The travel agency industry has experienced unprecedented growth in recent years, driven by a variety of factors. That’s because travelers are newly recognizing the value of advisors, consumers are splurging on travel, and prices are generally rising, increasing the number of sales and commissions.
And as growth forecasts continue to rise, technology companies are also attracting attention.
The number of technology companies developing specialized software for travel agents and advisors has mushroomed in recent years.
This spurred Host Agency Reviews, a site known for listings and reviews of agency networks such as hosts and franchisors, to create a profile category specifically for technology providers.
“People are seeing growth,” said Stephanie Lee, founder of Host Agency Reviews. “Before the pandemic, there were a few tech companies, but after that it was relatively stable. There were very few new entrants. And it wasn’t until the pandemic that people really started doing research. I think it was in the middle of that and it showed that more people were using Travel Advisor.”
This is a market with room for growth and an attractive prospect for technology developers, Lee said.
Advisor growth data
Stephanie Lee
He pointed to data from Focusrite’s U.S. Travel Market Report 2023-2027, published this summer, which reported that offline travel advisors and TMCs reported a combined market share of 19% of travel sales in 2023. This segment recorded “a staggering 27% growth”, the highest growth rate of all channels.
Advisors’ overall market share is expected to remain stable, rising slightly to 20% in 2027. Focuswright believes this is primarily due to an expected increase in business travel.
Travel agents also account for the majority of sales in several areas, accounting for 67% of the total cruise sales market share in 2023 and two-thirds of the traditional vacation package market (this share is expected to rise to 67% by 2027).
Meanwhile, OTA market share (21% in 2023) is expected to remain flat until 2027. This “indicates that offline sales (including supplier direct sales, leisure and corporate travel agencies) will maintain their share in the OTA market,” Focuswright said. We will continue with digital channels for the next four years. ”
Host Agency Reviews soft-launched its Travel Agency Software Profile earlier this month. Although some companies are not yet publicly available, 40 companies have created profiles featuring their products and integrations with suppliers or other travel technology.
The profile includes options for businesses to add Q&A and FAQ segments, as well as a section for reviews by advisors.
Evolution of information
Lee says it’s important to include a section on security information, such as whether the technology uses two-factor authentication and whether it complies with regulations to protect credit card information. said that it is important.
Lee said host agency reviews are evolving. Initially, agency networks with profiles on the site simply listed whether they offered CRM to advisors. But the options have increased.
“There are now multiple CRM options, multiple itinerary creation tools, multiple booking tools,” she said. “It became necessary to find out what these were.”
Software profiles that you can create by contacting Host Agency Reviews are free.
This seems to be a feature that resonates with advisors. In the days following its soft launch, the page received over 3,200 hits and over 70 reviews from advisors.
“I’m really excited to see the new technology that’s coming and stay updated in the future,” Lee said. “Having one spot is not only good for tech companies in terms of exposure, but also for agencies, where people can come and read reviews and see what’s going on and make good decisions. I think that’s an advantage.”
