From direct bookings by suppliers to sheer exhaustion in their jobs, a new survey of TRAVELSAVERS Canada agency owners and managers has identified their greatest challenges. The former pain point was named by 54% of those polled, while OTA competition was named by 33%. Agencies are also coping with staffing and economic issues, the survey revealed.
However, competition from other agencies and from AI were not seen as major issues. “Suppliers who prioritize direct bookings over the travel advisor network are missing the bigger picture,” said Jane Clementino, Sr. VP and GM Canada. “Those who support agencies understand that clients who book through advisors not only enjoy enhanced travel experiences but also tend to invest more in their journeys. Advisors offer invaluable services, tailor-made itineraries, and the reassurance that comes from expert guidance. All that leads to higher satisfaction and loyalty.”
Staffing woes
At a time when the travel industry is growing and demand for the professional services of a travel advisor is rising, agencies are facing a shortage of qualified consultants, 43% of those surveyed identified recruiting and hiring advisors as a challenge.
The scarcity of advisors is creating other challenges for agencies, with 11% of respondents concerned about handling client requests and bookings while short-staffed. And 9% worry about the mental health of advisors, specifically exhaustion.
Agencies are also increasingly turning to independent contractors to bolster sales, instead of hiring frontline staff: 22% say they will add at least one IC this year, with 37% considering it and 41% saying they will not bring on any. Agencies looking to grow the number of ICs want to add three to four of them, with some saying they will take as many qualified consultants as they can find.
Additionally, 44% of agencies surveyed plan to hire more staff advisors this year, with 26% considering it and 30% not planning to hire. The agencies that want to add staff advisors plan to hire two to three of them.
Economic mood
Travel agency owners and managers are concerned about the impact of the current economic climate on their business: 31% of those surveyed say the rising cost of travel is a challenge, and 13% are apprehensive about a drop in customer spending due to economic concerns.
Nevertheless, “Even in the face of current market uncertainties, we are seeing growth for 2024 and beyond,” said Clementino. “As we move through this year, we’re seeing substantial momentum across key segments, with several showing double-digit growth. This builds on an already strong performance in 2023, and our forecast for 2025 is really encouraging.”
AGENCY RESULTS
The survey also gathered information on the size and location of travel agencies today:
- 44% of agencies have five advisors or fewer, while 7% have more than 20 advisors
- 70% are based in a physical location such as an office or storefront while 30% are entirely home-based
- Staff advisors account for 57% of agency consultants, while the share of ICs is 43%
- 54% are full-time advisors, while 46% work part-time
SURVEY RESULTS
Team TRAVELSAVERS CanadaGreatest challenges facing agencies
- 54% competition from suppliers who take direct bookings
- 43% recruiting and hiring advisors
- 33% competition from online travel agencies
- 31% rising cost of travel
- 13% drop in customer spending due to economic concerns
- 11% handling client requests and bookings while short-staffed
Number of advisors at agency
- 44% – 1 to 5
- 31% – 6-10
- 17% – 11-20
- 2% – 21-50
- 5% – more than 50
Advisor headcount compared to 2019
- 41% up
- 22% the same
- 37% down
Staff advisors compared to ICs
- 57% staff advisors
- 43% ICs
Agency location
- 70% office-based
- 30% home-based
Advisor schedules
- 54% work full-time
- 46% work part-time
Agencies planning to add staff advisors this year
- 44% yes
- 26% maybe
- 30% no
Agencies planning to add ICs this year
- 22% yes
- 37% maybe
- 41% no
Owners and managers of TRAVELSAVERS Canada affiliate agencies took the survey from Aug. 12 to 26.
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