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The travel agent’s problem | Seth’s Blog

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Not just travel agents, but all agents.

Information scarcity is disappearing.

Forty years ago, passengers didn’t know which airline flew where and when. And forty years ago, airlines had no easy way to find out who wanted to fly somewhere. Today, of course, there’s no shortage of information or ability to connect. So paying 10% of their revenue to a human who will use a terminal instead of the passenger using a computer hardly makes sense for the airline.

Movie studios used to have to wrestle with information scarcity, and so did talented creators. Actors weren’t sure who was making what, and studios had imperfect information about who to cast. Today, IMDB (and proprietary tools) surface enormous amounts of information for the studios. They know who is working on what, who is a pain in the neck, who can add to the effectiveness of the project. And the creators are part of networks, formal and informal, that get them information faster and more efficiently than a single human often could.

The same thing is happening to car dealers. In fact, just about any job where you used to hoard information and charge a fee is now in danger.

When your clients know more than you do, it’s difficult to be an old-fashioned agent who is making money based on information scarcity.

The alternative is to become a network hub who creates value through information abundance.



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