According to a survey of nearly 300 advisors, despite economic concerns, clients remain excited about travel in general and are willing to spend more on their vacations this summer. In the study, part of TravelAge West’s Need to Know research series, 73% of advisors say clients are spending more on travel now than before the pandemic.
Most respondents (58%) report that clients are choosing more luxury travel options than before the pandemic — with 35% indicating that their customers are willing to splurge on travel and another 72% saying they are spending more because prices are higher.
Seventy-two percent of travel agents say that clients are spending more because prices are higher for travel experiences.
Credit: 2022 TravelAge West
“My bookings for international travel are definitely 20-30% higher than before COVID-19,” said Donna Alkarmi, president of Lone Star Travel in McKinney, Texas. “And even though clients are not happy always about it, they are still booking and accepting the new norm.”
My bookings for international travel are definitely 20-30% higher than before COVID-19. And even though clients are not happy always about it, they are still booking and accepting the new norm.
Despite strong sales, most advisors report that their clients are generally concerned with the state of the economy and rising prices — 55% say customers are somewhat concerned and another 34% are very concerned. Likewise, advisors are worried about the effect the economy might have on their business, with half (50%) somewhat concerned and 43% very concerned.
Forty-three percent of advisors are concerned about the impact of rising costs on their business.
Credit: 2022 TravelAge West“At this moment, I am not concerned about the effect on my business,” Alkarmi said. “With potentially fewer bookings, yet prices being 20% to 30% higher, I think it will all equal out in revenue. And my sales are extremely strong for 2022 and will surpass what we did in 2019.”
Even with concern over the economy, the actual effect on travel seems minimal — nearly two-thirds of respondents (65%) say clients have not reduced their travel budgets and 59% report that clients have not changed their travel product choices to save money.
Sixty-five percent of travel agents have not had their clients reduce budgets in the past few weeks.
Credit: 2022 TravelAge WestOverall, as business returns after the height of the COVID-19 pandemic, nothing has diminished clients’ enthusiasm over hitting the road again. Nearly all (97%) of respondents describe their clients as either very (54%) or somewhat (43%) excited about traveling, and 63% say this excitement has not decreased in recent weeks.
Fifty-four percent of agents say that clients are very excited about upcoming travel.
Credit: 2022 TravelAge WestAlkarmi wholeheartedly agreed with this response.
"There’s no doubt that 100% of my clients are extremely excited to travel again, and to plan their next vacation,” she said.
Need to Know Survey Series
“Need to Know” is a research series from TravelAge West that tracks the responses of advisors as they relate to various travel trends and topics. This survey recorded the responses of 278 advisors across the U.S. Click here to see more Need to Know stories.
