SINGAPORE, 13 July 2023: US travel agents feel squeezed out by travel tech giants, and their counterparts in the Asia Pacific should take it as a warning that they need to recognise the potential of merging human capabilities with technology.
Released earlier this week, a new study by Voyagu, an AI-powered travel management platform and marketplace, surveyed US-based travel advisors to gain insights into the state of the travel industry and its challenges.
Titled “Travel in a Post-Pandemic World: The State of the Industry According to Travel Advisors”, the most relevant findings suggested 60% of travel advisors do not feel confident that their incomes will rise, with 65% seeing competition from direct-to-consumer online platforms – such as Expedia and Booking.com – as an obstacle to revenue growth.
However, on a positive note, 53% of advisors surveyed believe technology will be a key driver to increase revenues and grow business.
For this report, Voyagu interacted with 1000 US-based travel advisors and travel agency owners, randomly selecting and interviewing 150 of them to understand the challenges they face, their perceptions of income prospects, the impact of technology on their business, and their strategies for growth and adaptation in a post-pandemic world.
Business trends and travel technology advances in the US usually precede what plays out in Asia’s travel agency markets.
Report takeaways
• 60% of travel advisors don’t believe it is possible to boost their income, with 65% seeing competition from direct-to-consumer online platforms as an obstacle to revenue growth.
• 53% of travel agents believe that technology will be a key driver for increased revenues and business growth, with only 16% believing that technology is squeezing them out of the industry.
• 84% of travel agents consider referrals the best way to grow their business.
• 79% of travel agents experience high demand for personalised services, but only 46% highlighted that clients prioritise expertise and personalised services over lower prices. In contrast, the majority demand personalised travel services for the same price as online bookings, posing a challenge for travel agents to make a profit.
• 23% of agents disagree that the travel industry offers more opportunities to earn money now than before Covid.
• 54% of agents reported earning less than USD60,000 annually, with only 6% earning over USD120,000.
• 66% of agents are expanding their offering with customised products such as travel insurance, private transfers, and transit, while only 24% offer services such as booking villas, retreats, airport transits, city tours, and entertainment activities.
“Despite their value, travel advisors face significant challenges competing with the affordable and convenient technology companies offer,” said Voyagu founder and CEO Ivan Saprov. “However, there are signs of a gradual acceptance of this transformative shift, as agents are starting to recognise the potential of merging human capabilities with technology. Implementing technological tools can help travel advisors enhance the human touch where it matters the most.”
Voyagu connects premium travellers with travel advisors and suppliers, helps them to get personalised offerings up to 35% cheaper than online prices, simplifies their trip booking process and management and provides quick access to human support.
For the full report, check out: https://voyagu.com/report/
Visit the website: https://voyagu.com/
