TORONTO — From Amsterdam to Zambia – and just about everywhere in between – Virtuoso covered the world’s destinations with its luxury travel trends report and travel advisor panel streamed live yesterday from Virtuoso Travel Week.
More than 4,700 top professionals from 97 countries are in Las Vegas this week for the 36th annual event, at properties including Bellagio Hotel & Casino, ARIA Resort & Casino, The Cosmopolitan of Las Vegas and Vdara Hotel & Spa.
By the time Virtuoso Travel Week wraps up on Aug. 16, representatives from just about 2,000 companies will have connected via matched morning networking tracks and self-selected afternoon appointments – over 75,000 in total.
The powerful turnout underlines Virtuoso’s strength. The luxury and experiential travel network is in 58 countries worldwide, with 20,000 advisors – “and nearly half of those are outside the U.S.”, says Misty Belles, Virtuoso’s VP, Global Public Relations.
Belles delivered Virtuoso’s travel trends report yesterday, prefacing a Virtuoso Advisor Panel discussion.
“NO SLOW DOWN”
While for many demand is starting to plateau after the post-pandemic travel frenzy, “we are seeing no slow down,” said Belles. “Travel advisors are in high demand right now. There was a 76% increase in the number of people seeking out a Virtuoso agent this year. Demand for travel is incredibly high, and we have travellers who can afford it.”
Belles offered a quick rundown of the top trends in 2023 versus 2024, before diving in to statistics.
In 2023, travel was all about hot spots, self-care, revenge travel and travel at any cost.
In 2024, the trends are ‘cool-cations’ (in destinations with milder temperatures), self-preservation (“because everything is coming at everyone all at once”), revelry travel and travel at all cost. Last year was also about the return to Japan, whereas this year it’s a return to Asia as a whole.
“FALL IS THE NEW SUMMER”
Virtuoso hit the pre-pandemic 2019 mark back in 2022. Now the group is 211% over 2019.
“Everything is up,” says Belles. “From January to June 2024, year over year, we’re seeing increases everywhere: cruise (18.4%), hotel (8.1%), on-site (15.8%), tours (12.7%).”
Forward bookings have climbed too. “Looking ahead to bookings for one to two years out, we’re seeing 38% higher sales for forward bookings in first half of 2024 versus the first half of 2023. Momentum continues to build for 2025 and 2026,” she said.
And as every traveller (and advisor) knows, average daily rates have soared too. For the high-end properties that Virtuoso works with, ADR is US$1,465 per night, and $2,000 per night during the festive season from mid-December through the first week of January.
The months leading into festive season are strong too, with the benefit of lower rates, at least in some destinations. “Fall is the new summer,” says Belles. “Bookings are up and rates are down, relatively speaking.”
U.S. travel companies are always asked about the election effect. Traditional wisdom dictates that bookings and sales slow somewhat in presidential election years. Belles notes that growth may slow, but bookings overall are still up in 2024, with an uptick the year before the election: “The years before elections see an average increase of 27%, while election years average 10% increases.”
WHERE TO?
Top countries for fall travel, across Virtuoso’s global markets are (in order): USA, Italy, France, Mexico, UK, Spain, St. Barts, Portugal, Canada and Japan.
Belles notes that three top picks in 2023 – Greece, Ireland, South Africa – weren’t in the top 10 this year. Destinations seeing the biggest leaps in growth from the Virtuoso network include Canada (up 168%) Japan (up 160%) and St. Barts (up 155%).
And what countries are Canadians specifically booking? The U.S., Italy and France take the top three spots. Homegrown vacations right here in Canada came in fourth. And incredibly popular Japan took fifth spot.
Destinations to watch for fall travel include China (up 146%) Japan (up 108%), Iceland (up 72%), French Polynesia (up 60%), UK & Ireland (up 33%) and Australia (up 18%).
And the top cities for fall? Demand for these favourites is up (but so are the hotel rates): Paris (rates up 12% over 2023), London (rates 2%+), New York (rates 32%+), Rome (16%+) and Tokyo (14%-).
Value city opportunities include Italy’s Taormina (rates down 22%), Napa (rates down 19%) and Amsterdam (rates down 11%).
With hotel rates and airfares creating a sustained sense of sticker shock for many travellers, heading off the beaten path to alternate destinations is proving increasingly popular. Instead of Italy, travel advisors are sometimes suggesting
Slovenia, Portugal and Croatia, says Belles (and since Croatia itself is also popular,
Montenegro can be a good alternative). Instead of Costa Rica, many Virtuoso advisors are suggesting Guatemala.
Meanwhile, one year after the devastating wildfires in Lahaina, demand for Maui travel is improving, up 4% from January to June 2024 year over year, according to Virtuoso’s metrics. For the festive season, Maui is up 66%.
No matter the destination, sustainable travel is on the minds of more and more travellers. According to the 2024 Virtuoso Impact Report, sustainable partner total sales are in excess of US$700 million.
SOLO TRAVEL, 7 GENERATIONS AND MORE
It’s not just about where travellers want to go, says Belles. “It’s about how travellers want to feel, rather than what they want to do.”
Emotional drivers for Virtuoso travellers include: Curiosity and exploration – 77%;
Joy and happiness – 65%; Awe and wonder of nature – 57%; Anticipation and excitement – 51%.
Solo travel is booming and Belles notes that some 71% of Virtuoso’s solo travellers are women. While some 47% are divorced, separated or widowed, 53% are either single or just looking for travel alternatives without their partner. Four in 10 say they vacation solo for a sense of belonging with like-minded travellers.
Virtuoso has always been at the forefront of tracking generational travel stats. Next year is a big one: for the first time ever, starting in 2025, no fewer than seven generations will be travelling the world, thanks to the oldest Gen Zs starting to have kids. Many multi-gen groups may be embarking on ‘passion-led’ travel with their younger family members, whether that’s an F1 race abroad, or a Taylor Swift concert in a far-flung city.
And as far as ultra-luxe travel goes, 89% of Virtuoso advisors say they’ve seen an uptick in requests for exclusive use, private or exceptionally high-end experiences. Top types of ultra-luxe travel include expedition cruises, exotic locations like Fiji, Maldives and Thailand, and African safaris. Top ultra-luxe requests include VIP transportation services, rare one-of-a-kind experiences, and exclusive access. Ultra-luxe motivaors include celebrations, passion-point experiences (eg. sports, arts, concerts), and Wanderlist / trips of a lifetime.
VIRTUOSO ADVISOR PANEL
Yesterday’s Virtuoso Advisor Panel featured Vancouver-based Cathy Holler, President and CEO of Momenti Travel. Rounding out the panel was Fernando Gonzalez, CEO, First in Service, Black Tomato’s Head of Product, Carolyn Addison, and Roland Howlett, Director, Frontier Travel.
“Business has doubled for us,” says Holler. “As travellers and referrals come back and make more referrals, we’re just seeing that business grow.”
Even with her specialty in high-end product, Holler says she’s still seeing a lot of last-minute bookings. “The consumer is assuming everything is available” and that’s almost always not the case, she added. “People think they can book Japan now and travel in two months, meanwhile we have suppliers in Japan doing stop-sells because they’re booked up. People need to know they need to plan way in advance. The volume we’re seeing now going to Africa is also crazy, and a lot of it is last minute.”
On the flip side, Holler says she is also seeing a lot of longer term planning for big trips, “and I’d love to see more of that.”
Alternative destinations are also trending for her agency. Holler says she’s already had three requests so far this year for Sardinia, “and I’ve never had requests for Sardinia before.” And with Botswana’s higher prices, Zambia seems to be popping up as an alternate, she adds.
She’s seeing more clients go the slow-travel route too. “Safaris bookings used to always be two nights, two nights, two nights, and now it’s four nights, four nights, four nights. We’re seeing a lengthening of the experience and a desire to engage with other cultures. They’re seeking an emotional attachment that will touch them in a deeper way.”
There is sticker shock for a lot of destinations, she adds. “Italy comes to mind. They are surprised at the price point. They say, ‘I went 10 years ago and the prices were much different.’ They might go down from the five-star hotel to the four-star hotel. But then I’ve had other clients come back and say, ‘I’m over the sticker shock. Let’s do it.’”
F1S’s Gonzalez says the Italy sticker shock in particular has some clients reconsidering their destination options. “Italy is softening and part of that is definitely the sticker shock. We haven’t seen Japan softening yet though,” he added.
Black Tomato’s Addison likened booking patterns to a dumbbell, with lots of last-minute requests at one end, and lots of way-ahead plans at the other. Asked what trends she’s liking right now, Addison noted that extended season and shoulder season travel is a positive trend. And for a trend she’d like to see go away? “Chasing the Insta-version of a destination, versus the reality of a place.”
The advisors were bullish on AI. F1S’s Gonzalez said that for his company, AI “is a huge opportunity. We need the assistance, we need to enhance our processes. Our advisors can plug into that and do what they do best. I think it’s going to be a huge help for us.”
Addison added: “We definitely see AI as a opportunity to help us. Automate the predictable, humanize the exceptional.
