Have you ever wished you could get a glimpse into the future? The travel industry has been notoriously unpredictable in recent years, but while it’s difficult to know what the future holds, a deep dive into the present can provide a good indication of where the industry is headed — and help travel advisors and agencies plan ahead.
From July 11 to Aug. 16, 2024, Travel Weekly and Phocuswright (sister brands of TravelPulse Canada) along with sponsors Ensemble and Princess, conducted an exclusive online survey of 444 Canadian travel advisors and travel agency owners. A similar study was conducted in the U.S. (with 1,571 responses), and the examination of both reports sheds light on the differences and similarities between the two markets.
In part one of a three-part weekly series, we’ll look at the 2024 Canadian Travel Advisor Study’s valuable insights into agents in Canada — who they are, what they do and how the most successful ones operate.
Advisors are the heart of the industry, and with the unpredictability of recent years, the work they do is more important than ever.
(Photo Credit: Deborah Dimond)
A large number of new hires in a particular field or role is a strong indicator of high career demand, and the study revealed that new advisors are gradually entering the market.
Nearly one-quarter (24%) of agents surveyed began selling travel in the past five years (compared to 35% of U.S. advisors who are in the profession for that same amount of time) — which demonstrates that the industry is thriving and growing. That’s not to say that there is lack of experience in the industry, though: More than 58% of those surveyed had more than 10 years of selling under their belt.
(Photo Credit: Deborah Dimond)
There was a time when most travel advisors worked as salaried employees in traditional brick-and-mortar agencies, but that has been changing in recent years. The study showed that 43% of the agents surveyed work as employees at a traditional agency, while 54% work as home-based independent consultants (ICs). In the U.S., only 32% of agents identify as traditional agency employees. Also, 26% of Canadian agents identified as owners compared to 53% of U.S. advisors, which speaks to the U.S. market having more ICs than Canada.
Travel planning is more likely to be a full-time, primary income source for advisors who work for a traditional agency (66%) than it is for independent advisors (46%). Traditional agencies have fewer part-time employees (just 23%), while working part-time or being a travel advisor as a secondary job is more common among ICs — 39% of advisors who worked as ICs worked part-time.
(Photo Credit: Deborah Dimond)
Having a niche market in travel can significantly increase sales by allowing an advisor to stand out from competitors and focus on a specific customer group with specialized needs. The top five most popular travel advisor specialty markets in Canada are ocean cruises (56%), tours and packages (55%), specific destinations (50%), river cruises (45%) and group travel (40%). Additionally, Canadian advisors sell more international travel (91%) compared to U.S. advisors (79%).
Some travel agencies also have specialties, which can differ from those of individual advisors. The top agency specialty is family travel (85%), followed by luxury travel (75%) and adventure travel (63%).
While some outside the industry might assume that commission rates would be the top reason an agents recommends a product, that is not the case. When making product recommendations, the top factors advisors consider are brand reputation (63%), personal knowledge (56%) and price (50%). Commission and financial incentives matter, but it is only a top consideration for 26% of advisors.
(Photo Credit: Deborah Dimond)
The most popular marketing and sales approaches used by travel advisors to attract new clients are email (90%), free social media (73%) and websites (69%). Facebook (80%), Instagram (56%) and LinkedIn (27%) are the most popular social media platforms among agents, but usage varies significantly across age groups. LinkedIn is more popular with older travel advisors and clients, while TikTok (8%) is more popular with younger advisors and clients.
To stay in touch with existing clients, preferred methods include email, phone calls, text messages and social media messages — in that order across all age groups.
When it comes to consortia, a little more than half (51%) of the Canadian agents surveyed say they belong to a single consortium; 39% use a host agency and 17% belong to a franchise. The top reasons advisors choose to use a host agency are to access preferred suppliers (84%), to book travel (78%) and for accounting/marketing services (75%).
There are many similarities between Canadian and American travel advisors, but there are also some key differences. Nearly two-thirds (63%) of U.S. advisors are home-based ICs or agencies.
Twenty percent of American travel advisors work in a travel agency office or storefront, contrasting with 27% in Canada. Like Canadian advisors, half the American agents surveyed belong to a single consortium, and 35% use a host agency.
TravelPulse Canada will be examining this study in more detail in the coming weeks. Watch for our next article focused on sales insights, where we’ll ask questions like: What affects travel advisor sales? Which agents have the highest income, and how do they do it? Why do clients choose to book with them?
After that, we’ll sum everything up with another article that takes a close look into the future of the travel industry — a glimpse into the future so you can plan and prepare for it.
