Canada’s Home-Based Agency Groups Battle it Out for Market Share

Host agency groups in Canada are riding a wave of substantial growth as more travel agents are transitioning from the traditional brick and mortar to a home-based model.

Determining the exact number of home-based agents is difficult however.

One host agency group, The Travel Agent Next Door (TTAND) estimates one in four Canadian travel agents (25%) work from home, far behind that of the U.S. and Great Britain where they say approximately 50% of agents work from home.

The Association of Canadian Travel Agencies (ACTA) however believes it’s approximately 10% or 2,200 agents in Canada who classify themselves specifically as home-based.

ACTA points out that the 25% figure could also include independent contractors (ICs), host agencies and outside agents. The organization estimates that in the last five years there has been a 45 to 50% growth in the home-based segment.

ACTA and all home-based agency groups all believe there is definitely room for growth as more agents are lured into working from home. 

With the strong appeal of working from home and the technology in the travel industry it is an attractive option for many agents, according to ACTA.

Low overhead, life/work balance, schedule flexibility, running your own business and having the control over what agents sell and how they want to service their clients, makes being home-based a very appealing option for many agents. 

The host agency groups know this and are aggressively battling each other for members. Every group is adding new technology tools, marketing programs and benefits to lure agents.

The home-based agent
ACTA doesn’t foresee the growth coming from those graduating from a college tourism programs but more from middle-aged agents with contacts and experience and strong networking skills.

Travel Professionals International (TPI), Canada’s largest home-based agency group with more than 800 agents, is optimistic about future growth.

“Currently the market is telling us that there is room to grow in many areas of the country,” said Tim Morgan, vice-president of TPI. 

“While the prevalence of traditional travel agents decreases, the area of increase is those who are successful in managing their overhead costs and focusing on growth through retention and referral – this is the independent travel advisor and this is the future and increasingly the present,” he added.

Greg Luciani, president & CEO of TravelOnly which represents 625 agents in Canada, agreed the saturation point for growth of home-based agents has not been met.

“We have not seen a saturation point with our business, in fact, we have experienced double digit growth for at least five years,” he said.

Luciani indicated that TravelOnly has plans to expand globally in the near future.

Key host agencies
According to ACTA there are nine key agency groups – The Travel Agent Next Door, TPI, TravelOnly, Nexion, Travel Counsellors, Flight Centre, Centre Holidays, Destination Experts, CruiseShipCenters® plus many other smaller groups.

All agency groups are battling it out for members.   What do they feel distinguishes their group from others?

“We are a family-run business that provides the best support across all verticals,” Luciani said of TravelOnly. “We provide live training sessions [it recently held a cruise training session], and provide marketing, sales support and all accounting and administration of their business.”

Flemming Friisdahl, the founder of The Travel Agent Next Door, one of Canada’s newest agency groups, said there are three things to distinguish the group.

“Our support team. Our comprehensive marketing programs. The tools we offer. Since our launch 15 months ago we have launched 11 new programs and we are just about to launch 7 new upgrades to our travel agents website.”

TPI’s Tim Morgan pointed out, “What distinguishes TPI from other host agency groups is its Canadian roots and ownership, its size of 800+ advisors across Canada, its focus on travel advisors’ success [B2B] rather than competing with its advisors for customers [B2C – it does not own any direct-sales channels or storefronts], and its team of 50 plus support staff.”

Morgan also cited strong supplier relationships and its membership in Virtuoso as additional reasons.

What to look for
When choosing a host agency group most agents look at joining a group that reflects more their specialty whether that be the honeymoon market, cruises, all-inclusive holidays, groups or other niches.

Host agency groups seek out agents that are known for some of these niche markets.

MICE (meetings incentives, conventions and exhibitions), weddings and reunions are niche markets that TravelOnly highlights as its specialties. 

TPI’s Morgan said it covers many niche markets but is particularly strong in all-inclusives, ocean and river cruises, FITs, and groups.