Travel Execs Foresee a Complex But Encouraging New Year

OUTLOOK 2015

Top travel agents and consortia executives see more change, the continued strength of several travel trends, and ever-present challenges ahead for this new year.

But they’re also encouraged—and energized—about the industry and the prospects for success in 2015.

Here’s what they had to say.

Changes in how travel agents’ work . . .
 “We see a continued trend in the decline of employed travel agents with the continued growth of independent travel consultants. Consortia will need to justify their business model and relevancy to the traditional agency owner and ability to improve sales performance with (preferred) suppliers. [We] urge suppliers to innovate their reservations systems to track sales to the travel consultant level so they can better target/reward the sellers of their travel products.” – Ann van Leeuwen, president, NACTA

“[We’ll see] continued growth in the home-based market as the segment matures with agents developing their individual businesses. In addition, reputable hosts are attracting new blood into the industry with their willingness to train and support. Hosting makes sense and is a cost effective way for people to enter the industry. Many of the new entrants are young which is another positive for the industry.” – Andi Mclure-Mysza, co-president of Montrose Travel, president MTravel

. . . but the same challenges remain
“The consultant’s job will continue to be increasingly challenging as customers are both more informed than ever but also more misinformed than ever. More consultation time will be needed explaining options and comparing differences. Education and ongoing training are a necessity. The good news is there are lots of training programs available. The challenge for suppliers is to find new ways to deliver that training that is still effective because travel consultants have less time for some of the traditional methods of training.” – John Werner, president and COO, MAST Travel Network

More consolidation ahead?
“At Avoya Travel, we are optimistic about 2015. From a retailer perspective, world events and the economy impact industry trends and assuming things remain in control, we feel very positive about this new year. While we don’t expect any major changes in the industry, we do see the possibility of continued consolidation and new entrants into the industry that will help bring more awareness to the leisure travel business.

“We are at a time where the cruise industry is moving into a slightly more mature era and its next phase of growth with strong suppliers, extraordinary innovation, and exciting new products being introduced. In addition, we’re seeing a lot more interest and activity in the all-inclusive resort segment with the expansion in the number of products and unique offerings, which will drive a lot of demand among travelers worldwide.” – Scott Koepf, senior vice president of sales, Avoya Travel

Strong niches get stronger
“Consumer demand for the more experiential and adventure travel experience continues to be hot with no signs of it waning in the coming year. And land bookings by Ensemble members support that trend, especially in the niche/On Location/FIT segment that’s showing double-digit growth.

“In addition, the popularity of the family/multi-generational vacation – both domestically and internationally – is strong for Ensemble members, with it selected as the top emerging market segment for their agency. ‘Adventure’ and ‘culture/history’ round out members’ top three choices. Results are part of the 2014-15 Ensemble Insights Survey that was conducted in early October and reflects input from more than 500 Ensemble Travel Group agents, managers, and owners in the U.S. and Canada.” – Libbie Rice, co-president, Ensemble Travel Group

“I see some of 2014 repeating itself. The booking window continues to push further out, which will change the way our typical ‘wave’ season looks from both a promotion perspective and demand. Luxury continues to lead the way, but premium for us has really started to build earlier as well.

“Land (tour) and hotel continue to grow at a faster pace than cruise overall and even more so, if you pull out river which is growing at an exponential pace. Active/adventure, groups (family especially) and celebrations continue to do quite well, especially as supplier and consultants focus more on these segments, which we have also supported in a strong way from a marketing perspective.” – Alex Sharpe, CEO Signature Travel Network

Hot destinations
“I believe more exotic destinations are going to become the rage. Islands in the Caribbean like Grenada are now adding more airline lift and consumers are looking for new destinations. Thailand and Peru have also become a hot topic and I believe 2015 will have consumers feeling more comfortable about traveling to destinations that are more exotic.” – Jennifer Doncsecz, president VIP Vacations

“We saw large double-digit growth in the tour segment, both escorted and FIT, in 2014 and expect 2015 to see a continued increase. The hottest destinations were Mexico, the Caribbean, Iceland, Italy, Ireland, and Central/South America. We also saw that Hawaii and Greece are coming back, with demand up in 2014. Additionally, we’ve seen steady growth with Croatia and Scandinavia over the last two years and expect that trend to continue into 2015.” – Nicole Mazza, chief marketing officer, TRAVELSAVERS

Clients willing to spend more—for value
“River cruising continues to be hot amongst the clients of our agencies. Sales and capacity are both on the rise. Our agencies are also upselling now more than ever across all segments which demonstrates that travelers are willing to spend more for a good value.

“As an industry, I’ve noticed that South Africa is making a great effort to increase tourism following the Ebola outbreak by offering attractive pricing. I  think once consumers understand that South Africa is quite a distance away from where the outbreak occurred and the media quiets down, reservations will pick up again. It’s such a beautiful destination, and we are looking forward to helping our travel partners in South Africa rebound.” – Nicole Mazza, TRAVELSAVERS

Technology continues to be a ‘big deal’
“I am so happy to see so many hotels/resorts offering free wifi. That is a big deal. Sandals announced it was doing this at most of its resorts and all of its properties should have this in place in 2015. More airlines should be adding this as an additional charge this year but consumers can’t seem to disconnect so it is even a request we see prior to clients booking their flights.” – Jennifer Doncsecz, VIP Vacations

Beyond everything, at least ‘one thing is for certain’
“One thing is for certain: the world will continue to challenge us from all fronts – the economy, politics, technology, weather, even our supplier partners. It’s how travel agencies roll with the punches and adapt to change that will make the difference between those who are successful and those who decide to hang it up. We have the ability to set our own course. Those who choose to be client centric and demonstrate their value and expertise on a consistent basis will rise above it all.” – Andi McClure-Mysza, Montrose Travel, MTravel