In the world of travel, business in 2024 is on the rise for Virtuoso member agencies, according to a panel discussion at Virtuoso Travel Week. Despite this positive trend, high prices are causing some clients to hesitate before booking their next adventure. The panel, consisting of Carolyn Addison from Black Tomato in London, Fernando Gonzalez from First in Service in New York, Cathy Holler from Momenti Travel in Canada, and Roland Howlett from Frontier Travel in Australia, shared insights into the current state of the industry.
Holler mentioned that Momenti Travel has experienced a doubling of business compared to last year, attributing this growth to post-Covid momentum and an increase in high-end, last-minute bookings. Howlett echoed this sentiment, stating that Frontier Travel has also seen an uptick in business due to a rise in clients and travel advisors.
Black Tomato’s Addison reported a 15-16% increase in sales compared to the previous year, while Gonzalez from First in Service noted that the agency had doubled its pre-pandemic sales numbers halfway through 2023. Despite the high prices, clients are still willing to spend, as long as they see value in what they are purchasing.
To address client concerns about pricing, many hotels are bundling inclusions into their daily rates. While some clients may experience sticker shock initially, they often move past it and proceed with booking. In some cases, agencies like Black Tomato are redirecting clients to less popular destinations not only due to pricing but also because of availability issues in more popular locations.
The panel also discussed current trends in the industry. Holler highlighted a surge in high-end, last-minute bookings, with clients assuming that everything is readily available. This has led to challenges in destinations where availability of guides and drivers is limited. Howlett mentioned that clients are showing interest in exploring secondary locations as alternatives to crowded tourist hotspots.
Addison pointed out that clients are increasingly seeking to travel during off-peak seasons to avoid overcrowding, which benefits both clients and suppliers. Gonzalez noted that group travel has been a significant trend in both the corporate and leisure sectors at First in Service, reshaping the dynamics of the company.
Overall, while high prices may be giving some clients pause, the travel industry is experiencing a resurgence in business in 2024. By adapting to current trends and addressing client concerns, Virtuoso member agencies are poised to capitalize on this growth and provide exceptional travel experiences for their clients.
