More than 2,000 travel advisors, suppliers and media attended Signature Travel Network’s annual conference earlier this month in Las Vegas. And with more than 40,000 meetings taking place over the course of the week, there was no lack of travel talk going on. Here are my five key takeaways (plus one extra note) from the gathering.
Business Is Really Good
By just about any measurement, 2023 has been a great year for Signature advisors. Sales for the Signature travel agencies grew 37% year over year — revenue for the average Signature agency grew from $8.8 million in 2022 to $12.8 million in 2023. Cruise is up 47%, travel insurance is up 40%, hotel room nights are up 34% and land programs are up 12%. As of the end of June, destination specialist performance is tracking 70% over 2022 and 52% over 2019, with Europe alone accounting for nearly two-thirds (63%) of total destination specialist sales.
Looking ahead to 2024, more than 60% of 2023 business is already on the books for next year. Cruise sales are up 73% when compared year over year, with increases in every type of cruising except U.S. cruises. On land, business is up nearly 21% year over year, with the only dip coming in villas and private houses.
“The future is bright, and Signature advisors are making a huge impact,” said Alex Sharpe, president and CEO of Signature. “We have a heck of a head start on next year, and everyone should be proud of the work we’ve done.”
Don’t Assume Anything About 2024
Despite the overwhelming success of the past year — and the positive indicators we’re seeing now about next year — advisors should be a bit cautious when it comes to 2024 predictions. Not only is it an election year (traditionally an “off” year for consumers), but the industry is dealing with several major international conflicts, mixed economic news, stubbornly high prices and more.
Bookings are not just going to walk in the door and the phone is not just going to ring on its own like it has this past year or so. The world is going to get tougher again, but that’s what we’ve always responded to as an industry.
In fact, most advisors are reporting a “softening” in demand, and we might be seeing some indicators of that. For instance, even though hotel revenue was up 20% in the third quarter of 2023 compared to the same time in 2022, average daily rates (ADR) fell 4%. In fact, after many quarters of growth, ADR was flat from the second quarter to the third quarter of 2023, and room nights actually decreased slightly during that time.
While this could be nothing more than a normalizing of rates that have soared to unprecedented highs, it might also suggest a leveling out across the board.
“Business is still strong, and our members have all these great new tech tools and resources, but now we’re going to have to do more,” Sharpe said. “We’re going to have to market more. Bookings are not just going to walk in the door and the phone is not just going to ring on its own like it has this past year or so. The world is going to get tougher again, but that’s what we’ve always responded to as an industry.”
Overtourism Is a Thing
This year’s presentation by executive vice president Ignacio Maza — always a highlight of the conference — included several instances where Maza chose to highlight alternatives to major destinations. For instance, he called out Istria instead of Dubrovnik in Croatia; Jutland instead of Copenhagen in Denmark; and Chiang Rai instead of Chiang Mai in Thailand. The goal was to remind Signature members that there is more to sell than just the same overvisited hot spots.
One of the challenges we have as travel sellers is that we’re in this groove and we’re sending our clients to the same places.
"One of the challenges we have as travel sellers is that we’re in this groove and we’re sending our clients to the same places,” Maza said. “We have to continue to open the minds of our clients and turn them on to new destinations and new places and new ways of experiencing the world. We need to always stay one step ahead of our clients and find new ways to inspire them and give them new ideas.”
Exploration Is Hot
At the conference, Signature introduced a new executive team member: Karl Kannstadter, vice president of content strategy, exploration. If his name sounds familiar, it’s because Kannstadter was previously an executive with Silversea Cruises. His new role at Signature is to highlight opportunities for “exploration” trips both on land and at sea — and even in space.
"My role is really to try to elevate the awareness of what the possibilities are,” Kannstadter said.
At Signature, exploration incorporates cruising, trekking, safaris, space travel (such as trips by Space Perspective) and more. With expedition cruising alone showing a 64% increase from 2022 to 2023 — and an additional 35% growth from 2023 to 2024 — there is clearly a huge upside in this market for exploration suppliers and advisors.
"You really can’t sell something you’re not comfortable with,” Sharpe added. “Karl will give advisors the resources they need to help them close more sales. Because those sales are fantastic — big opportunities, big commissions — and we want to make sure we serve our members that way.”
Signature Wants to Make an Impact
At the conference, Signature highlighted its new Travel Elevates program. With taglines such as “We are all agents of change” and “Global empowerment via travel,” the concept looks to put a spotlight on responsible and sustainable travel that makes a difference to local communities.
When you can add in some facet of impact travel to a trip, it adds value. When you do that, the client is going to return — to that destination or to that advisor.
“As a global society, we are hardwired to roam,” read the introduction to the first issue of Travel Elevates magazine, published by Signature. “To discover. To learn. And while all are important, connection is the driver behind this debut publication. We are dedicated to giving back to the communities we visit.”
As the philanthropic arm of Signature, Travel Elevates will further enhance the ethos that is already at the core of a lot of what the network does, and it certainly reflects the values that are often touted by CEO Sharpe.
"I think there’s tremendous opportunity here to both do good and have commercial success,” Sharpe said. “When you can add in some facet of impact travel to a trip, it adds value. When you do that, the client is going to return — to that destination or to that advisor. I would be happy if the whole industry was doing this, and we were making it easier for all advisors to incorporate some element of impact travel to their itineraries.”
And One More…
On the final night of the Signature conference, attendees were treated to a private show in Sphere, one of Vegas’ hottest new attractions. It was the first private event to be held in the new theater, which is billed as an “immersive cinematic experience.”
The one-of-a-kind venue has been the home of a concert series by rock band U2 since it opened in September. The Signature audience saw a screening of “Postcard From Earth,” a film by director Darren Aronofsky that was created specifically for Sphere. The film — which includes locations around the world — was a not-to-be-missed, fitting conclusion to a week celebrating the best in travel.
