As 2024 draws to a close, advisors are generally sanguine about business in the new year. Recommendations on how to prepare for 2025 run the gamut, from circumventing geopolitical and economic issues, to promoting authentic, value-oriented vacations to booking clients further out.
Economic, Geopolitical issues:
While We Book Travel Owner Jesse Morris said that 2025 has the potential to be as profitable as 2024, he added that “the possibility of economic and geopolitical factors having an impact on us are much more likely than before.”
“The real chance of global conflict could leave us with a reduced portfolio of destinations to offer. The economic impact of a conflict combined with major world powers going head to head with things such as tariffs and regulations could also reduce the amount of discretionary funds that our clients have to spend on travel,” Morris said.
“These are not things we have direct control over, but expanding destination offerings to areas that are less likely to be impacted by conflict will help. Finding budget-friendly travel packages or finding clients less impacted by economic shifts will also be important.”
The Booking Picture
“It’s going to be more important than ever to get people booked as far out as possible,” said Shane Lawrence, president of leisure sales at Imagine Travel Vacations. “Things aren’t like they were – there are some river cruises sold out for the end of 2026 already. You just really can’t wait like you used to.”
Advisors should also be poised to put in long hours during the January-April prime season. “If you can work 10 to 12 hours a day every day in those months this coming year, you should make double what you did in 2024,” Lawrence said.
Travel Trends
“Travel overall is booming, and ‘revenge’ travel has been replaced with a realization of limited time,” said Vickie Everhart CEO director of sales & marketing at Krouse Travel.
“The Boomers are aging, and they have lost friends and family members in recent years.
“Their response is to do today what they had planned to do later. This group also found themselves with a nest egg and inherited money that enables them to travel with extended family,” she said. “We’re seeing a definite trend of multigenerational travel. It’s a niche that requires experience, expertise and a good listening ear.”
In 2025, Everhart predicts small group travel will continue to grow. “People are understanding the value of this type of travel and are willing to pay extra for it.”
Italy is expected to experience another record year in 2025. Pictured, Florence. (Source: Provided by Collette)
Katie Bean, founder and president of Katie Bean Travel, said she “isalready seeing our clients shift their focus to lesser-traveled destinations to avoid the crowds, but in hotspots like Italy and France, early booking will be essential for securing the best availability and pricing.”
Bean, who said she plans on doubling the size of her agency in 2025, is of the mind that “travelers will be looking for more value for their money, more authentic experiences and more out-of-the-box tours that will leave lasting impressions.
For his part, Richard Turen, managing director of Churchill & Turen, said 2025 “will be the year that over-tourism sinks into the upscale traveler’s psyche.”
“Those advisors who specialize in ‘off-the-beaten-tourist-track’ destinations and ‘secondary’ cities will find their expertise in demand,” he said.
Destination and Cruise Outlook
“Italy this year is coming up on its Jubilee year,” Lawrence said. “Don’t wait to buy rooms, flights or set up your excursions. Italy is going to be packed, and probably experience the best in its history – it’s the same for all of Europe.
Turen noted that several “key suppliers are forecasting (off the record) a significant drop in leisure travel to Europe and a rise in domestic bookings for the coming year.”
“This is directly related to threats from Trump to pull out of NATO as well as likely reactions to lead news stories in Europe showing round-ups and internment camps with families being exiled,” he added.
Advisors believe the TV show "The White Lotus' will boost business to Thailand in 2025. (Source: donyanedomam / Adobe Stock)
Many predict that Thailand will be a hot seller. “We anticipate Thailand to surge in demand with ‘The White Lotus’ returning in February. maintaining the personal touch will likely gain the edge in 2025,” Bean said.
Or, as Turen put it: “‘The White Lotus’ is to destinations what Taylor Swift is to hotel sales.”
Lawrence, meanwhile, is predicting a rise in domestic bookings. “Travel inside of the US is triple what it used to be, so always have a backup plan ready for those folks that want to do domestic trips,” he said.
“Be ready to sell more cruises than ever before,” Lawrence said. “Even if you are more land focused, don't forget cruises are quick, easy and pay the highest amount of commission in the end. Grab all the space you can as quickly as you can.”
For clients looking to elevate their travel experiences, Bean recommended promoting yacht vacations. “Whether it’s a private sailing, AMAN or Four Seasons Yachts, we see this trend growing,” she said.
“Major cruise lines and tour operators are increasing the number of domestic programs while cutting back on planned expansion of programs overseas,” Turen said. “This is partially related to cost as the psychological impetus of ‘revenge travel’ is over.
Pricing Issues
“Air continues to be a challenge. It appears that the staffing issues have decreased, and there are fewer cancellations,” Everhart aid. “But the prices have increased substantially, and consumers have reached the point where they will reconsider travel purchases.”
“Resort, hotel and tour pricing have increased substantially since the pandemic but not to the degree that airfare has increased,” she added.
“While we expect annual spending to remain about the same, people are traveling more often, which means they have less money to spend per trip,” Bean said. “This will force advisors to get creative and organize trips that maximize each client’s budget while maintaining the high standards they expect.”
“We are currently experiencing a 5 percent decline in the number of Europe bookings for 2025 versus the current year,” Turen said. “But we are also experiencing a 7 percent average cost increase for the same time period.”
Evaluating 2024 Business
“From a practical standpoint, one way in which advisors can prepare for the new year is evaluate their business and ask themselves this question: ‘What would have been the most impactful thing I could have added to my portfolio in 2024 to improve my sales and ability to service my clients?’ ” Morris said. “Then add that thing.”
“Unless you think your business will be dramatically different from where it is now, adding something that would have been an improvement for last year will be equally impactful this year.”
Travel Technology
“Travel industry technology continues to evolve and will be an important part of the travel experience for advisors and clients,” Everhart said. “This is a good time to review your current technology and determine if it’s time to upgrade.”
And, as “AI and technology tools begin to shape how people plan trips, advisors will need to stand out by offering unparalleled service and deeply personalized itineraries – something technology can’t replicate,” Bean said.
Overall, advisors who embrace tech tools while maintaining the personal touch will likely gain the edge in 2025,” she said. “We are ready for it!”
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