Just a casual look at travel prices and availability these days is enough to cause sticker shock to even the most seasoned industry veterans. Whether this situation is the result of post-pandemic pent-up demand, general inflation or artificial forces keeping rates high, a growing number of travel professionals are becoming worried about the effect pricing could have on short-term and long-term business.
A recent Need to Know research story highlights these concerns. In the survey of nearly 400 travel advisors, almost all respondents (95%) say they are “very” or “somewhat” concerned about the effect of inflated prices on business. An additional 53% believe high prices will lead to a slowdown in travel bookings in the second half of this year. Looking ahead, most advisors (58%) feel that current spending levels are not sustainable in the long run, and 60% agree that steep pricing is making clients more hesitant to book future travel.
The survey also showed that airline pricing, in particular, is the top area of concern — with 80% of respondents citing it as the biggest worry for clients. In our latest issue, we examine a recent major change in airline distribution: New Distribution Capability, or NDC. It’s clear that not only do advisors feel they are dealing with inflated airfares, but they are also learning how to navigate a new system established without adequate warning and training.
In addition, according to the Need to Know survey, 77% of advisors feel that travel companies can do more to help curb soaring prices. Whether this perception is fair or not, ultimately, it’s more important than ever for all sides to work together — on managing pricing or smoothing out distribution changes — to make sure this travel boom is not needlessly cut short.
