Hotel sector softness

Survey respondents reported weakening hotel booking trends, as 38% of advisors reported increased hotel bookings this year, down from 49% in 2024. Those reporting decreases almost doubled, from 7% in the 2024 survey to 13% in this year’s.   

This mirrors some current hotel industry softness. Jan Freitag, national director of hospitality analytics at CoStar Group, said in October that U.S. RevPAR growth through August stood at just 0.2%, the lowest level on record outside of recessionary periods and 2020. Freitag described the current environment as “abnormal territory.”

“The American economy is growing, and GDP growth continues to be positive,” Freitag said earlier this fall. “We’re not in a recession. And normally, if GDP grows, we’d be seeing room demand increases, and we’re just not seeing that in the number of rooms sold right now.”

—Christina Jelski

River cruising's value

Fitzgerald Travel’s Lisa Fitzgerald, a river cruise specialist, said river cruise growth is driven by the “value of the overall experience,” such as the service quality and what’s included on the river. 

“Personally, I see the all-inclusive or mostly inclusive nature as a big draw,” she said. 

Fitzgerald said many rivers lines include all food, excursions and amenities in one package, providing significant value for passengers. Even the handling of travel logistics within those destinations, both for excursions and getting to and from the ship, is of great value for travelers who want to avoid the headache of arranging their own transportation. 

And the nature of river cruising, she added, brings travelers in comfort and ease to the doorstep of some of Europe’s most iconic cities.

—Brinley Hineman

This year, respondents cited inflation and the cost of trips as the top challenges they faced, followed closely by competing with suppliers via direct bookings, something many expect to grow as more and more supplier inventory comes online. Economic uncertainty due to changing government policies is also in the top five challenges, but notably, geopolitical uncertainty isn’t — it sits further down the list at No. 8, perhaps an indication that after several years, the impact of the world’s most high-profile conflicts are not impacting travel outside of those regions.

Many agencies are experiencing ups and downs in 2025, evidenced in this year’s survey: More reported that bookings decreased compared to 2024 (17% versus 12%), and just over half (51%) reported increased bookings, compared to 65% last year. There is also evidence of a slowdown in hiring: In 2024, 19% said they made a hire in the past 12 months, compared to only 10% this year. Respondents were also slightly more negative in their outlook. This year, 69% reported positive expectations for the year ahead, compared to 72% last year.

Growth in international river cruise bookings is down compared to 2024, but it still topped the chart with 54% growth for river cruise bookings. The segment has been steadily expanding, with new brands, more capacity and expansion to new itineraries in new regions around the globe. Thirty-nine percent said domestic river cruise bookings grew.

Among the segments with the biggest dips is theme parks. After riding a Covid-induced high in park sales for several years, more advisors continue to report decreased numbers. Nearly one-third, 32%, said sales have decreased in the past 12 months; in last year’s survey, that number stood at 26%. Conversely, 31% enjoyed increased theme park sales in the past 12 months, a number that stood at 27% last year.

—Jamie Biesiada, Brinley Hineman, Christina Jelski 

The economy and high prices continue to dominate agency concerns, with the top three cited related to travel costs. But a new category, uncertainty due to changing government policies, came in at No. 4, indicating that the sweeping changes in Washington are having an impact on advisor outlook, a concern that respondents expect to continue to resonate over the next 12 months. Also looking ahead, government policies on travel and immigration came in at No. 7, having barely been cited as an issue in the 2024 survey.

—Johanna Jainchill