WASHINGTON, D.C. -- Montecito Village Travel reported record growth last year and is on a record pace again, thanks to new subagents that independent contractors have brought into the fold.
Montecito (No. 40 on Travel Weekly's Power List) reported $352 million in sales for 2024. That number represents 2024 sales that are finalized, meaning commissions have already been paid to advisors (the Power List reports total annual sales). The agency is home to around 800 independent contractors (ICs).
From the stage at the Advisors in Bloom conference at the Park Hyatt Washington D.C., Montecito president Robin Sanchez said finalized sales in February were up 10% year over year, totaling $63 million.
The agency's sales have been steadily rising in recent years. Its prepandemic high was $210 million in finalized sales in 2019, then finalized sales dipped to $55 million in 2020. Finalized sales rose to $105 million in 2021, then skyrocketed to $255 million in 2022. Finalized sales in 2023 increased to $332 million.
Sanchez shared Montecito's sales breakdown: air accounts for 33.3% of sales; tours, 21.9%; cruise, 25%, and hotels, 19.8%.
Sanchez attributed the growth to subagents that ICs have brought aboard.
"Where our growth is coming from is you, our independent contractors, increasing your teams," Sanchez said. "You are bringing on new advisors. You are training new advisors. We don't have a classroom at Montecito Village Travel. So all of the growth is coming from you, and you're training the advisors. So thank you very much for that."
In an interview, Sanchez said Montecito doesn't serve advisors who are new to the industry, but its ICs increasingly do. It's a phenomenon that has fueled growth for the past two years, she said.
Many increasingly busy ICs found themselves in need of help, so they brought on an assistant. As they trained them, they recognized the business opportunity in having those assistants sell travel, she said.
Sanchez estimated that 30-35% of advisors have an assistant or a subagent, while some have multiple people working under them.
While some agencies have begun reporting impacts on their businesses as a result of the current shakeup of the federal government and new policies from the Trump administration, Montecito has largely been spared. Sanchez said she is only aware of one booking canceled: Canadian clients working with a U.S. advisor canceled because of new tariffs imposed.
Montecito did have more cancellations than usual in January, she said, but that was because of the California wildfires.
Lead-generation program in the works
In the months ahead, one of the host agency's main focuses will be on a new lead-generation program.
While Montecito does get leads from its website today, those are usually given to employees to handle, Sanchez said. But the agency is in the process of making a formalized lead-generation program that ICs can take advantage of.
ICs will buy into the program. Montecito will keep a commission split from travel booked, but then the client will belong to the IC.
"I'm really excited about that," Sanchez said.