Paradoxically, 60 percent of travel advisors believe such online booking platforms as Expedia and Booking.com are a threat to their business, while 53 percent think technology “will be a key driver to increase their revenues and grow their business,” according to a study conducted by Voyagu, an AI-powered travel management company based in San Francisco.
The study, “Travel in a Post-Pandemic World: The State of the Industry According to Travel Advisors,” polled 150 advisors “with the purpose of understanding 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,” the report said.
“Despite their value, travel advisors face significant challenges in competing with the affordability and convenience offered by technology companies,” Voyagu Founder and CEO Ivan Saprov.
Voyagu CEO and Founder Ivan Saprov. (Source: Voyagu)
“However, there are signs of a gradual acceptance of this transformative shift, as agents are starting to recognize the potential of merging human capabilities with technology.”
Eighty-four percent of respondents believe referrals are best way to boost business, while 79 percent have seen demand grow by offering personalized services.
Forty-six percent of respondents noted that “clients prioritize expertise and personalized services over cheaper prices, while the majority demand personalized travel services for the same price as online bookings, posing a challenge for travel agents to make a profit,” the study said.
Meanwhile, 66 percent of respondents are “expanding their offerings with customized products such as travel insurance, private transfers and transit, while only 24 percent offer services such as booking villas, retreats, airport transits, city tours, and entertainment activities,” the study said.
In terms of earnings, 54 percent of agents said they make less $60,000 annually, with just 6 percent taking in more than $120,000 per year – and 60 percent do not believe it’s possible to boost their income further.
Twenty-three percent of respondents “disagree that the travel industry offers more opportunities to earn money now than before COVID,” the survey found.
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