While more than half of those advisors reported stagnant or declining sales compared to last year
Nearly 16.8 pc of travel industry delegates say that sales in the first half of 2024 were lower than those in the same period in 2023, according to a survey conducted by US-based host agency Travel Experts in Raleigh.
Roger Block
According to the survey, while nearly half or 49.2 pc reported higher sales this year, another 34 pc said sales are the same as they were last year.
While more than half of those advisors reported stagnant or declining sales compared to last year, 2023 was a record-breaker for travel experts and many other travel agencies and agency networks, the statement adds.
Roger Block, President of Travel Leaders Network, a seller of luxury travel, expects this year to eclipse 2023. And although 2024 is set to be another banner year for the network,, “We are seeing not softening but levelling off” in terms of bookings, Block says.
Kevin O’Brien
Similarly, Canada-based Travel Edge Network is seeing solid year-over-year growth, according to senior Vice President, Kevin O’Brien.
“Are we seeing growth that is less aggressive than 2022 to 2023? Yes. Am I seeing it levelling off or plateauing or anything? No,” O’Brien adds.
Alex Sharpe
California-headquartered Signature Travel Network also expects 2024 to be a better sales year than 2023, to almost 20 pc, CEO Alex Sharpe says. But that is being driven by higher rates, as far as volume goes, Sharpe says, Signature is “on par with 2023.”
According to the survey, the normalisation of demand at travel agencies is on par with what many in the travel sector are reporting. “By the time we get to the end of the year, we think you will be at more normalised levels of demand,’’ says Chris Nassetta, Chief Executive Officer of Hilton Hotels, a leading hospitality chain.
Chris Nassetta
“Demand has normalised in the US and Canada,” Marriott CEO Anthony Capuano said in a May earnings report.
It is a trend US Travel Association has seen, too. In a May interview, US Travel Association CEO Geoff Freeman said domestic leisure travel was normalising, although at a rate substantially higher than it was before the pandemic.
Geoff Freeman
“We have been a bit drunk on leisure travel as an industry, and every good party comes to an end. So we may well be seeing that now,” Freeman said.
According to the survey, while demand for travel isn’t at the peak it achieved in 2023, the industry is still bullish on the future.
“Consumers really are still looking for experiences, and I think they have found that travel offers memories that last a lifetime. The world is so varied, and you can’t just get that by reading a book, so people are really wanting to spend their money on that. So I think the market’s going to continue to grow,” Block says.
Michael Johnson
As evidence of that growth, he pointed to suppliers who are heavily investing in new products such as hotels, resorts, ships and new itineraries.
New York-based Ensemble Travel group President Michael Johnson also says that consumer sentiment around travel continues to be positive.
“The post-pandemic shift in consumer spending continues to show that travel is a priority, leading to sustained interest and activity in the industry. While growth may slow as a result of myriad factors, from the election to inflation to geopolitical events, demand is anticipated to remain strong,” he says.
Luxury resilience
One area that seems largely unaffected is luxury travel sales, according to the survey.
“Luxury travel, by its very nature, is a little more resilient,” says Travel Edge Network’s O’Brien.
Claire Canady
Among the 49.2 pc of travel experts advisors who say sales this year are higher than last, many attributed that to an increased focus on luxury sales in addition to new clients and referrals.
That is even leading some to refocus their efforts on clients who are more likely to book a suite or first-class air ticket or even private air travel, according to Travel Experts’ Director of North Carolina operations, Claire Canady.
“It takes just as much time to book a mass-market trip as it does a luxury one, but the commission payoff at the end is significantly different. It makes it an easy business position to know where to focus,” says Canady.
"
