is one of the most important steps undertaken by the airline in order to prevent parting with profits. This has put the agencies in a fix which are now looking to reorient their businesses to meet this challenge. Some of the steps which they can take are:
- Increase the offline presence: There is no doubt that the online medium is used only by some sections of the population. A number of other people are reluctant to use this medium and would rather approach some nearby retail store. Agencies are better placed to have this presence right to the door step of the prospective customers.
- Focus more on other travel products such as hotels: By adopting a change in strategy, you can have more focus on the hotels, car rental services and holidays products of the travel. It is not that the airlines segment needs to be ignored but more focus shall be on developing revenue streams from other lines as well, not just depending on air fare.
- Create more innovative holiday packages: By creating more innovative and customized holiday packages, the agencies can set themselves apart from the others.
- Improve quality of services: People do admire quality services and if agencies improve it further, the customers would think twice before going to the other airline.