Core Viewpoint - The future of travel agencies without physical store presence and scale is bleak, as both traditional travel agencies and OTAs (Online Travel Agencies) are aggressively opening physical locations to enhance customer engagement and brand visibility [1][36]. Group 1: Travel Agency Store Strategy - Travel agencies are transforming their physical stores from outdated models to modern, customer-friendly environments that focus on emotional connections and service [2][4]. - The concept of a "15-minute travel life circle" is being adopted, where agencies aim to cover a radius of 1-3 kilometers to foster local customer relationships [5][6]. - Agencies are hosting various in-store activities to create community engagement and increase foot traffic, thereby enhancing customer loyalty [6][7]. Group 2: OTA Influence on Travel Agencies - Travel agencies are facing challenges on OTA platforms, where the shift from retail to agency models has reduced their profit margins and visibility [8][9]. - OTAs benefit from a dual revenue model, earning from both the markup on products and additional commissions from travel agencies, which diminishes the agencies' earnings [9][10]. - The branding of travel agencies is often overshadowed by OTA self-operated products, making it difficult for agencies to establish their presence in the market [10][15]. Group 3: Customer Demographics and Market Trends - There is a significant overlap of only 20% between online and offline customer bases, indicating that physical stores can attract a large number of new customers, particularly older demographics [16][18]. - The growing demand from the 55+ age group in the domestic travel market highlights the importance of physical stores in catering to this segment [18][20]. - The increasing complexity of travel arrangements, such as customized tours, necessitates in-person consultations, which further supports the need for physical locations [20]. Group 4: Cost Dynamics and Market Conditions - The cost of acquiring customers online is rising due to various fees, while the costs associated with physical stores are decreasing, making it a favorable time for travel agencies to invest in brick-and-mortar locations [21][22]. - The commercial real estate market is experiencing a surplus of retail space, leading to lower rental costs, which benefits travel agencies looking to establish physical stores [22][23]. Group 5: Competitive Landscape - OTAs are not only expanding their physical presence but are also strategically positioning themselves to limit the growth of travel agencies by monopolizing key locations and resources [24][26]. - The dominance of OTAs in the hotel booking market further complicates the competitive landscape for travel agencies, as they struggle to maintain pricing power and brand recognition [27][30]. - The future viability of travel agencies hinges on their ability to scale physical operations and differentiate themselves from OTAs, which are increasingly becoming the primary point of contact for consumers [31][35].