As we continue moving forward into the third quarter of the year, TravelPulse asked some of our trusted travel advisor community what they noticed about the first six months of the year in travel and booking trends to gauge how this year stacks up to last year’s record-breaking travel boom.
This year, travel advisors are seeing mixed results in terms of business revenue and bookings, and their clients’ own travel desires.
Money Remains a Top Concern, Yet Some Are Still Willing to Spend It on Travel
Some, like Tracee Williams, Luxury Vacation Specialist for Destinations, a TRAVELSAVERS affiliate, find that the election and economic uncertainty are encouraging people to put traveling in the backseat for a time.
Williams noted: “Travelers in 2024 are far more cost-conscious than in 2023. Last year clients truly did not care what the costs were and spent accordingly. This year they are more conservative in spending, and some are even staying home because of the expense of travel.”
Yet others, like Michele Lindsay, Owner of Blue Pointe Travel in Grosse Pointe, Michigan, are also seeing more people choosing to pay more for better travel experiences: “There is a palatable shift in traveler appetite! Clients are increasing their budgets as well as their travel radius. Europe clients are now headed to Japan and Australia and New Zealand, for example.”
“The rising luxury generations of Gen X and Millennials are not afraid to spend their time and resources on the comforts of premium or business class air, suites on ships and at resorts, and private, experiential travel.”
The recent J.D. Power 2024 North America Hotel Guest Satisfaction Index (NAGSI) Study found that travelers who were the most satisfied with their hotel stays in North America were those booking luxury and upper upscale hotels; those who booked lower category hotels were less satisfied, largely in part due to higher room rates without the added amenities.
“Travel is poised to bounce back even stronger once American travelers regain confidence in their ability to afford it,” said Tammy Levent, President of Elite Travel. “When people feel more secure financially, and travel costs come down, we can expect a resurgence. For instance, airline tickets and car rentals have increased by 25 to 40 percent since pre-pandemic times, which has been a significant deterrent. However, once these costs stabilize and the mindset shifts, the travel industry will see robust growth.”
Business is Booming – But in Different Ways Than Last Year
Every travel advisor agrees: this year is different than last year, and in a few different ways.
Mark Hennigan, Co-Owner of Dreamers Travel, reports higher revenue but less bookings: “We are up 22.5% over the same time frame as last year, but reservation numbers are lower and trip cost is higher.”
These rising costs are also changing how people travel, as Tammy Levent explains, “The first six months of 2024 mirrored the first half of 2023 regarding business activity. However, we observed a notable shift in travel destinations, with more clients driven by airline costs. Many opted for less expensive European destinations over the Caribbean. This cost-driven decision-making has been a significant trend in 2024.”
While Tracee Williams’ business has dropped from her best year for sales in 2023, she explains that the luxury segment is only growing as other segments, like cruising and FIT travel, drop: “However, our luxury requests have not decreased. Surprisingly, escorted tour requests and bookings are up, specifically with suppliers like Tauck, Collette, Insight and Brendan Tours. We’re seeing more demand for escorted tours in the US and Europe. We’re also handling more luxury cruise bookings this year with Regent and Silversea as well. Longer cruises have been popular in 2024 as well.”
What’s Missing This Year: Common Travel Concerns
This year, travel advisors are happy to report that their clients aren’t too concerned about things like safety, geopolitical instability, sicknesses or other major deterrents.
They do note, though, that the recent Microsoft outage impacting air travel has reminded their clients of air travel’s instabilities.
“Concerns are always airfare, and the worldwide outage…proved that,” said Katie Lynn Reynolds, Travel Agent at Travelmation. “Clients want help navigating airfare, and I think that is a big factor as to why they trust the travel advisor. We have experience working with the airlines, and navigating situations.”