Travel agency groups whose business models target independent contractors have reported an increase in new hires.

Global tour group and Travel advisor have reported a total of 230 new hires in the last 12 months, partly due to ongoing layoffs at larger travel agencies.

These new employees who work in the leisure and business travel sectors will continue to grow “Micro-agencies” and other types of coalitions – with loyal customers who transfer business to these new ventures.

Join us on February 17th at Skift’s Online Travel and Sales Summit

Global Travel Collection, headquartered in New York, part of Internova travel grouphas hired 70 new travel agents in the past six months, 25 of whom are from the UK.

“The majority of new independent contractors come with their portfolio,” said Angie Licea, president of Global Travel Collection. “I equate this with a hairdresser. When a barber leaves their salon and goes to a new salon, they have following followers of people who trust them. They don’t want anyone else to touch their hair. “

Global Travel Collection that operates brands such as Protravel, Tzell Travel Group and Collett’s travelsthis month is restarting its “New to Industry Travel Advisor Bootcamp” as a virtual event.

A new format for franchise businesses

UK headquarters Travel advisor160 new business owners have been hired in the last 10 months, 40 of them in the business travel company. Travel consultant for companies. This cohort has already generated $ 1.4 million in sales since starting their business last year.

“Where they came from has diversified and we are seeing more travel management companies join them,” said Kieran Hartwell, managing director corporate for Travel Counselors.

In addition to recruiting travel advisors late last year, Travel Counselors created a corporate development department to cater to a growing number of seasoned salespeople who were being laid off.

“There has been a lot of wear and tear and layoffs so we thought it would be a great opportunity to keep talented people in the travel business,” said Hartwell.

The company recruited 10 business development managers who grow their businesses by attracting and attracting new corporate customers. They work with other travel agents to fulfill these bookings.

The so-called micro-agency model is also becoming increasingly popular with the Global Travel Group.

“We see that maybe two or three agents have tried to function alone, but now they are forming a coalition to share resources and create micro-environments,” Licea added. “You can join us as individuals or as this microenvironment.”

Define loyalty

With the increasing number of consultants working alone, former employers could soon pay more attention if faced with significant customer declines.

Booking trips can be emotional, and successful consultants have built relationships over the years. It goes without saying that they will take on these relationships, but former and new employers will now carefully consider these transitions, according to a legal expert.

“Clauses in employment contracts and consultancy agreements, known as restrictive agreements, usually prevent an outgoing employee from working for a competitor or soliciting the company’s trade secrets and confidential information,” said Ian Skuse, partner with the law firm Blake Morgan.

Such bans usually prevent this for a period of 12 months, and customer lists and contact details fall under the category of confidential information, he added.

Last year, a British high court found former employees Pioneerhad a British travel agent acted against the trust when they joined a competitor, Travel Counselors, in 2016.

“These cases show the dangers of the consultant poaching clients if this is prohibited by the contract of the first agency,” said Skuse. “If many consultants leave, the employer will likely take action,” he added.

However, when employees are laid off, there is an argument that the clauses are no longer enforceable, Skuse said. However, this is not automatic and advisors and employees should seek legal advice before contacting old customers.

With customer information, a classic example of a trade secret, former employees, at least in Great Britain, would also owe a “duty of trust”, since passing this information on to a competitor would impair the former employer’s business. This duty of trust is automatically implied between an employer and employees, even if it is not mentioned in the employment contract.

If the employee’s relationship with their customers is particularly strong, the customers will likely follow them without prompting the new business – which would not violate the terms of the contract.

Global Travel Collection’s Licea predicts recruitment will continue to grow.

“This is such a unique industry because people have so much passion and love for it,” she said. “Not many people want to go, but they want to find a home where they can feel safe, especially at this time when travel is so uncertain.”

Register now for Skift’s Online Travel and Sales Summit on February 17th

See full article

Photo credit: More and more dismissed consultants are setting up their own micro-agencies. Daria Shevtsova / Unsplash