NACTA Extends Reach as Indie Sector Takes Off
by Maria Lenhart /Reflecting the remarkable growth in the numbers and sales clout of independent travel agents, the National Association of Career Travel Agents (NACTA) is adding new chapters, networking opportunities and lead-generation channels to serve this burgeoning sector.
“The shift towards independents is really gathering momentum,” said NACTA President Ann van Leeuwen, citing U.S. Bureau of Labor figures. “There were about 110,000 employed agents in 2000, but this has dropped to about 60,000. At the same time, there are now about 40,000 independent agents who didn’t exist in 2000.”
Tech and social media impact
Continued improvements in technology that are making it easier for people to work at home or in remote locations are part of the reason for the shift, according to van Leeuwen.
“It’s easy for people to work with their mobile devices, to meet with customers at places that are convenient for them,” she said. “There certainly is no need to book travel at a storefront location – and more people are looking at whether the storefront is worth the cost.”
Another big factor is the advent of social media, she said. “More people are finding clients through Facebook postings and other social media. There are so many new ways to develop business and find customers.”
Surging sales growth
Not only are their ranks growing, but independent agents are enjoying increasing sales volume and are selling a greater range of travel products, van Leeuwen added.
According to research from ASTA (NACTA’s parent organization), the overall sales volume among NACTA members rose from $250 million in 2012 to $275 million in 2013.
The research also found that while cruises comprised 57% of members’ sales in 2009, they comprised just 43.8% in 2013.
“NACTA started out being very cruise-centric, but that has evolved,” van Leeuwen said. “Now people are selling more sophisticated products such as river cruises and unique land experiences. Members are educating themselves more about destinations and products so they can sell what’s best for their clients. That’s why they’re selling more.”
Among independent agents who are seeing the trend toward greater diversification is Eddie Woodham, owner of Palm Coast Travel and NACTA’s Southeast Regional Director as well as director of the South Florida chapter.
“There’s a huge expansion in the types of products we are selling,” he said. “There’s growing recognition that expensive land-based trips can result in commission checks that have commas in them.”
Supplier connection a priority
While the independent sector is growing in both numbers and sales strength, the challenge for suppliers to connect with agents who usually don’t work in storefront locations remains, van Leeuwen noted.
“A big priority for us is to educate suppliers and their field people about the potential of business from independents and how to work with them,” she said. “The sales calls are different – you’re not necessarily dropping by an office.”
NACTA meetings and events provide an important means of connection between agents and suppliers, according to van Leeuwen. These include an annual conference, a day-long NACTA event at the annual ASTA conference as well as meetings and events organized by NACTA chapters.
“We’re seeing that suppliers really want to get in front of the independent agents, so we’re trying to provide as many forums as possible,” she said. “We had over 80 suppliers attend our conference in Arizona last fall—they would not have taken the time to fly out and participate, if it weren’t important.”
Chapters on the increase
A major way that NACTA is facilitating more networking between agents and suppliers, as well as between the agents themselves, is through its burgeoning number of chapters, according to van Leeuwen.
While each chapter is required to have at least four meetings a year, many have much more than that, she said.
In February, the organization added the Southeast Louisiana chapter, which has nearly 60 members.
“We had 51 chapters at the beginning of the year and we will grow that to 57 by the end of the year,” she said. “Along with Louisiana, we’re targeting areas in Ohio as well as other cities and states.”
Florida rising
An area where growth has been especially notable is in Florida, where chapters have increased from three to seven in just the past four years. Debuting in just the past year are the Treasure Coast and Central Florida chapters.
Woodham, who is also director of the South Florida chapter, said the increase in local chapters is being enthusiastically embraced by suppliers and is helping agents diversify the products they handle.
“We’re getting a lot of participation from suppliers who represent destinations and land vacations as well as cruise,” he said.
As examples, the South Florida chapter’s April meeting will feature the Hawaii Visitor & Convention Bureau, while the May meeting will feature tour operators serving Asia/Pacific, Italy and Israel.
“The chapter meetings are also invaluable for agents to network and get advice from each other,” Woodham said. “Working from home has it’s pros and cons. There’s usually not someone sitting next to you to discuss something with.”