By Robert Todd
Local travel agents say the grounding of discount airline Jetsgo has signalled to consumers the dangers of booking travel services online.
Debbie Fleming, owner of Awesome Travel and Cruising on Catherine Street, says she’s experienced an upsurge in bookings since Jetsgo planes were permanently grounded on March 11.
“There’s a lot of consumer awareness now about booking on the Internet instead of with a travel agent,” she says.
Fleming, who has worked in the industry for 12 years, says more people are now utilizing the expertise of travel agents who can ensure their dollars are well spent.
“I’ve had a lot of people who used to book online and now they are booking with me when they realize what I have to offer.”
One benefit of booking with a licensed agent is access to the Ontario Travel Industry Compensation Fund. The fund is administered by the non-profit Travel Industry Council of Ontario and paid into by all travel agencies registered with the council. The fund is generally used to protect consumers when an airline or cruise line goes out of business.
Such a fund is important for the industry, says Don Harper, chairman of the board for Congress Travel and Cruises on Sparks Street. He says travel is unlike other services, as consumers often pay well in advance of receiving services. The fund ensures that purchases are protected.
Edmundo Roa, manager of Let’s Take the Kids Travel on Elgin Street, says customers are often unaware of the extra services a registered travel agent provides.
Experience is the most important asset, he says. Roa has travelled to more than 30 countries. This, along with his experience as an agent, allows him to tailor different vacation spots to different customers, he says. For example, customers with specific health concerns are often better off staying at a smaller resort, where their needs can be dealt with on a more personal level.
He says that, unlike many online services, his work doesn’t end when the customer pays.
He is frequently in contact with airlines and resort destinations via phone or fax to ensure everything runs smoothly for his customers. If situations like the Jetsgo bankruptcy arise, he’s there to arrange alternative flights for his customers.
Roa says his business often refuses customers who are looking for a cheap trip. He says you get what you pay for when it comes to travel.
“As a travel agency, we won’t compete with the web. We have overhead that they don’t. They can get away with making less, but we have to pay rent and our employees.”
In the long run, paying the extra charges for the expertise of a travel agent is cost effective, says Harper of Congress Travel and Cruises.
“A lot of people think they’ve found a great deal booking online, but they’ve never read the fine print,” he says. “That’s what the trained travel agent does. They make sure you get the service you want, and we can always find a good price for people with a reliable airline.”
But the impact of the Jetsgo bankruptcy may not be as great as the travel agents predict, says Barry Prentice, director of the Transport Institute at the University of Manitoba’s Asper School of Business.
“I don’t expect this to deter people from booking with discount airlines or on the Internet,” he says.
Those who booked online and paid with credit cards will likely be reimbursed by credit card companies, Prentice says.
He adds that the amount lost by many of those who booked online and didn’t get service is negligible compared to savings made from discount bookings.
“Even if you lost $250 because of Jetsgo you’re still ahead of the game,” he says.
Harper suggests that any changes in consumer behaviour will be short-term.
When discount airline Canada 3000 went out of business three years ago, many travellers avoided online booking only briefly before returning to lower cost online providers, he says.
“People succumb to the siren song of a low fare,” he says. “I’m sure that for a year or two people will have memories of what happened to Jetsgo and it will make people very cautious. But memories will fade.”