What advisors are booking

2023 was the best year on record for many agencies, far surpassing prepandemic numbers when it comes to sales. 2024 has been a bit more uneven: 65% of agencies reported year-over-year bookings growth in the past 12 months, compared with 79% from the previous year. While a number of agency sales in 2024 will surpass the high-water mark that was 2023, that further fuels the argument that travel is beginning to normalize after several roller coaster years. 

Hospitality companies are also seeing momentum slowing. During an earnings call in August, Hyatt Hotels Corp. — which has more than 100 all-inclusive resorts within its portfolio — reported that its all-inclusive RevPAR growth has started to moderate, with CEO Mark Hoplamazian citing a “return to prepandemic seasonality” in markets like Mexico and the Caribbean. Sandals Resorts International’s executive chairman, Adam Stewart, also reported a “normalization” trend this year, saying that following a “meteoric rise” driven by pent-up demand, travelers have reverted to “more traditional booking behaviors.”

Theme park bookings had the weakest growth for the second consecutive year. More than a quarter of respondents said theme park gross bookings declined in 2024, two points higher than last year. Park executives said this year that bookings continue to “normalize” after a post-pandemic surge, but high inflation also made park admission a stretch for lower-income guests while simultaneously raising operating expenses. Universal said the majority of a recent quarterly earnings decline stemmed from lower park attendance following a record 2023, fueled partly by a lack of new attractions. And at Disney, where most ticket prices recently rose, officials said wealthier guests have returned to international trips, a trend they expect to continue.

—Jamie Biesiada, Christina Jelski and Tom Stieghorst

After enjoying a pandemic-era spike in popularity, the all-inclusive sector is seeing signs of pullback. All-inclusive resorts accounted for around 19% of advisors’ bookings in 2021, on par with ocean cruises. But while cruising has steadily gained share in subsequent years, all-inclusives have ceded ground, shrinking to 17% of gross bookings in 2022 and falling to 14% last year.

Aside from growth normalization, another factor at play may be that all-inclusives are getting pricier as the segment evolves to offer a higher-end product. While this upmarket shift has attracted new interest, resorts may need to revisit their pricing strategies to stay competitive, especially as travelers increasingly prioritize value in their vacation choices.

—C.J.

This year’s survey reveals an uptick in ultraluxury specialization among travel agencies, with exclusive/high-end luxury travel emerging as the second most common specialty. Nearly three-quarters of agencies listed it among their top five focus areas in 2023, a notable increase of 8 percentage points from the previous year, when it was 66%. 

This reflects the increased consumer appetite for upscale and personalized travel and suggests that affluent travelers continue to prioritize luxury experiences regardless of cost.

It’s no coincidence that hotels and resorts are seeing a corresponding shift further upmarket. According to data from CoStar, markets like the U.S., Italy and France have seen a significant increase in the number of properties able to command an average room rate or $1,000 or higher per night. In the U.S., hotels with an ADR of $1,000-plus grew from 22 in 2019 to approximately 80 by the first half of this year.

—C.J.

Luxury travel specialists lag the field when it comes to selling one type of ocean cruise, but they lead the pack in another. Data shows that when it comes to cruises departing from domestic U.S. ports, agents who don’t prioritize a luxury clientele do better. Ocean cruises account for 30% of revenue at those agencies, compared to 19% at agencies that view luxury as a top five focus area. The tables turn when cruises depart from outside the U.S. — in this case, luxury agents get double the revenue of nonluxury counterparts. It makes sense, given that cruises embarking from abroad tend to be longer, have higher per diems and are often packaged with pre- and post-cruise stays, while domestic cruises are often shorter and yield less revenue per booking.

—T.S.

Last year, we wrote that in the 20 years since the Travel Industry Survey began tracking domestic vs. international bookings, the international share had never been as high as it was then, at 78%. This year, it went a point higher. Travel abroad accounted for 79% of agency bookings in 2023, which will come as no surprise to advisors and suppliers who last year continued to see their clients set off around the world in droves. Helping push the surge abroad is the continued strength of the dollar, making destinations that were always considered expensive for Americans, like Europe and Japan, much more accessible.

—Johanna Jainchill

Among the growing number of new travel agencies, cruises are by far the product they sell most. Ocean cruises made up 64% percent of product share among agencies in business for five years or less. Ocean cruises from the U.S. represented nearly half of those bookings. Cruise share was more than double that of hotel bookings and nearly triple all-inclusive resorts.

—Andrea Zelinski

The most common methods in which travel agencies book airline tickets continue to be through specialized websites and systems for travel advisors, such as VAX Vacation Access and Revelex, and via suppliers.

GDSs, consolidators, airline websites and the proprietary systems of agencies and consortia remain the other primary booking methods. 

This year’s responses showed little change from the 2023 TIS survey, suggesting that airlines have not had much success in convincing agencies to do more of their booking through direct channels.

—Robert Silk

DEVELOPING YOUR BUSINESS

This survey has long asked advisors for the top services provided by preferred suppliers. This year, a new option was added to the list: access to a business development manager (BDM) or other direct representative. The suggestion for the addition came from Ensemble members during its 2023 Horizons conference. It turns out, it was a good one.

Access to a BDM became the top answer to the survey question, with 72% of advisors ranking it in their top five.

Cathy Scott, chief exploration officer of Ensemble member Departures Travel in Victoria, British Columbia, values her BDMs. Asked to identify one she works with particularly well, she quipped, “Can I have two?”

Both Colin Price, a business development manager with Azamara, and Paula Rizos, a district sales manager with the Travel Corporation’s tour brands, have helped with everything from new-agent training to creative solutions when problems arise, Scott said.

As a result, Departures Travel’s sales with those brands are continually growing.

—J.B.