LETTER FROM THE EDITOR Dear Readers, It’s time to super-size those bottoms lines. Group travel has long been a revenue generator for travel agencies and advisors who were able to break in and succeed in the segment, and thus become the envy of colleagues. According to this new Outlook on Group Travel, 73% of the advisors sell group vacations, which goes to show just how popular this kind of segment is among sellers. Even with the popularity, it is still a big task for advisors who truly want to succeed with groups and something that we know is not always easy for even the most driven travel advisors. We know there are issues. It takes time to get a quote for group travel, and it takes patience to know when to take a deposit, when to sign a contact, and how and when to communicate to group members. We also know that building or finding a group for travel isn’t always easy. That could be why the advisors who sell groups have been doing it for a long time — one in two advisors (49%) have been selling travel products for more than 16 years, whereas 9% have less than two years of travel sales experience. We hope that the information in this Outlook on Group Travel helps you with those tasks, and also helps suppliers realize where they can assist you the most. We also hope that those without those years of experience can take a look at the report and close that gap, and those with that experience will be able to improve how they do business, even if they’ve been doing it for years. We would like to thank our sponsor, ALG Vacations, for allowing us to put together this research, along with the advisors who have lent us their time and expertise for the data. Thank you and happy reading, Daniel McCarthy Editor 3

2022 More than half (52%) of the 851 travel advisors surveyed described themselves as independent contractors (ICs) working with a host agency, 20% were retail travel agencies with a storefront location and 20% were without a storefront location. In terms of their position within the business, 60% said they were ICs and 22% were owners. 29% of the advisors booked more than US$1 million in sales in 2019, while 13% clocked more than US$2 million. One in two advisors (49%) have been selling travel products for more than 16 years, whereas 9% have less than two years of travel sales experience. 88% of the advisors aged 45 years or older, of which 26% have a vast experience of more than three decades in selling travel. More than half (58%) of those aged 18-44 had up to 5 years of experience in selling travel products. Most of the advisors (86%) were affiliated, either with a consortium, a host, or a franchise. 73% of the advisors sell group vacations. 45% of those selling group vacations said they usually travel with or host the group, while 73% expected on-site support from the suppliers. 95% of the advisors booked groups larger than 10 persons in 2019. Caribbean islands, including The Bahamas, are the most popular destinations for group travel (66%) with Mexico (46%) and Europe (41%) being at the second and third spot respectively. All-inclusive packages (including air), insurance and cruise are among the most popular products sold by advisors for group travel. Of the advisors who book standalone air for group travel, half booked air directly with airlines, while another 36% of them booked air through a consolidator. 45% of the advisors were comfortable selling air for group travel while 13% said they were not. The majority of advisors (80%) said it took up to a week to procure a quote for group travel. Two in three advisors closed the entire sale – from lead generation to bookings – within 7 weeks. While booking a destination for group travel, 61% of advisors prefer booking all the services through a wholesaler whereas 30% use a local destination management company (DMC). A majority of the advisors (53%) take a deposit for a group booking only after the contract has been signed. Meanwhile, 46% said they took an upfront deposit. Word of mouth (80%) and past clientele (76%) remain the most effective channels of lead generation for travel advisors with social media being a distant third. E-mails, phone calls and in-person communication are the preferred modes of communication with suppliers as well as clients. 73% of the advisors were comfortable using technology while only 2% said they were not. Budget concerns were the biggest challenge faced by advisors, along with managing client requirements for group travel being time consuming. COVID-induced restrictions have emerged as another sore point in selling group travel. Fam trips, improved call center operations and improved booking tools topped the list of support from the suppliers that would enable advisors to better sell group travel. Fam trips (84%), virtual training courses (72%) and one-day offsite training are the most preferred training formats for advisors. Product/destination training (74%), specialization training (53%) and social media training top the list when it comes to content. KEY FINDINGS 4