Many Advisors Have a Preferred Niche But Remain Nimble Enough to Book Outside of It

Specialization has become the norm for travel advisors, but that does not mean most are turning away business outside their niche, according to new research from TravelAge West’s Need to Know series. 

In a survey of more than 200 advisors, 69% of respondents say they have at least one specialty. The largest response is from 42% of advisors who say they “have preferred specialties but still accept most bookings that come their way.” Nearly a third (31%) describe themselves as “generalists.”

Kareena Islam, a travel advisor and co-owner of Grand Travel & Cruise, counts herself among the 42% who have a specialty but remain open to other opportunities.

“My primary niche is wellness-focused group travel and FITs, but I do still work on trip requests outside of my specialties,” she said. “Because I work under the Grand Travel & Cruise umbrella, we have a diverse clientele with a wide range of travel needs. That has given me the opportunity to work with clients who are looking for different types of travel, and I continue to take on those requests when it makes sense.”

Advisors are divided on how far they want to take specialization. While 17% say they have already narrowed their business focus to a niche and are happy with their decision, 28% are either not interested in specializing or skeptical of the risk it poses. Another 37% say they are working toward defining or refining their niche, and 18% are interested but have not taken the leap yet.

The top perceived benefits of having a niche are becoming known as an expert in a specific area (45%) and attracting better clients and increasing revenue (21%). The biggest concerns are losing revenue (32%), losing existing clients (18%), uncertainty about how to market oneself as a specialist (14%) and sacrificing the variety and flexibility of being a generalist (14%).

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For a significant share of specialists, focusing on a niche appears to be paying off: 34% say their average booking value has increased as a result of having a special focus, while 39% report that having a niche has “greatly” or “somewhat” increased their job satisfaction.

Kristina Baker, owner of Travels Made Easy, niched down to primarily ocean cruises. Though the move felt “scary and impossible” at first, she looks back with no regrets. 

“At the end of the day, my clients deserve an expert, and it is impossible for one person to be a true expert on every location around the world, plus know each resort, hotel and cruise,” she said. “Niching down has positively impacted my business and truly, my life. My processes are able to be streamlined, answering questions and preparing clients has become second nature, and because I'm the cruise expert, my clients come back to me time and time again and have confidence to invest more into their vacations because they know they can trust me with it.”

The top specialty for advisors is cruising (33%), followed by luxury travel (16%), family travel (7%) and a specific destination or region (7%). 

Even advisors with specialties regularly receive inquiries outside their niche. Nearly two-thirds of respondents (63%) say they get at least a few sales inquiries a month outside their specialty area. When they get these inquiries, most advisors (43%) evaluate the opportunity on a case-by-case basis, considering such factors as revenue potential and client relationships.

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Host agencies, consortia and franchises also appear to be encouraging specialization: 34% of respondents say their affiliation is “somewhat” encouraging of developing a niche, while another 23% say their organization strongly promotes niche selling and provides resources to support it. One-third (33%) say their affiliation is neutral.

Baker, who is hosted by Travel Planners International (TPI), says the host supports niching down if an advisor is inspired to do so. Another suggestion for advisors? Forge connections with colleagues representing all niches.

“One of the biggest pieces of advice that was given to me was to build a network of trusted advisors, so that you have experts in other areas in your back pocket,” Baker said. “And, because of TPI's strong relationships with suppliers, advisors can confidently step into a niche knowing their relationships with suppliers will be strong and supported.”