Jamie Biesiada
Recently, there have been a number of indications that the industry could possibly see a slowdown in travel.
MMGY CEO Clayton Reid has been public with his viewpoint that the market is poised to change in the coming year or so, though recent research indicates a recession might not be right around the corner.
But regardless of a potential recession or slowdown in travel, next year will bring something that, historically, does dampen growth in the industry: a presidential election.
Virtuoso recently analyzed its network's sales data for presidential election years and the years preceding and found that there is a correlation between election years and slowdowns. On average, U.S. sales increased 14.3% in the year before an election year, but only 2.9% during the election year itself.
Becky Powell, president of Protravel International (which, for the 15th straight year, won Virtuoso's top producer award during Virtuoso Week earlier this month), said last week that some of her advisors reported a slower-than-usual July.
A number of factors could have played into that, Powell said, including that schools are starting earlier and that next year is an election year. She noticed some large hotel companies reported softer second-quarter results, as well.
Other agency owners reported similar softness around July, Powell said.
For travel advisors, that means now is the time to take some proactive steps to ensure business stays solid.
First, Powell recommended pushing 2020 departures.
"Try to get those advanced bookings to make sure you're safe," she said.
Now is also a good time to reconnect with lapsed clients. It's a tactic many advisors neglect, Powell said, but one they should consider. Their agency can typically provide them with lists of clients that would be good to contact, for instance, those who haven't traveled with them in the past year.
"There's ways we can help them and give them the data to really be smart about reaching out, making sure they have their clients on the marketing list," she said.
Powell said it always bothers her when an advisor approaches her and says their business has fallen off.
"You should have been proactively marketing to keep your business," she said.