Planning For A Comeback, Tour Ops Expand Horizons For 2017

Tour firms are adding product to Asia and the South Pacific for 2017.

Tour operators are venturing into new destinations and rolling out new programs for 2017, positioning themselves for an anticipated post-election comeback after a decidedly trying year.

The additions to tour offerings reflect shifting travel patterns, especially in the wake of terrorist attacks in Paris and Brussels and amid nagging fears that the next such attack could occur anywhere, anytime.

The expanded offerings also reflect tour firms’ faith in the U.S. consumer’s sustained hunger for travel. As Robert Drumm, president of Alexander+Roberts, said, “Our guests may be shifting their destinations these days, or rearranging their bucket list, but the eagerness for travel isn’t dissipating.”

Eye on the Americas
One definitive bright spots for tour sales these days is domestic travel.

“We’ve seen great growth domestically this year, in large part because of the National Park Service centennial, and it’s carrying over with no loss in momentum for next year,” said Jeremy Palmer, senior vice president of Tauck Land Journeys.

At Insight Vacations, USA, president Phil Cappelli said the firm’s U.S. and Canada programs performed “phenomenally” in 2016 and that 2017 was “looking quite strong” as well—and “the pull of our National Parks is amazing.”

National Park tours also have done well for more moderately priced Mayflower Tours, said president and co-owner John Stachnik. The park system’s 100^th anniversary was the No. 1 reason, he said, but also, “it’s quiet, it’s safe.” Expecting the pattern to continue, Mayflower has added more National Parks product and departures for 2017.

Alexander+Roberts broke from its 70-year history to introduce its first three North American programs in 2016. “Issues can occur anywhere, so you need a bit of a wider net,” said Drumm.

Other firms are expanding in North America as well. In 2017, Trafalgar will expand its CostSaver brand from Europe into the U.S. for the first time. Trafalgar president Paul Wiseman said the firm expects 2017 to be a “boom year,” not only for the United States, but for Canada and South America.

At the Globus Family of Brands, channel marketing manager Vanessa Parrish commented that Canada looks to do “exceptionally well” in 2017, bolstered by events surrounding Canada’s 150^th anniversary.

South America is another beneficiary of shifting travel patterns, with the exception of Brazil, which was hurt by the Olympics this year and will likely be affected by Zika going forward.

Insight Vacations is “venturing into Brazil, Argentina, Chile and the Galapagos Islands for the first time,” Cappelli said. The firm’s lineup will include a Grand Tour of South America that will take in such traditional highlights as Lima, Machu Picchu, Lake Titicaca, Santiago, Buenos Aires and Rio de Janeiro.

Looking to the Pacific
Asia and the South Pacific also turned out to be big sellers in 2016, and tour firms are adding product to that part of the world for 2017.

The strength of the U.S. dollar is one factor, but so too is unease about Europe. “Based on the challenges Europe has seen, people are looking to do something different,” said Parrish, who noted “incredible growth” in Avalon Waterways’ Mekong and Irrawaddy river cruises.

Globus will bring its more-affordable Cosmos line to Asia for the first time next year. Among Cosmos packages priced under $1,000 in 2017 will be a 13-day Thailand package.

Trafalgar is expanding into India and Sri Lanka in 2017 and has “greatly increased” its capacity for Japan, said Wiseman. “Our traditional European customer wants to travel beyond Europe to more exotic destinations.”

One firm that positioned itself for the upsurge in Asia travel was Avanti Destinations, which this year began operating its modular FIT programs to seven countries in the region, its biggest expansion in 25 years. In 2017, Avanti will add six more Asia countries, for a total of 13.

Insight Vacations is moving into Southeast Asia for the first time in 2017, when it will operate to Vietnam, Cambodia and Laos.

What about Europe?
When it comes to the outlook for Europe in 2017, tour firms are hedging their bets. “Europe is more last-minute than anywhere else,” said Scott Wiseman, president of Travel Impressions.

At Tauck, Palmer cited Europe as the firm’s biggest concern. “People are still skittish about traveling there,” he said.

Still, “Europe is holding strong,” declared Cappelli of Insight Vacations. “I will continue to be bullish with many of the European countries.”

But Cappelli also acknowledged the challenges in parts of Europe. He predicted that “some Eastern Mediterranean countries might not do as well for a little while,” though he said he expected troubled destinations like Turkey and Egypt to regain their strength “in the near future.”

Tour firms also have seen pockets of healthy sales in Europe this year, as travelers redirected themselves in big numbers to places like Ireland, Iceland, Italy, Spain, Portugal and northern Europe. Eastern Europe has also attracted travelers, and Tauck, for one, has added new land programs to Croatia and Slovenia for 2017.

The big story for Europe, said Parrish, is air fares. “They’re at a six-year low to Europe. The rates are incredible.”

As for travel to France in 2017, the jury is still out. “I think France will return, but not to the level we are familiar with,” said Paul Wiseman, president of Trafalgar.

But at Avanti Destinations, chief marketing officer John Hanratty said France bookings were strong. “I wasn’t sure whether we’d see France fall off the chart, but it doesn’t appear that’s the case at all.”

Meanwhile operators are looking to bolster softening European river cruise sales in 2017.

For instance Avalon Waterways has added an Active Discovery on the Danube program which, as the name suggests, offers more activities ashore. And Tauck will add its fourth Tauck Bridges family river cruise next year, adding the Seine to existing programs on the Danube, The Rhine and the Rhone.

Looking further afield
At the higher end of the market, there’s always a decided pull toward more exotic destinations.

Palmer said that Tauck is experiencing “strong growth” in Africa, and a new 10-day itinerary to Morocco is selling “incredibly well.”

Alexander+Roberts, which has long specialized in exotic destinations, is seeing interest in destinations that previously might have been considered out of bounds, said Drumm. The firm introduced Ethiopia last year and the program is doing “surprisingly well,” he said. And a new tour to Iran is “doing very nicely.” On tap for next year is a new program to the Emirates.

“People are going far afield. I do think they want to be challenged. There’s no lack of interest in the far reaches of the world,” Drumm said.

This is part three of a three-part series on the tour outlook for 2017. Read Part I and Part II.