ONLINE travel sites are gaining ground against brick-and-mortar travel agents, as more customers use the former channel to plan trips.
Online agent Zuji sees more independent travel to Japan and China, once traditional package-tour destinations because of the language barrier for those who don't speak the native tongues.
As Singaporeans become more familiar with Japan, the number of travellers going there on their own has almost doubled year on year, said Zuji's general manager here Philip Ho.
For China, the growth is as much as 70 per cent, he added.
"As consumers get more confident about going to a destination independently, they would come to us," said Mr Ho.
Online providers offer cost advantages too, he added, because they buy room nights in bulk from hotels. For instance, Travelocity, parent company of Zuji, buys 17 million room nights globally.
And because online firms has lower staffing needs, savings go to customers, said Mr Ho.
Instant confirmation of bookings and online payment also draws last-minute travellers to web services, said executive vice-president of Asiatravel.com Magdalene Yeo.
She added that 40 per cent of its customers ask to check into their hotels within three days, something which travel agents may not accommodate.
Already, online firms have eroded up to 20 per cent of local travel agents' business, said Mr Robert Khoo, chief executive of the National Association of Travel Agents Singapore (Natas).
Travel agents are not taking the competition lying down.
Commonwealth Travel Corporation (CTC) launched a dedicated booking site this week, www.findmerooms.com, targeting overseas markets. It offers instant confirmation for accommodation, tickets and car rentals.
Ms Joycelyn Su, CTC's vice-president for marketing and outbound tours, said: "Once you have a really good online portal, you are no longer constrained by geographical area."
Chan Brothers launched www.chanbrothers.com in 1999. Within the first 11 months, it received 25,000 bookings
online and close to $30 million in sales, said spokesman Jane Chang.
Travel agents can complement what online firms have to offer, added Ms Su. For short-haul budget flights to places like Bangkok, buying tickets online means customers can save on service fee. However if you are visiting several places, it might be a hassle to go online and do everything yourself.
Plus, travel agents offer after-sales service.
Said Ms Su: "You have to go through many sites, and read through a lot of information before you can really start planning your trip. Travel agents are a one-stop shop."
