In these uncertain times, a bit of good news goes a long way. This particular piece of good news comes courtesy of Phocuswright’s “U.S. Travel Agency Landscape 2025” report, which found that amid a preponderance of direct bookings, travel advisors are gaining a larger piece of the total travel market.
Travel agency gross bookings rose at nearly twice the pace of overall U.S. travel sales (3.5%) in 2024, outpacing every other distribution channel,” according to Phocuswright research. “Although shifting government policies and inflation tempered broader market growth in 2025, agency sales are still projected to grow faster than the total travel market in the years ahead.”
Agency gross bookings (US Billion) and year-over-year change (Source: Phocuswright)
Furthermore, the report notes that the cruise sector will continue to positively impact the market as capacity grows and rates rise.
In still more good news, travel agency gross bookings climbed by 6% in 2024, compared to 3% for the total market, reaching $125 billion. For 2026, Phocuswright projects that the sum total of agency bookings will reach $134.4 billion.
The results of the research — even amid the war in the Middle East, economic concerns and inflation — come as no surprise to consortia and host agency executives, who note that today’s travelers are increasingly seeking sage advice when planning their vacations.
Demand for Travel Remains Resilient
“The latest Phocuswright data reflects something we’ve been seeing firsthand across the Ensemble network for some time,” said Michael Johnson, president of Ensemble. “Travelers are rediscovering the value of working with a professional travel advisor, because while they continue to spend more, they also want to ensure they are getting the most value for their money.”
With overtourism in cities like Barcelona and Rome, advisors help clients discover new destinations or better navigate established ones, according to Johnson.
“And, with the challenges around geopolitical uncertainty and increasingly more weather-related issues, advisors provide an additional measure of support and confidence,” he added.
Ensemble also expects member agency sales to continue to flourish this year.
“While the broader environment remains complex, demand for travel remains resilient, and advisors are exceptionally well-positioned to capture that demand,” Johnson said. “We’re also seeing cruise continue to power agency growth. Despite broader economic uncertainty, tariffs and geopolitical concerns, cruise sales across Ensemble remain exceptionally strong.”
The Human Connection
Alex Sharpe, CEO of Signature Travel Network, also agrees with Phocuswright's findings.
“Advisors are more sought out following the pandemic years for their expertise and the safety net they create for customers in times of need,” he said, noting that this, coupled with a quickly growing advisor community, is creating an expanded reach, which will spur overall growth.
“We are tracking 12%-plus year-over-year growth,” Sharpe added, remarking that while it is impossible to predict “what will happen in the world over the next 10 months, the traveling public has never been more resilient either, so what used to create valleys in bookings seems to only create blips nowadays.”
Like Ensemble’s Johnson, Sharpe believes the cruise sector will continue to have a great impact on advisor sales as capacity expands.
“River, luxury and expedition are leading the way, especially from an advisor perspective,” he said.
The Luxury Factor
Some host agency executives were equally optimistic about the prospects for advisors going forward, particularly when it comes to luxury travel.
“In the high luxury sector, it is all about the knowledge, trust and strong relationships between travel advisors, supplier partners and their clients, and it continues to be an extremely strong component,” said Connie Miller, chief relationship officer/business development for Your Travel Center/Montecito Village Travel. “The human connection is still very important. If the start of 2026 is any indication, we predict a strong year with growth around 15-20% over 2025.”
Travel Experts recently polled its 600-plus affiliates, and results indicate that the market remains strong and has proven resilient over the past three years — a trend the luxury host agency believes will continue through 2026.
“Many of our advisors are telling us that they acquired more clients, booked more business and earned more revenue in 2025 than any previous year — and expect to continue the growth trend that started in 2023,” said Sharon Fake, executive director of Travel Experts. “In addition, some advisors have noted that clients are spending more, although higher prices probably contribute to that trend.”
The Travel Experts survey also found that advisor business increased from 20% to 30% to a high of 40% year-over-year, with some agents reporting a sizable boost in new clients and referrals, and others reporting clients planning as far out as 2027 and 2028 for their trips.
Business Isn’t Slowing Down
Eileen Anderson of Journeys Afar, a Travel Experts affiliate, says business has never slowed down from 2024; she currently has nearly as much 2027 business under deposit as for 2026, with especially notable growth on the cruise front.
“Part of my clientele are semi- or fully retired, willing to wander more frequently to new destinations,” she said. “Several now fly business class instead of coach or premium economy, and have upgraded themselves to cruise suites instead of standard verandas.”
Like some other executives, Ryan Ranahan, vice president of cruise and strategic partnerships for Oasis Travel Network, believes that advisor growth will be driven by a combination of cruise and luxury travel.
“There have been many impressive new cruise ships introduced in recent years, and while they are large in scale, they continue to play a major role in driving industry growth,” he said. “At the same time, the luxury travel segment continues to perform very well and remains an important contributor to overall growth across the travel industry.”
While Ranahan believes agency sales will continue to grow in absolute terms, he does not expect them to outpace sales through other distribution channels.
“Because of this, it is more important than ever for travel advisors to continue developing their niche and building strong, personalized relationships with their clients,” he said. “The expertise, service and personal connections that advisors provide truly set them apart from other distribution channels, and those relationships will remain a key factor in long-term success.”
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