Voyagu study: 65% of travel advisors feel squeezed out by TravelTech giants
SAN FRANSISCO – 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 the challenges they face. The resulting study was titled “Travel in a Post-Pandemic World: The State of the Industry According to Travel Advisors”, and some of its most relevant findings are that 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 that technology will be a key driver to increase their revenues and grow their business.
For this report, Voyagu interacted with 1000 U.S.-based travel advisors and travel agency owners, randomly selecting and interviewing 150 of them, 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.
Voyagu connects premium travelers with travel advisors and suppliers, helps them to get personalized offerings up to 35% cheaper than online prices, simplifies their trip booking process and management, and provides quick access to human support. Therefore, the research focuses on providing decision-makers in the travel sector with valuable information to support their efforts in improving the productivity, competitiveness, and profitability of their travel advisory businesses.
The report revealed the following key insights:
- 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 as the best way to grow their business.
- 79% of travel agents experience high demand for personalized services, but only 46% highlighted 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.
- 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 $60,000 annually, with only 6% earning over $120,000.
- 66% of agents are expanding their offering with customized 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 in competing with the affordability and convenience offered by technology companies. 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. Implementing technological tools can help travel advisors enhance the human touch where it matters the most, and with its help, be more fluent at developing a niche market that is capable and willing to pay for their services,” said Ivan Saprov, founder and CEO of Voyagu.
The article Voyagu study: 65% of travel advisors feel squeezed out by TravelTech giants first appeared in TravelDailyNews International.