by Donald Wood
Last updated: 1:40 PM ET, Fri December 8, 2023
Travel Weekly and Phocuswright have teamed up to release the
2023 Travel Industry Survey, revealing the latest trends among travel agencies
and advisors across the United States.
In total, 1,328 travel advisors currently employed by an
agency, independent contractors for an agency, or travel agency owners or
managers responded to the questionnaire between August 2 and 16.
Overall, most travel advisors—almost 80 percent—voiced a
positive outlook for the future of the agency landscape. And with 84 percent of
respondents identifying as home-based agents, the industry is thriving.
Data showed that international travel accounted for 78
percent of agency bookings in 2022, shattering the previous record set in 2018.
Another 65 percent of advisors reported that all-inclusive gross bookings
increased in the past 12 months.
One of the most significant findings was that while
Millennials and Gen Z travelers use advisors, agents are disproportionately
targeting older and wealthier clients, with 72 percent being over 40 years old
and 55 percent boasting an annual income of at least $100,000.
“Advisors thrive today because an important segment of
travel is not commoditized,” Travel Weekly Editor in Chief Arnie Weissmann
said. “And this year’s Travel Industry Survey shows that the most successful
advisors lean into those areas that require a more bespoke approach. They court
clients who appreciate their advice and service.”
The survey also found a correlation between experience in
the industry and income, with the advisors earning the most money each year
being in business for at least 11 years. Another 80 percent of advisors who
have been in business for two years or less reported an annual income of less
than $25,000.
As for how much agencies make, 32 percent had less than
$100,000 in gross bookings in 2022, while another third reported between
$100,001 and $500,000, and the remaining had more than $500,000, with 22
percent boasting total bookings over $1 million.
Money isn’t everything, though, as the development of a
relationship drives 34 percent of clients to use an advisor, their reputation
for service drives another 34 percent and 28 percent hiring an advisor for
their expertise.
Communication remains the key to success, with a rising
number of agents using Instagram (a 10-percent increase to 60 percent), while
Facebook is still the most popular platform for advisors. LinkedIn was still a
major source for reaching clients, but the use of X (formerly Twitter) declined
to just nine percent.
Another 90 percent of respondents under the age of 36 said
they use Facebook to communicate with clients, compared with 81 percent for
Instagram and 16 percent for TikTok. Face-to-face marketing remains strong,
with more than 40 percent of agents using customer events—and even fewer using community
events—to attract new clients.
Paper flyers are also still being utilized by more than 30
percent of advisors to attract new customers, which is more than paid online
ads.
Click here to view the complete 2023 Travel Industry
Survey.
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