Exclusive: Advisors Expect Return to Pre-Pandemic Business Levels by 2023

While Omicron did deter plenty of people from traveling, the good news is travel advisor business has largely picked up since the start of the New Year, according to a recent survey conducted by Travel Agent.

Titled “State of Your Business: The Return to Travel,” the poll found that 58 percent of travel advisors’ business has picked up since the start of 2022. Twenty-five percent said business has not picked up, while 17 percent reported it was about the same. That follows, however, 89 percent of respondents saying Omicron deterred either many (38 percent) or some (51 percent) of their clients from traveling during its peak.

As to when their business might return to pre-pandemic levels, the plurality of advisors (48 percent) said 2023. Another 20 percent expect to return to “normal” by the second half of 2022, while 19 percent report their business has already returned to these levels. Ten percent said they expect this to happen by 2024 and 3 percent reported the first half of 2022.

Looking forward, there is an even mix of when clients are booking their travel for: 23 percent are booking within the next three months; 32 percent are booking between three to six months out; 27 percent are booking six months to a year; and 18 percent are booking a year or further out. Closer-to-home destinations are generally among the most requested, as well. While Europe leads the pack with 75 percent of advisors saying their clients are inquiring about trips to the continent, at least half of respondents also selected the Caribbean (62 percent), Continental United States (59 percent), Mexico (59 percent) and Hawaii (57 percent); Alaska followed at 33 percent.

There was also mixed sentiment when it came to cruising. While 37 percent of advisors said their clients were not yet returning to cruise, similar numbers were returning to various cruise segments: 35 percent are booking river cruises; 34 percent are booking small or expedition cruises; and 30 percent are booking large ocean cruises.

When it comes to trip spend, there is some more good news. Fifty-eight percent of advisors reported that their clients were spending more on their trips this year than in the past. One-third (32 percent) said they were spending about the same, while the remaining 10 percent were spending less. As for trip length, most clients (56 percent) were traveling for roughly the same time as years’ past, with 32 percent staying longer and 12 percent taking shorter trips.

What’s Surprising About Client Travel Behavior

Travel Agent also asked what has surprised travel advisors the most about their clients' travel requests for 2022. The bottom line? Clients are eager to get back out there. Similar responses included things like:

  • “People are ready to go!”
  • “Willingness to travel despite hurdles—most are ready to go!”
  • "I’m surprised they are willing to deal with all the testing and requirements of international travel.”
  • "They are all just ready to get back out and travel”
  • “This is our fourth year in business. It is our best January thus far. Booking a lot of land vacations.”
  • “How many requests there are. We doubled our January sales from 2021.”
  • “How frequently the requests are coming in. I often start planning a clients next tip while they are on their current trip.”
  • “How many people want to travel.”
  • “They are so ready to travel!!”
  • “They are determined to travel no matter how many hoops they have to jump through!”

Additional positive anecdotes include several reports of increased spend:

  • “Spending more and accepting higher prices than before for hotels”
  • “The amount they are spending. Clients that flew economy going business. Trying the bucket list hotel or destination.”
  • “How much they’re spending and how much they’re relying on destinations and cruise lines to mandate vaccination.”
  • “Not as price conscious, booking longer trips.”
  • “What they are willing to spend per night.”
  • "Clients are willing to spend whatever it takes to be expedited [through] airports and logistics.”

Other responses noted a mix of feelings towards travel requirements. Some clients will not travel to a destination or on a cruise unless they know there are vaccination or other strict health and safety policies in place, while others are staying home until masking, for instance, is done with. Some advisors said their clients are much more interested in cancellation policies and won’t book unless they are protected.

On sustainability, one advisor said, “Clients are more conscientious of the impact of their visit/vacation to a destination. They are now asking how the local area is affected by tourism, how does it impact the local communities and the residents, the cultures, the heritage, the environment. They want to know if the properties are staffed by locals and there’s more of an interest in supporting locally owned/family run businesses and activities that have a positive impact on local communities.”

Travel Agent polled its audience from January 31 to February 4, 2022; it received 115 respondents. Fifty-two percent identified as independent contractors, 39 percent as a travel agency owner/manager, 5 percent as a travel advisor employee and 3 percent “other.” Forty-nine respondents belonged to Virtuoso, 16 from Travel Leaders, nine to Signature, with the remaining split among a number of networks or consortia.

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