Group travel is more than just a fun way to see the world; it’s a powerful strategy to significantly enhance your Travel Business. For years, I’ve not only personally enjoyed the enriched experiences group travel provides, but also witnessed firsthand its immense potential for travel professionals to grow and thrive. From leading diverse groups on river cruises through Europe and adventures in South America to numerous resort getaways, the consistent lesson has been clear: shared travel amplifies the joy and impact of exploration.
Beyond personal enrichment, my journey in the travel industry, particularly with organizations like the Global Institute for Travel Entrepreneurs (GIFTE) and Gifted Travel Network (GTN), has allowed me to guide countless travel advisors in leveraging group travel to build successful travel businesses. It stands out as one of the most fulfilling and financially rewarding avenues for those in the travel profession. If you’re a travel advisor looking to expand your travel business through group travel, keep reading for essential insights.
Tapping into Affinity Groups for Business Growth
The cornerstone of a thriving group travel business lies in understanding affinity groups. People naturally gravitate towards shared interests, and this is your golden ticket in the travel business. To effectively grow your group travel segment, connect with leaders of affinity groups and initiate conversations about tailored travel experiences. The spectrum of affinity groups is incredibly broad, presenting endless opportunities for your travel business. Consider car clubs, dance communities, heritage organizations, corporate incentive programs, wine enthusiasts, golf societies, destination wedding parties, fan clubs dedicated to music or pop culture, culinary groups, bridge clubs, non-profits, film aficionados, wellness communities, fashion circles, hobbyist groups, sports teams, festival attendees, diving clubs, hiking groups, book clubs, and countless others. If a group shares a passion, there’s an opportunity for a specialized travel experience that your travel business can curate.
Strategic Partner Selection for Group Travel Success
Once you’ve established a connection with an affinity group and understand their travel desires, the next critical step is aligning them with the ideal travel partner and experience. A common misstep in the travel business is prioritizing a specific travel supplier first and then trying to find a group to fit their offerings. While this approach can occasionally work, it often leads to challenges. At GTN, we advocate for the “easy” approach: first, understand your group’s needs and travel style, and then recommend a travel supplier that genuinely matches their expectations. A pitfall to avoid is pre-blocking space with a supplier and then scrambling to fill it. This “hard” way can put unnecessary pressure on your travel business.
Mastering Your Margins in the Travel Business
A significant oversight in the travel business, particularly within group travel, is neglecting to “know your numbers.” Across the industry, there’s a notable gap in financial literacy in this area, resulting in missed revenue opportunities for advisors who don’t thoroughly analyze their numbers before finalizing group agreements. Two crucial financial aspects are the commission levels offered by your travel supplier and the commission split arrangement with your host agency. If group travel is a core focus of your travel business and you’re affiliated with a host agency, it’s essential to aim for a host that allows you to scale up to a 100% commission level. Although less known, the 100% commission model, despite a potentially higher monthly fee, becomes incredibly advantageous when you’re managing groups that generate substantial commissions, such as $20,000, $30,000, $50,000 or more. In these scenarios, even a 90/10 commission split can significantly impact your bottom line and profitability in the travel business.
Group travel strategy is multifaceted, and these points are just a few of the many considerations. For a deeper dive into building a profitable and sustainable group travel business strategy, resources like GTN’s virtual events offer invaluable insights into the decision-making process.
If you’re passionate about group travel, whether for personal enjoyment or business growth, share your thoughts! Travel advisors and suppliers, your group business success tips are welcome – contribute your expertise below and let’s learn from each other in the dynamic world of travel business.
