A recent survey of travel agency owners and managers has revealed that competition from supplier direct bookings and online travel agencies (OTAs) are the most significant challenges facing travel advisors today. The survey, conducted by American Marketing Group, polled affiliates of Travelsavers, Network of Entrepreneurs Selling Travel (NEST) and The Affluent Traveler Collection networks.
According to the survey results, 46% of respondents cited competition from suppliers who accept direct bookings as their top challenge, while 35% pointed to OTA competition. Interestingly, competition from other agencies and artificial intelligence were not considered major issues.
The survey also highlighted ongoing staffing challenges in the industry. Thirty percent of those polled identified recruiting and hiring advisors as a significant hurdle. To address this, many agencies are turning to independent contractors (ICs) rather than hiring full-time staff. In fact, 24% of agencies plan to add at least one IC this year, with some indicating they would take on as many qualified consultants as they can find. Just, 17% plan to add a staff advisor this year, another 28% say they might do so and 55% have no plans to hire.
A scarcity of advisors is creating additional challenges, as well, including concerns about handling client requests and bookings while short-staffed (19%) and worries about exhaustion and mental health (12%).
Economic factors are also impacting the industry. Thirty percent of respondents cited the rising cost of travel as a challenge, while 19% expressed concern about a potential drop in customer spending due to economic uncertainty.
Despite these challenges, Kathryn Mazza-Burney, chief sales officer at American Marketing Group, remains optimistic about the industry's outlook.
"In spite of the economic headwinds, we're seeing growth in bookings for 2024 and into 2025," she said. "For the rest of this year, we're pacing up in a variety of categories, including some double-digit increases. Those gains are on top of an exceptionally strong year in 2023. Our projections for 2025 are looking even more positive."
The survey also provided insights into the current structure of travel agencies, finding that:
- Sixty percent of agencies have five advisors or fewer, 21% have 6-10 and 9% have 11-20.
- About two-thirds are entirely home-based, while one-third has a physical location.
- ICs account for 50.5% of agency consultants, while staff advisors make up 49.5%.
- Fifty-six percent of advisors work full-time, while 44% work part-time.
The survey was conducted Aug. 12-26, 2024, among owners and managers of Travelsavers, NEST and Affluent Traveler Collection affiliate agencies in the U.S. and Canada.
Editor’s Note: This article was generated by AI, based on a press release distributed by American Marketing Group. It has been fact-checked and reviewed by a TravelAge West editor.
