Envoyage Summit: AI, Luxury & the Great Wealth Transfer. Three Trends Travel Advisors Can’t Ignore

From the rapid rise of artificial intelligence to changing traveller spending habits and an unprecedented transfer of wealth, the travel industry is entering a period of significant change.

And for travel advisors, the opportunities could be enormous.

That was the message from Christina Pedroni, executive vice-president and general manager of Envoyage USA, who outlined three major trends reshaping the travel industry at Envoyage’s North American Summit on Wednesday (Oct. 21)

Speaking on a stage at the Princess Grand resort in coastal Green Island, Jamaica, near Negril, Pedroni presented a data-driven look at where the industry is heading — and, more importantly, what travel advisors should be doing now to position themselves for success.

The Summit, which Travel Market Report Canada is covering on location through Oct. 24, has attracted about 160 travel professionals from Canada and the United States.

Drawing primarily on research from Phocuswright, a travel market research company, along with other industry sources, Pedroni identified three defining trends: AI’s growing influence on travel planning, a shift from price to value, and a generational transformation affecting both travellers and advisors.

Her overarching message? The advisor channel is growing, but standing still isn’t an option.

Leisure travel agency sales in the U.S. grew nine per cent in 2024, compared with three per cent growth across the broader travel industry, followed by another five per cent increase in 2025.

In Canada, agency revenue reached a record $3 billion in 2025, according to Statistics Canada.

(As previously reported, airline seats remained the biggest source of sales revenue for Canadian agencies, accounting for 35.0 per cent of the total, followed by packaged tours at 25.2 per cent).

But beneath those encouraging numbers, fundamental changes are unfolding.

Trend 1: AI is becoming the traveller’s first stop

Perhaps the most immediate disruption is artificial intelligence.

According to research Pedroni presented, 56 per cent of travellers now begin their travel searches using AI in some form, a dramatic shift over just 12 months.

Meanwhile, 33 per cent are using AI specifically to research trips, putting the technology on equal footing with traditional search engines. Another 53 per cent expect to increase their AI use for travel over the next year.

And these aren’t necessarily budget travellers looking for cheap getaways.

Pedroni said the average AI-using traveller is 41 years old, has a household income of $129,000, takes three trips annually and spends approximately $4,500 on travel each year.

“This is the client you want,” she told advisors.

Major travel companies are already responding, investing in AI-powered booking assistants and trip-planning tools designed to replicate elements of the traditional travel advisor experience.

Booking Holdings Inc., for example, recently announced a US$100 million investment in Vayo, a new personal AI travel agent startup.

But Pedroni doesn’t believe AI spells the end of the profession.

She compared the disruption to the emergence of online travel agencies in the 1990s and early 2000s, when many predicted traditional advisors would disappear.

“We’re still here. This will not be the end of the profession,” she said. “Not every traveller will be taken, but the ones that are looking for an advisor, and looking to break through the noise, need to know where to find you.”

Importantly, travellers aren’t blindly trusting everything AI tells them.

While 36 per cent trust AI-generated travel recommendations, compared with 46 per cent who trust travel advisors, 51 per cent of travellers verify AI-generated information elsewhere, according to Phocuswright.

Another 41 per cent say AI cannot yet provide the level of specificity they need.

That creates an opening for advisors. Rather than dismissing clients who arrive with AI-generated itineraries, Pedroni encouraged advisors to embrace those conversations, validate the research and demonstrate their expertise.

“Give them the feedback they’re looking for because that’s what they want. They want verification,” said Pedroni.

The opportunity: Become the advisor AI recommends

Pedroni’s first recommended action was straightforward: “You need to be the human that AI is going to point to.”

That means ensuring an advisor’s business is visible and recognizable across the internet.

She urged advisors to establish Google Business Profiles, encourage client reviews, publish clear website content and maintain consistent branding and specialties across digital platforms.

Envoyage advisors are also being urged to capitalize on the company’s new partnership with Travel Leaders Network, particularly its online Agent Profiler platform, which allows advisors to showcase their specialties, preferred partners and expertise.

Trend 2: Value is replacing price (and luxury is booming)

The second trend reveals a growing divide in consumer spending.

Mass-market travellers are becoming more cost-conscious, while affluent travellers are increasingly willing to spend.

Pedroni said average U.S. household travel spending has declined by approximately $1,000 over two years, even as the average number of annual trips has remained steady at 3.3.

Among millennials, 68 per cent say rising everyday living costs will affect their travel budgets.

In Canada, where the Canadian dollar adds extra pressure, six in 10 travellers are actively reducing travel expenses, she said.

Yet that doesn’t necessarily mean they’re abandoning vacations. They’re just becoming more selective about where their money goes, Pedroni said.

At the opposite end of the market, luxury travel presents a strikingly different picture. Seventy-nine per cent of luxury travellers plan to spend more in 2026, while just one per cent intend to spend less, she said.

Among travellers spending more than $25,000 per trip, 52 per cent now take more than five trips annually.

Even more encouraging for advisors, Pedroni cited research indicating that 97 per cent of luxury travellers consider an advisor the best way to secure the trip they want.

Pedroni reinforced that point with Phocuswright research showing why U.S. clients book through advisors.

Relationships account for 40 per cent of the decision, service 29 per cent and expertise 27 per cent, whereas price accounts for just two per cent.

“It’s the exact same stats in Canada,” said Pedroni.

The opportunity: Specialize, charge fees & sell groups

Pedroni argued that advisors should stop treating price as their primary selling proposition.

Instead, specialization can significantly improve earning potential.

Research she presented showed average annual advisor earnings of approximately $157,000 for luxury specialists, compared with $88,000 for river cruise specialists and $37,000 for adventure travel specialists.

But one of the most compelling findings concerned group travel.

According to Pedroni, adding group sales to an existing specialty can approximately double an advisor’s income.

She cited figures showing annual earnings increasing from roughly $49,000–$53,000 to approximately $99,000 when group business is added.

Charging professional fees is another important opportunity. Advisors who charge fees earn 37 per cent more overall, according to the figures presented.

In Canada, 60 per cent of advisors already charge fees, compared with 43 per cent in the United States, according to Phocuswright.

Trend 3: The great wealth transfer meets the retirement wave

Pedroni saved the most thought-provoking trend for last.

Over the next two decades, an enormous transfer of wealth between generations will coincide with a significant number of experienced travel advisors approaching retirement.

Citing Visa research, Pedroni said $36 trillion is expected to change hands between generations over the next 20 years, with approximately $8 trillion spent before that transfer occurs.

Travel is expected to be among the beneficiaries (although Canadians are more likely than Americans to prioritize real estate purchases for their children before spending on travel).

Meanwhile, 35 per cent of baby boomers intend to travel with extended family members within the next three years, Pedroni shared.

That includes multigenerational vacations and so-called skip-generation trips, where grandparents travel with grandchildren without their parents.

But Pedroni challenged advisors to consider what happens when their longtime clients eventually pass their wealth — and travel purchasing decisions — to spouses or adult children.

Will those relationships automatically remain with the same advisor? Not necessarily.

“Will you still hold that relationship if they were a big customer of yours? Are you sure? Because if you’re not sure, now’s the time to figure out if you will,” said Pedroni.

The industry’s own demographics add another layer of urgency.

According to the figures presented, 56 per cent of U.S. travel advisors and 55 per cent of Canadian advisors are over 55.

Meanwhile, millennials and Gen Z account for only 19 per cent of advisors combined.

“That’s roughly four travel advisors that are going to retire in the next decade for every one advisor that has 20 years of runway on their career,” said Pedroni. “This is why succession planning matters. There’s not just a wealth transfer happening, there’s also an advisor transfer that’s happening.”

The opportunity: Two introductions that could change a business

Pedroni said the industry needs to prioritize two important introductions.

The first is between existing clients and their adult children. Advisors should be building relationships with the next generation now, particularly through family vacations and multigenerational bookings.

Her practical suggestion was to identify 10 top clients and ask for introductions to their adult children.

The second introduction involves retiring advisors and younger professionals who could eventually take over their businesses.

For established advisors, Pedroni emphasized that a book of business represents a valuable asset built through years of client relationships.

Succession planning should involve understanding its value, identifying potential successors and establishing appropriate contractual arrangements.

For younger advisors, acquiring or transitioning an established client base could provide a powerful shortcut to business growth.

The conversations might be uncomfortable, Pedroni acknowledged, but delaying them could mean losing valuable relationships and business opportunities.

Across all three trends, Pedroni’s overall message was that advisors have more control over their future than they might realize.

For advisors willing to act, the next decade could be one of the industry’s most consequential — and potentially rewarding — periods.

Stay tuned as Travel Market Report Canada brings you more on-location coverage form Envoyage’s 2026 North American Summit in Jamaica.