The consensus is that travel’s rebound will likely be led by luxury clients, and no company is more in tune with that market than Virtuoso.
The organization’s travel advisors are experts in selling upscale travel. That expertise, combined with the organization’s ability to analyze actual transaction data, gives the network an especially keen understanding of the state of travel during a time when so much is in flux due to the COVID-19 pandemic.
Earlier this month, at Virtuoso Travel Week in Las Vegas, executives shared some of the network’s latest research into the state of the industry, including a survey of advisors and suppliers.
Here are a few of the key takeaways.
A Year in Review: Things Are Better Than They Were
With the rise of the Delta variant, it’s easy to feel pessimistic about travel. But one just needs to look at a few numbers to realize how far we have come.
For instance, in January of this year, business was down 82% compared to 2019. By June, that was cut nearly in half to 46%. In the second quarter of 2020, refunds accounted for 48% of Virtuoso advisors’ business. A year later, in the second quarter of this year, that was down to just 8%.
Advisors and suppliers are taking note of the improvement, too. The percentage of advisors who feel confident in the state of their business grew from 7% in Q1 of this year to 26% in Q3. More than three-fourths (77%) of advisors feel their business has increased or increased significantly over previous quarters.
When it comes to festive/holiday travel, 26% of travelers are planning trips now, even if it means changing later, and 15% are waiting until it’s closer in to book. Both those stats are an improvement from 2020. In addition, only 5% of those who say they typically travel during the holidays are planning to stay home this year.
Full Tourism Recovery Is Still on the Horizon
While it’s great to see the industry recovering, we’re clearly not out of the woods quite yet. Forty-five percent of clients are ready to travel in the next three months, but a large number (39%) are still six to 12 months from traveling again. Of those who have traveled recently, 36% say it felt totally natural, and the other two-thirds (64%) say it was great, but different. And nearly the same number (58%) are concerned about diminished services based on labor shortages.
Perhaps not surprisingly, cruise revenue has been slower to come back. In 2021, cruise sales are up 20% over 2020 revenue, while tour sales are up 34% and hotel sales are up 122%. In September 2020, only 26% of travelers were ready to cruise again. That number was much higher in January 2021 (41%), but since then, the rebound has stalled a bit — in June of 2021, 46% said they were ready to cruise, a relatively modest increase from the beginning of the year.
Where Are Travelers Going, and How Are They Getting There?
According to Virtuoso advisors, the most popular international summer destinations are Italy, France, Mexico, Greece, U.K, Bahamas, Spain, Portugal, Costa Rica and Canada.
When asked if they would go to Europe once fully vaccinated travelers are able to go, nearly three in four respondents (73%) say yes.
Top U.S. destinations include California, Hawaii, Massachusetts, Florida, Colorado, Nevada, South Carolina, Utah, Arizona and Wyoming.
The top trends Virtuoso advisors are seeing include city breaks, adventure escapes, future cruises, an increase in fully booked flights and an interest in Europe. Agents say they are also fielding questions about the reality of space travel.
When it comes to travel motivators, 69% of clients say they simply want to take a vacation, and another 25% are traveling to see family and friends.
Additionally, more than two-thirds (67%) of travelers are willing to take an international flight this holiday season; another 17% would take a nonstop domestic flight; and 10% would take a multi-segment domestic flight. The remaining 6% are strictly interested in road trips.
A Future for Sustainable Travel
One of the more decisive aspects of Virtuoso’s research is related to the importance of sustainability and responsible travel.
Whereas in the past, there has not been an overwhelming preference for this type of travel, a commanding 82% of travelers now say they want to travel more responsibly in the future. An additional 78% feel it’s somewhat to very important to choose travel companies that have a strong sustainability policy, and 70% say traveling sustainably enhances their vacation experience.
Finally, when it comes to the long-term view of travel, there’s good reason for optimism. Wanderlist is the primary online tool used by Virtuoso advisors for planning future trips and, according to executives, there is more than $110 million currently in the Wanderlist pipeline.
Clearly, the future can’t arrive soon enough.
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