The function of travel advisors has evolved significantly over time. Today’s travel consultants handle everything from air to resorts to immersion experiences to insurance and everything in between for their clients. Travel insurance is a market that clever agents are increasingly included in the important products and services they provide to their clients. Advisors profit from the additional money generated by selling travel insurance while providing the best protection to their customers.
We spoke with a number of travel advisors and discovered seven key points that can help advisors sell travel insurance more effectively. Consider trying on any or all of them to see how they fit.
1. Always provide travel insurance to all of your clients for all of their trips.
“Oh, I’m absolutely going on this trip,” some clients will say. “I’m not going anywhere, so I don’t need travel insurance.” Don’t stop there, though. Because no one knows what will happen in the interim.
“We instruct our agents not to seal a sale or take a credit card until they bring up the option of travel insurance,” said Geoffrey Cox, vice president of sales at KHM Travel (a host agency based in Brunswick, Ohio, with 5,000 independent contractors around the country). “Every time we sell it, we sell it twice.” We bring it up and explain why it’s vital if they don’t want it. We might even show them some examples of travel nightmares that have occurred as a result of people not purchasing travel insurance.”
Customers were furious because they were meant to travel for a trip in Mexico but couldn’t because of Hurricane Dorian, Cox learned in early September from an agent. Their flight to Florida was canceled, but the resort remained open. “Well, we can’t fly there,” they said. “If they had travel insurance, they would have been OK,” Cox added. Now we have to return to the hotel and make arrangements for them.”
2. Inform them that their health insurance in the United States is unlikely to cover them while they are abroad.
Inform your clients that their U.S. health insurance will likely not cover them if they become critically ill or wounded while visiting another nation. “Foreign medical institutions and providers need cash payment up front and do not accept U.S. insurance plans,” according to the US State Department. Outside of the United States, Medicare does not provide coverage.” Then tell them that if they have travel insurance with emergency medical and dental benefits, it can reimburse for losses incurred as a result of covered crises while on vacation.
3. Don’t make suggestions just on the basis of price.
Cox also advises against offering clients the cheapest travel insurance coverage. Instead, explain why “being willing to pay a little extra for a better policy” is preferable. Examine the policy’s features and the amount of coverage they’ll receive for the money. They can buy a far better policy for a few extra bucks, usually through a third party.”
4. When it’s suitable, offer an annual travel insurance package.
“It’s best to obtain annual coverage for clients that make a lot of small trips,” said Sue Doyle, a travel agent with Montecito Village Travel in Santa Barbara, California. “In the long term, they’ll pay less.”
5. Get clients to sign a waiver if they don’t want to purchase travel insurance.
If a consumer declines to acquire travel insurance, Kristin Bodin, owner of Acadiana Travel in Lafayette, Louisiana, advises, “always ask them to sign a release claiming they declined it.” You must cover all bases and thoroughly comprehend the trip and cancellation policies and make this apparent to them. That would be my first piece of advice to fellow travel brokers.”
6. Tell compelling stories about the advantages of getting travel insurance.
“I had a family (mom, dad, and three kids) that traveled to Europe,” says Marco Ruiz, a travel consultant at AAA Travel Monterey, as an example. The mother became ill in the middle of changing trains in Milan, Italy, on her trip to Venice from Lake Como (she was a cancer survivor). On the platform, she passed out. No one wanted to help her since in Italy, if a person is unable to sit up, they must wait for paramedics. Finally, paramedics arrived and transported her to the hospital. They never made it to Venice, and their aim had been to travel from there to Ireland.
“I went inside and spoke with the insurance company.” There was a three-day hospital charge as well as the family’s hotel stay. The Venice vacation, which was non-refundable and cost over $5,000, had to be canceled.
“At the end of the day, the mother didn’t have a stroke.” She was experiencing vertigo as a result of her anxiety and excitement. Their travel insurance covered the time they spent in Milan, Venice, and rebooked tickets to complete the balance of their journey.”
Not only did having travel insurance save the family’s trip, but it also helped Ruiz and his clients form a strong friendship. “She’s now my permanent client.” And, because she is a local news presenter, she refers a lot of people to me,” he explained.
7. Check to see if the travel insurance you’re selling includes commission protection.
The primary goal of travel insurance is to safeguard your customers. However, you, as a travel agency, require security as well. The majority of plans do not cover commissions paid to travel agents. “This is incredibly essential,” Ruiz added. I could be putting in a lot of effort on a vacation. It’s ideal if the customer receives their money back. However, I put a lot of effort into the trip, and if it is canceled, we must return the commission to the provider.”
Why is it important to sell travel insurance?
It’s no secret that there’s a lot that you can’t control when you travel. If an emergency arises, flights may be delayed or you may need to return home.
Travel delays might cost you a lot of money if you don’t have travel insurance. You lose the money you’ve already paid in many circumstances, and you’ll have to pay for new bookings as well.
Many travel insurance plans include coverage for events beyond your control, so you won’t have to pay out of pocket if something goes wrong.
How do I become a travel insurance agent?
A high school graduation or GED certificate, as well as state certification, are usually required to become a travel insurance agent. Although there are appropriate degree programs, many firms offer on-the-job training. This profession requires sales abilities, customer service expertise, and basic computer literacy. A travel insurance agent’s job is to safeguard tourists from cancellations or issues with flights, vacations, hotels, cruises, vehicle rentals, or full vacation packages by providing insurance.
Do travel agents make good money 2021?
“Think of it as a way of life rather than a job,” says O’Shaughnessy. The pay isn’t always lavishthe median annual income in the United States is $38,700, according to the Bureau of Labor Statisticsbut it can be substantially higher, according to Pindar. “Agents can earn anything from $50K to $100K on the low end to $250K to $500K on the high end,” Pindar explains. However, there is no other industry that allows you to travel as much as this one. You’ll go on subsidized excursions to luxury resorts sponsored by hotel businesses on a regular basis, so your pals will undoubtedly think you’re enjoying the high life solely on your Instagram alone.
You get paid on commission, meaning you earn money based on the trips you book for your clients.
You’ll make the majority of your money on commission, therefore you’re mostly a salesperson. When you work for a travel agency as an in-house agent (on-staff roles at agencies are becoming increasingly rare, but they’re still in demand), you usually receive a basic income and a commission split. This varies each agency and is also determined by your level of experience. Let’s say you have an 80-20 commission split, for example. That means that if you are paid a 10% commission on a hotel reservation, your agency receives 80% of the money and you keep 20%. You can become an independent agent if you’ve gathered enough clients, which means you operate for yourself but are still linked with a host agency. You lose your base pay as an independent agent, but you maintain your commission.
Should you tip travel agents?
Some people who eat out while traveling leave the same tip a flat percentage regardless of whether the service was good or bad. Most diners, though, prefer to leave some wiggle room. Many people follow the general rule of leaving 15% for acceptable service, 20% for excellent treatment, and more than 20% for service that actually made the meal unforgettable. When it comes to how and whether to tip for truly inattentive service, the picture becomes a little murkier. Some say you should cap it at 10% to give people the benefit of the doubt, while others say you should just put a big fat zero to the gratuity line. Most of us anonymous diners can get away with it if we want to, but celebs don’t always have the luxury of dining and dashing – on the tip, at least. A-listers and athletes ranging from Johnny Depp to Tiger Woods, Madonna and, most recently, Philadelphia Eagles running back LeSean McCoy have all been accused of bad tipping etiquette, with many of the accusations made on social media. 3
How much commission do independent travel agents make?
Absolutely. Similarly, working from home as a travel agent (also known as a Personal Travel Consultant) is not a get-rich-quick plan.
Commissions are how a travel agency makes money. You don’t have the luxury of a basic pay as an independent agent. Every time someone plans a vacation with you, you’ll get paid a commission.
When you sell a ticket, vacation, or cruise, you get paid a commission from the travel company that will provide the customer’s final experience.
The more complicated the journey, the more you may charge and, as a result, make more money.
It is entirely up to you how much money you make. Your earnings are unrestricted and uncapped. It isn’t a fixed salary.
How much you make will be determined by whether you have 10 clients or 100 customers, if you have a lot of recurring business, or if you spend very little time promoting yourself.
Every type of vacation has a different commission, and suppliers often pay a different percentage. The amount of money you can make from an airline booking vs a hotel booking varies. In comparison to a bespoke, round-the-world, tailor-made journey, a booking for a package holiday in Spain will bring you a different percent of commission.
Some travel agents earn six figures a year, while others see a £20,000 increase in their annual household income. It all boils down to your personal goals and how much effort you’re prepared to put in.
What are the Pros and Cons of being a travel agent?
- Working from anyplace, whether at home or on a tropical island, is possible. Because your primary job is to market travel, taking a vacation or a series of mini-breaks is beneficial. Because you’ll be able to shoot photos, videos, and share them on social media, you’ll be able to learn more about a trip and the best hotels in that country.
- Being in charge of your own destiny. People who want to work as a travel agent from home appreciate the freedom to set their own hours. If you want to supplement your income while working another job or function, such as being a full-time mother. You can set your own working hours because the employment is flexible.
- The profit potential is limitless. When you get paid a commission every time someone books a vacation, there’s no limit to how much money you can make.
- It’s an interesting sector to work in because it’s constantly developing and evolving. It’s also a fantastic item. Travel is a hot topic that everyone enjoys discussing. Selling vacations is the ultimate feel-good activity.
- The job is difficult and stressful at times. Because a travel agent’s human touch and customised experience set them apart from an internet booking platform, you may be required to take calls late at night or on weekends. While on vacation, some travel agents report assisting consumers.
- Travel agents are paid on a commission basis; if they don’t sell, they don’t get paid. You’ll need to brush up on your sales skills because you’ll be selling travel to consumers and getting paid after they’ve taken it.
- You’ll need to purchase your own travel insurance if you work as an independent travel agent. There are hundreds of things that can go wrong, and something will. Insurance will cover you and your business in the event that something does.
- In a competitive sector like travel, carving out a niche is critical. You may specialize in eco-friendly travel, luxury safaris, New York getaways, or become a honeymoon expert.
What is becoming a travel agent all about?
There are many facets to being a travel agent, but it’s worth noting that the relationships you form and maintain with customers and suppliers are crucial.
As a travel agent, how can you generate more money? Clients, clients, clients, clients, clients, clients, clients, clients, clients, clients, The idea is to have satisfied customers who would come back to you year after year or whenever they need a break. Building a strong and loyal customer base is essential so you don’t have to spend time looking for new consumers every time. This will be accomplished by building long-term connections with clients and providing personalized, exceptional customer service on a consistent basis.
What are the main differences between being an independent travel agent or joining a franchise?
When considering becoming a travel agent, the most important thing to consider is: “Do I go it alone or do I join an established travel company?”
Both options have advantages and disadvantages, and only you can determine which path is best for you. In the last 20 years, the appeal of joining a franchise has exploded in the United Kingdom.
In the first two years, half of all new firms fail, whereas 90 percent of franchise businesses become successful in the same time frame.
But why do consumers pay a company to help them launch a travel business? There are numerous reasons for this; here are a few:
Why use a travel agent instead of booking online?
Instead of booking online, why not utilize a travel agent? Simply said, you’ll have a better trip if you don’t have to worry about planning it yourself. With their wealth of knowledge and expertise, a travel agent can fit your interests, budget, and time schedule to ensure that you get the most out of your vacation.
What is travel agent rate?
A travel agent is a person whose business it is to organize travel on behalf of suppliers for end clients (individuals, groups, and corporations) (hotels, airlines, car rentals, cruise lines, railways, travel insurance, package tours). His job is to make the vacation planning process easier for their consumers, as well as provide consultation and complete travel packages.
Agents might work for themselves, for an independent travel agency, or for a Travel Agency Consortia. Travel brokers can focus on leisure, business, and/or other specialist areas. They could be specialists or generalists (i.e. specialise in cruises, adventure travel, conventions and meetings.). For managing travel bookings, the brokers often collect a 10 to 15% commission from hotels, transportation companies, and attractions.
Although using a Travel Agent to book a hotel/trip/etc. saves time, the number of Travel Agencies is declining due to the strong online presence of the suppliers (hotels, airlines, etc.). OTAs (Internet Travel Agencies) are the (new) online version of a travel agency.
Customers that are planning multi-destination and/or foreign excursions will benefit from using a Travel Agent. When you book through an agent, you save time and avoid ‘headaches.’ The agent that combines all the travel components and services for the client/traveler provides the experience and consultation. Agents frequently have access to unpublished bargains and events that are favorable to the visitor.
Why it is so important for a client to take travel insurance?
Loss of passport and personal belongings coverage, loss of checked baggage coverage, and other dangers are covered by travel insurance. These risks are covered, which adds an extra layer of protection against financial loss. Travel Insurance protects your funds by reimbursing such non-refundable charges.
How do you sell international insurance?
To get started selling foreign health insurance and travel insurance, follow these simple steps:
It is not difficult to learn how to market these plans; you simply need to work with an experienced international health insurance agency.