Pulse of the Industry: What Does 2023 Have in Store?

We've made it through the first month of 2023 and as travel continues its ebb and flow during its rebound, we wanted to take the pulse of what the industry is feeling and what we hope for the future.

Key challenges for agents continue to centre on supply and demand overall; flight disruptions and cancellations remain an issue as does staffing both in the air and on the ground. Commissions of course remain a vital issue as well, with many agents implementing planning fees after losing so much during the pandemic.

"I learned a lot from the pandemic and I decided on charging service fees to clients in 2022 and it has been met with a positive response by most clients, says Ayesha Patel, Travel Consultant, The Travel Agent Next Door.

"By implementing service fees, my paying clients appreciate the work I have to do before even booking their trip. Service fees also deter those who aren't serious about actually booking a trip and just want to use a travel agent's resources for their comparison shopping. They're the ones who tend to book with OTA's and those are not the clients I want. With this change in my business model, I now get more serious inquiries and clients who want to work with me to have the best vacation experience by working with an expert."

Travel Kristin Bond of Bond Voyage Travel says her 2023 projections have her "twice as busy as 2019, which are fantastic."

"With the surge in business, and ever-changing terms and conditions (including suppliers who are still offering future travel vouchers, leaving agents without compensation in the event of cancellations), I've had to implement service fees I do not see ever disappearing. The value of an agent has proven itself tenfold, and I predict this is going to become the norm, like a baggage fee, over the next 5 years."

"I see that 2023 is off to a great start. Bookings are coming in at a higher pace than pre-covid. Average sales per customer are higher," says Becky Kershaw, The Travel Agent Next Door.

"Yes, service fees are part of my sales, and I believe you will gain more respect, when you value what you do and get paid to do this. Sales on record, are higher for this year, than before Covid.

We all have seen the shortage of pilots, flight attendants, and ground crew and that's before we depart. No doubt we are in the news way too often and far to negative. In destination, issues such as flooding of airports, one day strikes at rail stations, picket lines of flight crews, hurricanes, tropical storms and whatever else has been thrown at us, will still continue to affect this industry.

Always have, and always will."

ACITA (Association of Canadian Independent Travel Advisors) says in regards to commissions, they will continue the charge for change.

"If suppliers won't recognize the value we provide them, there are other avenues to enact change," says ACITA co-founder Brenda Slater. "Simply put, they would have to hire, train and provide office space for a huge workforce to replace us. Nobody works for free, let alone twice over. As their valued partners (or so they say) they should take a moment to imagine walking in our shoes. A serious lack of forethought for them not to take this into consideration."

There are also economic concerns - according to a recent Expedia study. While optimism in Canada is high in many respects, the study also found some areas for caution.

Sixty percent of Canadians are more concerned about inflation impacting their travel plans in the next 12 months.

"I'm not heading into the new year with very good news, I have lots of clients coming with short notice to travel and inventories are challenging to find especially for a bigger group," says Katherine Poon, of Fun in Paradise Travel. "The suppliers' staff shortage is making our job super stressful especially with the tour operators."

"Lots of clients are still very tight with their travel budget or have no idea about current travel prices. With inflation and high interest rate, supplier inefficiencies, I think the road ahead will continue to be rocky."

Despite the economic hesitation, according to the same Expedia study, forty-one percent of Canadians say they are very likely to book or have already booked an international trip in the next 12 months, ranking higher than the global average of 30%.

"When we look at Expedia, Hotels.com and Vrbo data together, we see a detailed and robust picture of travel into 2023," said Jon Gieselman, Expedia Brands President. "We're seeing a surge in trips to culture capitals, a new wave of interest in wellness retreats, and a spike in demand for outdoor destinations beyond just beaches and mountains - not a new normal but people branching out to unexpected trends in what we're calling the 'no normal."

"Clients often tell me that they have enough things that just end up cluttering their homes and want to start spending their money on creating memories with their parents, grandparents and kids instead. And, a family vacation is the best way to get everyone together in one place where everything is taken care of," says Patel.

Bond says that optimism is at an all time high and the need for a qualified travel agent is higher than ever before.

"People are ready to get back out there, their budgets are higher than ever and they are doing everything they can to protect their investments, including seeking out a qualified Travel Agent to guide them. The days of booking your own travel are a thing of the past."

"Almost three years ago it was difficult to imagine how those of us in the travel industry would recover from the pandemic," adds Patel. "But now, I think it's safe to say that not only are we back but we are back at levels that we couldn't have imagined.

Undoubtedly, there's a bright future ahead for the travel industry."