Cruising Up, All Inclusive Down: Virtuoso Canada Talks Trends

Virtuoso leisure sales in Canada jumped 22% last year, thanks in part to a big boost in Canadian cruise bookings, and 2024 looks to be another gangbuster year.

Speaking at a media gathering at the Four Seasons Hotel Toronto on 27FEB, Virtuoso officials said their research shows cruise sales in Canada were up 48% in 2023.

Virtuoso spokeswoman Misty Belles told assembled journalists that ocean cruise bookings were up 48%, while river cruising numbers rose by an astonishing 87%. Yacht cruise business was up 38% and expedition cruises increased by 42%.

But Canadian interest in all-inclusive holidays dropped last year. In 2022, 35% of Canadian travellers were interested in all-inclusives. But that dropped to 26% last year.

Virtuoso said Canadians are dialing into Costa Rica in a big way, with Canadian interest in the Central American country double the global average. Other top destinations for Canadian travellers are Japan, Iceland, Portugal and Thailand.

The media lunch was part of Virtuoso’s 2024 Canada Forum, a high-level business meeting that brings together the most influential decision-makers within luxury travel, including Virtuoso’s top leadership and senior executives from Virtuoso’s Canadian member travel agencies and preferred partners from across the globe.

This week’s Toronto event has brough in more than 100 attendees.

As part of the media event, Virtuoso brought in four top Canadian travel advisors for a fascinating panel talk about top trends in the business, including the need for more agents, the value of advisors, and top destinations for 2024.

Taking part were Thomas Panos of Omega Travel, Rob Blowes of CWT Blowes & Stewart Travel Group, Carly Renshaw of Renshaw Travel, and Stephen Smith of Direct Travel. Here’s a look at some of their insights, as well as comments from top Virtuoso officials.

GENERAL OUTLOOK AND ADVISOR DEMAND

“All signs point to growth mode for the Canadian travel market over the next several years,” said Una O’Leary, General Manager, Virtuoso Canada. “Network bookings continue to rise, indicating we’re well past the days of ‘revenge travel’ and the demand is no longer pent up; it’s simply that travel remains a priority for many. There’s a prevailing feeling of optimism amongst our members, signaling a promising outlook for the future of travel in Canada.”

“January 2024 was by far our biggest ever,” said Renshaw. “So much so that we can’t keep up.” Renshaw said she hired two or three agents last year, and needs more to meet demand.

“We’re always looking for advisors,” said Blowes. Many experienced agents retired during the pandemic, but young people appear more interested in becoming an advisor these days.

Renshaw said she’s had to hire people with little or no experience and train them from scratch. But it’s worked out well so far.

“This year looks better than 2023, which is hard to believe,” said Smith. He also noted some shifts in how people are booking. “People who are not going to Olympics or euro soccer are not travelling in July or August to Europe; they’re travelling in May and a bit of June and September. The Canadians are definitely looking to the shoulder seasons in Europe in a big way.”

“It’s the same in Vancouver,” said Panos. Canadians with family in Europe or who have places of their own are going in summer, but others are looking to go when crowds are down and summer heat isn’t an issue.

“Weather is a driver, but price also is a driver. because the average daily rates of luxury hotels in Europe are the highest they’ve ever been,” Smith said. “A little bit depends on the client and where their threshold is. I think the ultra-high net worth clients, they don’t care. They want to be able to go and do what they want. I was recently talking to a top advisor. Last year they said ‘I want to go where I want to go and I don’t care what it costs.’ This year they’re saying ‘I want to go where I want to go but oh, wow, that does cost a lot of money.’ It’s not that revenge travel that happened (just after the pandemic). That level below there, they are holding back a little. They might be going in shoulder season.’”

Many Canadians are choosing Spain or Portugal instead of Germany or France, Blowes said.

AIR FARES AND EUROPE

“For a family of four right now flying from Vancouver it can cost you $10,000 easy just for economy seats, so you’re talking $10,000 out of your pocket before that first souvlaki is in your hand,” Panos said, sparking a laugh from the audience. “A lot of families are deciding to put that money to different use. Maybe they could rent an Airbnb on Vancouver island or down south in Washington, Oregon or California where that $10,000 might get you ten days of accommodation.”

As Europe costs increase, Smith said he’s seeing a growth in bookings for 2024 Caribbean trips.

DESTINATIONS

Virtuoso officials said Canadian bookings for Germany are up 30% for June. Germany will host the UEFA Euro 2024 football/soccer tournament from 14JUN to 14JUL.

That’s a nice increase, but it pales in comparison to the 452% increase in bookings for Paris, which will host the Summer Olympics from 26JUL to 11AUG.

With airlift returning to Asia (Air Canada now flies directly from YVR to BKK in Thailand, and will begin flying YVR-SIN on 3APR), Canadians are definitely looking at Asian destinations, Blowes said. Africa also is popular as travellers get more comfortable with longer trips.

Renshaw said interest in Japan is immense and that it’s vital to book in advance.

Japan is the number one “re-emerging” destination for Virtuoso advisors in every region of the world, Belles said. Italy is the overall top destination for every region of the world.

A lot of west coast travellers are heading to Mexico City to explore the great food scene, Panos said. “It’s a huge destination right now, with lots of non-stop flights. For Mexico in general we find the Eurocentric clients are actually turning their eyes to Mexico as a financially viable option for a family of four, not just the all-inclusives but doing like San Miguel de Allende with Mexico City, things like that.”

Panos also is seeing more interest in cooler, northern European destinations such as Copenhagen and Berlin, as well as Normandy. "I don’t sell it, but I’m bullish on the UK as well.”

Smith said clients are still travelling to Jordan and Egypt, despite the war between Israel and Hamas. Dubai and Oman also remain popular.

LUXURY TRAVEL ADVISOR ROLE

“I think there is still an untapped market out there,” said Renshaw. “A lot of people still don’t know what we do.”

Smith said one reason he works with Virtuoso is that they “promote the idea of working with a travel advisor in Canada, the US and around the world. There are so many people that don’t know and don’t understand the value of it. They don’t understand that working with a travel advisor often saves you money, it saves you headache but it also saves you money. Because we know the tips and tricks and what to do. It’s not about being the cheapest, it’s about the value you get.”

Belles said that, during COVID, the number of people looking for an advisor on the Virtuoso website was up 50%.

Panos said many travellers aren’t aware of the perks a travel advisor can arrange for them.

“If you book this hotel (The Four Seasons Toronto) with us you can get a free breakfast. You also get a $100 US credit to use inside the property. You get an upgrade if it’s available. These are things we all latched onto with Virtuoso because it s added value we provide to the client. I can’t tell you the number of clients I’ve gained by just saying to them, ‘Do you know that if you book this with me next time I’ll get you this?’ They don’t pay anymore, but they get so much more in value. That’s also why we really enjoy being part of the Virtuoso network; there’s a value add you can’t get anywhere else.”

CRUISE TRENDS

Many more customers are asking about expedition cruises these days, Blowes said.

“Before, you generally had to recommend it, but now they’re walking in the door asking for it. There are so many more builds out there in the expedition space. Because of that it’s becoming more affordable for a larger mass of people. There are a lot of options out there and different destinations. Antarctica is huge; everyone’s asking about Antarctica. People also are asking for boutique ships or chartering smaller vessels.”

“The Galapagos on the Celebrity Flora is big,” said Panos. “We’re sending a lot of people the last few years and they’re loving it. That’s an amazing product. The new Explora ship, the new Ritz Carltons; our really high-worth clients are choosing to book these ships because they want the newest, best thing. For many of them it’s about the dates, not really the destination.”

“Explora is always moving” around the globe, so it’s not the “same old, same old,” said Renshaw. She added that Asia cruises are popular right now as are trips to Tahiti, Antarctica and (as always) the Mediterranean.

There’s also renewed interest in Baltic cruises as concerns ease about safety in eastern Europe, panelists said.

Alaska cruises are doing well, perhaps because of attractive air costs, and world cruises are quite popular among those who can afford them.