A new survey of Travelsavers Canada's agency owners and managers has identified their greatest pain points, including hiring advisors and competition from suppliers who take direct bookings.
The survey took place from 12-26AUG 2024.
Fifty-four percent of respondents cited competition from suppliers offering direct bookings, while 33% mentioned OTA competition. Competition from other agencies and AI was not considered significant.
“Suppliers who prioritize direct bookings over the travel advisor network are missing the bigger picture,” said Jane Clementino, SVP and GM, Canada.
“Those who support agencies understand that clients who book through advisors not only enjoy enhanced travel experiences but also tend to invest more in their journeys.”
Staffing Woes
According to Travelsavers, the survey found that as the industry faces a shortage of qualified travel advisors, leading to challenges in recruiting, handling client requests, and concerns about advisors' mental health, agencies are increasingly turning to independent contractors to address staffing issues.
Economic Mood
Agency owners and managers are concerned about the impact of the current economic climate on their business. Thirty-one percent of those surveyed say the rising cost of travel is a challenge, and 13% are apprehensive about a drop in customer spending.
Agency Snapshot
The survey also gathered information on the size and location of travel agencies today:
- Forty-four percent of agencies have five advisors or less, while 7% have more than 20 advisors
- Seventy percent are based in a physical location such as an office or storefront, while 30% are entirely home-based
- Staff advisors account for 57% of agency consultants, while the share of ICs is 43%
- Fifty-four percent are full-time advisors, while 46% work part-time
Full Survey Results
The greatest challenges facing agencies
- 54% competition from suppliers who take direct bookings
- 43% recruiting and hiring advisors
- 33% competition from online travel agencies
- 31% rising cost of travel
- 13% drop in customer spending due to economic concerns
- 11% handling client requests and bookings while short-staffed
Number of advisors at an agency
- 44% 1 to 5
- 31% 6-10
- 17% 11-20
- 2% 21-50
- 5% more than 50
Advisor headcount compared to 2019
- 41% up
- 22% the same
- 37% down
Staff advisors compared to ICs
- 57% staff advisors
- 43% ICs
Agency location
- 70% office-based
- 30% home-based
Advisor schedules
- 54% work full-time
- 46% work part-time
Agencies planning to add staff advisors this year
- 44% yes
- 26% maybe
- 30% no
Agencies planning to add ICs this year
- 22% yes
- 37% maybe
- 41% no
