The European travel sector faced the worst slump in decades during the Covid crisis but was expected to fully recover to pre-pandemic levels. However, this will not be a straightforward journey to recovery as travel companies face both challenges and opportunities in the dynamic travel distribution market.

Significant changes in the travel industry are being driven by the rapid growth of online package bookings as well as an increasing focus on the direct-to-consumer approach which can improve customer interaction and reduce costs of sales. Though this poses a threat for travel intermediaries who are reliant on B2B2C and will need to transform their practices and business models to succeed.

A&M’s Travel, Hospitality and Leisure group have shared their insights in ‘Travel Intermediaries Relying on B2B2C Might Soon Become an Endangered Species’ with their key takeaways below.

Key Takeaways:

• Travel was expected to fully recover by 2023, with intermediary package being the largest European outbound travel segment
• Increasing market share of online distribution players will lead to higher intermediary direct-to-consumer shares
• Markets with high direct-to-consumer shares have different dynamics and success factors, leading to opportunities and threats for the whole ecosystem
• Transforming organizations to be able to successfully handle those changes becomes a necessity for legacy B2B2C players
• Opportunities to increase direct sales arise for travel groups, independent retail, OTAs as well as suppliers if they opt to offer own packages as well  

If you would like to find out more about how A&M can help to transform your travel business, please contact René Herzog or Ed Bignold.