Consumer concerns impact Summer travel bookings
ORLANDO, FLA. – Consumer concerns about the economy and geopolitical situation are sparking changes in travel bookings, according to a new survey of advisors affiliated with TRAVELSAVERS and NEST agencies.
The networks revealed the survey results at their Travel Market conference, taking place June 4 to 7 at Hyatt Regency Grand Cypress Resort in Orlando.
Travel Expense Top Client Concern
The high cost of travel is the top concern clients are mentioning now, cited by 50 percent of the responding advisors. Related, 41 percent named inflation and rising prices as a client concern. Lack of consumer confidence in the economy was mentioned by 34 percent.
Geopolitical anxieties were cited by 29 percent of the respondents, with 26 percent saying clients are worried about safety in certain regions.
'Regardless of their financial situation, we know that consumers are still eager to travel this year,' said Kathryn Mazza-Burney, TRAVELSAVERS Chief Sales Officer and NEST President. 'Given these prevailing headwinds, advisors are a traveler's best friend. A professional advisor can design a memorable, enjoyable trip that accommodates a range of budgets and preferences.'
Advisors Shape Lower-Cost Options
Uneasy travelers are turning to advisors for expert assistance in lowering the cost of trips, employing a variety of tactics to decrease spending.
Selecting less expensive destinations was named by 35 percent of advisors, as was flexibility with travel timing to secure lower fares. Using loyalty points to fund travel was cited by 34 percent. Thirty-two percent of advisors reported that clients are taking fewer trips, and 26 percent said clients are taking shorter vacations.
2025 Sales Predictions Shift
As a result of this changing behavior, advisors are adjusting their forecasts for 2025 sales. Forty-six percent predicted sales will rise this year, while 22 percent envisioned them staying at 2024 levels. Thirty-two percent foresee their sales decreasing.
Last fall, 79 percent of advisors anticipated higher sales in 2025, compared with 18 percent who predicted sales would stay at 2024 levels. At that time, only four percent envisioned a slight decrease.
Summer Bookings Largely Flat
With some consumers taking a wait-and-see approach to travel, hoping their personal situation improves, summer sales are generally in line with last year.
Thirty-six percent of advisors said their summer travel bookings are up from last year, while 39 percent reported sales are down. One-quarter of the respondents said sales are level compared to summer 2024.
The Summer of Staying Close to Home
Topping the summer travel list, advisors reported a mix of perennial European hot spots alongside destinations in the Americas. Almost half the advisors named Italy, followed by Alaska. Rounding out the top five were the Dominican Republic, Cancun and Greece.
When asked which destinations advisors recommend to ease client concerns, North American locales largely took center stage. Alaska moved into first place, bumping Italy to second. Portugal, Canada and Hawaii also ranked in the top five, followed by Orlando, Cancun and the Dominican Republic.
'Wherever travelers are venturing this summer, advisors will be able to book them a trip with superior value,' commented Mazza-Burney. 'With their close supplier connections, advisors can secure exclusive discounts and promotions as well as complimentary amenities. Those benefits help travelers stretch their budgets even further at this time.'
Survey Results
2025 Sales (results from April/May 2025)
34% predict sales will increase somewhat
12% predict sales will increase significantly
22% predict sales will stay the same
26% predict sales will decrease somewhat
6% predict sales will decrease significantly
2025 Sales (results from October/November 2024)
52% predict sales will increase somewhat
27% predict sales will increase significantly
18% predict sales will stay the same
4% predict sales will decrease somewhat
Summer Bookings
14% up 10% or more from last summer
22% up between 1% and 9% from last summer
25% the same as last summer
25% down between 1% and 9% from last summer
14% down 10% or more from last summer
Client Concerns
50% high cost of travel
41% inflation/rising prices
34% lack of consumer confidence in the economy
29% geopolitical issues
26% safety in certain regions
Vacation Budgeting
35% selecting less expensive destinations
35% being flexible with travel timing for lower fares
34% using loyalty points to pay for travel
32% taking fewer trips
26% taking a shorter vacation
Top Summer Travel Destinations
46% Italy
41% Alaska
21% Dominican Republic
21% Cancun
19% Greece
Top Advisor Recommendations for Summer Travel
36% Alaska
23% Italy
19% Portugal
17% Canada
17% Hawaii
Advisors from TRAVELSAVERS and NEST agency affiliates in the U.S. and Canada took the survey from April 22 to May 9, 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Travel Daily News
5 days ago
- Travel Daily News
Sonesta executes 31 franchise agreements in H1 2025
Sonesta adds 31 new franchise deals and opens 10 hotels in H1 2025, reinforcing its strategic growth and global brand expansion. NEWTON, MA – Sonesta International Hotels (Sonesta), the 8th largest hotel company in the US, announced the execution of 31 new franchise agreements during the first half of 2025 as well as 10 openings that showcase Sonesta's global expansion and continued growth strategy. 'The continued growth in the first half of 2025, with 31 new franchise agreements, highlights Sonesta's sustained momentum and our attractive value proposition for owners,' said Keith Pierce, Sonesta's EVP and President of Franchise & Development. 'We're seeing continued demand across our diverse portfolio, which speaks to our ability to meet the needs of various markets and strengthens our existing owner relationships.' Sonesta's ongoing franchise expansion, in spite of the macroeconomic and political headwinds that started the year, highlights its success in growing its footprint. This growth is bolstered by its fast, friendly, and flexible model, which especially appeals to hotel owners during times of uncertainty. 'Our tailored brand offerings and flexible standards are clearly resonating with developers looking for strategic growth,' said Brian Quinn, Sonesta's Chief Development Officer. 'These 31 new agreements, spanning our distinct brands, along with the 10 recent openings, demonstrate our continued commitment to providing solutions that drive success for our franchisees and expand Sonesta's footprint in key locations.' Sonesta had 10 new hotels add nearly 1000 new rooms to the portfolio in the first six months of 2025. They include (in order of opening): Sonesta Essential Baton Rouge – Baton Rouge, LA – Baton Rouge, LA Red Lion Hotel Charlotte – Charlotte, NC – Charlotte, NC Signature Inn Berkeley – Berkeley, CA – Berkeley, CA Americas Best Value Inn Donaldsonville – Donaldsonville, LA – Donaldsonville, LA Americas Best Value Inn Fredonia – Fredonia, NY – Fredonia, NY Sonesta Essentia Blue Springs – Blue Springs, MO – Blue Springs, MO Sonesta Essential Overland Park – Overland Park, KS – Overland Park, KS Signature Inn Miami – Miami, FL – Miami, FL Americas Best Value Inn/Knights Inn Pilot Mountain (dual brand) – Pilot Mountain, NC In late 2021, Sonesta RL Hotels Franchising Inc. launched four Sonesta-branded hotel concepts in the U.S., complete with a comprehensive platform of franchise services, hotel operations, and franchise support. Building on this momentum, 2023 marked another milestone with the introduction of four new brands: The James, Sonesta Essential Hotels, and two soft brands – Classico Collection by Sonesta and MOD Collection by Sonesta. In 2024, Sonesta expanded its reach by introducing the 'by Sonesta' endorser branding to the Red Lion portfolio, further reinforcing its commitment to strategic growth and innovation. Sonesta's diverse portfolio of 13 distinct brands provides owners and developers with a wide range of options across the upper-upscale, lifestyle, upscale, midscale, extended-stay, and economy segments. With a focus on strategic growth, an owner-first approach, available market opportunities, and direct access to its leadership team, Sonesta stands out as an attractive partner for developers seeking flexibility and innovation in hospitality. Guests of these new locations can earn or redeem points as members of the award-winning Sonesta Travel Pass guest loyalty program.
Travel Daily News
6 days ago
- Travel Daily News
Italy set to break tourism records
Italy's tourism sector will hit record 60.4bn euros in international spending in 2025, driving jobs, growth, and global recognition through WTTC Summit. ROME, ITALY – Travel & Tourism in Italy is poised for a record-breaking year, with international visitor spending forecast to hit an all-time high of 60.4bn euros in 2025, according to new data from the World Travel & Tourism Council (WTTC). Travel & Tourism is not just back, it's booming. After a strong recovery from the pandemic, Italy is racing ahead, cementing its place as Europe's fourth most popular destination and a global powerhouse of wellness, luxury, culture, culture and cuisine. According to WTTC's latest Economic Impact Research (EIR), the sector is on track to support 3.2mn jobs in 2025 — 100,000 more than last year — and contribute 237.4bn euros to the Italian economy, nearly 11% of GDP. Domestic tourism remains robust, with spending projected to reach 124.6bn euros. Julia Simpson, WTTC President & CEO, said 'Italy is back at the top of travellers' wish lists and for good reason. From the timeless beauty of Rome to the elegance of its coastlines, and countryside, Italy offers a unique experience steeped in history, culture, and exquisite luxury. This record-breaking growth is a tribute to the strength of Italy's Travel & Tourism sector and the passion of the people behind it. 'Our Global Summit in Rome will bring together leaders who are shaping the future. From Ministers and CEOs to innovators and sustainability champions. Italy stands as a model of how Travel & Tourism can power prosperity, cultural pride, and sustainable growth.' A Government Committed to Tourism Since 2021, Italy has stood out apart among European and G20 countries with a dedicated Ministry of Tourism, demonstrating a powerful sign of political recognition for the sector's economic and social value. The Italian Government has also prioritised sustainability, innovation, and skills, while launching new national campaigns to encourage travellers to discover lesser-known destinations, spreading the benefits of tourism more evenly and responsibly. Minister of Tourism, Daniela Santanchè, said: 'For the first time, we have brought to Rome, and brought back to Europe after six years, the world's largest event in tourism: the WTTC Global Summit, which sees the participation of key international leaders in the sector. 'It represents an important moment for the industry and for Italy and is a sign of how much ground we have regained and how we have returned to being protagonists on the global stage, so much so that we have the honour and privilege of hosting events of such prestige. Especially in a year already so stimulating for Italian tourism, with the ongoing Jubilee and the record figures we are registering, the summit further projects our capital and our nation towards continuous growth. 'The WTTC Global Summit will offer a unique opportunity to network and create new synergies among operators, associations, and institutions, developing the product, the offer, and the potential of our tourism ecosystem. And, ultimately, to be increasingly competitive and successful.' Manfredi Lefebvre, Executive Chairman of AKTG, Abercrombie & Kent and Crystal Cruises and WTTC Chair-Elect, added: 'As Italy prepares to host the WTTC's 25th Global Summit, we celebrate not only our remarkable recovery from the pandemic but also the vibrant future of our Travel & Tourism sector. This growth is a testament to our commitment to sustainability, innovation, and the shared passion of our communities. Together, we will continue to shape a prosperous and culturally rich experience for travellers from around the globe.' 2024 in Review Last year, the sector contributed 228.5bn euros to the Italian economy and supported 3.1mn jobs. Domestic spending hit 122.6bn euros, while international visitor spending reached 55.2bn euros. With the right investment in connectivity, skills and promotion, Italy is poised to become the blueprint for tourism-led growth in Europe. What's Next: 2035 and Beyond Looking ahead, WTTC forecasts the sector will contribute 282.6bn euros to Italy's economy by 2035, 12.2% of GDP, and support 3.7mn jobs. International visitor spending is projected to reach 78bn euros, with domestic spending hitting 142.5bn euros. What This Means for SMEs As the Italian tourism economy enters a new era of growth, opportunities for small and medium-sized enterprises are expanding rapidly. In association with the Ministry of Tourism, the Italian National Tourist Board (ENIT), the Municipality of Rome, and the Lazio Region, WTTC's 25th Global Summit will take place at the Auditorium Parco della Musica, from the 28th to the 30th of September 2025.
Travel Daily News
14-07-2025
- Travel Daily News
Google 's AI Mode to transform travel search
Google's AI Mode will soon dominate search, urging travel brands to adapt for AI mentions over clicks or risk losing visibility entirely. Google is moving closer to making AI-first search the default experience – and travel brands must respond now or risk becoming irrelevant. At the core of this shift is AI Mode, a conversational interface that is already live in a separate tab and poised for full integration into Google's main search engine within the next 12 months. Unveiled by Google CEO Sundar Pichai, AI Mode enables dynamic, multi-turn conversations. Instead of presenting a list of links, it delivers personalized, contextual responses – for example, refining results based on follow-up questions like 'Which family tours in Costa Rica are best for kids under 8?' or 'Do they include wildlife experiences?' 'This goes far beyond AI Overview snippets,' says Brennen Bliss, CEO of Propellic, a digital agency specializing in AI-driven strategies for travel brands. 'It's the equivalent of speaking to a personal travel advisor. And it's going to redefine search faster than most anticipate.' The end of top-of-funnel dominance? For years, travel companies have built their marketing around top-of-funnel content such as blogs, guides, and itineraries. These assets fueled SEO rankings, website traffic, and retargeting. AI Mode threatens to upend this model by keeping users within Google's ecosystem through continuous conversation. 'Users won't need to visit multiple websites to compare experiences,' Bliss notes. 'Instead, they'll consult Google's AI, which may surface your brand – or not. In this new model, your content might not drive traffic at all; it may simply train the AI.' Despite the shift, key decisions in travel still require context and trust – areas where conversational AI excels. Users often ask about accessibility, age-appropriateness, weather, or what to pack. AI Mode is tailored for such nuanced journeys. And while the AI may recommend a product – such as a sunset cruise in Santorini – it still cannot complete the booking (yet), though Google's commerce-focused Project Mariner may soon change that. Mentions replace clicks- The industry's focus must now shift from rankings to relevance. 'The goal is no longer to rank #1 – it's to be mentioned and trusted by Google's AI,' explains Bliss. 'Mentions are the new clicks.' For travel brands, this means adapting content and brand positioning to become part of the AI's trusted memory – the internal database of reliable, high-quality references the model repeatedly recommends. Google's cautious but inevitable rollout To mitigate risks to its ad business – which still accounts for nearly 80% of Alphabet's revenue – Google is integrating AI Mode features gradually, only when they show better engagement and monetization. Once the business case is proven, full-scale deployment will accelerate. 'Brands waiting for clarity may be left behind,' warns Bliss. 'Those acting now have a window to establish trust, fine-tune messaging for AI consumption, and position themselves for long-term visibility.' A clear call to action for travel marketers With over 15 million global travel queries per day on Google, the shift to conversational search is already underway. For travel and tourism brands, the priority is clear: adapt strategies, audit content for conversational relevance, and optimize for trust and AI visibility – or risk fading from the discovery journey altogether. In the age of AI-first search, discovery doesn't begin with a click – it begins with a mention.
