Earlier last week, the BPCPA (Business Practices & Consumer Protection Authority) announced that travel agents in BC will no longer be required to work from a brick & mortar office, effective April 1/09.
What does this mean to you?
The internet is the biggest competition for brick & mortar agencies, and while there is a segment of people who want to sit at a desk in an office to plan their next trip, there is also a large segment that recognize that $30,000+ in office space rentals is going to be passed on to the consumer somehow.
In this industry, you've got to be competitive and offer great service. Monthly lease fees - no matter where you are - impact profitability, so why not take it out of the equation altogether?
I predict that a lot of offices will close as agents shift to a more relationship-style of selling. Agents will be more conscious of asking clients to refer their friends to them for business. Sort of a 'she told 2 friends, and so on and so on' type scenario. And truly, who would you rather deal with - someone you've never met before but you walked into their office because you heard their jingle on the radio? Or the agent that your friend just booked their fabulous vacation with (and always books with)?
It's also important to note that BC and Quebec are the only 2 provinces in Canada that have retained their requirements for a brick & mortar office for so long. In all other provinces, an agent can work from home and they've been able to do so for quite a few years.
The down side is that the big host agencies (travel agencies that support or sponsor home based agents) will begin to descend next year. We may see some slightly dodgy tactics as new agents try to build their business.
Am I worried about more competition?
Absolutely not. My business is 95% referral based, and my preference is to build a relationship with my clients and provide travel planning services to them for years to come. Competition is good for everyone - it makes us work smarter and in the end, the consumer benefits.
It's all good.
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