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Travel advisors say they are cautiously optimistic about the year ahead, noting that such issues as the economy and higher prices have the potential to dampen business.
“Overall, 2025 looks promising,” said JoAnne Weeks, vacation division director at Acendas Travel. “There are some segments that are down quite a bit – escorted touring being the main one. We are hoping January brings another tsunami from people who have been holding off booking this fall.”
Destination Weddings Outlook
“I’m optimistic that 2025 will show more promise than 2024, although it still feels a bit early to predict,” said Kim Goldstein, president of Journeys Inc. “While our destination weddings appear to be coming in a little slower, we’re just beginning to see an uptick in FIT bookings for the upcoming year.”
Similar to Journeys Inc., Love of Travel’s weddings business is growing at a slower pace than it has over the past two years. “I am not sure what is causing that trend, but we are supplementing that business with corporate incentive groups,” said the agency’s owner, Kim Cook. “We have seen an increase in our incentive groups, and our goal is to increase this business.”
All things considered, Cook is predicting a stellar year for the agency. “In comparing our numbers to last year at this time for the coming year, we are up 26 percent, which is exciting,” she said.
Hot Destinations
“I anticipate that Portugal, Spain and Costa Mujeres, Mexico, will be among the hottest destinations,” Goldstein said. “Portugal and Spain are drawing travelers eager to immerse themselves in their rich cultures, enjoy stunning landscapes, and experience the incredible cuisine and wines. Costa Mujeres is gaining popularity among our destination wedding couples because of its stunning beaches, contemporary resorts and good value.”
Advisors say clients are interested in Iceland vacations. Pictured, the Seljalandsfoss waterfall, (Source: Adobe Stock/Andrew Mayovskyy)
At VIP Vacations, hot destinations include Japan, Croatia and Iceland. “The U.S. dollar is very strong in Japan and I see that as one of the reasons for this trend,” Doncsecz. “Italy has been popular but expensive so a really great alternative to Italy is Croatia,” she said.
“Because Iceland isn’t too far from the Northeast, where VIP is located, it is an easy destination to travel to, and there is such a buzz to see the Northern Lights which makes this very appealing.”
For Acendas Travel, Ireland, the U.K. and Italy are serving as the top destinations for 2025, Weeks said. “Gaining ground is Switzerland, Greece and Croatia.”
Love to Travel is receiving more requests “for destinations that are unique and new to our clients,” Cook said. “Islands like St. Vincent and Curaçao are seeing a big growth for our agency.”
Ocean and River Cruises
Cruise business for 2025 will continue grow in 2025, advisors said. (Source: Adobe)
“Both ocean and river cruising are certainly back and gaining ground well over the last two years,” said Weeks. “With the challenge of securing available hotel space in desirable peak areas with decent rates, European cruising could be the answer we’re all looking for.”
Cook agreed. “I think our river cruise business will continue to grow in 2025,” she said. “We just started promoting river cruises in 2024 and it looks to be a hot seller for us in 2025.”
Doncsecz said the agency witnessed a record year for cruises in 2024, and believes “2025 will continue to see a rise in cruise sales – especially for group cruises.”
“In 2025, cruises are likely to stabilize to prepandemic levels after the spike we saw last year,” said Goldstein said. “However, I anticipate that resorts will truly shine as the standout segment.”
A key challenge, she added, “is the delay in renovations and upgrades at many resorts, leading to limited options for contemporary design, which is popular among our clients.”
Close-in Travel Bookings
“Next year is continuing to follow a similar trend to what we saw in 2024, with our clients planning their vacations much closer to their travel dates – we are still planning vacations for November and December,” said VIP Vacations President Jennifer Doncsecz at press time.
“Our agency saw some record-setting priced packages booked in 2024 – for travel in 2024. We also found that most of our groups contracted their space under 10 months prior to their event, which was a big departure from other years where we saw many groups contracting their space 12 to 18 months prior to their event,” she added.
“This means that forecasting for 2025 is difficult, but I am optimistic that after the election consumer confidence will grow, and travelers will feel more confident planning their vacations further out rather than at the last minute.”
Pricing Issues
“Pricing is higher than it has been, which is why I think some travelers have been reluctant to nail down their 2025 plans, thinking the rates will somehow go down after the New Year,” Weeks said. “This could not be further than the truth. Rates will go up again once 2025 arrives and will continue to creep up as the year progresses.”
Cook agreed. “We are seeing all-inclusive resorts to be about 20 percent higher than 2024, and we are also seeing Hawaii resort fees continue to increase,” she said. “This could definitely affect our Hawaii business, as clients are discouraged when the resort will collect an additional $50-$75 per night on top of what they are already paying for the resort.”
But not all travelers are blanching at higher prices. Those who have planned to travel and have disposable incomes are spending an exorbitant amount on their travel and not blinking an eye,” Weeks said. “So, the luxury market is flourishing.”
Added Doncsecz: “Because vacations use discretionary funds and consumers have seen pricing rise for their day-to day essentials, the outlook for 2025 is going to be contingent on the economy.”
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