The travel industry faced many challenges in 2024, as highlighted by a recent Travel News poll.
From the complexities of NDC implementation to skyrocketing airfares, travel agents navigated a tumultuous landscape while striving to provide value and expertise to their clients.
Otto de Vries, CEO of Asata, has offered key insights into these challenges and outlined the industry’s response.
NDC and distribution platforms dominate concerns
NDC and distribution platforms emerged as the most significant challenge, cited by 30% of Travel News readers.
While airlines promote NDC as a way to offer a broader range of content, better ancillary sales opportunities, and increased customer transparency, travel advisers have encountered numerous operational difficulties.
These included fragmented airline content, slow response times and a lack of standardisation, De Vries said.
“The dominance of NDC and distribution platforms as the top concern comes as no surprise. Throughout 2024, we’ve witnessed the complex implications of NDC implementation, creating significant operational challenges for our members.
“We continue to push for an integrated retailing ecosystem that benefits all stakeholders,” De Vries added.
Looking ahead, Asata aims to champion a more co-ordinated approach to Modern Airline Retailing (MAR) that considers the needs of all stakeholders in the distribution chain.
High airfares add financial strain
Expensive airfares ranked as the second-biggest challenge, with 28% of participants identifying it as a key issue.
Driven by global economic pressures, fluctuating fuel prices, and imbalances in supply and demand, high airfares affected both affordability and ticket sales.
“Elevated airfares have placed significant stress on travellers and intermediaries alike. While Asata cannot directly influence global or local airfare pricing, we have consistently reinforced the value proposition of travel advisers, who bring their expertise and personalised service to help travellers navigate these pricing challenges effectively,” noted De Vries.
Flight disruptions and clients ‘shopping around’
Flight disruptions and ‘clients shopping around’ tied as the third most significant challenges, each garnering 10% of the votes.
Travel agents’ ability to manage crises and solve problems have been critical in mitigating the impact of flight disruptions.
“Flight disruptions require travel advisers to demonstrate their value through expert problem-solving and crisis management,” said De Vries.
Similarly, the rise of comparison shopping underscores the need for advisers to highlight their expertise and unique value beyond pricing.
“This trend presents an opportunity for travel advisers to showcase the irreplaceable service they provide, which goes beyond basic price comparisons,” added De Vries.
Visa complexities create hurdles
Visa complexities, cited by 6% of respondents, became a widespread concern in 2024, primarily due to sudden changes like Ireland’s abrupt imposition of visa requirements for South Africans, as reported by Travel News.
“Asata was quick to express frustration at the lack of transitional provisions and clarity surrounding these requirements, an issue that caused disruptions for travellers and advisers alike.
“Asata actively liaised with stakeholders to address these barriers and remains committed to advocating for simplified and more predictable processes when government policies affect travel planning,” said De Vries.
Addressing skills shortages and preparing for AI
Human resources and skills shortages (5%) were another concern.
To address this, Asata has initiated a skills gap analysis to identify areas requiring targeted training, including the skills necessary to maximise the potential of evolving technologies like AI and MAR.
“The industry’s long-term health depends on addressing these shortages,” said De Vries.
Although AI adoption was the least-cited challenge (1%), Asata has emphasised its transformative potential.
“AI can enhance business operations, streamline routine tasks and allow advisers to devote more attention to personalising client interactions and solving more complex travel challenges. At every turn, we reiterate the same message: AI supports, not replaces, the human expertise that travel advisers deliver.”
The road ahead
“2024 was a year of adaptation, marked by challenges that tested our industry’s resilience. As we start 2025, Asata will continue advocating for its members, facilitating training on critical technologies like AI, advocating for better integration of platforms like NDC, and championing smarter policies to address affordability and disruption.”
By striking the right balance between innovation, advocacy, and client focus, De Vries said Asata aimed to empower consultants to overcome obstacles and deliver the irreplaceable service that defined the modern travel adviser.
View the full results of our poll below: