Technology, marketing and communications

In November 2022, ChatGPT opened to users, shocking the world with its capabilities. The generative AI (genAI) platform was followed by others, and the travel industry mirrored others in its enthusiasm for the technology. For travel agencies, genAI offers the promise of efficiencies in creating marketing materials and itinerary ideas. Some are using genAI programs on their own, while others are leaning into partnerships with platforms offered by their consortium. 

But that promise may take a while to fulfill. The vast majority (86%) of survey-takers are aware of genAI tools and platforms, but less than half (41%) are using them. Those who do use genAI tend to be younger: 58% of respondents 45 years old or younger say they use the platforms, a number that decreases as age increases: Only 25% of respondents over 65 have used genAI.

AI is most interesting to advisors for creating marketing or website content. They are also interested in using it to create custom itineraries that take into account client travel history and preferences. But advisors don’t expect to let it supplant their personal touch: The survey showed using AI chatbots for customer support is of least interest to advisors.

—Jamie Biesiada

As travel advisors become familiar with NDC, they tend to adopt negative views on the digital distribution technology. This year, 54% of survey respondents disagreed with the statement, “NDC is a positive development for agencies,” up from 44% in 2023. But the increase didn’t come from those who favor NDC. That figure rose from 12% last year to 13% this year. Rather, the spike in negative views about NDC came as the number of people with no opinion on the subject dropped from 44% to 33% — a likely reflection of increasing awareness of the technology.  

—Robert Silk

In May, American Airlines gave up on the punitive strategy that it hoped would pressure more agencies to adopt NDC. Still, it and many other airlines are pushing ahead with NDC programs. To drive conversion, various airlines continue to use a combination of incentives, such as commissions, and sticks, such as GDS surcharges and content removal.

Those efforts appear to be bearing fruit. Last year, just 22% of TIS respondents said they were familiar with NDC and that their agency had access to NDC content. This year that number nearly doubled, to 42%. In addition, overall awareness of NDC rose from 41% to 57%.

—R.S.

Social media continues to be a dominant method of marketing and communication for advisors; 73% said they use organic social media to attract new clients, and 61% use it to keep current ones. The stalwart continues to be Facebook across all age groups, with Instagram a close second. 

TikTok continues its march up the popularity charts, especially among younger advisors. More than a third of respondents 45 and younger said they use it to communicate with clients; last year that number hovered in the midteens. Its use among Gen X is also up: among 46-to-55-year-olds, the number of TikTok users shot up from 12% to 23%. 

Pinterest interest has taken a plunge: Last year, 40% of advisors under 36 and 25% of those between 36 and 45 said they used it, but the percentage of those 45 or younger using it has fallen to a mere 10% this year.

—Rebecca Tobin

TIKTOK WITH CRUISIN’ SUSIE

TikTok is growing in popularity, with 17% of advisors saying they use the platform to sell travel, up from 14% last year. Countdown Travels owner Susie Flores — better known as Cruisin’ Susie on TikTok — is among that group, having amassed more than 96,000 followers and more than 2 million likes on TikTok as of late October.

Flores mostly posts about cruising, but she will sprinkle in some other types of travel or life updates. Her account has resulted in several inquiries daily. “Some book, some don’t, but overall I have a good success rate,” Flores said.

She estimated that 70% of leads come from her videos. Some she handles herself, and others are distributed to her team of ICs.

For the TikTok curious, Flores advised getting on ships and posting original content with subtitles.

—J.B.

How do advisors reach out to clients? Email, phone and text message are all popular. But in this year’s study, the use of messaging via text and social media apps declined across nearly all age groups. Communication via messaging app and videoconferencing was also flat (except among millennial advisors, where usage grew.) 

Does this signal the return to traditional email and phone outreach? Perhaps, as the pandemic crisis-era ended and travel returned to more normal patterns this year, clients felt less pressure to reach their advisor by instantaneous texts. Or maybe the mantra of “meet the clients where they are” has softened as advisors are able dictate where and how clients can contact them.

—R.T.

Not surprisingly, advisors rely on social media, their website and email for attracting and keeping clients. And it’s no surprise that general push marketing like social media and the internet is best for attracting new clients, while direct communication like email and text is used for maintaining relationships. 

But one approach deserves a quick shoutout: Nearly 50% of respondents this year said that they use “customer events” to reel in clients. And nearly 40% said they used “charity/community events” to reach new clients. “Customer events” was also among the top five most important sales and marketing approaches used by respondents. 

This type of face-to-face communication appears to be holding steady in the era of digital outreach and has likely taken on new and creative forms as home-based advisors get out in front of people and find new business. And in a similar kind of old-school approach, 40% of respondents said they use brochures, while 38% use flyers, to market to clients.

—R.T.

FACE TIME WITH CUSTOMERS

While email, social media and websites are the top marketing and sales approaches for advisors, nearly 40% indicate that customer events are important to their business.

Onyx & Evergreen Travel CEO Megan Vatnsdal held a luxury travel and wine night in January at a restaurant and wine bar in Bismarck, N.D. The location wasn’t random: Vatnsdal knew her ideal clients frequented that spot.  

As drinks and appetizers were passed, Vatnsdal and several supplier partners offered travel inspiration. Turnout was great, and the event further cemented Vatnsdal as a travel expert in her community. 

“I would encourage any advisor, if you have good relationships with suppliers, know that they’re most likely willing to support you and help you build your network and credibility in your community,” she said.

—J.B.

As more new agencies and advisors enter the fold, the need for more training programs to onboard those newbies is a recurring theme of the past year. For suppliers, it may be useful to note the types of product education that advisors find the most value in. Conferences run by a consortia or host, online training tools and supplier visits and training were all found to be “extremely valuable.”

—Johanna Jainchill