The travel agency space has seen unprecedented growth in recent years, spurred by a number of factors: travelers newly recognizing the value of advisors, consumers splurging on travel and higher prices in general boosting sales and commission numbers.
And with growth projections continuing on the upswing, technology companies are taking notice.
The number of tech companies creating software specifically for travel agencies and advisors has burgeoned in recent years.
That has spurred Host Agency Reviews, the site known for its listings and reviews of agency networks like hosts and franchisors, to create a profile category just for tech providers.
“People have seen the growth,” said Host Agency Reviews founder Stephanie Lee. “There was a handful of tech companies prior to the pandemic, and then it stayed relatively steady. You didn’t really have newcomers coming in. And then it was during the pandemic, I think, when people were really starting to do research, and it was showing that more people are going to be using travel advisors.”
It’s a market where there’s room for growth, Lee said, an enticing prospect for tech developers.
Data on advisor growth
Stephanie Lee
She pointed to data from Phocuswright’s “U.S. Travel Market Report 2023-2027,” published this summer, which reported that offline travel advisors and TMCs claimed a total market share of travel sales of 19% in 2023. That year, Phocuswright found, the agency segment saw “impressive 27% growth,” the highest growth rate for all channels.
Advisors’ overall market share is projected to remain steady, with a slight uptick to 20% in 2027, which Phocuswright largely attributed to a predicted rise in business travel.
Travel agencies also own a commanding majority of sales in several segments: 67% of the total market share of cruise sales in 2023 and two-thirds of the traditional vacation packager market (that share is expected to rise to 67% in 2027).
Meanwhile, OTAs’ market share — 21% in 2023 — is projected to remain flat through 2027. That, Phocuswright said, is indicative “that offline sales (including supplier-direct, leisure and corporate travel agencies) will hold their own against digital channels for the next four years.”
Host Agency Reviews soft-launched its Travel Agency Software Profiles earlier this month. While some aren’t live yet, 40 companies have created profiles featuring their products and integrations with suppliers or other travel technology.
The profiles include options for companies to add Q&A and FAQ segments, and there are also sections for advisor reviews.
Information evolution
Lee said it was important for her to include a section on security information, addressing, for instance, whether the technology uses two-factor authentication and is compliant with rules to secure credit card information.
Lee said Host Agency Reviews has evolved. Initially, the agency networks that have profiles on the site would simply list whether they offered advisors a CRM. But options have proliferated.
“Now there are multiple, multiple CRM options, there are multiple itinerary builders, there are multiple booking tools,” she said. “It really became a need of specifying what these were.”
The software profiles, which can be created by reaching out to Host Agency Reviews, are free.
It seems to be a feature resonating with advisors: In the days following the soft launch, the pages received more than 3,200 visits and more than 70 reviews from advisors.
“I’m really excited to see the new tech that’s coming out and to be able to keep abreast of it in the future,” Lee said. “Having one spot, I think, is advantageous to not just tech companies for exposure but for agencies, as well, for people to come and to be able to read reviews, see what’s happening and make good decisions.”
