Ten years after the 2008 recession hit, the Travel Industry Survey shows that the percentage of agents whose sales decreased in the previous year has dropped steadily, reaching a 10-year low at just 8%.
Contributing editor Sarah Feldberg spoke with Roger Block, president
of Travel Leaders Network, about how the industry has changed and how
travel agents have adapted since the recession.
Q: What did agents learn from the economic downturn?
A: Agents know that there is power in numbers. During and immediately after the recession, the travel industry was purged of part-time agents who largely worked in silos. Today, we have more dedicated agents, whether they are independent contractors or frontline at a retail agency, coming together to share resources under umbrella organizations like Travel Leaders Network and Travel Leaders Group.
Because of the volume of bookings that travel agents provide as a unified network, they have the clout to negotiate discounts with suppliers to help their clients obtain access to exclusive benefits that they would not be able to obtain on the same scale, or at all, if they were operating without a network.
Q: How did successful agents adjust their approach?
A: Successful agents are excelling in today’s marketplace by being on the cutting edge in targeted and personalized marketing, reaching current and prospective clients through top social media channels. The successful ones also put an emphasis on continuing education that helps improve their business practices as owners, strengthen their sales strategies as travel advisers, technology and specialties as well as increasing their knowledge of supplier product offerings. Most importantly, many of the successful ones put a greater emphasis on specializing in niche travel interests and always having a clear differentiation.
Q: With the growth of OTAs, how has the role of the agent changed in the last 10 to 20 years? Who are they serving today?
Roger Block
A: It is more about the growth and evolution of the internet during the past 10 to 20 years. Our travel advisers are serving clients who are armed with a wealth of travel information they have researched on the internet. Consumers also turn to the internet to find a travel expert who can help them make sense of this wide volume of information. As a result, our agents are also front and center, showing up high in Google search results.
Q: How has this 10-year up-cycle impacted the way agents approach and generate sales?
A: A strong economy allows agents the luxury to improve their processes and the time to try new ideas and industry developments. We listen to them regarding their challenges, strengths and weaknesses, and we develop programs and solutions that will help them succeed. One example is how our revolutionary Agent Profiler is generating highly qualified leads from consumers looking for an expert adviser for their particular interests. Our award-winning marketing programs, education programs, business travel programs, technology, networking opportunities and on and on, assist our agencies on a daily basis to improve and strengthen their businesses.
Q: How has it affected what suppliers provide?
A: The relationship between agents and suppliers is symbiotic. The more sales the agents generate for the suppliers as a combined, unified network, the more willing the suppliers are to offer the agents exclusive amenities, improved promotions and deeper discounts that can be marketed to agency clients to increase sales.
Q: According to our survey, only 10% of agents think a soft U.S. economy could impact revenue in the next two years. Do you agree? Do you see a downturn on the horizon?
A: The travel and tourism industry is certainly a great indicator of how our nation is faring economically, as it is one of the largest industries in the world and a key economic driver for nearly every industry. For now, the economy is strong, but any number of unforeseeable factors could cause a softening. We do know that historically in presidential election years international travel slows and domestic travel holds steady or increases. We could be facing that in the next two years with the 2020 elections, but again, any unforeseeable factors could impact what may happen.
Q: In the midst of such a boom, how can agents prepare for a possible downturn and position themselves well?
A: Travel advisers remain relevant and competitive by embracing new programs and ideas and engaging in continuing education related to business practices, sales strategies and product offerings. There will always be people who want to travel and will travel, so staying abreast of how to best accommodate consumers and their travel needs allows the agents to easily shift as the needs of the consumer change, whether that is due to the economy, changing demographics or technological advances.