Conscious of this situation and immersed in a constant search for new ways to enhance the direct channel, at Paraty Tech, we have developed the Travel Agencies Module. Fully integrated with the official website's booking engine, this functionality allows hoteliers to automate this cumbersome process, freeing their teams from this task so they can focus on what truly matters. After all, technological innovation should precisely replace humans to improve operations and services where the human factor doesn't necessarily add value.
Simplified, the Travel Agencies Module translates into a section on the official website through which travel agencies can quickly and easily register, identify themselves as such, and then start selling directly through the direct channel with conditions predefined via the configuration panel, accessible through Paraty Hotel Manager, the backend of our booking engine.
Throughout the booking process, the agency will have the commission percentage visible, also being able to check the price of their search and the amount in euros that the sale would represent.
From here, the options are endless. Let's explore them in detail.
Well-managed, the role of agencies can be very profitable. Certainly, facilitating their registration, consultation, and booking processes through the direct channel can encourage an increase in the number of agencies interested in marketing a particular establishment, with the potential for increased sales. But there is more.
Although we maintain constant contact with our clients, we periodically like to travel to visit them, especially those who are not nearby. The purpose of these visits is to greet them face to face and, in the process, analyze the product, review the results obtained, identify opportunities, address possible shortcomings, and ultimately gauge their satisfaction with the service they receive.
We won't divulge details, but we take pride in acknowledging that the positive feedback received in recent meetings reveals that this is the right path. Almost a decade ago, we made the correct decision to embrace a customer-centric philosophy that doesn't differentiate based on the establishment's category or revenue. Our commitment to technology and customer service has always been at the forefront as our key strengths and identity markers.
It is assumed that a company of our caliber has powerful, adaptive, and efficient technology. However, in our case, a significant competitive advantage is that all our solutions are 100% in-house and developed entirely in-house, eliminating dependence on third parties.
However, the real difference between providers can come from unexpected places. Customer service, the willingness to invest resources in improvement requests, and the support provided in resolving technical issues can be a definitive differentiator.
We have drawn various conclusions from our recent visits:
If the criteria for this sudden change of opinion are exclusively health-related, it's something we may never know. However, everything seems to indicate that the ministries involved in this change of course have somehow yielded to pressures and dissatisfaction, both from their citizens and the Association of British Travel Agents, regarding the strict safety and prevention protocols imposed on those who, against recommendations, decide to visit a destination classified as "not safe". In any case, we didn't want to miss the opportunity to analyze the impact of a decision of this magnitude.
As of today, the Balearic Islands are the only national territory authorized to receive British tourists free from quarantine. This situation has sparked mixed feelings because, while it is a significant step for the Spanish tourism sector, opening the door wide to one of our main source markets, other regions had also speculated about the possibility of finally being included in the list of safe destinations and did not see their expectations fulfilled.
Our experience has taught us that the reflection in purchasing intention and reservations of decisions and institutional statements of this nature is imminent. We observed this in 2020, fully immersed in the de-escalation process (the study we published then was particularly revealing in this regard), and again in 2021 when Pedro Sánchez informed the world that Spain would open its borders to international tourism starting in July. We would have a summer!
This time has been no different. We have turned to our Business Intelligence to analyze the pace of searches and bookings from the British market for any of the Balearic Islands (Mallorca, Menorca, Ibiza, etc.), comparing the week from June 25th to July 1st (from Friday to Thursday) with the immediately preceding one, from June 18th to 24th:
The purchase intention graphs show how a good portion of searches focus on July, some in August, and very few from September onwards, confirming the short-term trend that has been prevailing since uncertainty became part of the daily lives of travelers.
The number of unsatisfied queries, as shown in red, is almost negligible, a sign that hotels know their guests well and are prepared to receive them. Regarding the comparison between the two weeks, those peaks of increases are very evident, especially during the first days of July, a trend that continues throughout the month, as anticipated.
Regarding sales, from June 25th, the date Boris Johnson made public the news that the Balearic Islands were moving from amber to green, until July 1st, bookings increased by 127% compared to the previous week. Up to that point, everything was as expected. Just like with searches, the bulk of bookings concentrate during July. From there onwards, we can see a drastic drop as we move into August, September, October, etc.
However, the graphs reveal a concerning reality that we hadn't mentioned yet: those red bars represent cancellations. The media impact of the outbreaks in Mallorca, allegedly as a result of end-of-school-year trips and the criticized concert in the bullring, has directly affected travelers. This is where we find the justification for such a disproportionate number of cancellations, which multiply by six compared to the previous week. Unfortunately, it hasn't been the only consequence. Only five days after being categorized as a safe destination, the Balearic Islands became part of another list that is not so desirable, the so-called "Green Watch List," including destinations susceptible to being returned to the amber color.
We will have to remain very vigilant in the coming days because the future of the summer season in the Balearic Islands and the rest of the country will depend on the evolution of outbreaks like this and how health authorities manage them. The pandemic is far from over. The virus has simply changed its preferred host profile, now targeting the younger population. Therefore, we continue to appeal to prudence, not only to save tourism but also to continue keeping the situation under control and not undermine all the work and effort carried out to get to where we are.
"A smart tourist destination is a recognized, proven methodology that, together with an analysis and action plan, makes a destination more competitive." - Fernando Valdés, Secretary of State for Tourism
"Our commitment to the destination translates into its commercialization and distribution, its positioning against the competition, its promotion through virtual workshops, audit and consulting services, and a firm commitment to training tourism professionals." - Pedro Díaz Burló, Partner and Head of Turobserver
"What is not digital does not exist." - José Juan Nebro Mellado, President and Founder of Gecor System
"Not every piece of data is valuable; there is a need to socialize the data, make it accessible to small and medium-sized enterprises, and then monitor the destination continuously to ensure nothing fails." - Pedro Díaz Burló, Partner and Head of Turobserver
"Tourism will change, and the key to recovery lies in observing the market and responding to the opportunities that may arise, staying prepared for change, being adaptable, and using the knowledge that makes us different and competitive." - Pedro Díaz Burló, Partner and Head of Turobserver
Last Sunday, May 23rd, marked the closing of the most special Fitur that anyone can remember. The 2021 edition will be etched in our minds as an unequivocal symbol of the beginning of the return to (new) normality in tourism. It is, in fact, the first major international event in the sector held in person for almost a year and a half. Despite the difficulties, skeptics, and detractors, 55 countries, 5,000 companies, over 42,000 professionals, and 20,000 visitors decided to be present to send a loud and clear message together: that #wewilltravelagain is getting closer every day.
We know that 2020 has been tough. Extremely tough, in reality. However, we should not talk, in any case, about a blank year. Over the last fifteen months, while the world came to a standstill, destinations couldn't afford to stop. Quite the opposite. They have worked tirelessly to stay in the minds of travelers, to put themselves in their place and anticipate their intentions. Always with the goal of being the first to detect the desire to travel and translate it into the arrival of visitors, in booking confirmations, as soon as the health situation and mobility restrictions allowed.
All have been forced to combat Covid-19 by following prevention rules, imposing containment measures, and implementing safety protocols. But this has also led them to improve their facilities, expand their services, and identify, and subsequently develop, new products adapted to the novel concept of post-pandemic travel, where privacy, nature, or outdoor activities have become impromptu protagonists, even where they had never been relevant before.
The most proactive have not stopped promoting themselves, launching marketing campaigns or organizing virtual events, knowing that greater visibility gives them an advantage over possible competing destinations. For this reason, the importance of having been present at Fitur comes to light again: for destinations, there has been no better opportunity than this to remind the market that they are still there, presenting their brand-new offerings, shouting, "we are ready to welcome you, and we will do it better than ever." Surely, the 20,000 visitors we mentioned earlier, when it comes time to book their next vacations, will find it easier to remember the destinations they encountered in the halls of Ifema than those who did not attend.
If we agree that destinations are more than prepared for the reactivation of travel, we will also agree that the tourist business fabric, the true engine of the sector, has not lagged behind. Feelings of hope and optimism have characterized the professional encounters forged during those five days of the fair, where the common denominator has been the desire to mobilize millions of travelers again. Everyone present shared attitude and objective: less posturing and more business. The reactivation of tourism demands not only its unquestionable boost but also the necessary alignment of the goals of public and private entities.
Those of us who make up the Turobserver team, of course, were there, so we speak from experience. The motivation behind our decision to participate was none other than being able to contribute to the relaunch of our beloved sector. We had the pleasure of sitting down to chat informally with representatives of national and international destinations, with established clients and others with the potential to be so. And we have worked hard to continue emphasizing something that, by now, we all have very clear: today, more than ever, digitization and technology are an indivisible part of our lives, and resource optimization, together with more efficient management of these resources, are needs that no destination can afford to renounce.
The pandemic has immersed us in an ocean of data and statistics, where we move like fish in the water, and has also taught us the importance of basing strategic decisions on updated and sustainable information. Hence, to the range of services we were already offering, we have now added our Demand Reactivation Plan, a three-year project presented exclusively during the fair, in which we offer to guide and accompany destinations throughout the path of their recovery, as well as facilitate their transition to digitization and sustainability.
Will purely in-person events return, as we knew them, relegating digital platforms and virtual events to very specific cases? Undoubtedly, the celebration of a fair in a 100% in-person format has been a very important symbol for a sector that thrives on experiences, and it is true that we all missed, almost needed, both personally and professionally, to maintain direct contacts, face to face, without a screen in between. In addition, tourism professionals themselves, with their travels, have clearly stated the message that traveling is possible, and safe events can be held, completely feasible.
At the same time, in our opinion, technology is here to stay, and its current use has served to enhance traditionally in-person events. Again, Fitur 2021 is a good example. This year, the organization launched LiveConnect, a virtual platform that allows exhibitors and professionals to contact and schedule meetings for a month. It is a complement that, combined with the in-person format, adds a lot of value to the fair. At a time when there are still many doubts regarding the risks associated with mobility and crowds, it is a very interesting alternative for those who ultimately could not be in Madrid, but also for attendees who can extend established business relationships and schedule new meetings.
Therefore, we do not believe that one has to think in black and white. The pandemic has been a turning point that probably will not end with the in-person format, but almost certainly will modify what were its standards until the advent of the Coronavirus. This implies that there is an intermediate way, that both modalities, in-person and virtual, can coexist and, in fact, we advocate for a future of hybrid events.
As social beings, on the one hand, we need direct contact, we surrender to the attraction of large fairs for the end customer, and accept their condition as showcases for destinations, on the other hand, we must be able to take advantage of the benefits offered by technology, such as time and resource savings, or the opportunity it represents for all those small and medium-sized companies that, otherwise, could not afford to participate.
We have seen it firsthand in each of the Destination Virtual Workshops that we have organized over the past year for various destinations. Thanks to these exclusive tailor-made events, local entrepreneurs, without leaving their offices, have been able to contact and negotiate with decision-makers from agencies and tour operators around the world, sparking or rekindling their interest in these destinations. In conclusion, the fusion of both options constitutes a huge qualitative leap and a great business opportunity. However, it is now up to each company or destination to assess the different possibilities at their disposal, estimate the return on investment that each action may generate, and make the decision they consider most appropriate.