Won’t someone please think of the consumer

A few years ago, Travelport started the conversation about ‘modern retailing’ in the travel industry. And since then, the term has spread far and wide. A bit TOO far and wide, in fact. Because now, the term ‘modern retailing’ has been co-opted to mean something completely different.

At Travelport we believe modern retailing should be about understanding what consumers want from travel businesses. And, using that insight to create better retailing experiences.

But others are using the term in the context of airline needs, NDC, and distribution. Even major consultancy firms are now jumping on the bandwagon as modern retailing goes mainstream in travel.

Why is that an issue? Because not everyone’s view of modern retailing puts the customer first. IATA, for example, promotes NDC as the opportunity for airlines to become modern retailers. And sure, in theory NDC could indeed offer more in the way of personalization. But right now, that’s not really materializing for travelers or agencies.

And, at the same time, other technology providers are investing in tech that’s optimised for supply-side relationships. They promote the concept of single-brand airline or hotel retailing. But one brand selling and servicing only its own products is not representative of modern retailing, because best-in-class retailers offer the customers choices from multiple brands. This standpoint overlooks the massive value that travel agencies offer, and puts the focus on selling, rather the buyers.

We believe that only travel agencies can truly deliver this highly valued retailer role. Because only agencies can offer BOTH choice — in a way that’s properly curated and presented.

This is good for suppliers too, because it ensures people get the right product for their needs. Therefore expectations are met, driving lifetime value and ensuring the customer will travel or stay with them again.

Sure, direct-to-consumer selling might be appealing in the short term. It might also be tempting to use ‘modern retailing’ as an opportunity to add on fees that don’t cost the airline anything and are actually detrimental to the customer experience. Like splitting up travelers who would normally be sitting together, unless they pay extra.

But in the long run, a more lucrative approach is to ease up a bit on squeezing the customer wherever they can, and work on delivering a more valuable experience. And, instead of battling between direct and indirect channels, focus on getting the right omni-channel balance. That way, their customer base will grow, wherever people choose to chop.

Right now, it seems like everyone’s talking about modern travel retailing. But hardly anyone is doing what we’re doing — listening to the most important point of view. The customer’s. Ultimately, that’s what will deliver long-lasting change and better travel retailing. For everyone.