First in a series on the influx of untrained newcomers to the industry
“I am looking to join a host agency and feeling a bit overwhelmed,” reads a recent Facebook post. “I am looking for a smaller agency that is personable, honest, and helps you reach your goals. That is either low-cost or free. Sells cruise lines as well as Disney, all-inclusives, and more. Offers CLIA. High commission split and no requirements on how much you sell.” Signed, Anonymous.
We’ve all seen posts like that and cringed. And last week, Angela Hughes addressed it in an open letter to the industry—and to those looking to enter it—that I thought was worth sharing.
She writes:
Dear Travel Industry Colleagues & Newcomers,
I pen this open letter in response to concerning tendencies I’ve observed within our sector. It appears that some believe they can effortlessly infiltrate the travel industry with a minimal financial or educational commitment—a misconception that needs urgent correction.
From the onset, let’s be clear: to establish a business as an independent contractor necessitates financial and educational investment. If you’re unwilling to invest in your business, success will likely elude you. The assumption that host agencies will bear the brunt of the financial burden is ill-conceived.
Systems and tools, indispensable to the function of host agencies and independent contractors, carry associated costs. These resources are the bedrock upon which a successful business is built. Moreover, the wealth of relationships that populate our industry cannot be accessed without contributing financially and with time. These relationships are built upon decades of experience and financial commitment. And training also is a fundamental part of our industry, and it is not free. The cost of training is borne by either personal time, agency funds, or vendor marketing funds.
Host agencies are not travel schools; they provide essential resources and a framework to facilitate your success. As an industry professional with a master’s degree in Geography & Travel and Tourism and a host agency owner who has invested significantly in my education and continuing professional development, I can vouch for the value of these investments. We should be requiring more education, marketing skills & business skills in addition to the vendor training. Learning about a brand and product is way different than learning to sell a brand and convert a client.
Host agencies and their travel advisor IC partners benefit remarkably from the considerable financial investments of consortia, which expect growth in return. This symbiotic relationship forms the foundation of our industry.
It’s bewildering to see those who expect support and high earnings without any financial or educational commitment. In addition, this industry is fraught with risk and liability; it requires mutual understanding.
At our agency, the fees we charge offset the considerable expenses that accompany our brand, such as technology, marketing, mentoring, and training. We’re proud to welcome exceptional new advisors who are willing to invest in their professional growth from any industry.
The travel industry is not a playground for experimentation, a retirement plan, or an escape from current careers. We must strive collectively to maintain standards and deter those who seek short-lived exploits. We have dumbed down this industry and it is time for a correction. Have host agencies become like athletic gyms allowing anyone to join the gym in January? Every owner knows that the 80/20 rule is real and that 20% of the advisors are doing 80% of the business. And that is because most advisors are doing a handful of trips at best and many are personal. Harsh I know…but the truth stings.
In my four decades of experience, I have found that the key differentiator between successful advisors and those who falter is their willingness to invest in tools, resources, education, training, and consortia.
Also, your choice of consortium is inconsequential if you fail to utilize its full potential. I learned this lesson the hard way. Success hinges on a robust business development plan, which, unfortunately, most advisors lack.
Creating your “Why” is crucial. Passion for travel or the desire to finance personal trips is not a sufficient driver. You are not just an advisor; you are a business owner.
Success in the travel industry demands a structured business development plan, continuing business education, financial investment, and a considerable time commitment. Familiarize yourself with the potential risks and liabilities because predicaments are inevitable, and preparedness is key.
I extend a warm welcome to all newcomers to the travel industry. Whether your interest is a side hustle, a hobby, or full-time entrepreneurship, ensure that you have the necessary elements in place to navigate this travel road.
Remember, you get what you pay for. Your return on investment will be directly proportionate to your input.
Comments
Comments from travel advisors were quick to follow.
“I have an undergrad in Organizational Leadership and an MBA,” writes Elisa Espinoza, owner of Dream Vacation Concierge in Escondido, CA. “Before I entered the travel industry I was in a low point of my corporate career and preparing for early retirement. I fell into the trap of an MLM Disney-centric mega-agency that only cared about the monthly fees. The lady was making six figures each month just on fees. But my drive to succeed granted me Rookie of the Year and then a spot as a Team Leader. When I realized she was an MLM I moved to a reputable host, and then became an Affiliate. I got my CLIA, then my IATA, and now I have a small boutique agency and love helping others grow their business.
“When I see individuals that don’t see this as a business, it drives me crazy. There needs to be some type of oversight. I don’t know what the solution is, but posts like what Angela Hughes is highlighting deteriorate all the hard work, as so many of us are trying to prove to clients that we are professionals and not hobbyists.”
Some blame the host agencies for exacerbating the problem, in their push for new members. “The problem is not the lack of education alone, but how hosts are allowed to provide professional tools to people who are not equipped to either use them correctly or to appreciate their value,” says Niki Skoulika, owner of Luxury Destinations Travel LLC in Ohio. “While some suppliers would normally require proof of experience and credentials to recognize one as a professional agent and offer contract rates and availability, the host/IC relationship allows unqualified individuals to ‘play’ agents.”
And the proliferation of social influencers just compounds the problem, confusing the public about who is a professional and who is not.
“For consumers, it’s important to understand that social influencers, who make money by posting about their travel, are not the same as travel agents who educate themselves on the product they sell, and can advise someone to make educated decisions on their travel plans. These are two completely different things,” says Stacey Smith, owner of Epicurean Escapes Travel in Austin, TX. “For advisors, one of the most common mistakes is not realizing that you have to operate with an entrepreneurial mindset. This is your business, whether you work for a small boutique company or the largest MLM. It’s not a 9-5 where you come in, are told what to do, knock out some tasks, and then expect to be paid on the hours you worked.
“I don’t fault people for how they get started or introduced to a new industry, because you don’t know what you don’t know. However, I really wish there were more leaders in the industry that could provide insight to newcomers.”
Stay tuned right here for more on this subject next week. Or email Cheryl crosentravel@gmail.com to share your thoughts about the issue—or about possible solutions. Maybe we’ll quote you!
Cheryl’s 40-year career in journalism is bookended by roles in the travel industry, including Executive Editor of Business Travel News in the 1990s, and recently, Editor in Chief of Travel Market Report and admin of Cheryl Rosen’s Group for Travel Professionals, a news and support group on Facebook. As an independent contractor since retiring from the 9-to-5 to travel more, she has written regular articles about the life and business of travel agents for Luxury Travel Advisor, Travel Agent, and Insider Travel Report. She also writes and edits for professional publications in the financial services, business, and technology sectors.
