Need to Know Research: Advisors Are Not Making Drastic Changes to Their Businesses

According to a recent survey from TravelAge West, part of its Need to Know research series, travel advisors believe their agencies are fundamentally well positioned during the COVID-19 pandemic. While some advisors are making small changes in their businesses, most are not taking any major steps.

In the survey of nearly 500 advisors, conducted between Aug. 2-9, 36% of advisors say they have not changed the focus of their agency at all, and another 49% said they just changed the focus somewhat. Of the advisors who did make a change, the majority (53%) say they did it to make up for a decrease in cruise business.

“Highly specialized agencies have built their reputation on their expertise, so making a drastic turn doesn’t necessarily make sense for those agencies,” said Meghan Hayes, an Athens, Ga.- based travel planner affiliated with MEI & Mouse Fan Travel. “As an independent contractor, I fall into the 49% that diversified somewhat. It has been important to take note of the trends in vacation homes and road trips and be able to continue to serve clients’ needs and interests.”

Northern California-based Lynda Turley, president of Turley Travel Group, which is affiliated with Alpine Travel of Saratoga and Coastline Travel Advisors, says she has also kept her business focus, half of which comprises cruises and the rest FIT travel.

“I can say that I have not changed the focus, but it’s being changed a bit for me,” Turley said. “I’ve had three new California luxury hotel bookings for this summer, and normally those clients would be traveling overseas. I have had more inquiries about villas and private homes. So I guess you can say I’m letting my clients dictate my focus.”

Travel advisors in the survey indicated that, for the most part, they are satisfied with the fundamentals of their business models. Nearly 7 in 10 advisors (69%) have not added or emphasized any new travel niche markets to their offerings since the COVID-19 outbreak, and 61% have not pursued any new specializations.

Perhaps surprisingly, most advisors have also not changed their marketing approach. Two-thirds of respondents (66%) say they have not tried marketing to any new consumer markets. Of the 34% who have tried new marketing, the majority (68%) think the effort was at least somewhat successful.

“The only marketing I’m doing right now is keeping in touch by email and phone with all my regular clients,” Turley said. “Checking in with them and seeing how they are doing — with a personal note about their family and how they are coping — and then the conversation leads to how they are feeling about future travel.”

Hayes says that staying on top of marketing trends is a full-time job on its own, and the pandemic has not changed that.

“With my bookings down so drastically from March to May, it was difficult just to keep marketing in general, much less change too much when it came to strategy,” she said. “Continuing to be on your clients’ radar was key during that time, though, so that they know you are ready when they are.”

David Van Ness, vice president of All-Travel in Los Angeles, says his agency has seen good results from more coordinated marketing efforts.

“We have seen positive results from very selective marketing efforts,” he said. “We have expanded consumer webinars and Zoom events, which have been well-attended. There, we have seen many new-to-agency customers due to social marketing.”

Ultimately, the vast majority of advisors (80%) indicate that they believe their businesses are diversified enough during these difficult times. Since the pandemic started, 42% say they have made changes to make their agency more diversified, while 58% have not made any changes.

“I, too, believe we have a diversified mix of business,” Van Ness said. “The greatest challenge right now is all about cash flow and expenses, which we have aggressively trimmed. And getting rightfully earned commissions is part of the challenge that all agencies are facing these days, as well.”