Why do travel agents fail?

The path is quite clear, before one becomes a client, they must first be a prospect. So the real reason many travel agents fail, is not due to a lack of clients, but from a lack of prospects. Prospecting can be a scary thing. To many salespeople, it is synonymous with cold-calling.



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It's been devastating to an industry entrenched in tradition and stale relationships. And yet, though “the death of travel agents” has been touted since Expedia debuted, they still exist, though greatly diminished in number (the number of freelance travel agents went from 124,030 in 2000 to 66,670 in 2019).

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What are the weakness of travel business? Being too large can be a weakness if the size of your travel agency results in slow decision making or too-rigid policies. Too few personnel, a poor location, outdated collateral can all be considered weaknesses. A lack of experience is a weakness, as is a lack of capital.

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Then along came online booking sites like Travelocity and Expedia. These and other web platforms gave consumers the ability to plan and purchase their own trips. Losing clients to online providers and reduced commissions hurt brick-and-mortar agencies, leading many to downsize or leave the industry altogether.

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A 2023 consumer research survey from ASTA (the American Society of Travel Advisors) found that 50% of travelers are more likely to use a travel advisor post-pandemic. (This is a 7-point increase from 2022.) Here are the crib notes: There's no better time to become a travel agent.

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National Geographic looks into whether or not people still use travel advisors, and the answer is a resounding yes!

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Employment of travel agents is projected to grow 3 percent from 2022 to 2032, about as fast as the average for all occupations. About 8,600 openings for travel agents are projected each year, on average, over the decade.

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But travel agencies also typically fall under “high risk.” One reason for that is the higher-than-average chargeback rates that can come from bookings for a future trip that a client later wants to cancel.

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Not only do you get to plan trips for others, but you'll also be able to take advantage of special discounts on many facets of travel. This is true for your clients, but also for yourself. Travel agents have access to a variety of discounted rates on both airlines and hotels, even when booking travel for themselves.

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Travel Agent Qualifications/Skills:
  • Strong sales and interpersonal skills.
  • Excellent verbal and written communications skills.
  • Ability to negotiate effectively.
  • Excellent knowledge of computer reservation computer programs.
  • Strong problem-solving skills.
  • Detail oriented and highly organized.


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Generally, leisure travel agencies' main revenue is from commissions vendors pay on vacation packages, cruises, air, and other add-ons. However, consultation fees and service fees are becoming more common as agencies try to diversify income sources to become less dependent on supplier commissions.

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As of 2023, there are over 400,000 people employed in the Travel Agencies industry in the US. The industry is forecast to grow by 7.1% throughout 2023, clearly demonstrating that demand for travel agents remains strong.

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Life is busier and more demanding than ever, and vacation time is more valuable. Travel agents can save you hours, not just in doing research to find you the perfect vacation, but also just sitting on hold with short-staffed airlines and resorts to make your vacation perfect.

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Travel agent demographics research summary. There are over 29,992 travel agents currently employed in the United States. 78.1% of all travel agents are women, while 21.9% are men. The average travel agent age is 50 years old.

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Today, despite multiple threats to their business model, travel advisors appear to be here to stay. Many expect a surge of 2022 bookings, with clients ready to travel again after a year and a half of pandemic lethargy.

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The Top 20 Most Powerful Travel Agencies in 2023
  1. Booking Holdings. (photo courtesy of Booking Holdings) ...
  2. Expedia Group. ...
  3. American Express Global Business Travel. ...
  4. BCD Travel. ...
  5. CWT. ...
  6. Flight Centre. ...
  7. American Express Travel. ...
  8. Chase Travel Group.


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The main difference between travel consultants and agents is that travel consultants plan trips, while travel agents book them. Travel agents may be better skilled at locating the best prices for flights and hotels.

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Getting to a Million: Top Travel Agents Share Tips for Six-Figure Sales
  1. Set goals. ...
  2. Education is key. ...
  3. Be in it to win it. ...
  4. Find a mentor. ...
  5. Choose your clients rather than vice versa. ...
  6. Mingle where the high rollers go. ...
  7. Consider working for someone else first, so you can start a business with a book of travel in hand.


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The commission percentage agencies earn depends on numerous factors, the most important one being which private contracts you have access to. Here's a general rule of thumb on the airline ticket commission range you can expect as a travel advisor: Domestic: 0-5% International: 10-22%

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How do travel agents get paid? Commissions – you are paid a percentage of the cost. Service fees – you charge a fee for arranging each segment of travel. Salaries – you work for a large travel company.

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The short answer is, yes. 22% of U.S. travelers used a travel advisor 1. This percentage will grow, with 50% of travelers reporting they're more likely to use a travel advisor post-pandemic (a 14% increase from 2022!) 2.

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