Photo by David Cogswell
Many travel agents were expecting to see a considerable - if not historic - upturn in Europe bookings this year, spurred to some degree by the improving economy and the upward shift in the value of the U.S. dollar against the euro. So how has season shaped up?
John Lovell, Vacation.com's president, probably summed it up best. "Europe has been a mixed bag in terms of how successful this year's season has been for agency members," he said. "High-end luxury continues to sell and sell well; where we have seen some compression is on the premium and contemporary side for 2015."
While John Lovell noted that Europe has performed consistently well over the last three years, he added that 2015 yields were slightly down in total. "We attribute that to the unfortunate incidents that happened in Europe earlier in the year," he said. "Those took place during peak selling season and set the tone for bookings to Europe."
For Ensemble Travel Group agencies, Europe has been nothing if not unpredictable. "I would describe Europe as a roller coaster with lots of ups and downs for our members and preferred partners," said Libbie Rice, co-president of Ensemble Travel Group. "In the fall of 2014, bookings were very strong for the year ahead and we were optimistic about carrying that pace into 2015. But economic and political events - especially in Europe - slowed the momentum in the first and second quarters. Mind you, that's compared to near-record booking levels in 2014 for many Ensemble members."
Since the third quarter, though, Europe business has improved. "We're now seeing an uptick, with a favorable U.S. dollar compared to the euro and relative peaceful conditions around the world," Rice said. "Bookings are closer in though, and luxury - especially FITs - is setting the pace as this segment is able to 'turn on dime' and with the means to buy the coveted authentic experience."
It's possible that Ensemble agencies may exceed 2014 numbers for Europe this year. "If world conditions continue as they are now, we expect to finish the year in a strong position compared to 2014," she said. "In fact, a mid-year survey of members in the U.S. and Canada shows 62 percent expect an increase, 17 percent a decrease, and 21 percent unchanged."
Signature Travel Network has seen consistent, strong demand for Europe all the way through the fourth quarter the year. "Europe has never offered more to our clients, and with the euro at 1.10 to the dollar, the value is better than ever," said Ignacio Maza, Signature's executive vice president.
Furthermore, a variety of destinations have exceeded expectations. "Some of the classic destinations continue to do well - destinations such as London, Italy, and Spain had strong sales this year," Maza said, adding that agencies reported double-digit growth for Europe river cruises. "In addition, we are seeing very strong demand for Iceland, Croatia, Budapest, Prague and Scandinavia."
Some other destinations didn't fare as well. "A number of destinations did not meet expectations, said Maza. "France comes to mind, especially Paris. We believe the terrorism incidents in Paris earlier this year discouraged a number of travelers from visiting Paris and France, who then booked other destinations instead for 2015."
Hot destinations for TRAVELSAVERS' agencies included Spain and Portugal. "Both locations did very well, this year," said Nicole Mazza, chief marketing officer at TRAVELSAVERS.
Generally speaking, Mazza said Europe business collectively has been relatively flat this year, although yields were strong. "The escorted market did not exceed last year's bookings. The FIT market had better-than-expected results," she said, adding that both river and ocean cruises have been strong sellers this year. "The strong U.S. dollar helped to increase bookings for our agency affiliates."
At MAST Travel Network, escorted business was actually down from previous years, said John Werner, MAST's president and CEO. "The luxury market has held up better than the mid-priced market and FITs have done better - but overall Europe has been down."
There were still some bright spots, though. "River cruising remains popular," Werner said, echoing the sentiments of others. "Greece has done well despite the economic turmoil, and we have seen more interest in northern Europe."
Like Vacation.com's Lovell, Werner believes safety and terrorism early in the buying season took some of the steam out of the year.
Also, families opted for destinations with lower priced airfares. "While airfares to Europe didn't increase substantially this year, a family of four could still pay $6,000 on average for airfare," Werner said. "That's a lot of money that could be spent on accommodations, food and activities."
Still, Werner said Europe bookings have become stronger of late.
"In recent months, there has been an increase in sales to Europe for travel in 2015."
Going forward, consortia executives have expressed optimism about the 2016 Europe season. "We are looking forward to 2016 and project that it will be a comeback year for Europe in general," said Lovell.
Signature, too, is predicting good things the next year's Europe season. "Sales for Europe have been strong this year, and future bookings for 2016 look great," said Maza.
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