--I feel obligated to chime in here, and will preface that my response does stem from an active, vested financial interest in travel spending market share--
I'm a 25 year old travel agent, specializing in luxury (in the age of smartphones--gasp!) but the framework is still the same as the visual you have in your head of what a travel agent classically is. I book in a command-line-prompt GDS with Direct Connect access to airline & hotel inventory, etc.
I think the *original value proposition* of OTAs was brilliant--offer discounted hotel inventory to travelers, thereby generating explicit value and fill unsold rooms for the hotel--the hotel won't make as much money, but they'll make some, and that's better than an empty room, thereby boosting the ADR, REVPAR, etc. And allowing the end-traveler to book their travel instantly and completely using their credit card, which wasn't formerly possible.
Where they went wrong was a) reporting to shareholders rather than travelers and b) prioritizing competition over value
I've had countless discussions with GMs, Directors of Sales, Reservations Managers, controllers, etc and in the luxury market, OTAs have become a dirty word because they are actually diminishing the ADR and REVPAR of their member hotels.
Why?
Expedia, for example, now commands roughly 20-25% commission on already-reduced hotel nights. This is in addition to a mandatory contracted number of nights annually, paired with additional fees and charges just to be listed when travelers are shopping.
Under our model ("our" meaning travel agents) hotels are paying us ~10% when booking direct, and we tend to book Best Available Rates. What that translates to for the end traveler is the extension of VIP amenities such as room upgrades to rooms hundreds of dollars more per night, included breakfasts, late checkout, etc.
For flights, I have had clients email me itineraries from XXX to YYY they found on an OTA for $2k cheaper than the itinerary I quoted. What they failed to see completely was that the OTA itinerary included three stopovers (including a 16 hour overnight) while mine included 1, 3-hour layover. They only saw the price. And this is the key differentiator.
Travel agents continue to service and grow their business servicing travelers who are focused on the experience. Most of my clients are price-sensitive, but when they see the value I am able to offer (and the elevated level of service that comes with it) they have no problem spending a bit more.
My final thoughts that I offer to every traveler, whether they end up converting as a client, or continue to book through OTAs:
1) every single booking platform worth using can access the lowest published price for a given specific flight at a specific time of booking. some companies, whether Orbitz or a traditional travel agency like mine, have what are called net fare agreements, where we are able to offer lower fares discounted from our commission through exclusive agreements.
2) contrary to what Condé Nast would have you believe, there is no "magic formula/time/website" for finding the lowest price. no amount of standing on your head at 11:59p on Tuesday night rubbing your hand in a circle on your stomach is magically going to release the "sale". The RULE is that the further out you buy your ticket, the lower the price will be. As seats sell, ticket prices go up, because the cheaper seats go quicker.
In an effort to make more money and sell pricier seats far in advance, some airlines retain the cheapest seats until ~6 months prior to travel. Additionally, if a flight is not selling, some airlines will hold sales in order to fill seats and not lose money on an empty plane. There is no set time during which this occurs. When sales are available, everyone will have access to them, and an informed agent will be able to advise the specific conditions regarding your travels and the purchase thereof.
3) a traditional agent can always match OTA rates. Expedia even has an affiliate network from which we can commission (I believe they cut us a percentage of that 20-25% they're charging the hotel). the difference? an independent agent relies on your business, so we care about your stay. An OTA hangs up on you because they rely on their shareholders.
I always emphasize to my clients that I acknowledge I may be one of many different ways they book travel, and I always appreciate the opportunity to go to bat on their behalf.