Jamie Biesiada
It seems like an obvious statement — more experience equals more money — but it's an important one for agents, especially new ones, to keep top of mind.
"If an agent is going to be starting up an agency, they need to be in it for the long haul," said Stephanie Lee, founder of Hostagencyreviews.com. "They need to plan, financially, to not have a huge income for the first couple years of their agency."
But there is a light at the end of the tunnel.
Hostagencyreviews.com recently completed its 2017 Travel Agent Income Survey , and found that as agents reported having more experience (defined as how long the agent has owned or worked for their current agency), their income increased for those who reported selling travel as their primary source of income.
According to the survey, agents who said selling travel is their primary source of income and have less than a year of experience reported on average $913 in annual income, which increased to $3,519 with one year of experience. That number jumped to $19,942 at two years and $25,607 for three to five years of experience. The next big leap is at the nine- to 11-year level, where agents saw an average income of $47,497.
Agents who said selling travel was a secondary income source also saw higher average incomes as their experience increased, albeit at a slower pace than those who consider it their primary source.
"What I always tell agents is your first year, you're learning the industry and you're trying to get clients," Lee said. "Then, people usually are only traveling once or twice a year, so your second year is the first year you're going to be getting referrals and repeat clients. So year three you're getting repeat and repeat, and referral and referral, and so it's exponential from there."
It's an important thing for new agents to remember, Lee said, and "mentally plan for it." Entrepreneurs starting businesses sometimes expect to be profitable within the first two years, but that might not necessarily be the case with an agency.
Being prepared — mentally and financially — to stick with a career as an agent is an important takeaway, but there are some things agents can do to help increase their income, the survey showed.
For one, they can charge a consultation or service fee (Lee defined consultation fees as agents charging for their time, and service fees as an additional cost added to something like a group booking). Of the agents who responded to the survey, nearly 72% said their income is made up entirely of commissions. But of those who reported income from fees, the average annual service fee income was $5,650, and the average annual consultation fee was $2,777.
"I'm an advocate of charging service fees because I think it can help stabilize the income," Lee said. It can also protect an agent and ensure they feel fairly compensated if a client decides not to book or they cancel a trip.
Another income booster? Get certified.
"We were curious if agents [who] had more training ended up earning more," Lee said, and as it turns out, they do.
The survey found that 51% of respondents reported having earned some type of certification or training, whether from CLIA, the Travel Institute, a supplier or another source. Those agents reported earnings 77% higher than those without certification or training.
Over 700 agents responded to the Hostagencyreviews.com survey, which it publicized via social media, host agencies and media; 97% of respondents were hosted agents, 96.6% were home-based. The average experience level was seven-and-a-half years and 37.5% reported selling travel was their primary income source. Their average age was 50, and 80% identified as female.