The recent National Travel Agent Survey — an independent nationwide survey of almost 700 Canadian travel agents conducted in January of this year revealed that home based agents are selling more high-margin product than their bricks and mortar or call centre counterparts.
The shift to higher margin products from package tours, hotels and flights might explain the survey finding that a majority of home based agents are earning more since going home based.
Home based agents who moved from either a bricks and mortar location or call centre said that they earned more once they became home based. 52% of home based agents reported they are making between 15% – 100% more income by being home based — with 21.5% saying they are making 51% or more.
Why are home based agents specializing more?
Home Based agents are much more inclined – and able—to specialize on high margin product segments as their focus. Home based agents are their own boss so they are free to choose what they sell and specialize in.
They are also free to focus on product –and a product mix combined with suppliers who pay higher commission–that can give them the best income.
And the majority of home based agents are also charging service fees –and even fees for doing investigations for clients.
Home based agents selling more cruise, tours and luxury
The survey revealed that by product category, home based agents were selling far more of high margin products than non home based agents. The following figures show the percentage of home based agents who sell this product category vs. the percentage of non home based agents:
- Ocean Cruise – 68% vs 21%
- River Cruse – 57% vs 12%
- Tours – 71% vs 18%
- Luxury – 59% vs 16%
- Flights – 29% vs 42%
- Hotel Only – 18% vs 38%
- ITC – 68% vs 59%
Home Based Agents’ comments from the survey
Here is a selection of home based agents’ comments explaining their shift to higher margin products and specialization:
“River cruises are a fantastic choice for my clients who value immersive journeys along picturesque waterways. Plus, they offer attractive commissions, making them a win-win for both travelers and myself.”
“Ocean cruises are a go-to recommendation for me because they cater to a wide range of preferences and budgets, ensuring happy clients and healthy commissions.”
“Tours are my favourite! They come bundled with everything travelers need, and the commissions are great, allowing me to offer seamless experiences while boosting my earnings.”
“Luxury travel is my passion and a top-seller. I love curating exclusive experiences for clients, and the higher margins mean more rewards for me.”
” Group tours are ideal for agents like me. They involve larger bookings, which means higher commissions, and they cater perfectly to specific interests or demographics.”
“Eco-adventure tours are gaining popularity, and I’m excited to promote sustainable travel options. They offer unique experiences and commissions that align with my clients’ values.”
“Ocean cruises are a staple in my portfolio. They cater to families, luxury travelers, and everyone in between, ensuring satisfied clients and rewarding commissions.”
“Specialty group tours are a fantastic opportunity. They allow me to create tailored experiences for niche interest groups while boosting my earnings through bulk bookings.”
High margin suppliers are paying attention to home based agents
Many suppliers are now understanding the value of home based agents and that many of them are specializing in high end products.
Suppliers are always looking for agents who have high net worth clients and are beginning to recognize that some home based agents do have this clientele.
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