Travel agents adapt in era of airline tickets online bookings

Tom Diecks' first job for a travel agency was 32 years ago as a courier delivering airline tickets.

Although the Internet rendered that job obsolete, Diecks, president of Kennedy-based Greater Pittsburgh Travel, has faith the industry remains relevant.

"Our expertise has value to it," Diecks said.

Travel agents have watched their industry move from brochures to airline tickets online bookings. Forrester Research, a technology and market research company, estimates 78.9 million people will buy leisure travel airline tickets online this year. There are 14,500 retail travel agency locations remaining in the country, down by almost half from 27,719 in 2001, according to the Airlines Reporting Corp.

Not everyone wants to be their own agent. Another Forrester study shows the number of leisure travelers who enjoyed using the Web to book trips dropped from 53 percent in 2007 to 47 percent in 2010. An American Society of Travel Agents report found 51 percent of leisure-based travel agencies saw increased revenue last year from 2009.

Travel agents work with more than 146 million travelers annually.

"We're holding our own," said William Katz, owner of Atlas Travel Service, Downtown, and a 51-year veteran of the industry. "People are beginning to realize the computer is not the answer all the time."

Andrew Weinstein, spokesman for the Interactive Travel Services Association, said airline tickets online and traditional agencies have adopted aspects of each other. For example, many airline tickets online agencies now provide 24-hour customer service representatives, and many traditional agencies use the Internet to find the best deals.

Henry Harteveldt, principal travel analyst with Forrester Research, said trip planning turns off some travelers.

"You used to find the flight you wanted and the fare you could afford, and that was it. That's the starting point now," he said. "You have to decide if you want to check your bags, if you want to pay the cost to eat on the plane. If you don't want a middle seat, can you get an aisle or window without paying more?

"Travelers are busy. Planning a trip is not on the top of the list of things they want to do."

Several factors determine whether customers must pay travel agents. Cruise lines pay agents a commission when they book trips, typically 10 to 16 percent. Airlines no longer pay a commission to agents. So when planning shorter trips, agents might charge a fee if the booking does not garner them a significant commission.

Ruth Nagy, director of travel operations for AAA East Central, said the majority of people who use AAA report visiting websites to gather information before meeting with an actual agent to book their trips.

"There is so much information on the Internet. They may be getting the correct information, and they may not," Nagy said. "An agent has been there, done that."

Jay Pierce, spokesman for Orbitz, an airline tickets online travel agency, calls overcoming information overload "an area where we are in a constant state of testing and improvement." Last year, the company added side-by-side hotel comparisons and Google Street View to its hotel search options.

"We invest a lot of time and energy on the user experience to make it easy and intuitive when a customer first comes to the site," Pierce said.

Agents admit the Internet has led to a decline in face-to-face business.

"A lot of business is done by e-mail," said Joseph Weigler, owner of Shadyside Travel and a 36-year industry veteran. "I don't hear the phone ringing, but that doesn't mean it's not busy."

Ron Guzell, 59, of Richland, a longtime Shadyside Travel customer, said one reason he sticks with traditional agencies is the support they can give when trips go awry. While vacationing in Aruba 10 years ago, Guzell was appalled to find that his room overlooked the hotel's trash bins and loading dock. He was told that he could move, but it would cost him. He called his agent. Within an hour, he had a new room at no extra charge.

"I don't feel you could get that booking airline tickets online," Guzell said.