Travel agents such as Trailfinders and Flight Centre UK are witnessing a remarkable surge in new customers since the onset of the pandemic. This unexpected trend has led to the resurrection of travel agents on the UK high streets, which were once overshadowed by online booking platforms.
To delve into the reasons behind this sudden resurgence in popularity, Angela Symons visited the recently opened Trailfinders shop in Kent, UK. Tunbridge Wells town center, which was previously a thriving retail hub, now showcases boarded-up shops. Even before the pandemic, renowned brands were vacating the mall as consumers increasingly turned to online shopping.
Given the prevalence of online booking systems, one might wonder why brick-and-mortar travel agents are now expanding their physical presence. She had the opportunity to speak with Nikki Davies, the marketing director of Trailfinders, to shed light on this matter.
Contrary to expectations, Trailfinders accelerated its growth during the COVID-19 pandemic. In 2020, they opened new stores in Winchester and Solihull, followed by York and Cheltenham in 2021. By September, they are set to open another branch in Southampton, bringing their total count of UK stores to 44.
This bold move seems to have paid off. “We had a record year in 2019, and we’re currently surpassing that,” Nikki told Euronews Travel in September 2022. “Essentially, the demand has reached much higher levels than pre-pandemic.”
To cope with the overwhelming demand, Trailfinders is recruiting 100 new consultants. After enduring years of lockdowns and canceled plans, people are eager to resume their travels. However, the complex COVID-19 restrictions, airport disruptions caused by staff shortages and strikes, as well as general uncertainty, have significantly impacted consumer confidence.
Nikki explained, “We are seeing many customers who didn’t use to book through tour operators. They seek the security net due to their previous bad experiences, as many people did not receive refunds during the pandemic. In contrast, we provided refunds within 24 hours.”
While travel agents faced challenges alongside the rest of the tourism industry during the pandemic, the chaotic aftermath has unexpectedly improved their reputation. Nikki added, “I believe our reputation has improved due to the pandemic, and as a result, business is booming at the moment, with no end in sight.”
The resurgence of travel agents is not exclusive to Trailfinders. TUI Group, the German owned travel company, is also expanding its presence on the high streets.
To meet the rising demand for face-to-face advice and reassurance, TUI plans to open 21 new branches across the UK in 2023. They have already launched new stores in Banbury, Oxford, and Liverpool Speke.
Similarly, Flight Centre UK has witnessed a significant influx of first-time customers following the initial chaos caused by the pandemic. Liz Mathews, the general manager, stated, “There is a lot of nervousness, and people have a genuine desire to have a trusted person to rely on for their crucial travel plans.”
Contrary to Trailfinders and TUI, Flight Centre has significantly reduced its number of stores. Prior to the pandemic, the company intended to decrease its network by 50 to 60 percent. However, only 20 percent of the stores have reopened. Instead, Flight Centre has shifted its focus to home-based workers who can handle calls without being tied to a specific location.
Having a dedicated travel agent readily available has proven invaluable for customers during a time when the travel industry was unprepared for a sudden rebound. Travel agents serve as a buffer between consumers and suppliers, filtering and disseminating information to their clients as airlines grapple with an overwhelming volume of inquiries and complaints due to strikes and cancellations. Liz highlighted the value of personal consultants who have established relationships with airlines and airports, stating, “When things go wrong, it really showcases the value we provide. We aim to make travel stress-free for our customers.”
This arrangement also benefits airlines and airports by providing relief to their overburdened customer service teams. Liz explained, “Airlines now see even more value in us than before the pandemic because they simply don’t have the capacity to handle the number of customers during disruptions.”
In the pre-pandemic era, budget-conscious travelers often turned to online travel agencies. However, as Liz pointed out, these platforms struggle to provide offline support during challenging times. Flight Centre abandoned its price-match policy five years ago to compete with inexpensive online deals. Since then, their focus has been on assisting customers in navigating complex travel itineraries. Liz emphasized the superior service offering provided by travel agents, even if it means paying a slightly higher price.
This strategy has proven successful thus far. As people channel their lockdown savings into long-awaited adventures, they are willing to invest a little more for peace of mind. Amex’s 2022 Global Travel Trends Report revealed that 86 percent of participants from Australia, Canada, Mexico, Japan, India, the UK, and the US planned to spend the same or more on travel in the previous year compared to a typical year before the pandemic. Flight Centre’s 2022 Travel Trends report also indicated that 54 percent of Brits preferred booking through a travel agent rather than independently.
Nikki also observed that Trailfinders’ customers are spending more and opting for longer vacations since the pandemic.
As countries began to emerge from the UK’s red list, Trailfinders experienced a surge in last-minute bookings to destinations that were open. “People were desperate to get away,” Nikki remarked. The most popular pre-pandemic destinations, such as the USA, Australia, Thailand, South Africa, and Canada, are once again in high demand.
Flight Centre, on the other hand, has witnessed a boom in bucket-list trips. Liz noted, “One group that has notably made a strong comeback is empty nesters, whose children have left home.” After working toward retirement and missing out on two years of travel, individuals in their 60s and 70s are making up for lost time by booking one trip after another. Travel agents are particularly suited to cater to their needs, especially when it comes to complex, high-budget itineraries.
Additionally, the “visiting friends and relatives” (VFR) market is experiencing a surge. “People missed out on visiting friends and family for two years – that is a significant driver,” said Liz. She added, “Potentially controversially, parents are taking their children out of school to take advantage of lower-season rates. There is definitely a trend of parents willing to face the wrath of schools to get a better deal.”
Despite the looming cost of living crisis, Brits remain eager to spend on travel. A survey by travel insurance specialist Just Travel Cover conducted last summer found that booking a foreign holiday was still a priority for 76 percent of participants, even with rising household bills.
Although travel agencies may have been viewed as outdated in the past, Liz believes they are well-equipped to weather this crisis. “We are seeing people come to us for advice on when the best time to travel is and when they can get better value for money,” she explained. She expects their strong customer retention rates to continue as holidaymakers build relationships and trust with their consultants, relying on their expertise to navigate ongoing uncertainties.
