Presentation on Travel Agent Roadmap by
Ms Karen Ann Leong
Deputy Director, Tour & Industry Development, STB
Mr Ang Eu Khoon
Chairman, Information Technology Committee, NATAS
Ms Fiona Lim
Chairman, Manpower & Training Committee, NATAS
Travel Agent
Roadmap
Becoming Designers of Travel Experience
Let’s talk about how travel has transformed.
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THE CONSUMER JOURNEY IS
INCREASINGLY DIGITAL
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In the past, the consumer path to purchase was linear
RESEARCH
PURCHASE
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The digital revolution has
changed the way
consumers shop for
vacations
Consumers are empowered by the
ability to browse and compare travel
products, and the power to share
experiences and influence others
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Source: Deloitte, Travel Consumer 2015: Engaging the Empowered Holidaymaker
Travel has changed
from a seller’s to a
buyer’s market
In Western Europe
Number of trips
booked with a travel
agent declined from
one-third to one-fifth
from 2008 to 2012
59% of holidaymakers turn to review websites and online forums
Only 12% visit a travel agent shop
Digital travel sales worldwide are expected to grow at 10% from 2014 to 2019
Source: Deloitte, Travel Consumer 2015: Engaging the Empowered Holidaymaker / Statista, Digital travel sales worldwide from
2014 to 2019 / Forbes, “Are OTAs Really Killing Brick And Mortar Travel Agencies?” 2015
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CONSUMERS INCREASINGLY
DEMAND EXPERIENTIAL TRAVEL
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Mainstream is
no longer enough.
“Globalisation and technology have led to the homogenisation of cities, which
has resulted in travelers craving locally made and authentic experiences.”
- Jamie Wong, Founder/CEO of Vayable
Source: Peak + Skift, The Rise of Experiential Travel, 2014
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Experiential travel the idea of more
immersive, local,
adventurous and/or
active travel.
Across all age groups, from Millennials to Gen X to Babyboomers, 34% of American
Express travel counsellors (agents) share that their customers are “specifically
looking to immerse themselves in the destinations and to travel like a local.”
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Source: Peak + Skift, The Rise of Experiential Travel, 2014
CONSUMERS EXPECT
PERSONALISATION
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Consumers
expect to be
treated as
individuals
69% of UK consumers think it is important to receive travel options
catered to their personal travel history and preferences
Four out of 10 travellers are willing to share data
in the interest of personalisation
Source: Tnooz, “The why, what and when of personalisation and ancillaries in travel”, 2016 / Amadeus + Skift, “5 Reasons Why
You Can’t Ignore Personalization in Travel”, 2014
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Personalisation
helps shift the
customer’s focus
from purely
price to real
value
Nearly nine in ten consumers say that
personalisation has some impact on their purchasing decisions.
Source: Adobe, “The Personalisation Payoff: The ROI of Getting Personal”, 2014
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How has travel transformed?
1. The Consumer Journey Is Increasingly Digital
2. Consumers Increasingly Demand Experiential Travel
3. Consumers Expect Personalisation
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How are Singapore’s travel agents coping with all these?
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What we have heard from you
Business Challenges
Manpower
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Competition from OTAs
Suppliers going direct
Consumers expecting more
Weaker economic outlook will see
slower traffic growth to and from
Singapore. Expectations for future
inbound and outbound growth
capped at 4%. The number of
inbound visitors to Singapore on free
and easy or packaged tours grew less
than 2% in 2014.
Disintermediation is also affecting
travel agents as more consumers
and suppliers choose to bypass
them.
Difficulty hiring
Poor perception of sector
High turn-over
Poorly trained staff
Decrease in manpower supply
nationwide will mean fewer job
seekers. Growth is capped at 2% till
2020.
There is job mismatch as industry
provides fewer PME jobs which are
sought after by Singaporeans. The
travel agent industry reported fewer
than 40% PME jobs in 2014.
Technology
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Lack knowledge
Lack financial resources
Lack in-house IT team
Lack support from staff
Low technology adoption will
affect productivity of travel
agents and inhibit their ability
to meet the needs of today’s
consumers. Only ¼ of travel
agents actively plan for
technology in their business.
Source: STB Manpower Study of Travel Agent Industry, 2015 / STB Technology Audit of the Travel Agent Industry, 2015
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Is there still hope?
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Yes, by putting the
consumer at the
centre of our business
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Here are some opportunities to consider
There are areas where travel agents continue to provide value to consumers
Optimising the
customer’s time
Giving exclusive
access
Providing expert
advice and care
Holiday-makers may spend
up to 30 hours researching
online before booking a trip.
Offering special experiences
that consumers cannot
easily get on their own
Special itineraries, visas
and aid in contingencies
Time-sensitive corporate
travellers, families or those
on luxury trips with little time
for research
Travellers looking for unique
experiences which are not
widely available
Travellers on speciality trips
such as mountain-climbing,
or those travelling with
young children and seniors
Travel Agents may seize such opportunities and more,
and commit to become Designers of Travel Experience.
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Travel agents can be
Designers of Travel Experience
Experts that consumers
turn to in the curation of
their travel
A workforce that is
professional, creative
and always up-to-date
A high-value
economic contributor
and jobs creator
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A Roadmap paved through studies and
industry engagement
Support Industry
Efforts
• Travel Agents Manpower Study
• Technology Audit
• Engagement with industry leaders
STB’S ROLE
• Deep-dives with NATAS
Catalyse
First-Movers
Facilitate
Partnerships
How we can help
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Travel Agent
Roadmap
Designers of
Travel Experience
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BUSINESS TRANSFORMATION
1. Drive Thought-Leadership Sharing
2. Support Business and Job Redesign
Study Trips and
Case Studies
Showcase relevant
learning experiences
for the industry
Annual Industry
Forum
Share ideas and engage
C-suite leaders in
conversation
Assistance schemes
Business
Improvement Fund
(BIF) from STB
NATAS Business
Transformation
Committee
Focus on
business remodelling
opportunities
for the industry
Business
Transformation
Playbook
Provide step-by-step
guide for change
management
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BUSINESS TRANSFORMATION
Process of Business and Job Redesign
(1) IDEATION AND PLANNING
Guidance from ‘playbook’ by consultant – step-by-step guide
for travel agents on how to plan the remodelling process
Examples of
remodelling
Lifestyle/Lux
Specialisation
DIgitalisation
Areas to
remodel
(2) IMPLEMENTATION
Funding support by Business Improvement Fund
Source: Singapore Manufacturing Federation, Business Model Innovation Centre
Examples of travel agents overseas
Carving out a specialty and becoming experts in the
field
MoonRings, US
• Positioned as travel specialist
on destination weddings
• Charges separate fee for planning and
booking services
Using technology and concept stores to inspire travel
Departure Lounge, US
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Combines coffee house, wine bar,
event space and travel agency with
visual technology and destinationfocused foods and beverages
Over 60 percent of travel business
driven by walk-ins who visited to
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enjoy the F&B
TECHNOLOGY
Mr Ang Eu Khoon
Chairman, Information Technology Committee, NATAS
TECHNOLOGY
Technology can build better travel agent businesses
Cheaper,
better, faster
with integrated systems and
automation to manage cost
Companies with enterprise resource
systems can save 19% more than
companies without.1
New products
New customers
As many as 18% indicate interest
in visiting a travel agent with virtual
reality facilities, rising to 27% for
those aged 16-24.2
Happier customers,
higher returns
Companies with omni-channel customer
experience management programs gain
6% year over year in average profit
margin per customer. 3
Source: IBM, “Enterprise Resource Planning Systems drive cost reduction and efficiency in Finance and accounting operations”, 2013. /
119% savings is in finance function cost as a % of selling, general & administrative costs / 2Mintel, Travel Agents - UK - December 2015,
Interest in Technology / 3Phocuswright, Travel Innovation and Technology Trends, 2015
TECHNOLOGY
Technology adoption among Singapore’s travel agents
has been low
Customer
FRONT OFFICE
MID OFFICE
BACK OFFICE
Sales
Marketing
Product / Suppliers
Operations
Accounting
Human Resources
• Less than 30%
have a Customer
Relationship
Management System
• Only 2% have
customer-facing
mobile apps
• Only 20% have a
Content Management
System
• Only 15% have an
Inventory
Management System
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Use of accounting and
payroll systems are
relatively higher (67%
and 40%)
• But only 7% use an
enterprise resource
planning system
Most spend less than $50,000 over three years on technology
Source: STB Technology Audit of Travel Agent Industry, 2015.
TECHNOLOGY
For customers
who need expert
advice and
special
arrangements…
<<Click on image to be directed to video hosted on YouTube>>
...how do you equip your team and processes?
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TECHNOLOGY
For customers
who want that
once-in-alifetime
experience…
<<Click on image to be directed to video hosted on YouTube>>
...how do you build that deep expertise?
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TECHNOLOGY
For customers
who are just
looking for
affordable
economical
travel…
<<Click on image to be directed to video hosted on YouTube>>
... how do you do things more productively?
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TECHNOLOGY
1. Encourage Technology
Adoption
2. Fund Technology
Development
e.g. data analytics, visitor
experience
e.g. front-to-back
integration, ops mgmt
e.g. CRM, eCommerce
3. Support Innovative
Prototypes
Matching Services
Leverage available services
Technology Showcase Software-as-ato help travel agents
Service Solutions
and Guidebook
customise technology solutions
Showcase relevant Aggregate industry
technology solutions demand for shared
service solutions
for travel agents
Assistance schemes
Technology Talks and
Experiences
Provide opportunities such as
study trips and fireside chats for
C-suite leaders to learn about
emerging technologies
for test-bedding
Business Improvement Fund from STB
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MANPOWER
Ms Fiona Lim,
Chairman, Manpower & Training Committee, NATAS
MANPOWER
Travel agents are challenged by manpower needs
Travel agents’ manpower needs
VERSUS
National supply
Up to 2020: travel agents workforce projected to grow at 2-3%1 while national workforce growth is capped at 1-2%
% HEADCOUNT
SHORTAGE1
What we see in 2020:
~12% manpower shortage in nonmanagement roles which make up
more than 50% of TA jobs
Source: STB Technology Audit of Travel Agent Industry, 2015. 1Shortage forecasted for 2020 based on optimistic scenario
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MANPOWER
Travel agents are challenged by manpower needs
Travel agents’ supply of jobs
VERSUS
National aspirations
Less than 40% of TA jobs are PME jobs while 2/3 of Singaporeans expect to hold PMET jobs by 2030
“… many employees
don’t stay long, or
are easily poached”
“it is hard to find
staff with the right
skill sets…”
From students: “No
point considering a
sunset industry like
travel agent…”
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MANPOWER
There are significant upsides to managing manpower well
Good HR practices can positively impact
profitability and productivity
An example from UK’s
manufacturing industry
19%
18%
Good training of staff can substantially
enhance returns
An example from the retail industry:
Highly qualified staff produce
$24 more sales than marginally
qualified staff per hour
Source: Malcolm G Patterson et al, Impact of People Management Practices on Business Performance, 2003 / Aon Hewitt,
“Measuring the Impact of Employee Selection Systems”, 2012
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MANPOWER
1. Drive Talent
Recruitment
Talent Recruitment
Strategy
Engage educators and
students through
enhanced internships
and industry profiling
2. Encourage Up-Skilling
Curriculum and
‘Work & Learn’
Programme
Offer suite of 29
WSQ courses and
flexible working
arrangements
Enhanced
Accreditation for
Travel Professionals
Recognise skills and
professionalism
through personal
accreditation
3. Enhance Talent
Management
HR Excellence
Onboarding
Materials
Enhance HR
practices through Develop plug-andgovernment
play materials for
resources and
the industry to
NATAS-led
induct new rankseminars
and-file hires
Assistance Schemes
Training Industry Professionals in Tourism grant
(TIP-iT) by STB for training and HR consultancy
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Begin your transformation today.
How Can I Embark on the Roadmap?
Programmes
Initiate Business Improvement Projects
Leverage STB Business Improvement Fund (BIF) for:
• Business transformation projects
• Technology projects
• HR improvement projects
Enroll Your Staff for Up-Skilling
• ‘Work & Learn’ Programme
• WSQ Tour & Travel Services Courses
Participate in Recruitment Initiatives
• Talent recruitment talks and roadshows
Register Your Interest to Attend Events
with STB or NATAS
• Technology Showcases
• HR Seminars
• Study trips
Give Feedback on Upcoming Roadmap
Initiatives
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Software-as-a-Service Solutions
Onboarding Materials
Business Transformation ‘Playbook’
Enhanced Accreditation for Travel Professionals
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