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Agents of two minds on Social Media

The travel agency community remains unconvinced of the value of social media, even as more agencies than ever participate in online networking.

That’s among key findings in ASTA’s just-released 2013 Technology & Website Usage Report, which details how the online habits of travel agencies have shifted as social media has become a larger part of the cultural and business landscape.

The survey of 311 member agencies offers a glimpse into the contradictions in agents’ attitudes toward social media, as well as emerging trends.

Turning to Facebook
While the majority of agencies today have a website, some respondents said they would rather use a Facebook page instead, due to lower costs and the ease of direct communication with potential clients. 

That may be one reason the growth in the share of ASTA agencies that have a website has leveled off at 80%, the same as in 2007.

“For some of our members, social media has become essential to their business model. A lot don’t have websites and do business on Facebook or Twitter instead,” said Melissa Teates, CAE, director of research at ASTA. 

“It is an intriguing shift because many consumers don’t see companies as legitimate if they don’t have a website.”

Eighty percent of agencies polled by ASTA said they use social media, while just 17% viewed participation in social media as “essential” to their business.

“A big chunk of those who are coming into the industry are entrepreneurial and they don’t want to deal with websites,” said Teates. Instead they use social media to communicate.

Online tools
In one of the more pronounced shifts in agents’ technology use, just a third of agencies had an online booking tool on their site, down from 60% in a 2007 survey. 

Why the change?

“When a lot were using branded online tools, they felt it was more of a workaround for suppliers than something integrated into their agency,” said Teates. “Some said they weren’t getting enough sales from online tools to make it worth their time.”

Royal Caribbean and Sandals & Beaches are the top branded leisure online tools used on agency websites.

Mobile apps
ASTA also asked agents what mobile applications they provide to clients for accessing trip itineraries.

The study found that mobile apps have fallen to the wayside, replaced by GDS-sponsored products from Sabre, Amadeus and Travelport.

“Most people were into using apps in 2010, and now a good chunk of them aren’t,” said Teates. “They are using tools linked to their GDS instead, which makes sense because they don’t have the time to research or develop their own app.”

The future
In terms of online networking and marketing, Facebook, LinkedIn and posting on consumer review sites like TripAdvisor saw the most gain in usage by agencies, with Facebook and LinkedIn predominating.

“LinkedIn may end up being more of a revenue-generator for agencies, once they implement some changes to appeal to consumers,” said Teates. 

She contrasted the business results agents might experience via LinkedIn with those of other popular social media networks. “In terms of Instagram and Pinterest, they are more about the dream of a trip, with less action involved.”

Social media smarts
Teates advised agents to either invest in social media as a pillar of their business or use it sparingly and focus on other areas.

“People are making money picking up sales leads on social media,” said Teates. “So if an agent is just dabbling in social media, they should think about whether they want to generate revenue or merely use it to communicate with current clients.”

Unclear goals
Agencies showed little clarity in their goals on social media, with nearly a quarter (24%) saying they are “not sure” of their goals for social media usage or that they “plan to develop goals.” 

Compared to previous years, significantly fewer agencies said they used social media to create awareness or for promotion and advertising purposes.

“If you’re not going to set goals for social media, then there is no point spending on it,” said Teates. “We want them to recognize there are a lot of different usages for social media that are successful in terms of ROI.”

Getting new client leads through social media may not be one of them. Fully 87% of respondents who use social media said they generated fewer than five leads a month.

Protect your reputation
Just 5% of agencies regularly monitor the Internet for mention of their company, while more than half do not monitor the web at all. Teates believes agencies are making a major mistake if they are not paying attention to their reputation online.

“That is the most shocking thing in the survey,” said Teates.


Source: Hospitalitynet - 28 March 2014