Europe Tour Operators Say A Shift In Bookings Requires a Shift In Mindset
by Harvey Chipkin /
Even after the latest attacks in Germany, tour operators to Europe say their bookings to The Continent were slowing, but few leisure customers have actually cancelled.
While it is too early to say what impact the German events might have on travel to that country or Europe in general, operators are prepared to deal with whatever happens. Last week Pamela Young, senior vice president of product development and operations for Cox & Kings, said the company did not have any clients traveling through Germany, but “will of course work to assist any clients with future bookings to Germany who would like to cancel or change their journeys.”
The Globus family of brands has “been in contact with our operations teams in Munich following this evening’s tragic events and confirmed the safety and well-being of our travelers in the city,” a spokesperson said; Abercrombie & Kent also said it has not received any calls since the events in Munich.
Indeed, a study released this week by Allianz Insurance found a 10% overall increase in travel to Europe this summer, though among international travelers from the United States, those headed to Europe were most likely to change their plans (42% of all those who canceled).
Even before last week’s events, tour operators said that except for Turkey, travel is holding up relatively well, with the main effect a softening of new bookings rather than cancellations of existing ones. Some are implementing agent and customer incentives to overcome traveler hesitation.
And as travelers shift their itineraries, new destinations are benefiting, with Iceland and Scandinavia reporting upticks, along with traditionally safe European destinations like Italy.
Brigitte Armand, president of Eurobound, which almost exclusively sells Europe, said that 2016 has been shaping up as a record year – coming off a record year in 2015 with no cancellations and some “really big bookings.” She said she recently booked a family of six for a three-week tour through France.
“What I have noticed is that clients who haven’t confirmed anything are taking a little longer to make a decision, especially after the events of July 14 in Nice. This is what happened in November (after the Paris attack) when people held off, but still they do eventually book.”
Armand noted that she deals exclusively with FITs and small groups rather than large bus tours, which might be more affected. And her clients are veteran travelers to Europe, not first-timers.
Globus channel marketing manager Vanessa Parish said 2016 Europe sales started off incredibly strong, but acknowledged that more recently “we saw a decline in bookings, as most did, after Paris and Brussels.” She said some travelers opted to postpone trips but many decided to change to other destinations within Europe or North America. For 2017, she said, Globus still believes that pent-up demand will lead to an uptick in the first quarter.
Matteo del Grazia, founder and owner of Discover Your Italy, said his company is seeing an increase in bookings this year and has not had cancellations following events in France and Belgium. He pointed to a recent article in a major Italian business newspaper that noted travelers are moving away from destinations like Turkey, Tunisia and Egypt, as well as the French coast and Belgium, toward Italy, which is considered safer.
Paula Twidale, executive vice president of Collette, said current reservations were holding firm. “Although we are not experiencing excess cancellations, it is fair to say that demand for new reservations to Europe has slowed a bit for the remainder of 2016; we are seeing more of a recent uptick for Europe for 2017 so that is optimistic.”
She said that there are many Collette clients traveling to Britain, Ireland, Italy and France despite recent events – and Iceland, Spain and Portugal are in high demand ”so we are not seeing a shift away from Europe for those who have already committed reservations.”
Young said Cox & Kings is booking less Europe than it did last year, but has not experienced much in terms of cancellations. Travelers are still heading to Scandinavia, Iceland, Croatia and the U.K., but there has been a drop in business to Italy and France; and there have not been any requests for Turkey in a while.
Moving to alternatives
Armand has moved all of her clients away from Turkey because of the political instability there; “We had clients on their way there just before the coup attempt and now they’re going to Iceland.” The advantage of using a tour operator is that “we have so many multi-country trips that can be adapted depending on any changes in a local situation.”
Parrish said Northern Europe, including Ireland, Spain and Portugal, have held steady and even seen “fantastic growth.” There are also strong bookings in Asia for Avalon Waterways (Globus’s river cruise division) and for Africa. She said that Globus & Cosmos North America products did very well this year, with 20% growth overall.
Similarly, Baron said, “While overall requests to Europe are down, travel to some countries, like Italy, remain strong, and there has been an increase in inquiries about other areas like Scandinavia and Iceland.”
Twidale said U.S. and Canada reservations have been very strong, and there has been more demand for South America and Australia/New Zealand. Collette offers seven continents, “so that allows us to be nimbler when a destination comes offline or interest wanes.”
Advice and promotional aids for agents
Tour operators had the following tips and sales aids for agents:
Vanessa Paris, Globus: “Europe will continue to be a top destination. With airfares incredibly low for fall of 2016, agents should seek to take advantage of the opportunity. Avalon Waterways is running a variety of promotions, including free airfare for select 2016 departures and all 2017 sailings to Europe. We provide agents a robust Avalon Waterways training program and a variety of marketing materials to help them market to their clients, including customizable emails, direct mail, social media tools and videos.?In addition, we have released a preview of the 2017 Europe Globus and Cosmos product, offering 10% off on early bookings, which enables agents to call clients who may have postponed a trip in 2016 and encourage them to take advantage of the best space and prices for next year, now.?In addition, we are seeing strong group bookings for 2017 and offering a variety of incentives for both agents and groups to reserve space early. Our sales team works closely with agents on a complete group program, from marketing to consumer nights, to ensure successful materialization."
Matteo Del Grazia, Discover Your Italy: “We advise agents to offer more custom-made packages, which offer our 24/7 personalized assistance while clients are in the country. That is appreciated by clients as they feel reassured to be able to rely on our continuous support and assistance whenever they need it. We make communication easy by issuing a pre-charged Italian cell phone to all clients which they can use to communicate with us, access the Internet or navigate with a GPS app.”
Brigitte Armand, Eurobound: “We explain to agents that the main thing is communication. I understand that there may be hesitation but that is more the case with first timers. More experienced travelers see that this is part of life and they are not going to shut themselves off and be afraid.”
Pamela Young, Cox & Kings: “We continue to promote all of our products within Europe and work with travel advisors to address any concerns. For the most part, once an advisor has a client ready to book, they are committed. In the few weeks following the Brexit vote there was a slight spike in interest of better pricing for Europe but that quickly died down.”
Paula Twidale, Collette: “We continue to support our partners throughout Europe, and Collette has been very proactive promoting through agent mailers and marketing campaigns, as well as agent incentives, such as our comprehensive Book Your Own Bonus program (starting back again in September), and the opportunity to earn travel credits and discounts through our e-learning program.”
Keith Baron, Abercrombie & Kent: “We have not adjusted our strategy and are still marketing and promoting Europe as usual.?We currently have a promotion offering a complimentary half-day sightseeing excursion for three nights or longer booked in a city.”