ATLANTA -- Delta Vacations' travel agency sales have surged more than 10% this year, as Delta's highest-tier loyalty members increasingly turned to advisors to book their trips.
At its biennial Delta Vacations University event for advisors, Delta Vacations said it is investing in the agency channel after seeing what president Kama Winters said was "double-digit growth" in advisor bookings.
The bulk of that increase is from clients who have reached Delta Air Lines' highest loyalty tiers: Medallion members. Beginning in 2024, SkyMiles members were able to earn status-qualifying points through the booking of Delta vacation packages, giving Medallion members an incentive to do so.
"I think the important part to know is that those double-digit growth numbers are from Medallion members booking with travel advisors," Winters said. "That tells me we hit the right note with the benefits we've introduced."
That increase almost didn't happen: Initially, Delta only planned to allow direct purchases of vacation packages to count toward Medallion status. Delta altered its approach after hearing advisor feedback.
Last year's Q4 was touted as the biggest in Delta Vacations' history, fueled by SkyMiles members trying to earn status before the end of the year. The company now refers to the year's final quarter as its "second peak," Winters said.
Travel advisors come through
Delta Vacations has been increasing its investment in advisors -- and they're noticing. It hosted 500 advisors at this year's Delta Vacations University, and on the event's off year the company will bring handpicked advisors to its tour destinations for training. The company also plans to debut a booking platform next year.
Jamal Guiden
Jamal Guiden of Prestige Travel in Roswell, Ga., a Delta Vacations Diamond agency (at least $500,000 in annual sales), experienced the in-destination training with Delta Vacations in Puerto Vallarta, Mexico. Upon returning, he said his bookings for Puerto Vallarta increased "very quickly."
Pam Woodley, owner of Pearl Travel Advisors in Rome, Ga., is new to the industry, having launched her business in January. She said 85% of her sales have been Delta Vacations packages because of the support she's received.
"Every single Delta Vacations rep immediately welcomes me and never hesitates to patiently explain issues and answer my questions," Woodley said. "Then most proceed to give me additional 'newbie' tips they themselves learned along the way."
Pam Woodley
The education, through in-person training and also the University, has proved immensely helpful as she navigates the industry as a newcomer, she said.
Advisors also commended Delta Vacations' policy of paying full commission when they book trips with clients' SkyMiles. Guiden praised it as a benefit for both advisors and clients.
New destinations, new experiences
Medallion members' travel decisions are influencing Delta Vacations offerings, in future and current destinations.
Beach destinations are the bread and butter of vacation packagers, and Delta Vacations is no different. But the company is expanding to other types of destinations, said chief commercial officer Katrin Koenig.
She said the packager is "strategically" building out products in Europe, including in Nice, France, which has been a hot destination. South America bookings also are up, with Delta Vacations enhancing its offerings in Chile and Peru.
As travelers increasingly crave immersive experiences, Delta Vacations has launched more than 300 activities and excursions over the past two years. Koenig said Delta Vacations will add more private tours -- a favorite among Medallion members.
The luxury segment in particular is booming, with the company adding more four- and five-star hotels to its portfolio.
"That's where we see the growth, and that's where we know the demand is, especially from our Medallions," Koenig said.
Multi-destination trips -- think multiple cities in one country -- is a type of travel Delta Vacations is assessing. Winters said the company will introduce a rail offering in Italy next year.