High prices are giving luxury travelers pause, but they’re paying

LAS VEGAS — Business in 2024 is up compared to 2023 for Virtuoso member agencies, though high prices are giving clients pause, travel advisors said during a panel discussion at Virtuoso Travel Week.

Four advisors discussed current business conditions: Carolyn Addison, head of product at Black Tomato in London; Fernando Gonzalez, CEO of First in Service in New York; Cathy Holler, president and CEO of Canada’s Momenti Travel; and Roland Howlett, director of Australia’s Frontier Travel.

Holler said business has doubled from last year. Momenti Travel is still benefitting from post-Covid momentum, she said, and a number of last-minute, high-end bookings. 

Howlett also said business is up, thanks to an increase in clients and travel advisors.

Black Tomato, Addison said, has seen sales increase 15-16% compared to last year. 

Gonzalez reported similar results at First in Service. Halfway through 2023, the agency doubled pre-pandemic sales numbers, he said. This year, First in Service is still seeing double-digit growth. He also said rates aren’t deterring clients, but they want to see value in what they purchase.

“They’re spending the money still,” he said. “I think what is different than beginning or mid-pandemic is that they are looking for value? ‘I’ll spend the money, but why am I spending the money?'” 

Many hotels have responded by bundling inclusions into the daily rate.

According to Holler, some clients are experiencing sticker shock. But they often get past it and book anyway.

Addison said Black Tomato is shifting clients to less popular destinations in some cases not just because of prices, but because of availability.

The panel also addressed current trends.

Holler said she has seen a number of high-end, last-minute bookings. Consumers are assuming everything is available, she said. It’s causing issues in destinations where availability, especially for guides and drivers, is limited. Clients are also interested in exploring secondary locations, or alternates to the most popular spots, said Howlett.

According to Addison, clients are increasingly interested in traveling when destinations aren’t overly crowded or at capacity; it’s a trend that excites her, because clients will have a better experience and suppliers will benefit from off-season or shoulder-season bookings.

At First in Service, Gonzalez said, group travel has been huge in the corporate and leisure sectors. 

“It’s shifted the dynamic of our company,” he said. “We hope that it maintains.”