The Results are in, Host Agency Reviews (HAR) is sharing the findings of its annual travel agent survey. The 2021 survey profiled more than 1,100 independent advisors (defined by HAR as advisors with their own accreditation) and focused on 2020 earnings before and after the COVID-19 pandemic. Respondents were also surveyed on hours worked, unique travel niches and their top three products sold throughout the year.
Independent Travel Advisor Median Income
This year, HAR switched from measuring average income to median income. HAR Data Analyst, Dr. Maga Gei explains, “The median income offers a more reliable look at what independent advisors were likely to make during the reporting year because it’s not affected by extreme values.”
The survey data revealed that the median income for full-time independent travel advisors in 2020 dipped to a low of $3,100. However, COVID did not impact trends in advisors’ earning potential with increased work hours as the data showed that full-time independent advisors earned up to three times more than independent advisors as a whole ($3,100 vs $1,020, according to HAR). Of course, the pandemic made selling travel difficult. Before the outbreak in March 2020 78% of independent advisors sold travel full time, this number dropped drastically to 27% as the world shut down.
The main takeaway:
Between 2019 and 2020, the median income dropped 92% for part-time advisors and 94% for full-time advisors.
Travel as a Primary Source of Income
In early 2020, 73% of independent travel advisors claimed travel as their primary source of income, a higher percentage than the 67% reported in 2019. At the start of the pandemic, the percentage of independent advisors selling travel as their primary source of income dropped from 73% to 54%.
But, that’s not to say that advisors have lost faith in the industry. When asked, “Do you intend to resume selling travel as a primary source of income,” zero respondents answered, “no.” In fact, 78% of the advisors who stopped selling travel as their primary source of income in 2020 said that they plan to resume selling at a pre-pandemic volume. 20% of respondents were still unsure.
The main takeaway:
78% of advisors who stopped selling travel as their main source of income plan to return to selling at a pre-pandemic level.
Income and Niche
The top three travel niches in 2020 were: Groups at 13%; Weddings and honeymoons at 10%; And luxury and destination specialists at 9%. 72% of independent advisors claimed a niche, while 20% were generalists.
The top three income-earning niches for 2020 included: Weddings and honeymoons at $11,700; River cruises at $9,000; And Disney at $5,755. HAR credits weddings and honeymoons’ popularity to its appeal as a domestic option for U.S.-based travelers since travel throughout the states was unrestricted in 2020. Also notable, this was Disney’s first appearance on the list of top three income-earning niches since the survey was launched in 2016.
Which Products Did Advisors Sell in 2020?
When asked, “which travel product do you sell the most of?” 35% of advisors reported all-inclusive vacations followed by tours and packages at 14% and FIT at 12%. This information was a slight shakeup from years past as cruises typically earn a spot as one of the top three products sold by independent travel advisors.
The top three median incomes by product most sold in 2020 included: All-inclusive vacations at $3,600; FITs at $1,615; And airlines at $900.
Agency Models and Income
12% of independent advisors were hosted in addition to being accredited. The top three accreditations were CLIA at 34%, IATAN non-ticketing at 30% and IATA ticketing at 26%.
As for location, more independent advisors (26%) operated out of storefront agencies in 2020 than in previous years. However, the majority of the bunch (74%) were home-based. Interestingly, HAR’s survey found that home-based independent advisors earned 77% more income on average than their storefront advisor counterparts.
Just over half of surveyed advisors (56%) worked with independent contractors (ICs) and/or employees. Agencies that utilized both ICs and employees made out big earning 109% more than solo advisors. Agencies with ICs still did better than those that went at it alone earning 56% more and agencies with only employees suffered the most with a $0 median income. “If you’re doing a double-take at the $0 median income, you’re not alone. 2020 was an unusual year. If you didn’t get into selling travel for your love of statistics it may be a minor comfort to know that the median is $0 because more than half of agencies with employees only earned no income during the pandemic,” said HAR.
Read more about HAR’s 2021 Independent Travel Agent Income Report here.
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