We Can Survive Anything, Travel Agency Execs Say

The travel industry is notoriously up and down. Easily impacted by forces outside of its control, the industry has, nevertheless, proven time and time again how resilient it is… including the travel agency sector. After several years of non-stop challenges, what executives have learned is that travel agencies can withstand just about anything.

(This is part three in a series based on conversations with seven franchise, host, and consortia executives. Read part one: All Signs Point to Another Banner Year for Agency Community and part two: Travel Agency Execs Expect a “Leveling Off” but Say There Will Be No Plateau)

“If this industry isn’t galvanized and confident that they can make it through anything after being through the few years of COVID, they really need to move on,” Alex Sharpe, president and CEO of Signature Travel, told TMR.

While Sharpe admitted to TMR that things like governmental regulations, natural disasters, and geopolitical unrest do worry him, they’re not what keeps him up at night.

“We can’t control it. It’s always been like that. I’ve been in the industry nearly 30 years and it’s always something. No one thought as ash cloud in Iceland could change things. These things happen, but the travel industry is so dynamic and we adapt and we figure it out… They’re problems, but they’re not insurmountable problems.”

Michael Johnson, president of Ensemble, echoed Sharpe. “There are lots of potential headwinds, but I don’t see any that are affecting us right now.”

“One thing I think we learned from COVIVD is that we come back really quickly as an industry,” added Jackie Friedman, president of Nexion Travel Group. “Travel is important and people are prioritizing it… The recovery happens faster than ever before.”

Friedman didn’t only speak to TMR as the head of Nexion. She’s also the Chair of ASTA and spoke to us on behalf of the entire agency sector.

“I’m bullish,” she said, adding that while geopolitical issues around the world might create apprehension for travelers, it won’t impact whether people travel.  “It just means they may change where they’re traveling to.”

“Clients are trading destinations and trading experiences, not delaying or postponing,” added Johnson.

Navigating change

Speaking on behalf of the agency industry, Friedman reiterated that the industry can overcome any challenges it faces, but she emphasized that it’s incumbent on consortia, hosts, franchises, and other organizations to help individual advisors navigate these challenges.

Phil Cappelli, chief sales officer, Avoya Travel agreed.  “That kind of government stuff makes me nervous sometimes. It’s just getting ahead of it.”

As an example, the California consumer protection junk fee law that went into effect on July 1.

“We want to make sure our agents are prepared,” Drew Daly, senior vice president and general manager of Dream Vacations, told TMR.

At the consortia, host, and franchise level, a lot of work has been done to prepare agencies and advisors, starting with changing all marketing that is sent on behalf of members.

“I have a whole tech team to get this done,” said Michelle Fee, CEO and founder of Cruise Planners. “I feel sorry for some other, smaller agencies who don’t have the resources to get it done and are scrambling right now.”

Agency groups are also working hard to understand all the ramifications of the law.

“Unfortunately what happens is there’s unintended consequences for the travel advisors because our government isn’t well-informed enough about the impact on us,” Sharpe said. “We have to get clarification as it relates to drip pricing regulations because we as consortia do marketing on behalf of our members and advisors… we’re working hard on that.”

They’ve also been doing a lot of communicating and educating to make sure members are prepared and don’t get caught be out of compliance.

Worrying about individual success

While the industry as a whole can survive anything that’s thrown at it, some of the executives we spoke with still have concerns about the success of individual advisors.

Dream Vacations’ Daly told us he thinks advisors are easily pulled in too many directions, which can affect their profitability.  

“It’s balancing all the different products and knowing where to focus their business and their efforts. Someone could have a PhD in shiny object syndrome. Focusing on one thing and doing that well, then moving on to the next, that’s going to help them,” he said. “If someone doesn’t have the right plan, it’s easy for them to get distracted and go off course. That’s the biggest headwind for the agency community.”

Fee expressed a similar sentiment telling TMR she hears most often from franchisees that there’s just not enough time in the day, which impacts their ability to take on more business.”

“We’re seeking solutions to help our advisors manage operational aspects of their business,” she said. “We’re constantly trying to develop different types of programs or streamline technology to help them. That’s what we’re focused on is because that’s what we keep hearing. Not that there’s not enough business, but there’s not enough hours in the day.”