The Hosted Travel Advisor Report Summary, 2022
We're shaking things up with our hosted travel advisor report this year, and I think you'll like it :) This year, you can download our full Hosted Travel Advisor Report, 2022. If you don't need any theatrical trailers, you can go ahead and download the full report now!
We bundled all our data on the latest trends in travel advisor income, fees, operations, host agency relationships, and demographics into one whopper of a report (make that a double whopper). But don't worry, here's a sneak preview!
An Introduction to Hosted Travel Advisor 2022 Report
Of the 1492 total travel advisors who completed HAR's 2022 Travel Advisor survey, 78% were hosted advisors. Here's the hosted segment at a glance:
The hosted model has proved to be attractive to advisors entering the industry. 35% of hosted advisors were new with 0-2 years of experience, the highest volume of new advisors when compared to independent advisors or travel advisors employees.
However, the hosted model appealed to experienced non-hosted advisors as well. Among the experienced hosted segment (with 3+ years of experience), 29% had switched to the hosted model at some point in their career. (learn more about this in our full report!)
How did this growing segment fare in 2021? A smaller percentage of hosted advisors reported lower sales levels in 2021 compared to 2020 (70% compared to 83% respectively.) Most hosted advisors reported a 41%-60% decrease in sales, compared to an 81%-100% decrease the previous year.
During this recovery year, average annual sales (among all hosted advisors) landed at $319,605 in 2021. How did this translate into take-home income?
The graph below looks at the average income according to years of experience for full-time (FT) and part-time (PT) hosted advisors.
Advisors earned considerably more with experience (with few exceptions). Overall, new advisors' average sales were $43,135, and the average income was $2,925. This is only 14% and 11% of their more seasoned peers, with experienced hosted advisors reporting an average annual sales of $312,170 and $26,198 in average income. And remember, this data is from 2021 so the effects are the pandemic are still very much felt in sales and income for travel advisors.
Because of the income divide between new and experienced hosted advisors, they each have a dedicated section in the full report.
Which Factors Had the Greatest Influence on Income?
1. Experience & Time Investment
Full-time hosted advisors hit their greatest income potential after they’ve been in the industry for three years. After that, income growth continues to grow at a steady pace as advisors acquire experience.
Once roots are established, it was time investment that has a greater impact on income potential, with full-time advisors earning more as they invest more hours.
2. Implementing a Fee
Fees accounted for a more critical portion of advisors' overall income, 30% in 2021 compared to 11% in 2019.
Those who charged fees earned nearly two times more than those who chose not to. (However, those who did not charge fees reported at roughly the same rate that they were satisfied with their income, 64% compared to 63% among fee-chargers.)
Speaking of fees . . .
2022 Hosted Travel Advisor Fee Trend Takeaways
Nearly half of hosted advisors, 49%, charged travel advisor fees. As a fee-charging culture takes firmer root, here’s a few key takeaways from our 2022 survey:
- A higher percentage of advisors charged both service and consultation fees in 2021 compared to 2020 (19% and 11% respectively).
- Fees accounted for a more critical portion of advisors' overall income, 30% in 2021 compared to 11% in 2019.
- Air-ticketing was by and far the most popular service fee, with 88% of hosted advisors (who reported having a service fee) charging air fees.
- 84% of advisors who charge consultation fees charged a flat fee, making it by and far the most popular consultation fee choice.
Who’s Starting their Career as a Hosted Advisor?
New hosted advisors (those with fewer than three years of experience selling travel) comprised a critical segment of respondents overall—20%.
In earlier years of selling travel, average income reported increased exponentially. Advisors with 2 years of experience earned 2.5 times more than those in their first year.
New advisors are less likely to charge fees than their experienced peers (40% compared to 58%). However, they’re warmer to the idea of fees than those who are established.
42% of non-charging new advisors reported they planned to implement a fee in the next year, compared to 21% among experienced advisors.
Download the Full Report!
That was just a taste of what's in the report! Download the full 2022 Hosted Travel Advisor Report below to discover a treasure trove of data!
Thank You to Survey Partners!
We heart travel advisors! Without you, our survey dreams are merely pipe dreams.
Industry partners are important conduits between this survey and the advisor community. These partners went the extra mile to help generate survey participation and help us connect with a broader and more diverse network of advisors.
We want to extend a colossal thank you to the industry partners who support our data shenanigans here at Host Agency Reviews: American Society of Travel Advisors (ASTA), Adventure Travel and Trade Association, Celebrity Cruises, Departure Lounge, Gifted Travel Network, Nexion Travel Group, Montecito Village Travel, Royal Caribbean Cruise Line, TaConnect, Travel Leaders Network, Travel Pulse, and Uniglobe Travel Center!
Want to add your organization's name to this list? Drop me a line at Mary@HostAgencyReviews.com and we’ll chat!