Travel advisors are seeing considerable growth in new business and revenue this year, according to recent Need to Know research from TravelAge West.
In the survey of nearly 150 advisors, 71% say they have seen an increase in new customers, and 74% report having new clients who have not used a travel advisor before. A majority of respondents (54%) say this is more than they expected based on previous years.
“We’re in this wonderful new dawn of the travel advisor,” said Byrd Bergeron, owner of travel agency The Traveling Byrds. “The pandemic made travel simply overwhelming, so the public turned to us out of shear need. However, once they experienced the luxury of a true vacation, without the planning, research and stress, they were hooked. The majority of our business is new to the travel agent experience, and we’re thrilled to show them what an amazing experience it can be.”
The majority of our business is new to the travel agent experience, and we’re thrilled to show them what an amazing experience it can be.
In addition, advisors report that business overall is making a solid rebound from the COVID-19 pandemic — 38% have more total clients than before the pandemic, and 48% say this year’s revenue will exceed 2019’s.
This is despite the fact that 56% of advisors say they are not doing any more marketing than in previous years. Only 12% have increased their marketing efforts.
“I run a $4 million-dollar agency that began in November 2019,” Bergeron said. “I cannot speak to our sales prior to the pandemic, but the reality is that sales picked up tremendously in 2021. We sold $2 million that year as a new-to-the-industry company. Our clients might not have been traveling a ton, but people wanted something on the books to look forward to.”
The growth in new business is especially important to advisors — half (50%) of respondents say new business accounts for up to 25% of their total revenue.
The top reasons cited for going to an advisor for the first time were concerns about travel cancellations and complications (38%), followed by concerns about COVID-19 rules and regulations (29%).
As in previous surveys, word-of-mouth referrals is seen as the most impactful method for bringing new business to an agency (89%).
“The younger generation is very clear on the concept of buying back time,” Bergeron said. “I pay someone to mow my lawn, clean my house and walk my dog, so paying someone to plan my vacation isn’t a stretch. With all the complications brought on over the last couple of years, the need for a professional became glaringly obvious to many. If there is a silver lining in this industry to all that has happened, this is it. The public received a slap in the face to remind them that travel is complicated, and professionals are worth every penny to ensure [their] limited vacation time is spent perfectly.”
Need to Know Survey Series
“Need to Know” is a research series from TravelAge West that tracks the responses of advisors as they relate to various travel trends and topics. This survey recorded the responses of 145 advisors across the U.S. Click here to see more Need to Know stories.