The tour operator LMX has made a decision that is causing a stir in the industry: the popular flex conditions that were offered under the tour operator abbreviations LMXF and LMIF are to be removed from the range in the future.
This measure, which particularly affects flexibility in cancelling trips, is based on the response from travel agencies, as Head of Sales Mario Krug explains. Travel agencies have often indicated that the flex option does not bring them any significant added value and that the workload in the event of cancellations is not justified. This development represents a fundamental adjustment in the tour operator's practice and has implications for both travel agencies and end customers.
The Flex Option: A High-Cost Business
The flex options, which allowed customers to cancel or rebook their trip at short notice, were often marketed as an advantage for customers who wanted to travel. This flexibility was particularly popular in times of uncertainty - for example due to sudden changes in travel regulations or health problems. However, the figures from the last few months reflect a clear trend: demand for flex conditions has fallen sharply. Only a small proportion of bookings included this option. In view of this development and the feedback from travel agencies, LMX decided to change the model. Mario Krug, the company's sales director, explained in an interview that travel agencies no longer considered flexibility necessary. In fact, the effort for travel agencies dealing with cancellations and rebookings did not justify the earnings achieved.
For many travel agencies, processing cancellations and changes to bookings represents a significant additional burden. This not only involves working hours for coordinating refunds and rebookings, but also uncertainty about the actual revenue from the bookings in question. Without the Flex option, potential short-term revenue is lost, which could have a negative impact on the travel agencies' earnings situation.
New focus on "option brands"
Despite abandoning the Flex terms, LMX does not want to completely abandon the LMXF and LMIF brands. According to Krug, the abbreviations retain an important advantage for travel agents: the so-called "automatic three-day option". This feature allows travel agents to make an offer to their customers within a certain time frame without making a final booking immediately. This flexibility in the offer design is seen as an attractive option for travel agents to work with their customers and respond quickly to changes.
As part of this restructuring, LMX also plans to further expand its offering. In the future, it will also offer packages with scheduled flights and low-cost airlines, allowing a wider range of options for travel agents. This change is part of a broader strategy to transform the Flex conditions into a flexible "options product" that is no longer focused on classic flexibility in cancellations, but offers a new type of flexibility for travel agents.
Why the change?
The decline in demand for flex options is not isolated, but part of a larger trend in the travel industry that is influenced by several factors. First, customers have become increasingly price-sensitive and place less value on more expensive add-on options such as cancellation flexibility, which was often originally offered at higher prices. Second, the conditions for travel have changed significantly due to the COVID-19 pandemic and the associated uncertainties. Travelers may be less inclined to book long-term or rely on expensive add-on options if travel is still affected by unpredictable factors such as travel warnings or sudden quarantine regulations.
This development must also be seen against the backdrop of the digitization of the travel industry, where booking processes are becoming increasingly automated and the demand for flexible options is declining. For many providers, the option of canceling or rebooking trips at the last minute is a complex, resource-intensive business that is often not economically viable.
Impact on the industry and the customer
For travel agents, the move to the "Option Brands" represents a new way to serve their customers while reducing their workload. However, this change could also have an impact on pricing and customer satisfaction. Customers who previously relied on flexibility in booking and cancellation could now find themselves in a situation where they have to forego this option when working with LMX or its partner companies.
For travel agencies, the change could mean that they have to tailor their service more closely to the needs of their customers. A combination of scheduled flights, low-cost airlines and short options could ensure flexibility in another way. However, the elimination of flex conditions could be met with incomprehension by some customers, as the ability to easily rebook or cancel travel bookings has been very important in the past.
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