Two decades ago, it was said that the internet would kill off travel advisors. With so much information at the fingertips of individual travellers, the role of the agent was expected to be minimised, marginalised – even vaporised.
By Aaron Saunders
That hasn’t come to pass. Travel advisors have proven their ability to weather all the storms thrown their way, including the largest global pandemic in a century. When it comes to cruise, the post-pandemic world is once again rediscovering the value of booking through a travel agent – and agents, in turn, are influencing which lines their clients book.
Clawing back pandemic losses
During the Covid-19 pandemic, consumers largely turned to direct-book options, which peaked in 2021. Three short years later, that trend is reversing – and agents are playing a direct role in capturing the pent-up demand for cruise travel.
Phocuswright’s U.S. Cruise Market Report 2022–2026 shows that while travel-agent bookings bottomed out in 2021 at just 52 per cent of all bookings, consumers have increasingly returned to travel agents. The number of agent bookings is predicted to surpass 2019 levels by 2025, and to rise to 71 per cent of all bookings by 2026.
“Cruise was hit so hard and is coming back so strong,” said Michael Coletta, manager of research and innovation at Phocuswright. “As those itineraries get longer and more complex, it’s just not really a product that’s super well-suited for online booking.”
Gina Morovati, owner of NorthStar Luxury Cruise and Travel Planners, said, “I have found many of my clients willing to spend more money on their travel post-pandemic. Some rationalise that they weren’t able to travel for about two years and so justify the extra cost that way. I have also seen an upsurge in families and friends travelling together. Many clients are focused on enhanced experiences and also look for travel focused on health and well-being.
“Repeater clients are somewhat informed and understand what they want or which ships they would like to sail on; however, there is still much room for me to influence them in their choices. There are so many new ships being built, and post-pandemic cruise lines have cut corners and/or have different staffing, so service is not up to par and is inconsistent. We are aware of these changes and thus can influence our clients accordingly,” said Morovati.
At a gathering of Virtuoso agents and media in Toronto in early 2024, the global travel agency network specialising in luxury and experiential travel told assembled delegates that cruise sales rose 48 per cent in Canada in 2023 – and that growth came at the expense of the all-inclusive sector, which dropped to just 26 per cent.
Virtuoso revealed that expedition cruises increased by 42 per cent while river cruise bookings increased by an astonishing 87 per cent. And travel advisors are playing a massive role in championing cruise, which is turning into actual bookings.
Increasingly, advisors are looking beyond just price to service clients who will return again and again, and who appreciate the services that an agent can provide, particularly when things go wrong. February 2024 alone saw the collapse of American Queen Voyages and the sudden closure of Canadian low-cost air carrier Lynx. Add in multiple strikes affecting Lufthansa and its subsidiaries at its Frankfurt and Munich hubs, and continued unrest in the Middle East and around Russia and Ukraine, and it’s no wonder that consumers are looking for more assurance when planning a trip.
“Good travel advisors are even more relevant today, especially in their position of being advocates for their clients,” said Morovati. “When there is a problem, we solve it, and we have the contacts and power to get things done. We are like an insurance policy you don’t have to pay for; having a great advisor provides peace of mind when travelling. There is someone who cares about you, and if you are in a jam while away, you have someone to go to. Our job has also become 24/7 and more complicated, with so many details.”
She had a note of caution for newcomers, however: “I feel sorry for someone new coming into the industry, as it could be overwhelming for them.”
Advisors can play a critical role in helping clients navigate the changing travel-provider landscape – something that was stressed by Virtuoso chairman and CEO Matthew Upchurch.
“We’re working to help our members attract and service a higher calibre of clientele, one who buys on value rather than price, and who appreciates and is willing to pay for professional services,” he said.
“If there’s a silver lining to Covid-19, this is it,” said Stephen McGillivray, chief marketing officer of Travel Leaders Group, on the resurgent importance of agents to the booking process –before, during, and even after a trip. “The consumer has learned that travel is not without its perils.”
Social media for profit and influence
Social media had begun playing a role in how agents connect with – and influence – consumers in the run-up to the pandemic. But it was the lockdowns that launched many agents to connect with their clients in ways they’d never considered. Deprived of their brick-and-mortar offices, agents turned to social media platforms – YouTube, Instagram, Facebook, TikTok, and others – with surprising results.
Harr Travel has been around for over 40 years, but during the pandemic, cruisers got to know the face of Harr Travel – CEO Danny Genung – from his comprehensive YouTube videos that offered cabin tours for nearly every grade on some of the ocean’s most popular ships.
Genung began launching livestream videos in the spring of 2020 as lockdowns hit the world, and they resonated with consumers who had questions about their booked cruises and uncertainties about when the industry would be allowed to resume operations.
In 2019, Harr Travel had about 5 per cent of its bookings arrive thanks to its YouTube channel. By summer 2020, that number had skyrocketed: people were finding the agency thanks to its increasing social media presence.
“All of these new customers, they’re booking knowing what’s happening in the world today,” Harr told TravelAge West in an interview. “They really want to cruise. They come to us very educated because they have spent already four to five hours with us on our YouTube channel on average. And what they really want is that last step.”
Genung is not alone: a quick look at YouTube and other online platforms like TikTok and Instagram shows travel advisors around the world who are interacting and engaging with consumers – and sharing their knowledge and passion for the industry at the same time.
Some agents still rely on traditional methods. “Although we are on Instagram and have a website, we are very old-school here,” said Morovati. “We have owned our agency for almost 30 years and have a great luxury client database. Our business growth now is primarily due to referrals. I would say that social media has helped drive more business our way – not by us promoting ourselves on social media, but by what people see on social media.”
Win–win for cruise lines and advisors
With bookings returning to agents in increasing numbers, cruise lines are jumping into the fray to better support advisors in their roles – and not just legacy cruise lines, either. Budget newcomer Margaritaville at Sea recently bolstered its trade efforts substantially, hosting informational sessions, digital sales tools, better convention attendance, and even in-person visits to familiarise agents with its product aboard Margaritaville at Sea Paradise and the forthcoming Margaritaville at Sea Islander.
The result: a 500 per cent increase in agent registrations for Margaritaville at Sea’s unique cruise product, which is set to expand in summer 2024 with the arrival of Margaritaville at Sea Islander (formerly Costa Atlantica).
“Building relationships, providing proper training, and offering access to our product is critical to establishing productive, long-term partnerships with our friends in the trade industry,” said Frank Belzer, senior vice president of sales and partnerships with Margaritaville at Sea. “The resources we’re allocating to this effort are significant. We appreciate the support we’ve received from travel advisors so far, and feel they recognise our commitment to their community.”
Agents also benefited in early 2024, when MSC Cruises introduced a new feature to the line’s Future Cruise programme: the ability to book a new sailing onboard, without choosing a ship or destination, and book later – with travel advisors who booked the original cruise receiving full commission for the future sailing.
While MSC’s new programme undoubtedly benefits passengers, agents stand to reap the rewards, too – and potentially influence other clients to sail with MSC.
“We believe that the new Future Cruise programme is an extension of an agency’s business as we at MSC Cruises continue to build loyalty with our valued travel partners,” said Achille Staiano, senior vice president of global sales with MSC. “We are confident that this new initiative will be a win–win for both the trade and cruise holidaymakers, as we know that highly satisfied guests on board our fleet of 22 ships means that travel agents have highly satisfied customers.”
Fam visits are up, too. Holland America Line (HAL) announced it would host 430 agents on ship visits in the UK alone in 2024, an increase of 23 per cent over 2023. Most of those visits will occur aboard Nieuw Statendam ahead of that vessel’s new programme of sailings from Dover in 2025.
The rationale: agents are better able to sell a product they have actually set foot on, even if it’s only for a day tour in port.
The line also announced it would better cater to agents looking to book groups of families and friends on board by enhancing its GAP (Group Advantage Program) for 2025.
“Groups are a popular niche for Holland America Line, and we want to continue to help our travel advisors grow this sector with a competitive programme and enticing GAP amenities,” said Rob Coleman, HAL’s vice president of North America sales. “We aim to maintain an open dialogue with our travel partners to develop the best programme that allows us to be mutually successful in the groups arena and ultimately offer guests a world-class experience on Holland America Line.”
These initiatives all point to the continued importance that travel advisors play when it comes to interfacing with the consumer, including recommending a line to customers who aren’t sure which to pick. According to Morovati, “These days, clients especially look for guidance regarding all of the new expedition ships and itineraries that are available.”
As cruising rebounds and surpasses 2019 data in nearly every metric, travel advisors are poised to reap the benefits and enjoy a resurgence in importance that, in all honesty, never really went away.
