TRAVEL TRENDS & ADVISOR

INSIGHT REPORT
RESULTS FOR Q3 2023
 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

INTRODUCTION
“In our debut ‘Travel Trends & Advisor Insight Report,’ conducted
October 2-18, 2023, on Survey Sparrow on behalf of Travel Agent,
much of what I’ve been told by members of the industry—that
their business is off the charts—has been backed up statistically.
Specifically, the travel industry has had one of its best years to
date in 2023 and, despite some caution about the economy/
personal finances, issues revolving around the air travel system and
the various wars globally, it doesn’t appear that this trend will be
abating any time soon.

“The majority of travel advisors who responded to our survey said

that same-store sales for through September were up compared
to the same period in 2022, with 41 percent of those reporting
that sales were up 16 to 30 percent and another 33 percent saying
sales were up over 31 percent. And, looking forward, 83 percent of
advisors said they were optimistic about the future of the industry
(with just under half saying they are “very optimistic”).

“That said, I see even more room for growth. Sustainability is of

at least some interest to most clients but several obstacles like
pricing and the ability to dissect relevant information is holding the
segment back. Artificial intelligence is still in its infancy and travel
advisors are unsure if/how it could be a boon to their business. And
if you factor in the number of advisors who haven’t implemented or
increased fees since the pandemic or the ones who do not require
travel insurance, the ways to reach even greater heights keep
mounting. But, without any further ado, let’s dive into the findings.”

Matt Turner
Editor, Questex Travel + Meetings Group

TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

CONTENT

4 KEY INSIGHTS 5 CLIENT AGE, 8 SUPPLIER

SPEND AND RELATIONS,
CONCERNS AIR TRAVEL

10 ACCOMMODATIONS, 13 ABOUT THE

DESTINATIONS AUDIENCE
AND BEYOND

TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

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KEY INSIGHTS
Same-store sales for the first three-quarters of
2023 are up compared to the same period in 2022,
according to 55 percent of travel advisors surveyed.
Three-quarters of those reported that sales were up at
least 16 percent.
Baby Boomers are both the average-aged client
of responding travel advisors as well as the highest-
spending demographic. Gen X followed in both
categories.
The plurality of respondents (46 percent) said their
clients spend on average $5,000 to $10,000
annually. These clients have some interest in
sustainable experiences but are only willing to
pay marginally more for them (up to 10 percent).
Rather, clients are more likely to spend money on
accommodations, air travel upgrades, adventure/active
tours and culinary/dining experiences.
TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023
Despite negative press during
the pandemic, cruise interest is
up since COVID-19, according
to 61 percent of advisors. The
most popular cruise categories
include premium cruise lines,
family cruises, contemporary
cruise lines and river cruises.
The most popular destinations right now are the obvious
picks: Europe, the Caribbean, Alaska, Mexico and
Hawaii.
Despite 73 percent of advisors saying their clients have
at least some concern about the economy and personal
finances, 83 percent of respondents also said they
are optimistic about the near-term future of the
travel industry, with 47 percent reporting that they are
very optimistic.
77 %
of advisors
say supplier relations, overall, are
good but air travel remains an issue.
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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

CLIENT AGE,
SPEND AND
CONCERNS
Before we dive into all of the trends, it would
perhaps be most beneficial to examine the
travelers.

On a yearly basis, the plurality of travel

advisors (46 percent) said their average
client spends between $5,000 and $10,000.
Another 27 percent said their clients spend
less than $5,000 annually. Therefore, nearly a
quarter of travel advisors surveyed say their
Baby Boomers are both the typical-aged and highest-spending
clients spend at least $10,000 annually on client for travel advisors.
vacations.

It isn’t surprising, then, to learn that as

spend increases, the number of advisors
reporting their clients are in that given range
decreases. Fourteen percent of advisors said
their clients spend, on average, $10,000 to
$14,999 annually; 6 percent each said their
clients spend $15,000 to $19,999 or $20,000
to $49,999 annually; and 2 percent said
$50,000 or more.
Nearly half of respondents (45 percent)
report that Baby Boomers are their average
client in terms of age, while 38 percent
said Gen X. Just 14 percent of advisors
said their typical client is a Millennial and
2 percent said the Silent Generation. A
handful, accounting to just over 1 percent,
of advisors said their average client was
Gen Z-aged. Following a similar trend, most
advisors (57 percent) reported that Baby
Boomers were their highest-spending client.
This was followed by Gen X (28 percent) and Millennials and the Silent
Generation, which were tied at 6 percent. Just two advisors said that
Gen Z was their highest-spending demographic. Typically, the older a
person is the more disposable income they have, so, again, none of
this appears too out of the ordinary.
Regarding travel experiences, however, clients are willing to spend
on hotel accommodations (66 percent), air travel upgrades (47
percent), adventure/active tours (44 percent) and culinary tours/dining
experiences (41 percent). Less common responses to our poll included
wellness experiences like spa treatments or retreats (24 percent),
festivals/events (21 percent) and concerts/theater productions (20
percent). (SEE FIGURE 1)

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

Figure 1 Experiences clients are willing to spend on

75

66%
40

44%
47 % 41%
20

24%
21% 20%
7% 8%
0

Air travel Hotel Wellness Adventure/ Culinary Festivals/ Concerts/ None of Other
upgrade accommodations (spa active tours tours/dining events theater the above
(first class (suite ugrades, treatments, experiences productions
tickets, lounge higher-end retreats,
access) hotels) etc.)

Most clients (51 percent) have at least

some interest in sustainable practices
but only 10 percent have significant
interest in sustainability. The remaining
39 percent have no interest. Among
those who have at least some interest
in sustainability, they are willing to
pay more for those amenities—but
only marginally more. The plurality of
advisors (48 percent) said their clients
would only pay 1 to 5 percent more for
sustainable practices, while another
35 percent said their clients would be
willing to pay 6 to 10 percent more
for sustainable practices. Beyond that, Nearly half of travel advisors report that their clients are willing to
however, is a steep drop off. Just 12 spend more on sustainable travel experiences and suppliers.

percent of respondents said their

clients would pay 11 to 20 percent
more for sustainable-minded suppliers
and less than 5 percent said their
clients would pay 21 percent or more.
So, while clients aren’t willing to shell
out the “big bucks” for sustainable
experiences, half of travelers are
willing to spend at least a little more
than what they typically would. While
that’s certainly something, selling
sustainable travel appears to have
several roadblocks: Just over one-third
of advisors reported that the main
troubles include cost, that clients aren’t
interested and that they (the travel
advisors) are unsure which practices
matter/they aren’t fully educated on
the topic. Just 10 percent said, “none
of the above” to the survey options—
which also included “unsure how to
sell these partners” and “unsure how
to find partners’ sustainable practices.”

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

Editor’s Insight: While the outlook regarding

sustainable travel could be much brighter, the research
indicates travelers’ willingness to spend at least a little
more on sustainable experiences—which is a win-win-
win (that is, a win for the travelers’ experience, a win
for travel advisors’ pockets and a win for Mother Earth).
Repeatedly, I’m told by travel suppliers that while guests
might not ask to partake in such sustainable initiatives—
perhaps by getting involved with the local community
or assisting a team researching native wildlife—of those
who try it, they say it was their top experience of the trip.
In other words, travel advisors have a real opportunity
if they can pick out a client or two who they feel would
benefit from this type of excursion, suggest it for an
upcoming itinerary. I bet they’ll love it and they’ll likely
want more of these experiences included in their trips
going forward.

That said, the challenges beyond money clearly shows

we need one of two things (if not both) in the travel
industry: More education on sustainable practices
(specifically, those front-end experiences that matter to
the client—the ones that improve their trip, not simply
the fact that the hotel has a water treatment plant) and
a way to standardize the verbiage used by suppliers
who are trying to share their practices. If suppliers could
more clearly identify their sustainable initiatives and how
it benefits the planet and the traveler experience, travel
advisors would become more able to discern which
of these is the right fit for a given client. Selling these
programs should be a top-down approach but with
more available information, it would also become much
easier.
It’s also interesting to note that nearly two-thirds of
respondents (63 percent) said their agencies have not
implemented any sustainable practices—the most
common of which included going paperless, moving
to a virtual office space and using recyclable products.
Some that are going further than that said they were
teaching clients how to travel “light and green,” keeping
a list of ethical travel concepts and destinations, hosting
trainings on sustainable practices, offsetting client
carbon footprints with Trees4Travel donations and
working with sustainably focused companies.
Travel advisor clients, additionally, have at least
some concern about the state of the economy,
including inflation, the stock market or a possible
recession. Over half (54 percent) of advisors
reported their clients have some concern, while
another 19 percent said their clients were very
concerned. The remaining 27 percent of advisors
said their clients were not at all concerned.
In positive news, however, booking windows
appear to have returned to a pre-pandemic
timeline: 45 percent of advisors report that their
clients are booking six to 12 months in advance of
international travel. Another 32 percent are booking
three to six months out. An equal 11 percent each
said their clients are booking either one to three
months in advance or more than one year out. Just
2 percent are booking within one month of travel.

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

SUPPLIER
RELATIONS,
AIR TRAVEL
By and large, travel advisors (77
percent) are satisfied with the support
they are receiving from suppliers.
That said, among those who said they
are not satisfied, common responses
included:

• Long hold times/slow response

time

• Overall cost/nickel-and-diming
add-ons

• Talking directly to clients without

the advisor

• Inexperienced/untrained staff if
not understaffed
• The requirement to redo training if
you change host agencies
• Late/unreceived commissions
• Outsourced representatives who
aren’t as familiar with the product
• Assisting with client issues
• Lack of incentives
• An increase in non-commissiona-
ble fares by cruise lines
Here is what some advisors have told us:
“Dealing with companies’ lack of staff, lack of training for those
staff members and the decline of service [is a challenge].
With the increase in my own business, I am concerned about
balancing my own time.”
“With so many new-to-industry or less experienced people
in all levels of positions, it is much harder to problem-solve
the more nuanced issues. [In addition,] response times are
slower and overall reservationists are much less informed
than our own agents. Long hold times and hangups are also a
continuing issue.”

“Clients are paying more than ever but the experiences and
service do not reflect the price increases.”

TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

While supplier relations are largely

positive, air travel continues to be a major
concern as 75 percent of respondents
said. The top issues reported by advisors
were delays/cancelations and price (74
percent each). Other popular responses
included airport navigation/wait times (37
percent), seat availability (27 percent) and
destinations offered (17 percent).

As noted by one advisor, another

issue relating to air travel: Climate
change. “[I’m] also concerned that
consistently worsening weather and the
increase in clear air turbulence will begin
to impact travel patterns,” they said.

According to data from Airlines Reporting

Corp. (ARC), airfares, on average, had
dropped for three straight months

75
from June to August and only about
half of advisors (49 percent) said their
clients took advantage of it. (That said, %
September marked the first month since
May 2023 that the average ticket price of respondents
increased for U.S. domestic round-trip
air tickets.) Keeping an eye on drops in said air travel continues to be
airfare could be a good way to drum up a major concern
business, especially as clients are not
overly assured by airlines and their overall
flying experience.

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ACCOMMODATIONS, DESTINATIONS
AND BEYOND
Preferred accommodation options ran the gamut;
however, hotels clearly dominated home rentals in
terms of popularity. The most selected responses were
all-inclusive resorts (70 percent), premium hotel brands
(61 percent), luxury hotels (44 percent) and boutique
properties (39 percent). Following those were home
rentals (22 percent), villas (19 percent), independent
hotels (19 percent) and lifestyle hotels (17 percent). While
hotels have typically always been more popular than
rentals, this gap also signifies an apparent return to “pre-
COVID” times as, during the pandemic, demand for private
accommodations like villas skyrocketed in popularity.
Similarly, despite the bad press the sector received
throughout the pandemic, cruise interest among clients is
up since COVID. In fact, six in 10 respondents (61 percent)
said so. Only 16 percent of advisors reported that interest
in cruising is down since COVID. (Thus, the remaining 24
percent of advisors said interest in cruising remains about
the same as pre-pandemic.)
TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023
All-Inclusive resorts are the most popular
among clients. Following in popularity
are premium hotel brands, luxury hotels
and boutique properties
Like accommodations, clients have interest in a variety
of cruise experiences, the most popular being premium
cruise brands (59 percent), family cruises (54 percent),
contemporary cruise lines (53 percent) and river cruises
(52 percent). Luxury cruises also receives strong interest
among travelers with 46 percent of advisors reporting so.
Other common responses included adults-only cruises
(30 percent), expedition cruises (25 percent), small-ship/
sailing vessels (16 percent) and extended voyages/world
cruises (11 percent). Another segment to keep an out
for, especially in the luxury sector, are the numerous
hotel brands that are taking to the seas. The Ritz-Carlton
Yacht Collection made its debut this year, while others—
including Four Seasons and Orient Express—have ships
on the way. Could it bring more new-to-cruise guests to
the sector?
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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

What destinations are drawing the most interest from your clients?

75

71% 71%

40

46%
37 %
20
29%
24% 17 % 15%
12 %
10 % 13% 4% 11% 10%
8 %
0

Continental Hawaii Alaska Canada Mexico Caribbean Central South Europe Middle Africa Central Asia Southeast Oceania
United America America East Asia Pacific Asia
States

When it comes to the top destinations that clients are

visiting, there are few surprises. The most popular
responses were Europe and the Caribbean, each with
over a 70 percent response rate. Following those two,
interest drops off significantly, with Alaska, Mexico,
Hawaii and the Continental United States occupying the
remainder of the top six spots. Response rate again drops
after that but remaining fairly equal for: Africa, Asia Pacific,
South America, Canada, Southeast Asia and Central
America. Rounding out the list were Oceania, the Middle
East and Central Asia.

We also asked what new Some unique responses

destinations are drawing interest included the following:
among clients. The most common
Argentina Canary Islands, Spain
answers included: Cambodia Greenland
Colombia Kenya
Alaska Antarctica
Indonesia Lebanon
Australia Costa Rica
Laos Mekong River
Croatia Dubai, United Arab Emirates
Madeira River, Brazil Saint Lucia
Egypt Greece
Norway The Baltics
Iceland Japan
South Africa
New Zealand
Azores, Portugal

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

Editor’s Note: When this survey began, the

war in Israel and Gaza had not escalated and,
therefore, current interest in travel to the
Middle East might not be properly reflected.
The situation has caused a ripple effect
throughout the industry, with tour operators
and cruise lines bypassing the region and
clients looking to cancel trips not only to Israel
but to nearby destinations like Egypt and
Jordan. Other travel advisors have reported
clients are looking to cancel trips as far as
Morocco, Spain and Portugal and even South
America for various reasons, among them the
fact that their clients are Jewish and they are
wary of traveling at the moment.

Said one advisor: “The current war in

Israel and Middle East suddenly put a halt to
international travel requests.” They add that
clients have canceled U.S. trips as well due to
fear of domestic terrorism in the wake of the
war in the Middle East.

As far as the specific locale types that travelers

are currently drawn to, beach destinations topped
the charts, with 76 percent of advisors saying their
clients are interested in them. Historic sites, at 56
percent, came next on the list, followed closely by
major cities at 53 percent. When considering that
Europe and the Caribbean were the top two regions
in the section above, it’s no surprise that that the
things these destinations are known for—beaches,
historic sites and major cities—all topped this chart.
After those, second/smaller cities (30 percent),
mountain destinations (21 percent) and wide-open
spaces (10 percent) were among the more common
responses.

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

ABOUT THE AUDIENCE

What is the makeup of our audience? Among those we polled, 51 percent are independent contractors (ICs), 31
percent are travel agency owners/presidents, 11 percent are full-time travel advisor employees and 2 percent each
are managers or vice presidents/directors. Another 2 percent filed under “other.”

These travel advisors also have plenty of experience within the industry. The most common response for their
longevity in their role within the industry was 21 or more years (28 percent). Following, however, was two to five
years at 27 percent. Another 19 percent of respondents have 11 to 20 years’ experience as a travel advisor and
18 percent have six to 10 years of experience. Just 8 percent of respondents report to have less than one year of
experience as a travel advisor.

How much have same-store sales increased through September 2023.

50
Despite the increased
sales, only 16 percent of
respondents said they have

40% hired help this year. As for

how these advisors found
30
their new hires, popular
responses included:

• Local community
15
26%
22 % websites/community job
12% boards or postings
0
• Personal network/family
Less than 16 to 30 31 to 50 51 percent
15 percent percent percent ot more or friends

• Word of mouth

Same-store sales for the first half of 2023 (through September) are higher than • Website such as Indeed,
the same period in 2022 for the majority of respondents (55 percent). Another Monster, Zip Recruiter
30 percent reported that sales were about the same. Of those who reported and LinkedIn
same-store sales to be higher, four in 10 said sales were up 16 to 30 percent • Trade websites
over 2022. While one-quarter (26 percent) reported that sales were up less
than 15 percent, 22 percent said sales were up 31 to 50 percent. Another 12 • Social media
percent said that same-store sales were up 51 percent or more compared to
• Ads
the same period last year. In other words, three-quarters of travel advisors with
higher sales reported they were up at least 16 percent and one-third said they • Headhunters
were up at least 31 percent.

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

Interestingly, nearly seven in 10 advisors (71 percent) said they have not implemented or increased fees since the
pandemic. About a third (35 percent) also say they have not begun requiring travel insurance in that same period (although
a 30 percent reported they have always required travel insurance).

Said one advisor who is feeling conflicted: “I feel I have to implement a fee upfront before I do the work and they
decline the trip or change the itinerary. Time is a precious commodity: Once gone, it cannot be regained.”

Editor’s Insight: Just the same as a financial planner or wedding planner charges a fee for their services,
our opinion is that travel advisors should, too. What type of fee model they opt for (an upfront planning fee, a
cancellation fee, a retainer/annual membership) is up to them, but if their clients truly value their expertise and
effort, clients should have no problem paying advisors for their services. Not only is it a way to bolster their business,
but it will spare them the potential clients who use their knowledge, just to drop out and book directly (without all the
added perks a travel advisor would have gotten them or the assurance that they could assist the client in the event
something goes wrong).

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 TRAVEL TRENDS & ADVISOR INSIGHT REPORT Q3 2023

When it comes to artificial intelligence (AI), many travel advisors

(40 percent) are unsure how it could impact their business.
Another quarter (28 percent) feel it poses a threat to their
business. The remaining third feel it will either marginally (21
percent) or significantly improve (12 percent) the capabilities
of a travel advisor. Only a quarter have even tested out AI, for
instance, to write blogs, email copy, proposals and agency and
advisor bios, identifying key attractions in a city, title generation
and creating marketing/ads.

Beyond the above, there are other opportunities AI provides

travel advisors. Christine Vincent, business technology manager
at TRAVELSAVERS, says that travel advisors can test out AI to
compile, say, the top restaurants to get breakfast near your Most travel advisors are at best skeptical of the
client’s hotel. In the time it would take you to go through a impact artificial intelligence will have on their business;
Google search, ChatGPT could have a spreadsheet with the however, others are testing it to write email/marketing
copy or proposals, to identify key attractions in a city
name of the restaurant, its hours, the price range, distance or to generate agency/advisor bios.
from the hotel and something cool about the venue that a
traveler would want to know.

Another implementation: Largay Travel this year debuted its content experience platform, a portal of pre-built, white-
labeled content can be instantly co-branded and shared by advisors with their clients through a single click. Pulling from
Largay Travel’s 300-plus curated destination and experience-based content pieces, in addition to partner Approach Guides’
portfolio of inspirational and educational content, advisors can have the AI tool create a blog, social post or email tailored to
the style of the advisor and to the client.

Editor’s Insight: Just as the Internet was at first seen as a threat to the agency business and, later, became a
primary tool for advisors, so too will AI. Yes, while AI already has some ability to create itineraries for travelers, these
folks are likely already using OTAs—the “do-it-yourselfers.” The ones who know the value of a travel advisor were not
the ones jumping ship to use an OTA and they will not be the ones to abandon travel advisors for AI. In the end, it will
show advisors which travelers are the ones worth working with.

Despite some skepticism over artificial intelligence, the wars in the Middle East and Ukraine, among other potential
roadblocks—like the United States Presidential Election 2024 and whether airfares and airline service continue to diverge
in the wrong direction—there is plenty to be optimistic about in the travel industry, and that mentality is felt by the majority
of respondents (83 percent). In fact, just about half (47 percent) said they were very optimistic about the near-term
future of the travel industry, while 34 percent reported only mild optimism. From what we’ve seen, include us in the “very
optimistic” category.

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