Research

Internet has become the competitor from hell" (Murray 1). Research shows that online bookings increased from 911 million dollars in 1997 to 2.2 billion dollars in 1998. In light of these figures, the major U. S. airlines cut agents' commission on tickets from eight percent to five percent. This cut marks the fifth time the airline industry cut agents' commissions since 1995, when agents made a ten percent commission on all airline ticket sales. The continual cuts in commission threaten to wipe out the travel agent profession completely. A report released by Wirthlin Worldwide says twice as many people now turn to the Internet to make their travel plans than did in 1996 (Wirthlin 7). The American Society of Travel Agents (ASTA) recently launched a legal and lobbying campaign named "Fight Back" in an effort to protect the jobs of its 29,000 members. (Murray 2). On its website, ASTA provides information for both travel agents and travelers concerning the benefits of using a travel agent. The society's motto, "Without a travel agent, you're on your own," best summarizes what the group wants travelers to realize (ASTA Website 1). For example, travel agents can provide beneficial services to travelers when problems arise during their trip. If an airline cancels a flight, travelers can use their travel agent to help get them on another flight as quickly as possible. Also, industry research shows that more than 90 percent of the time travel agents provide better fare information than Internet providers (Facts You Should Know 1).
In addition to the cuts in commission, travel agents might soon face another tough battle. SideStep, a new search engine that uses a software program to find the lowest possible fares, promises to give agents even more competition that the traditional online booking sites. The search engine charges less commission than any other online booking site, and might even threaten some of the existing online booking sites (McCright 1). Airliners want to look into the new software further, but it does make an additional threat to travel agents. Furthermore, consumers tend to prefer booking travel online. The Internet shifted power from travel agents to consumers and gave consumers the ability to bargain shop on their own. Many online shoppers say they prefer the Internet because it enables them to look beyond the three or four flights a travel agent typically reads to them over the telephone (Rosen 5). Also, consumers find much cheaper fares today than a few years ago because the direct-sales model lowers the cost of tickets by eliminating the commission airlines pay travel agents (Gilbert 6).
Meanwhile, not all travel agents joined in the fight to save their jobs. Some simply chose another profession, and others bought into the Internet revolution. When sales started declining, Eric Tan sold his travel agency in Vancouver, Canada and started his own web site specializing in Alaskan cruises. Tan says his business continues to thrive on the Internet (Macklem 2). In addition, one website now offers all travel agents a chance to join in on the Internet travel industry. TRIPQUOTE.COM helps give travel agents a presence on the web by enlisting agents to provide travel advice to consumers over the Internet (Travel Agents Only 1). Even though websites like TRIPQUOTE.COM now exist, travel agents who decide not to join can still find hope for their traditional jobs in a new study released in 2000. ASTA research shows that many consumers still value the first-hand experience of personalized service and expert advice. The study says consumers put more faith in travel agents than Internet booking sites, and they still like the human interaction associated with travel agents (ASTA 2000 Research 2). For now, it looks like most travel agents will keep their jobs, but the Internet promises to provide further obstacles to this industry in the coming years.

Bibliography

Gilbert, Alorie; Bacheldor, Beth. (2000, March 27). The Big Squeeze-In suppliers' rush to sell directly to consumers over the Web, sales agents, distributors, and other channel partners worry that they'll be pushed out of the picture. Information Week [Online], 39 paragraphs. Available: Infotrac Academic ASAP [2002, July 1].
· This article provides information on how travel sales over the Internet actually lower the cost of airline tickets. Airliners can lower prices, since they pay less in commission to online bookers.

Macklem, Katherine; Wood, Chris; Branswell, Brenda. (2000, September 18). Web Getaways: As Internet bookings rise, travel agents are fighting back. Maclean's [Online], 10 paragraphs. Available: Infotrac Academic ASAP [2002, July 1].
· This article provides a travel agent's first-hand account of dealing with the Internet travel revolution. The travel agent closed his travel agency and opened an online booking site.

McCright, John. (2001, January 15). Engine surfs travel sites for consumers-SideStep technology takes users where they want to go-the lowest fares. EWeek [Online], 22 paragraphs. Available: Infotrac Academic ASAP [2002, July 1].
· This article provides information about a new search engine that allows consumers to find the lowest airfare possible by using a special type of software, which is available for downloading at the search engine's website.

Murray, Mark. (1999, Dec 4). Tripped-up Travel Agents. National Journal [Online], 31, 13 paragraphs. Available: Infotrac Academic ASAP [2002, July 1].
· This article provides statistics on how much money American consumers spend at online travel sites each year. Also, the article provides details about ASTA's new advertising campaign.

No author. (No date). American Society of Travel Agents [Online]. Available: http://www.astanet.com [2002, July 13].
· This website is the official website of the American Society of Travel Agents. It provides information about the new advertising campaign aimed at attracting consumers back to travel agents offices.

No author. (2001). ASTA 2000 Research Shows Value of Travel Agents [Online]. Available: http://www.internettravelnews.com/specialreport.asp?ID=66 [2002, July 13].
· This website provides information about the latest research on the values of using real travel agents as compared to booking online. Research shows that consumers still find travel agents useful for several reasons.

No author. (No date). Facts You Should Know About Making Airline Reservations Via the Internet [Online]. Available: http://www.tvlon.com/resources/internetusage.htm [2002, July 13].
· This website provides statistics on airline ticket fares purchased on the Internet and details some potential hazards to purchasing tickets through the web.

No author. (2002). Travel Agents Only [Online]. Available: http://www.tripquote.com/travel.htm [2002, July 13].
· This website provides information for travel agents who want to fight back against the growth of Internet travel bookings. It gives travel agents the opportunity to gain a presence on the Internet by becoming a TRIPQUOTE.COM member.

Rosen, Cheryl. (2000, Dec. 11). Internet Shatters Travel Model-The ability to shop online has shifted power to consumers. Information Week [Online], 14 paragraphs. Available: Infotrac Academic ASAP [2002, July1].
· This article provides details concerning the shift of power from travel agents to consumers. According to the article, consumers now control the prices they pay for travel, instead of travel agents holding all the power.

Wirthlin. (1998) American Travelers Planning Better, Vacationing More [Online]. Available: http://www.wirthlin.com/extra1/publicns/report/wr9808.htm [2002, July 13].
· This website provides a report from Wirthlin Worldwide, a research and consulting company. The report details travel patterns of Americans as studied over several years, and makes several conclusions regarding the use of the Internet to make travel bookings.