"Normalization" was the word of the year for the travel industry writ large in 2024, and for the agency community, it was no different.
But though the frenzied years in the immediate aftermath of a Covid-induced travel boom seem to have calmed, most agencies are reporting strong bookings for 2025. With consumer demand for advisors still high, it's shaping up to be another robust year.
Of course, the world exited a period of relative peace when Russia invaded Ukraine in 2022, a conflict that is still raging. Armed conflicts in some areas of the Middle East continue, with the potential for tensions to escalate. The U.S. will have a new presidential administration starting Jan. 20. Any number of black swan events could occur.
But even when disruptive events happens, people still tend to travel, even if it's delayed or they opt for a new destination. For travel advisors and the industry, this is good news.
Virtuoso in November offered promising numbers for 2025 and beyond. Overall, as of November, the network's sales were up 14% compared with the same period the year before. Travel booked for 2025 and 2026 was up 30% when compared with future bookings made in 2023 for the following two years.
Big-ticket sales of more than $50,000 for 2025 and 2026 were also up, Virtuoso reported, to the tune of 42%. Cruises and safaris were both significant contributors to that.
In 2025, the appeal of Europe remains strong for travelers, according to Travelsavers and NEST advisors, who were surveyed last month on trends for the upcoming year. Italy will again be a top destination, they predicted. But they're also seeing interest among clients in more far-flung destinations like Japan, South Africa and Antarctica.
Eastern Europe is also trending, indicating clients are looking for less-touristed destinations.
Advisors who haven't yet done so might want to set their sights on river cruising: Signature Travel Network last month reported advance bookings for 2025 were up 8% overall. River cruises led the way, up 23%, followed closely by guided vacations at 19%.
A panoramic view of Cape Town. Some advisors are seeing interest among clients in more far-flung destinations, including South Africa. Photo Credit: That Video Guy/Shutterstock.com
Advice for a new year
While the travel agency channel is enjoying much-deserved health following the bleak times after the pandemic began, there's always room to improve the way things are done.
J.D. O'Hara, CEO of Internova Travel Group, offered advisors three pieces of advice as they move into the new year: embrace technology, consider new products and work on their business.
AI, which was a big story in 2024, seems poised for further integration into travel agencies' businesses. And technology, like AI, should be used to enhance the job an advisor does, he said.
"I'm not particularly concerned about AI taking over," O'Hara said. "I'm actually quite excited about the ability for AI to enhance what a travel advisor can do."
New products offer an avenue for growth, as well, he said.
Also a growth avenue: new and lesser-traveled destinations such as Chile are on the rise, he said, as are current favorites Portugal and Switzerland.
Finally, while he acknowledged it's an oft-used term, O'Hara encouraged advisors to "focus on working on your business as opposed to in your business."
"Our travel advisors are real businesses, the opposite of order takers," he said. "Think about that. Think about yourself in terms of a business and how you're going to grow your business. Focus on the things that you're strong with, and let your agency support teams help wherever we can to enable that."