Three Questions with Delta Vacations’ Steve Diggelmann

In the latest installment in our popular 3Q series, TMR asked three questions of Steve Diggelmann, vice president of sales at Delta Vacations.

What trends do you see developing in the travel industry that will affect travel agents in 2016? 
One of the biggest trends we see continuing to grow in 2016 is a surging interest in serviced accommodations, such as vacation apartments, condominiums, and homes. This represents a huge opportunity for travel agents with clients looking for more intimate connections with a city and a neighborhood while on vacation. 
 
Along with more space than standard hotel rooms typically provide, serviced apartments are fully furnished, well-appointed, conveniently located, and serve as a home away from home while on vacation. These are ideal for couples, friends, traditional and multigenerational families, and other clients wanting to “live like the locals.” 
 
Delta Vacations works with top hospitality providers to offer world-class self-catering vacation apartments in the United States and Europe that are managed, maintained, and cleaned by professional staff. 
 
We are also seeing increases in the luxury. With a generally positive economy at home, the dollar doing well abroad, and many suppliers stepping into the arena, luxury is becoming more attainable for more types of travelers. 
 
In fact, luxury is the fastest growing segment for Delta Vacations. Booked room nights in 4.5- to 5.5-rated hotels and resorts accounted for nearly one-third of our business in 2015, which is up from about one-quarter in 2014. 
 
Beyond their affluent clients, many of the travel agents that work with us are doing a great job of upselling other clients on high-end or high-touch elements of a vacation. This could be booking First Class or Delta One cabin service with a private transfer. Or it may mean flying in the main cabin but opting for an exceptional luxury property with the best ocean-view suite. 

As  far as destination, for the third year in a row we are seeing our highest percentage of growth in Europe. This includes London, Paris, and Rome, but we are also seeing growing demand in cities like Prague and Budapest. With our strong network of joint-venture partner airlines we are able to offer the best in service throughout the continent. 
 
We are also seeing strong growth in Europe with luxury and boutique properties. Delta Vacations has added serval dozen high-end hotels across the continent and we will continue to add to our portfolio in 2016 to meet the demand from travel agents. We are also seeing a greater demand for experiential activities and continue to add unique small group experiences throughout Europe—like walking and culinary tours, wine tastings, and cooking classes.  

What are you doing differently in your own business in 2016?
Our core philosophy has been—and will remain—the same. We are committed to the success of our agency partners. We promise to continue to listen and to be open, honest, and transparent in all of our communications. Our agency partners are one of our greatest assets. Their feedback, suggestions and input form the basis for improvements in our products and services. Through our annual survey, destination training trips, meetings with our Advisory Board, and in-market events we strive to always listen and continually improve. So, the voice of our agents today becomes our plan for tomorrow.

What advice do you have for travel agents to grow their businesses? 
My advice for travel agents is to really get to know your tour operator. It’s no secret that travel is one of the most competitive industries out there. Travel agents need partners that they can rely on in a pinch to go the extra mile for their clients. With more than 4,500 properties in 250 destinations worldwide, a U.S.-based call center with trained vacation specialists and 24/7 support, we believe Delta Vacations is just that type of partner.