The travel industry—like nearly all others—will continue to have an evolving relationship with technology in the coming years (and beyond), but artificial intelligence (AI), like OTAs do not have to be a competitor for travel advisors.
In new research conducted by Voyagu, an AI-powered travel management platform and marketplace that connects premium travelers with travel experts, it found that travel advisors and specialized operators perceive technology as a potential catalyst that can both boost their revenues and make their operations more efficient.
Other top takeaways from the “Travel in a Post-Pandemic World: The State of the Industry According to Travel Advisor” report included:
- There is a higher demand for personalized services and, overall, the travel market is expected to grow.
- Digitalization of travel inventory and client relationship management technologies will help travel advisors increase their profits.
- Strong relationships with clients and a solid reputation boost the effectiveness of word-of-mouth marketing through referrals.
- Travel advisors can expect more opportunities to increase their earnings from the latest trends, such as niche markets, blended travel and micro trips.
Technology and Your Clients
Seven in 10 travel advisors (69 percent) believe that the way the travel industry is evolving is influencing them to adopt technological tools in their business. A similar 62 percent said that such digitalization and travel management technologies will make their lives easier, providing them with tools to streamline their communications with customers and suppliers and their booking procedures.
That said, there remains mixed opinions on whether tech will pose an overall challenge or benefit to travel agencies. Sixty-five percent of respondents considered online travel agencies (OTAs) and direct-to-consumer online platforms offered by airlines, hotels, cruise lines and other providers, a strong competition to their travel agency business. (Only 16 percent, however, strongly agreed that technology is squeezing the travel advisor out of the industry.)
On the flip side, the type of customers that seek to save costs and the type of customers that look for the services of a specialized travel advisor are very different. Unlike OTAs or operators with a mass-market approach, advisors deliver specialized post-booking support, manage changes and cancelations, and solve any problems that might arise as the trip takes place. In this regard, 53 percent of advisors believe that integrating technology-based solutions to manage new client relationships and travel inventory is positive for the industry, as it helps to streamline the booking process and to make better decisions in real-time.
As for your clients, even if technology can help advisors in many ways, the study found that word-of-mouth is still the best channel for organic business growth. Should a travel advisor attempt to scale their business through conventional marketing channels, they would likely encounter the challenge of dealing with a large volume of inbound requests from unqualified leads. It’s no surprise, then, that 84 percent of the advisors surveyed said that referrals are the best way of growing their business.
In addition, eight in 10 advisors surveyed (79 percent) reported experiencing a high demand for personalized services, with 46 percent saying that clients prioritize expertise and personalized services over cheaper prices. As well, 59 percent of advisors shared that their clients have expressed their preference for flexible itineraries that permit changes and cancelations.
When asked about the factors that drive income growth and what they believe they need to do to accomplish this, 83 percent mentioned strong client relationships and reputation—again reaffirming the point that developing a loyal customer base is critical for advisors.
Methodology: The research was conducted from March to April 2023, and included 110 randomly selected travel advisors and agency owners.
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