Search Travel Market Report

mainlogo
www.travelmarketreport.com
  • News
  • Tours & Packages
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Niche & Luxury
  • Well-Being Travel
  • Training & Events
  • Who We Are
    • Anne Marie Moebes
    • Brian Israel
    • Dan McCarthy
    • Denise Caiazzo
    • Dori Saltzman
    • Kelly Fontenelle

Travel Agents Are Back, Says A New MMGY Report

by Cheryl Rosen / August 30, 2016

Part one of two.

“Our research over the past three or four years, and this year in particular, shows a huge jump—a  50% increase—in the number of travelers who plan to use a travel agent,” says Steve Cohen, VP of insights at MMGY. “And it seems to me that agencies could be even more successful if they had a stronger voice in the marketplace, if they could demonstrate to consumers what an agency can do for them.

“The travel agency space is there for the owning.  I believe there’s an opportunity for whatever brand to become THE brand in travel. No one has done it yet. It’s an expensive proposition, but there’s a chance for a really big payoff.”

TMR’s conversation with Cohen this week came as the result of a new white paper released by MMGY, the travel-industry marketing and research firm that produces the voluminous Portrait of American Travelers survey. It then releases the data in five parts; the latest release, part two, came out yesterday.

It found that more than 9 million U.S. travelers will be calling a travel professional to help them book a trip this year, and will push a whopping $83.7 billion through the travel agency distribution channel.

By the numbers
The use of travel agents is at a six-year high—and the increase is being driven not by Baby Booomers, but by Millennial travelers, 34% of whom reported using a travel agent, the survey found. And the higher the ticket price of the travel being purchased, the more likely they were to turn to a professional travel advisor.

“As these travelers are vacationing more and spending more on leisure travel than those booking on their own, travel agent users are becoming a more desirable segment for both destinations and travel service providers,” the white paper said.

The paper notes that 16% percent of American travelers used a traditional travel agent during the past 12 months and intend to do so during the next two years (what MMGY Global refers to as travel agent users). That’s up five percentage points, fully 45%, from 2011, “and significantly higher than each of the previous five years.”

There’s lots more good news where that came from. Travelers who use travel agents do so frequently, calling a professional for 50% of their travel.

The typical travel agency customer is 39 years old, married with children, with an annual household income of $145,875. The top reasons they cite are expertise, trust and ease, but 86% also say that using an agent gives them more control over their trip, and 79% believe a travel agent will find the best price.

The road not yet traveled
Good as the data is, though, a 16% market share still leaves plenty of room for growth.

“Most of what we hear when we ask travelers how they heard about their travel agency, they say it was word of mouth,” Cohen said. “Back in the mid-90s, when airlines were paying commission, you had Liberty Travel, AAA; people were aware of those travel agency brands. But I don’t think any agency owns the travel-agency space in the consumer’s mind today.”

In the survey as well as in focus groups that it holds regularly (the latest was on July 27), MMGY has found that even though Millennials in general, and Millennials in their 30s in particular, are accustomed to reaching for their phones to research and make purchases, “they still want to get the best deals and they want to have someone who really gets it help them.  There are so many different travel sites out there, but Millennials are saying they want someone they can talk to. They are going away from the OTA model back to someone who has been there. All of a sudden they are showing up at travel agencies again. They are telling us that in the largest percentage of their vacations they use traditional travel agents.

“It all adds up to a great opportunity for travel professionals."

  19
  1
Related Articles
What Travel Advisors Should Know About 2021 Taxes
Travel Confidence Starting to Trend Upward, According to MMGY
Americans Want More Culturally Immersive Vacations, MMGY Study Says
Travel Sales Will Remain Strong, MMGY Survey Shows
After Years of Strong Growth, Travel Sales May Be Slowing
How Travel Agents Can Avoid Becoming a Victim of Fraud
How Travel Agents Can Stay Relevant When the World Thinks They're Not
What to Consider When Launching Your Website
How Might Health Insurance Change for Travel Agents in 2018?
In Battle of Online Booking Versus Travel Agents, Most Consumers Still Rely on Agents

MOST VIEWED

  1. Why Travel Advisors Need to Learn to Say No to New Business
  2. Two of Germany’s Busiest Airports Will Be Closed on Monday
  3. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  4. Government of Canada Updates Its Mexico Travel Advisory
  5. Royal Caribbean Eliminates Sky Pad Experience
  6. A Massive Sargassum 'Blob' Could Heavily Impact Florida Beaches this Summer

MOST EMAILED

  1. U.S. State Department Warns of 4-Month Delays for Passport Renewal
  2. U.S. Passport Renewal Waiting Time Could Soon Get Even Worse
  3. Why Travel Advisors Need to Learn to Say No to New Business
  4. U.S. Passport Renewal Processing Time Now 8 to 11 Weeks
  5. European Union Delays Launch of ETIAS Until At Least 2024
  6. Travelers Believe That Working With Advisors Is Only Way to Get a True Luxury Experience
TMR THIS WEEK
Sponsored by ALG Vacations®
//services.travelsavers.com/AMGService.svc/REST/GetImage?ImageID=dbb24e9c-8fcc-ed11-b00b-005056a8720b&Width=350&Height&250

9 Tips for Making Spring Break More Memorable

Spring Break has sprung and Americans are traveling in record-high numbers again

Read More...
TMR Subscription

Subscribe today to receive daily in-depth coverage, analysis of industry news, trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Tahiti Tourisme Brings Back North American "Receptions" Road Show
Tahiti Tourisme Brings Back North American "Receptions" Road Show

Tahiti Receptions are returning to eight cities across Canada and the U.S. for the first time since 2018. 

Read...
Ontarians Still Concerned About Travel Delays & Cancellations
Ontarians Still Concerned About Travel Delays & Cancellations

Nearly two in three Ontarians are still concerned about having their travel plans delayed or cancelled. 

Read...
Ask an Advisor: Why Would a Client Pay My Fee Instead of Going Somewhere Else?
Ask an Advisor: Why Would a Client Pay My Fee Instead of Going Somewhere Else?

“Why would someone pay my fee when they can go to 20 other agents in my area who are not charging a fee?”

Read...
What Advisors Should Know About AutoCamp Luxury Camping
What Advisors Should Know About AutoCamp Luxury Camping

AutoCamp offers luxury camping in Airstreams, tents, cabins, and suites with nature and modern design.

Read...
Testing the Waters with Dori: The ASTA River Cruise Expo
Testing the Waters with Dori: The ASTA River Cruise Expo

No online training module or webinar can duplicate the education attendees got in just three days at the Expo.

Read...
Canadian Travel Advisors Report Strong Increase in Bookings Over 2022
Canadian Travel Advisors Report Strong Increase in Bookings Over 2022

Advisors who attended TMP West this year are, so far, having a great year. 

Read...
TMR OUTLOOKS & WHITE PAPERS
river cruise 2022
group outlook 2022
lux cruise outlook
CP White Paper
Multi-Gen Outlook
River Cruise Outlook 2019
View All
Advertiser's Voice
https://img.youtube.com/vi/eeYJNcTKI9Q/0.jpg
Check-In Episode 32: We Are in Boom Time for Travel. How Long Will It Last?
About Travel Market Report Mission Staff Advisory Board Advertise
TMR Resources Webinars Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
News |Tours & Packages |Cruise |Hotels & Resorts |Destinations |Retail Strategies |Niche & Luxury |Well-Being Travel |Training & Events |Who We Are
© 2005 - 2023 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy Privacy Policy