This week, a Travel Industry Forecast panel — hosted by the American Society of Travel Advisors (ASTA) at the National Press Club in Washington D.C. — brought together a group of travel experts to reflect on the latest summer travel trends and to predict what the next few months will look like for the traveling public.
The panelists, who represented travel advisor networks, associations and corporate and leisure travel agencies, acknowledged the challenges posed by rising costs, labor shortages and high client expectations, but also shared some key opportunities and words of advice for travel agents hoping to take advantage of the surge in travel demand.
Here are some of the panelists’ key pointers — and the opportunities they see for U.S. advisors right now.
Take Advantage of Increased Travel Spending and the Strength of the U.S. Dollar
Inflation has caused consumer prices to soar, but traveler spending is still up.
According to ASTA’s newest Travel Industry Forecast, which was presented just prior to the panel, traveler spend is averaging $200 more per day (for a family of four) when compared to 2019. This may be a result of the “revenge travel” trend, which describes the post-pandemic travel surge that came after a large population of travelers sat in their homes for more than two years while saving up for their dream vacations.
Although bookings for 2023 and 2024 look strong, this surge will eventually level off, predicts Kathryn Mazza-Burney, chief sales officer for TravelSavers, a travel advisor network based out of Oyster Bay, N.Y.
Until then, U.S. travelers can take advantage of the dollar’s strength against a number of currencies, including the Euro (as of press time, the current dollar-to-Euro exchange rate was nearly 1-to-1).
Manage Expectations and Be Transparent With Clients
A major challenge for present-day travel advisors is managing high expectations in light of inevitable travel roadblocks.
Every sector of the travel industry — from hotels to airlines to car rental companies — are facing the same problem, and that is the lack of labor available, according to panelist Marc Casto, president of leisure Americas for Flight Centre Travel Group.
“We ourselves are scrambling to find any labor, and labor markets have completely upended over the last few years,” he said, noting that airlines are trying to onboard hundreds of pilots per month, which requires a significant amount of training.
“Unfortunately, you can’t just grab somebody off the street and put them in front of the plane and have them fly,” he said.
The challenge then becomes managing and resetting traveler expectations, according to multiple panelists.
“[As an advisor, you need to be] very transparent because of the challenges you are going to face — but it’s also the greatest opportunity,” said Kareem George, principal of Culture Traveler. “This is such a challenging environment, but it's not one where [travelers] have to be alone. There's a community of travel advisors out there who are trained to assist. This community knows these destinations; they know the airlift in and out of destinations; and they know how to best craft your itinerary so that you have some cushion.”
[As an advisor, you need to be] very transparent because of the challenges you are going to face — but it’s also the greatest opportunity. This is such a challenging environment, but it's not one where [travelers] have to be alone.
Mazza-Burney said transparency when communicating with clients is key right now.
“We look at where we're sending clients, and everything is still not 100% [open],” she said. “And the expectation is they're spending the money … but they need to be aware that things are still closed. They need to understand that before they go.”
Reach New Markets in Innovative Ways
According to Virtuoso’s Matthew Upchurch, there are six generations currently traveling, the largest population ever recorded. And trends are pointing toward a shift toward the purchase of new experiences over material goods. (Add to that the three major populations who still haven’t started traveling — corporate travelers, the unvaccinated and the outbound China market — which will further accelerate the industry’s rebound, according to Casto.)
This poses a substantial opportunity for travel advisors who are looking to diversify their client base.
But Denise Jackson, president and CEO of Balboa Travel (and the panel’s moderator), recommends that advisors reach new generations by communicating on their terms — by using the technology platforms they know best.
“We need to speak to the next generation like they like to be spoken to,” she said. “So, the methods that we used 10 years ago don't work anymore. Invest in your businesses and use the proper digital format that works for communication with these individuals, and you will see your business soar. They just figured out we were here, and now we need to communicate on their terms.”
It’s also helpful to get out into the local community, according to George of Cultural Traveler.
“This next generation is very active,” he said. “If you're active in your community, you're going to meet them naturally. And once you meet them, you really have to communicate what you do and why it's a value, and really engage them in dialogue.”
Measure Sustainability Through More Than Just Environmental Impact
The pandemic put a spotlight on sustainability, according to Virtuoso’s Upchurch. (In fact, a recent study from Virtuoso revealed that luxury clients will pay a premium for sustainable travel.)
But he says one of the biggest misconceptions about sustainability is that it only encompasses the environment, and that you have to be an expert in order to sell it.
“The reality is, there’s the environment, there’s local employment, there’s local economy and there’s the preservation of natural and cultural heritage,” he said, adding that advisors don’t have to be an expert in any one thing.
Instead, they should “learn what they can, work with our partners and tell better stories.”
“[One luxury client] said, 'If you can make sure that my family and I have a great experience, and make it easy for me to know that I'm giving my money to somebody that's doing something really cool for their community, I will see you as the advisor at a different level of value in my life than I would somebody else,'" he said.
