For Canada’s Travel Agents, Bad Weather Means Good Business

Thanks in part to brutal winters that have Canadians looking for an escape to warmer climes, the travel agency business in Canada continues to thrive.  

Travel agents report that business is up year over year and in spite of recent international crises, people are traveling as much, if not more, than ever.

The following is a look at Canadian clients’ favored destinations, the types of travel experiences they’re seeking and their spending habits.

‘Bread and butter’ destinations

The bread-and-butter for many Canadian travel agencies is Caribbean and Mexico winter sun-and-sand land-package getaways. That’s especially true these days thanks to a brutal winter last year and another one expected for this year.

Other popular destinations include China, Southeast Asia and Europe, according to agents. They also reported that business is down to Africa, because of the Ebola scare, and to Russia, given the political turmoil in the Ukraine.

New and popular
While ocean cruising is not as popular in Canada as in the U.S., Barb Crowe, president of Ixtapa Travel, an Ensemble-affiliated agency in Saskatoon, is seeing a rise in interest in river cruising.

“We’re slowly getting into the cruise market – not ocean cruising but river cruising, a lot of river cruising,” Crowe said. “Along with that, is an opportunity to do a bit of a land package pre- or post-cruise.”

Noticing a growing interest in Croatia, Crowe’s agency created a two-week tour to the republic in September.

The trip had 40 participants and included five days on land and a private yacht charter that sailed along the Dalmatian Coast. Next year’s Croatia tour has already sold out, and Crowe is planning a third trip for 2016.

Growth of family travel
Family travel is a rapidly growing segment for Mason Horvath, a Virtuoso-member agency in Vancouver that specializes in high-end FITs

“This year we’ve done more families than any other year. We’ve had some multigenerational and adult kids, and kids in college even bringing their girlfriends along,” said Dean Horvath, co-owner.

“There is more advertising these days geared toward people traveling with their family, and that’s getting people thinking about it.”

As for where clients are traveling, it’s a lot of European destinations and the most popular sights in those countries.

“They often say they want to show their kids what they saw when they were backpacking after college, but they’re staying in much nicer places,” he said.

Irene Neustaedter, president of Around the World in 80 Ways in Winnipeg, is also selling vacations for multigenerational groups. “A lot more families from across the country are getting together to take one vacation together,” she said.

Selling the unique
Canadian clients are expecting authentic experiences at their destinations along with experiences tailored to their stage in life.

“Generally, our clients are on the lookout for unique experiences in their travel, and that takes many forms.” said Jason Merrithew, national sales and marketing manager of Merit Travel Group in Toronto.

“You might see a boomer taking that cruise of a lifetime to the Arctic Circle or a younger millennial taking their first trip overseas with friends to Europe,” he said.

“The overall trend that I think we’re seeing is Canadians are looking for unique cultural experiences that they can have wherever they visit.”

Looking for value
Clients’ budgets were much more strict in the past, according to Horvath.

“The recession is getting further and further away,” he said. “We’ve been doing a lot of upselling lately based on value.

“They come in with a budget of X, whatever that is, and we explain what they can get if they up it a bit.”

But David Harris, president/owner of Orion Travelinx, an Ensemble agency in Burlington, Ontario, is finding cost can be a concern.

“One of the things I am noticing is that everyone is price sensitive. It’s because they’re inundated with different travel materials that emphasize price,” he said.