Good news for business travel agents: Michael PageIn a study devoted to remuneration in France in 2017, the French Institute of Tourism noted an increase in the average salary in the sector. This information is worth highlighting, as it contrasts with the stagnation of salaries in the rest of the tourism industry. Even if, it has to be said, the last few years have seen a more flourishing business than that of a business travel agency...
The sector is emerging from a chaotic period, marked by redundancy plans that are still ongoing. This may help to explain the pay rise announced by Michael Page. "The market needs fewer travel agents, but with a higher level of experience. Their role is not really under threat, but it is changing rapidly."explained Bertrand Mabille at the end of 2016, before stepping down as CEO of Carlson Wagonlit Travel (CWT) for the Europe, Africa and Middle East zone.
This view is echoed by the other major business travel agencies, the Travel Management Companies (TMC), which, with the development of new technologies, are taking note of a reduction in the activity allocated to the travel agent. "If the TMC is to be reduced to the perimeter of theticket issueit will no longer be necessary in the long term"warns Tristan Dessain-Gelinet, Director of Travel Planet.
In other words, the advisor is freed from repetitive tasks so that he or she can focus on adding value. The human element would still have its place in the world of business travel. "This is the cornerstone of our transformation, since we have chosen to maintain our physical network for SMEs and private customers alike."reminds Michel Dinh, Managing Director of Havas Voyages. There's no philanthropy in this choice, just a healthy dose of pragmatism, backed up by figures: "Every year, we recruit more than 30 % of our new customers via our network, and through our traditional sales force. This lends credibility to the notion of proximity. Small businesses often have very strong local roots, and even if the brand is recognised, the local relationship is one of the arguments of choice.".
While the human element still has its place, particularly in the small and medium-sized business (SMES), the context remains complicated. The shockwave caused by the arrival of online booking shook agencies for several years. Some are still reeling from it, while other shocks are now undermining the old agency business model. This is the case, for example, of the direct selling advocated by Lufthansa which imposes a surcharge for reservations made by GDSIn other words, via the systems commonly used by agencies. In this way, the German group is seeking to reduce the costs generated by each intermediary separating it from the end customer. Agencies are concerned that this trend could spread to other suppliers.
The "bots" boom
For the time being, the main threat is posed by new technologies. The fundamental question is: to what extent will the travel agent's expertise outstrip that of the travel agent?artificial intelligence ? The famous "bots"Conversational robotsare becoming widespread in the world of travel. Based on themachine learning"The tool learns from its mistakes, corrects itself and is constantly improving. The Global Business Travel Association (GBTA) organised a debate a few months ago on a controversial subject: "Is the bot the travel manager of tomorrow?". The audience, made up of sector specialists, buyers and suppliers, did not hesitate to point out that the next victim of the bots would be thetravel agent (50 %), ahead of the assistants (42 %) and finally the travel managers (8 %).
But this time, it seems, agencies will no longer be surprised. A number of them are investing in the bot market, seeing bots not as a threat, but rather as a new tool, or even an opportunity. "It's a major mistake to pit the two concepts against each other, as we've already done with online and offline.says Tristan Dessain-Gelinet of Travel Planet. The more effective artificial intelligence becomes, the more we use it, and the more satisfied our teams will be. There will always be complex cases to manage, and human analysis will always be needed.." At BCD TravelThe bot was also well received: "We have to make sure that we keep up with the times and provide our customers with all the innovations that come onto the market."assures Valérie Sasset, Director, France, BCD Travel. "The chatbot can easily replace the information we still provide through agents. A chatbot consists of answering questions and suggesting rather simple and recurring actions. It's not a substitute, it's an additional channel. We used to have the telephone, fax, email, SBTs and applications. Now there's the chatbot"she continues.
As you can see, BCD Travel's use of bots is only a matter of time. On its side, FCM Travel turned the corner a few months ago. The agency has launched SAMdeveloped in partnership with PATH Travel. The application is presented as a virtual mobile assistant which communicates with business travellers via SMS, Facebook Messenger, Telegram or WeChat. The tool is designed to be proactive, anticipating disruptions to travel and proposing alternative solutions. It is also banking on the bleisureWe'll be happy to advise travellers on a range of leisure activities to suit their tastes and location.
Watching the agencies move into the field of new technologies, it's easy to wonder: could we one day see a giant in the field of advertising? Silicon Valley try their hand at travel, or even business travel management? For Valérie Sasset, the threat is low: "Our business is so specialised and so poorly paid that I can't imagine anyone being interested in investing heavily in it. Apart from GoogleIt's so powerful that you can imagine anything! They will one day enter the business travel market, but it remains to be seen how. Today, the competition comes mainly from other TMCs". Bertrand Mabille agrees: "It is interesting to note that a player like Amazon sells absolutely everything, but not travel. Google has made a few acquisitions in this area, but has not developed much in this market for the time being. We're keeping a close eye on the market, but the competition is particularly fierce between business travel agencies.".
The three or four leading TMCs are war machines, a high-precision industry
This competition has accentuated the pressure on pricesValérie Sasset regrets this short-term thinking. Valérie Sasset regrets this short-term thinking: "Unfortunately, the financial criterion still dominates. This is absurd, given that the agency represents only a few per cent of a travel budget. We've seen this to our cost over the last two years. It's very difficult to separate the TMCs: we all have extraordinary statistics, quality data, great account managers and travel agents who make very few mistakes. I'm not saying this ironically: we are professionals. The three or four leading TMCs are war machines, a high-precision industry.".
Cost, a simplistic criterion
A travel buyer also deplored this race to save money at an event organised by GBTA France: "The agency represents only 3 % to 4 % of the cost of the business trip. So it's best to focus on the remaining 97 %, which needs to be optimised. It is too simplistic to look only at the cost of the agency.". Tristan Dessain-Gelinet, for his part, takes a more critical view of the situation, and of the agency liability themselves: "For a long time, the only thing a TMC could do better than its competitor was to offer lower costs, he laments. Our industry suffers froma lack of supplyother agencies will have to start developing this market.".
competition that is no longer based simply on price, but on genuine strategic choices
Bertrand Mabille identifies other selection criteria: "During the second phase of this digital transition is nearing completion, part of the difference has been made on the service thanks to the quality of our agents, even if our competitors say the same thing. The geographical coverage has also made a difference: for some customers, there are only two TMCs able to compete.". And finally concedes: "Even so, the competition was mainly on price...". But times are changing, according to the former head of CWT in Europe: "we see that the paths diverge: American Express GBT a bought KDSwe bought Worldmate. These are different approaches to technology. This can lead to competition that is no longer based simply on price, but on genuine strategic choices"
These strategic choices will obviously relate to technological advances, but also to the way in which we approach new market players, most of whom have emerged from the 'new economy'.collaborative economy and the leisure sector. In both cases data will be crucial. Business travellers are booking with an ever-increasing number of suppliers, via an ever-increasing number of channels. Companies need to be able to keep track of these travellers to control costs and ensure that their business remains competitive. duty to protect. It is perhaps here, at the heart of this complex environment, that the agency can prove its new added value, namely to assert itself as a specialist in "marketing". clarity in the midst of confusion" ...
Also in this issue: Juliet Thanwerdas, Travel Manager at BlaBlaCar
