Agent advantage: Who’s booking with travel advisors?

While inflation and economic uncertainty are among the top challenges facing U.S. travel agencies, the market remains strong.

Despite slower projected growth in 2025 compared to the previous year, travel agency sales are outpacing the overall travel market, with exclusive and high-end luxury travel leading gains, according to Phocuswright’s recent travel research report, U.S. Travel Agency Landscape 2025. Wealthier travelers, undeterred by higher prices, continue to seek out unique experiences and the personal service travel advisors offer. Although U.S. travelers overall are showing heightened price sensitivity, advisors are leveraging a variety of tactics to appeal to more budget-conscious customers.

The client profile of U.S. travel agents

Travelers who work with advisors are typically older and wealthier than the average traveler. More than three quarters of clients are over 40 years old, with 44% older than 55. Six in 10 clients have an annual income of $100,000 or more. 

Younger travelers, with a strong drive to travel, are often a key demographic in the broader travel market. However, they tend to be more cost conscious, often leveraging online travel agencies to find the lowest price. Yet appealing to younger generations is crucial for the long-term success of the advisor channel. There is increased focus on attracting and training Gen Z and millennial advisors with a large social media presence to better engage with younger travelers.

While younger travelers often choose their booking channel based on price, advisors indicate that only 2% of their clients book with them because they offer the best price. Instead, advisors say personal relationships, customer service and their knowledge of travel products and destinations are most important to attracting travelers.

Expanding the client base to include a younger clientele will require educating younger travelers about the benefits that advisors can provide—and doing so in a way that will appeal to this younger demographic.