The top factors influencing luxury travel this year are geopolitical conflicts and political uncertainty, labour and staffing shortages, and environmental concerns or natural disasters, according to a recent Virtuoso survey of travel agency owners and managers.
Virtuoso, a leading global network of luxury travel advisors and agencies, is seeing no signs of slowdown. Matthew Upchurch, Chairman and CEO, said at ILTM Cannes, “Virtuoso has grown to $35 billion in annual sales, with over 20,000 advisors across 58 countries and more than 2,300 preferred partners. To give you a broader perspective, 47 per cent of our advisors are based outside the US, and 60 per cent of our member companies are non-US. Although the US still represents 75 per cent of our sales, it’s not due to a lack of growth among our international members; it’s just that the US luxury travel market exploded after COVID.”
“It’s quite remarkable what’s happened in this profession. Travel advisors, unlike transactional travel agents, add value in three distinct phases: before, during, and after the trip. They cultivate a holistic relationship akin to that of a wealth advisor, “ Upchurch added.
Talking about China outbound, Upchurch said: “In 2019, 100 million Chinese were travelling internationally, and we’re beginning to see those numbers in close destinations like Thailand. Imagine how busy everything is now, and we haven’t even seen a full recovery in China. Domestically, the market is tremendous.” Advance planning
Numbers are rising all round, Upchurch expanded: “When you talk to a travel advisor, remember that today’s efforts aren’t just for this year’s trips. Advisors are planning years in advance, especially in cruising. It gets even crazier at the ultra-high net worth end of the scale. Trips costing $50,000 or more per booking are up 42 per cent. According to WTTC numbers, in 10 years, travel and tourism will account for almost 11.5 per cent of the world’s GDP and 12.2 per cent of jobs. Today, one in ten jobs globally are in travel and tourism, and this is set to grow in the next decade, which is incredible.” Popular themes
Revealing research numbers as observed by Virtuoso, Upchurch said: “Top travel trends include family travel and immediate family celebrations. Travel is increasingly becoming a multi-generational family experience. Adventure travel, cruising, and active travel are all powerful trends. However, “active travel” is more about moderate activity – what we call “born to be mild” – rather than extreme adventures. There’s also a notable mental health benefit to travel, encouraging people to engage in interesting activities and escape their routines.”
Virtuoso is the leading global travel agency network specialising in luxury and experiential travel. This by-invitation-only organisation comprises over 1,200 travel agency locations with more than 20,000 travel advisors in 54 countries throughout North America, Latin America, the Caribbean, Europe, Asia-Pacific, Africa and the Middle East. Drawing upon its preferred relationships with more than 2,300 of the world’s best hotels and resorts, cruise lines, airlines, tour companies and premier destinations, the network provides its upscale clientele with exclusive amenities, rare experiences and privileged access. Normalised annual sales of $28-$32 billion make Virtuoso a powerhouse in the luxury travel industry.