The travel industry was taken aback by the announcement on Feb. 27 that Gogo Vacations would cease operations. Flight Centre Travel Group’s decision to shut down Gogo Vacations was attributed to the challenges faced by the wholesale model in recent years. This development is indicative of a shift in the wholesale travel market, with industry experts like Charlene Leiss, president of the Americas for Flight Centre, acknowledging the high costs associated with maintaining such brands. The closure of Gogo Vacations could potentially lead to a less competitive landscape, impacting prices and services offered to travel advisors.
Several travel advisors revealed that they had already discontinued working with Gogo Vacations due to various issues related to booking processes and customer service. The introduction of a new booking engine called Helio a few years ago further exacerbated the problems, as many advisors found it to be user-unfriendly, despite the training provided by Gogo. The inability to keep up with the evolving needs of travel advisors resulted in a decline in business and ultimately the decision to shut down operations.
While some advisors expressed sadness over the closure of Gogo Vacations, others highlighted the potential consequences of having one less B2B wholesale supplier in the marketplace. Jennifer Doncsecz, president of VIP Vacations, emphasized the importance of competition in driving prices down and maintaining high customer service standards. With the disappearance of Gogo Vacations, there is a concern among industry professionals that travel advisors could face challenges in accessing diverse options and competitive pricing.
Industry experts, including John Werner of MAST Travel Network, acknowledged the inherent challenges associated with the wholesale model in the travel industry. The emergence of online platforms such as Expedia and Booking Holdings has intensified competition for wholesalers. The fundamental model of aggregating demand and channeling it to partners has been disrupted by factors such as strong hotel occupancy rates and changes brought about by the pandemic. Wholesalers are under pressure to adapt to evolving trends and find innovative ways to sustain growth amidst increasing competition.
Future Prospects for Wholesale Suppliers
Despite the challenges facing the wholesale travel sector, some companies like Pleasant Holidays and ALG have reported significant growth in recent years. David Solis of Ultimate Jet Vacations highlighted the importance of innovation and adaptation to changing market dynamics. Stagnation, complacency, and a lack of innovation in the operating model have been identified as key challenges for wholesale suppliers moving forward. As the industry continues to evolve, wholesale suppliers will need to find new ways to differentiate themselves and provide value to travel advisors in an increasingly competitive market.
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