Boosting Travel Agent Success in a Digital Age

2. Travel Agents Are Still in the Game • According to Phocuswright’s U.S. Online Travel Overview Report, the total US travel market increased 5% during 2015, to $341 billion, and is forecast to increase 11.7% from 2015 through 2017, to $381 billion. • Lodging’s share of the 2015 market was 42.2%; followed by airlines, 40.8%; car rental, 5%; cruise, 5%; packaged travel, 4%; rail, 1%; and other, 2%, such as insurance. • Another good sign from the report is that traditional travel agents will retain a 28% share of the travel distribution channels through 2017. Although travel agents won’t increase their share, it won’t decline, as it has during the past several years.

3. Travel Agents Maximize Travel Spending • According to MMGY Global’s 2016 Portrait of American Travelers survey, 16% of American travelers used a travel agent during the 12 months ending June 2016, and the same percentage will do so during the next 12 years, a 45% increase from 2011. • The study also found that those who use travel agents do so for 50% of their travel needs. They spent an average of $8,405 for their vacations during the study period, which will increase to $8,938 for the year ending June 2017. • Travelers who utilize the services of a travel agent spend more than twice as much for their vacations as those who don’t use travel agents. Plus, 59% of those using travel agents book vacations at new destinations, compared to 31% of those who don’t.

4. Fine-Tuning Traveler Targeting • The MMGY 2016 Portrait of American Travelers survey revealed that the typical travel agent customer is 39 years old, married with children, with an annual household income of $145,875. • According to a May 2016 survey from Carnival Corp., consumers who use travel agents said agents save them an average of $452 per trip and four hours of travel planning. • The LGBT travel market is increasing significantly and, not surprisingly, location is the top motivator when they are selecting a hotel, followed by value of price for hotel quality, LGBT-friendly reputation, low price and hotel loyalty program.

5. Millennials Are Top Travelers • According to MMGY Global research and focus groups, more Millennials are choosing to use travel agents instead of online travel agencies (OTAs) because they want agents’ professional destination experience and knowledge. • This trend is echoed in the Ensemble Travel Group’s Ensemble Insights Survey that found 47% of Millennials want that knowledge for the best experiential vacation and 26% to save time, which are more important than cost savings, 14%. • According to an interview with Sandy Heydt, director of sales and marketing, at The Logan in Philadelphia, which is a Hilton boutique hotel, Millennials want a hotel with outdoor spaces, healthy food, a reflection of local culture and tech amenities.

6. Traveling Starts Online for Many • Research from multiple sources finds that the digital channel is the primary place to make travel plans, which is evident in the 81% of hotel bookings, 53% of airline bookings and 40% of packages that were made on a smartphone during Q1 2016. • Regardless of what device travelers are using to make their plans, a Q1 2016 survey revealed that 48.4% of leisure travelers start their trip research via a search engine, with 20.4%, property Website; 13.9%, OTA; and 5.8%, review site. • Virtual reality technology, or VR, was made for the travel industry. Virtuoso Virtual Reality has started a pilot program with larger travel agencies that allows them to purchase or lease VR devices and use travel content from Virtuoso or other sources.

7. Delighted with Destinations • According to a 2016 Auto Europe survey of US travelers intending to visit Europe during the next 12 months, 40% said they do so annually and almost 30% travel there multiple times per year. • The first J.D. Power Destination Experience Satisfaction Study found that travelers who are “especially delighted” with their destination experience spend 24% more than the average traveler, or $1,446, compared to $1,169. • The study also found that although 28% of visitors book their trip using an independent OTA, compared to just 7% using a travel agent, travelers’ trip satisfaction is higher with the help of a travel agent.

8. Advertising Strategies • With Millennials the current and future primary target audience for the travel industry, you are in the most advantageous position in your local market to offer travel agents and other travel companies the most complementary advertising channels: television and digital. • For those travel agents and other travel companies without the budgets for regular TV advertising, suggest a strong presence on your station’s Website, especially on the weather page and any travel news and stories pages, offering a link to a current deal or travel trip. • For those travel agents and other travel companies with budgets sufficient for TV advertising, recommend that their message emphasize the finding from the J.D. Power study that travelers who use a travel agent tend to be more satisfied with their trip.

9. New Media Strategies • Promoting user-generated content (UGC) for their Websites and social media pages is an efficient and effective method for small travel companies to have a regular stream of interesting and timely content without having to produce such content themselves. • Instagram is an obvious social network to engage with Millennials. One type of campaign is to post a compelling photo weekly of a top destination and ask people who have been there why they enjoyed it/why they would return. • Implement the “Take the First Step” travel campaign, by offering potential travel customers a coupon or gift card they can use on a footwear Website to order the right kind of footwear for where they want to travel. Include footwear and foot-care tips for travelers.