Luxury travel is on a roll, possibly the fastest-growing
segment of the travel industry today by spend. However, as travel advisors age
out, the surge in demand is seeing fewer experts on hand to meet the moment.
Such topics were addressed for an attentive audience of more than 300 travel
advisors and suppliers in Miami, FLA, this week for The Affluent Traveler
Collection’s invitation-only annual symposium.
The travel industry is, no doubt, a force to be reckoned
with. Among the top ten industries globally, travel accounts for more than 11.6
percent of the global economy -- a 50 percent increase over its $10 trillion
value in 2019, according to Bloomberg. The luxury segment alone is expected to
grow 7.6 percent over the next six years.
But luxury travel has its own needs and wants, and the
marketing staff at The Affluent Traveler Collection (ATC) and its parent
company, American Marketing Group (AMG), have developed new tools, talents and
teams to assist with this wildly growing segment of the travel industry.
“The number of affluent consumers is on the rise and travel
is a priority for them,” said ATC Chief Marketing Officer Nicole Mazza. “We’re
bringing on partners to help our travel advisors fulfill travelers’ desire for
boutique hotels, villas and residences, unique itineraries and personalized
experiences. The trend towards planning trips with professional expertise only
continues to grow, as more consumers receive exceptional value, service and
peace of mind from working with an advisor.”
A Dearth of Travel Experts
According to The Travel Institute, 66 percent of travel
advisors are over the age of 60, and only 6 percent today are below the age of
35. Over a third of established agencies lost seasoned staff during the
Pandemic, and more than half have yet to replace those spots. At the same time,
data shows that travel advisor positions will grow by 3 percent over the next
decade, with 8,600 openings each year.
So, what’s a respected luxury travel advisor network to do?
The Affluent Traveler Collection is part of a larger marketing and training
group through AMG, which includes a bevy of services and partnerships to help
active travel advisors work efficiently and securely. To that end, the ample
staff have been busy identifying new trends and devising apt ways to answer the
call as needs evolve.
For starters, under its four key channels of focus, which
also include TRAVELSAVERS and NEST, AMG now offers 13 platforms to support its
travel advisors with training, content and technology. Among them, KORE serves
as a surefire way to bring new advisors into the travel business through
extensive and monitored training and placement opportunities to help fill the
all too common gaps in staffing at member agencies.
Other platforms, such as Forte and agent24/TRAVEL
HELPLINE, give member advisors the edge in managing corporate clients and
fielding difficult after-hours calls. SOCIALCONNECT offers social media
content, deep links, and promotion assistance that many advisors need but do
not have time to manage – especially in an industry that depends so much on
social media for outreach. Independent contractors depend on NEST, geared for
the solopreneur and giving them a community.
Independent contractors, or ICs,
now comprise 71 percent of advisors, compared to 29 percent in 2008. And then
there is TRAVELSAVERS, the first brick in this now large house, which started
in 1970 to give voice, value and collective buying power to what has grown to a
veritable network of more than 25,000 travel advisors who collectively generate
some $20 billion in annual sales.
ATC Chief Marketing Officer Nicole Mazza. (Photo Credit: Lark Gould)
Tech Forward
New and noteworthy is the team’s attention on two important
buzzwords of our time: Artificial Intelligence and Cryptocurrency. Not to be
left in the dust, AMG and The Affluent Traveler Collection membership will see
serious continued support and technology advancements in the coming months for
harnessing the power of these two technologies.
“We’re putting A.I. into our itinerary builder,” said Mazza.
“I think A.I. is going to change the industry for good.”
Similarly, the company looked into how crypto was employed
for spending in this space and found travel to be the second most requested
commodity by holders who want to liquidate some of their earnings. A risk-free
payment system for crypto users has now been integrated into AMG’s tripXpress
platform so that member travel advisors can seamlessly service this high-value
market.
A Wealth of Travelers and Destinations
According to data collected by ATC, the number of travelers
has increased by 18%, the average daily tariff has risen by 13%, and the number
of nights spent in luxury rooms has increased by 30% compared to the previous
year. Meanwhile, the income from its selection of high-end suppliers has
increased by 32% annually:
- Sales of luxury rooms have increased by 45%.
- Revenue from luxury guided tours is up 24%.
- Revenue on luxury cruises has increased by 22%.
Exclusive amenities offered to guests at ATC locations bring
an average projected value of $1,000 or more per stay. A one-category upgrade,
early and late check-ins, daily breakfast for two, Wi-Fi, a $100 resort credit,
and a greeting from the general manager are usually included in these benefits.
This year, ATC has expanded its portfolio by 20% to include
more than 1,100 hotels. Along with exotic locations like Morocco and Cambodia,
it has added properties in popular sun markets like Mexico and the Dominican
Republic, as well as luxury mainstays like New York, London, and Paris.
Recently, ATC has added resorts and hotels from prestigious luxury brands,
including Waldorf Astoria, One&Only, and Raffles.
“It’s a great segment to be in,” added Mazza. “It’s the year
of re-imagining travel. The bucket list is now the to-do list.”
More information at www.theaffluenttraveler.com.
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