Travel Agent’s “Travel Trends & Advisor Insight Report” for Q1 found that travel advisors were giving mixed signals regarding the state of their business. In our most recent Q2 report, much of what we learned earlier this year has continued to be true throughout summer. That said, we’ve also learned that even among those mixed signals we received in the first quarter have various explanations.
To that point, sales are seemingly flattening for agencies. Forty-nine percent of advisors say their sales through the first half of 2024 are higher than the same period in 2023. Another 32 percent say sales are about the same, leaving 19 percent who said their sales are lower for 2024 than 2023. These numbers are fairly consistent with those in Q1’s report. That said, while nearly half of advisors with improved sales through the first half of 2024 say sales are up between 16 and 30 percent, the number of respondents whose sales have increased 31 percent or more has dropped from 32 percent one year ago and 39 percent at the end of 2023 to 21 percent now.
Even though about half of advisors’ sales improved upon last year’s numbers, fewer are reporting so and even those with better sales are saying they’re not as improved year-over-year as in previous surveys. One thing to consider, however, is that 2023 was a very strong year for the industry, so the 2024 surveys are being compared to a higher benchmark than those of last year.
Along those lines, most advisors (56 percent) also said that their clients’ budgets were remaining about the same when compared to that of last year. More than a third (35 percent), however, said budgets are up—an increase from the 28 percent who said so last quarter. That said, it’s not definitive whether these clients have increased their budgets because they have the ability to do so or, simply, because the prices of accommodations, airfare and all other aspects of travel have increased in 2024.
So, sales are up—but not as much as they typically have been. Budgets, also, have not gotten any smaller—but is that out of choice or necessity?
On the destination front, the Q2 2024 “Travel Trends & Advisor Insight Report” found that Oceania/South Pacific are high on clients’ wish lists, only trailing Europe, the Caribbean and Mexico in terms of traveler interest. That said, just 13 percent of advisors said they are actively booking trips to the region. This was the largest gap between traveler interest and bookings among and destination globally, suggesting that there are significant road blocks to selling this region—potentially included the perceived price, distance and time required to travel to and from the destination.
Beaches, historic sites and major cities were the most common “locales” sought by clients. They are also most willing to spend up on adventure/active tours, culinary tours/dining experiences and private experiences, including jets, villas, yachts, tours and more.
To download the full report, visit www.travelagentcentral.com/travel-trends-advisor-insight-report-q2-2024.
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