Despite constant noise from consumer and social media debating whether a recession is or is not imminent, the travel agency industry hasn\u2019t seen much of a slowdown. With the exception of a four-to-six-week timeframe immediately after the U.S. government announced global trade tariffs, business for most advisors has returned to normal.<\/p>\n
But while a slowdown in travel bookings hasn\u2019t materialized as a trend this year, other trends have emerged.<\/p>\n
The most significant trend so far this year has been the rise in last-minute or close-in bookings. (See \u201cTravel Agency Groups Still Up Year Over Year Despite Fluctuations<\/a>\u201d for more on that trend.) But along with that, four other themes have emerged over the past six months.<\/p>\n 1. Contemporary, Premium Cruise Softness<\/p>\n While all of the consortia, host, and franchise executives we spoke to said they haven\u2019t seen any signs of an overall slowdown in travel, a few did point out pockets of weakness.<\/p>\n (All agreed the luxury market, especially at the highest ends has been completely unaffected.)<\/p>\n \u201cIn the premium, contemporary, I think there is still some uncertainty,\u201d Alex Sharpe, president and CEO of Signature Travel told TMR.<\/p>\n It\u2019s those markets that were the most affected by the mass layoffs of earlier this year and the threat of continued layoffs as the year goes on.<\/p>\n \u201cThose government layoffs. Those are great customers. Those folks travel. So, there\u2019s a little uncertainty there that I think is impactful,\u201d he said.<\/p>\n Phil Capelli, chief sales officer at Avoya Travel told TMR he\u2019s also seeing softness, though more in the premium category than on the contemporary side. In particular, he said he\u2019s hearing about pockets of softness for Norwegian Cruise Line, Celebrity Cruises, and Princess.<\/p>\n \u201cThey could use our help in pockets of the Med, Alaska, and Caribbean. Even Royal wants help on some stuff last-minute.\u201d<\/p>\n Like other executives, he pointed out that Avoya\u2019s luxury bookings are solid, with no evidence of softness.<\/p>\n 2. Group Travel Bookings Boom<\/p>\n Both Kathryn Mazza-Burney, chief sales officer at TRAVELSAVERS and president of NEST, and Christina Pedroni, executive vice president and general manager, USA, Envoyage, pointed out that they\u2019re seeing more group business than they\u2019ve seen in the past.<\/p>\n Advisors are \u201ccatching on that groups can be profitable,\u201d Mazza-Burney said, pointing out that NEST has always done a lot of group business, but that TRAVELSAVERS is starting to catch up.<\/p>\n Interestingly, Mazza-Burney said that a growing demand for destination weddings is helping to push the groups trend, whereas Pedroni told us destination weddings are in a bit of a slump and have been for close to 18 months. She attributed it to a larger-than-normal uptick in this niche post-COVID when people who had been waiting to get married went all out.<\/p>\n She added that she\u2019s heard anecdotes attributing an overall drop in marriage numbers to the limitations on dating during COVID.<\/p>\n \u201cWe\u2019re kind of four or five years on from that now, which potentially is impacting the wedding market.\u201d<\/p>\n Despite the drop in destination weddings bookings, group business is up overall for Envoyage USA.<\/p>\n \u201cWe\u2019ve had over 200% growth coming through the group center over the last six months compared to the previous six months,\u201d she said. \u201cWe\u2019ve also expanded our product range there. It\u2019s been a success story for us for sure.\u201d<\/p>\n Groups business, she added, is driving much of the network\u2019s 2026 business.<\/p>\n 3. Original, Authentic, Different<\/p>\n Travelers \u2013 and luxury travelers in particular \u2013 are getting tired of the conformity, Michael Johnson, president of Ensemble Travel told TMR. Rather than settling for the same brand name luxury properties that essentially all look and feel alike, this year, luxury travelers are asking for properties that stand out.<\/p>\n \u201cIn many respects, a luxury hotel is very similar in one destination and another. Versus staying in a castle in Ireland or a chateau in France that may not have all the newest amenities but offers a more immersive, authentic experience,\u201d Johnson said.<\/p>\n Castle and manner stays, along with villas, he said, have been gaining in popularity this year.<\/p>\n 4. Destination Dupes<\/p>\n We\u2019ve been hearing about the destination dupe trend since last year, but with even more media coverage of anti-tourist protests, particularly in Europe, travelers are thinking more seriously about where they want to spend their time.<\/p>\n \u201cPeople are responding to some of the overtourism,\u201d said Michael Johnson, president of Ensemble Travel. \u201cThere\u2019s been a lot of press on protests in places like Barcelona. So, we see a pivot to Portugal or to Madrid or San Sebastian.\u201d<\/p>\n And it\u2019s not just the protests that\u2019s having some travelers reconsidering their travel choices. Ever increasing summer temperatures are also giving some travelers pause. <\/p>\n \u201cThere are folks that are trying to push away from certain destinations in peak periods,\u201d Jackie Friedman, president of Nexion Travel, said. \u201cNot necessarily because of what\u2019s going on in those destinations, but it\u2019s a more pleasant experience going to Rome [in shoulder season] than in the middle of July.\u201d<\/p>\n (This is part three of TMR\u2019s annual look at\u00a0how the travel agency industry fared in the first six months of the year<\/a>, what executives wish they could change, and what actually keeps them awake at night<\/a>. )<\/p>\n","protected":false},"excerpt":{"rendered":"Despite constant noise from consumer and social media debating whether a recession is or is not imminent, the…\n","protected":false},"author":2,"featured_media":9119,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,112],"class_list":{"0":"post-9118","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/9118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=9118"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/9118\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/9119"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=9118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=9118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=9118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}