January 2010

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Travel Package Trends for 2010
by Kathleen Kavanagh
Manager, Home Based Channel Group
Voyagers, Inc.

article continued

Let's look back over 2009:

  • As discretionary income fell, travel became more competitive.
  • Air fares dropped 25 to 30 percent in cost as airlines reduced capacity and cut routes.
  • Europe became a bargain for the first time since the 1970s.
  • South America and China remained in the "growth" segment of the industry.

We saw these trends within our own company. Brands like our own Cosmos Vacations grew this past year as "budget" became vogue. Monograms Vacations added more city stays for independent travelers due to higher demand for them. Though the travel business was down 30 to 40 percent overall, Italy was the # 1 destination for Globus, religious touring held steady despite the recession, and Turkey's tourism increased the most for 2009 (along with our ocean cruises and religious tours).

Looking into 2010, these are our predictions:

  • Europe will become more affordable for Americans (with a 20 percent drop in costs).
  • South America will continue to attract more travelers seeking soft adventure.
  • Germany could possibly edge out Italy for our # 1 spot due to Oberammergau and the river cruise phenomenon.
  • River cruising (such as our own Avalon Waterways) will continue to grow as Americans favor more inclusive vacations.
  • We will continue to pay 5 percent commission on air.
  • Look for more themed river cruise experiences in 2010, such as our "Blue Danube Discovery."
  • Turkey will grow as a "new" hot spot for the more experienced traveler.
  • The 2010 Winter Olympics in Vancouver will stimulate travel interest for the domestic market.
  • Religious tours will maintain a healthy growth in 2010.
  • Ocean cruises will continue the heavy discounting which will shrink the travel agent's commission profits.
  • Companies like Avalon Waterways will continue launching new ships (such as our "Felicity" and "Luminary," with 138 passengers apiece, elevators, and rear lounges for private functions).
  • Airlines will slowly add more routes, but the cost will also rise.
  • 2010 will be the year to thrive for the entrepreneurial OSSN agent!

Marketing to clients this year will be more competitive than ever. Our focus groups indicate that consumers "really read" direct mail pieces and postcards. On our travel agent website, we have a wealth of free marketing materials such as customized direct mailing pieces, single-page flyers, postcards, e-marketing with promotions, and royalty-paid photos. There is no fee to use these marketing tools (check www.globusfamilypartner.com, and you can use your TRUE number to register).

Tools like these will help you sell to your clients virtually. Also, if you do not have a desktop share program, please look at GLANCE. It is an inexpensive program where you can have your client log on to your desktop and see what you have to sell or to show them. GLANCE is just one of several programs that will help you close the sales and has been used by staff at the Globus Family of Brands.

In my next article, I will focus on techniques for cross-selling ocean cruisers to switch them to river cruises!

Kathleen Kavanagh is manager of the home-based agent channel for the Globus Family of Brands - including Globus, Cosmos, Monograms, and Avalon Waterways. You may reach her via the Globus Travel Agent Portal.

(Credit: Globus)

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