Though it feels like the sky may be falling, many travel agent respondents to a recent survey in the US and Canada believe that it will be “business as usual” in the travel industry by late-spring/early summer. But not surprisingly, zero percent of respondents said that they had been unaffected by the global COVID-19 pandemic.
In fact, survey respondents overwhelmingly said that business had been significantly affected by the health crisis, with 90% of advisors reporting cancellations of existing bookings. Furthermore, 82% have seen a decline in future bookings for 2020 and 53% a decline in inquiries for 2021.
A silver lining is that 64% of advisors experienced clients looking to reschedule their travel instead of just cancelling it, though “it remains to be seen what this translates to in terms of a market value.”
The survey of 457 North American travel advisors (334 American and 123 Canadian) was conducted in March by of Development Counsellors International (DCI), which has offices in Toronto, New York, Los Angeles and Denver, with the goal of helping travel destinations understand how they can and should approach travel advisors during “this unprecedented time” and ultimately enabling destination marketers “to deliver what these professionals need, when they need it.”
Key results of the survey, which was conducted online and released on March 23, include:
#1 Optimism pervades in both markets
Overall, travel advisors in the US and Canada are very optimistic that there will be a return to “business as usual” in the near future. Nearly one-third of advisors anticipate participating in destination sales events within their home markets as early as May. Nearly 60% anticipate participating in destination sales events either May or June. US travel advisors are slightly more optimistic about the ability of being able to attend destination sales events in their home market earlier than Canadian travel advisors. However, DCI notes, “With evolving information and new updates hourly, these timelines may be likely to shift to later months if it becomes evident that the crisis will not subside as soon as most hope.”
#2 International travel may have to wait
Understandably, advisors are anticipating a slightly longer lead time around the ability to conduct fam trips to international locations. For fam trips to/within the US, one-quarter of respondents report a willingness to conduct fam trips beginning in May and June (48%). Among all respondents, the willingness to participate in fam trips internationally is highest in September. Still, more than 30% still report that May and June would be the earliest they would be willing to travel internationally. DCI adds, “U.S. advisors seem to be ready (to travel) earlier than Canadian advisors, suggesting that international travel is perceived as somehow more dangerous or riskier than domestic travel by Canadians.”
#3 Cruise ship bookings floating away
The cruise industry is being severely impacted with 87% of respondents reporting an impact on bookings. Industry reports are suggesting a longer recovery period for the cruise industry, as many Spring 2020 cruises have already been cancelled.
#4 To-do list: Cancelations and rescheduling
With the vast majority of travel advisors are seeing both itineraries cancelled and a decline in future bookings, rescheduling rates as the main function for 84% of Canadian advisors surveyed, while 74% reported that they were actively engaged in reassuring clients. Nearly one quarter said they were responding to booking requests for the future and 11% making sales calls. But clearly the focus in the short-term is dealing with the fallout from the coronavirus, while future prospects are not yet front-of-mind concerns.
#5 Not just biding their time
Despite dealing with these fallouts, many advisors in both markets report making good use of their time. While travel advisors are currently dealing with cancellations and reassuring clients about future bookings during most of their time, 38% report using this time to engage in professional education.
To that end, DCI says destination marketers should recognize that “beyond fighting the fires started by coronavirus… travel advisors are still spending time informing themselves and focusing on continuing education programs. Whether it’s dedicating hours to specialist programs or participating in webinars, these professionals are continuing to invest in the future and in the destinations they sell.”
And by helping to do so,” concludes DCI, “such efforts will provide a competitive edge to destinations when the crisis is resolved, helping them to be top of mind.”