Why Are Customized Tour Packages The Hot Travel Trend?

PHOTO: Cooking lessons are one of many rages that have swept the tour industry, leaving no tour operator untouched.

The age of the Internet has empowered the consumer. People know they can ask for what they want, and if they don’t get it they can walk. With the Internet they can do their walking with a mouse and survey an entire industry in a matter of minutes. They come armed with information. Consumers don’t feel that they have to accept a pre-packaged standard item off the shelf. The trend has affected all industries and the packaged travel industry is not exempt.

Austin Adventures, the multi-sport adventure company from Wyoming, recently reported that it has “shifted sales focus and operations this year to accommodate a significant uptick in requests for private and exclusive custom trips.”

Custom trips, as opposed to off-the-shelf programs shown in brochures and on websites, now comprise 31 percent of the company’s business, up from 12 percent five years ago. Custom bookings are up 28 percent in 2014 over 2013.

Dan Austin, president of Austin Adventures, told Travel Pulse that the change is incremental, but still dramatic. “I would say it’s just been building up a head of steam, not a flip of a switch, more just growing and growing. Frankly, we cannot keep up and are retooling how we handle it.”

Opportunities can easily turn into problems, so Austin is taking steps to ensure that the company is able to take advantage of the opportunity by putting new systems in place and preparing the staff to be competent to help customers through the process of choosing which options they want.

“It’s a lot different creating a new custom trip than taking a booking on an existing scheduled trip,” said Austin. “It’s more internal. We also need to be sure to get our staff in the field often. They can sell a scheduled departure without seeing it, but when it comes to customs and FITs firsthand experience is key.”

For a tour operator, moving from brochure product to custom packages is like a musician moving from classical music to jazz. In the former, the music is written and the musician reads it and plays it. In jazz, musicians must improvise, create something on the spot.

“As far as experiences and itineraries go, one is only limited by their imagination (or ours),” said Austin.

Creating a custom trip begins with a question/answer session for the purpose of narrowing down possibilities to a realistic plan that satisfies the wants and needs of the family or group. Then the tour planner, with the help of the various specialists in the company and its network of partners, can put together a plan that works.

No one knows better than the clients themselves what they want. But the tour staff has the experience and knowledge to show what is available and what is possible.

“As creative as our set itineraries are, many want to modify a few activities or craft the week into a completely different private trip,” said Austin. “We love the challenge.”

It is the challenge of the travel agent and the tour operator to lend counsel and expert advice to make sure no clients end up with an itinerary that looks good on paper but is too unworkable to be fun.  

“In this day and age of immediate access to information, it naturally makes sense that people now 'want to go when they want, where they want and with whom they want,'” said Laudie Hanou, vice president of SITA World Tours.

“[Customizing] also guarantees the traveler a unique experience as they were part of creating the itinerary and making decisions as to the type of program, pace, and activity level of their journey. It is the highly experienced skill set of the travel agent and in turn the tour operator to take the custom wish list of a client and make it in to a logistically proper and exciting trip.” 

Proliferating Styles of Travel

What Austin Adventures is experiencing is being seen throughout the tour and package segment of the travel industry. Operators are seeing an increase in demand for custom-designed itineraries and are adapting to it. But many say the trend does not bring with it a reduction in demand for escorted tour packages, which are also showing growth. The two styles of travel are blending, mixing and producing new variations and hybrids.

On the vacation package side of the business the products are historically simpler than the complex itineraries of escorted tour operators, and those wholesalers are accustomed to putting together packages based on the requests of clients. But in recent years wholesalers’ offerings have expanded to include more kinds of activities and components, including escorted tour segments, so that in a sense the two sides – vacation packagers and escorted tour operators – are meeting in the middle, where the customer rules.

“MLT and Delta Vacations have always allowed travel professionals to create one-of-a-kind, tailored vacation packages that meet their clients’ unique lifestyles and budgets, especially in popular escorted tour markets in Europe and Asia,” said John Caldwell, president of MLT Vacations. “Working with MLT and Delta Vacations, travel professionals can easily customize their clients’ preferred lengths of stay, even for multi-destination trips, and book a variety of ancillary options like rental cars, tours and sightseeing excursions. This is where travel professionals can really add value to their clients’ vacation experiences, and to their own bottom line.”

Abercrombie and Kent is known primarily as an operator of escorted tours, but according to Jean Fawcett, media relations manager, that’s only half the story.

“Customized, bespoke travel is where we got our start,” said Fawcett. “We do about half FIT and half small group travel.”

A&K is seeing an increase in both sides of the business, and plenty of mixing in the middle.  

“We are seeing steady growth across both types of travel,” said Fawcett. “They tend to be different customer bases. Those who prefer private travel tend to stick with private travel. There is some crossover, however. In our Luxury Small Group Journeys brochure, we feature ‘Take This Journey Private’ on many itineraries for people who either prefer to travel with their own small group privately, or whose schedules don’t line up with the group departures. This guarantees them the same seamless A&K service from arrival to departure – but on an independent journey. Expert local guides, private airport transfers on arrival and departure, deluxe accommodations and enriching sightseeing are all included – often with access to places only available to A&K clients.”

Balancing Structure and Flexibility

The Globus family of brands, known mostly for escorted tours, also does a thriving business with its Monograms product, a simple kind of hosted independent package that provides a basis upon which a client can add. For Steve Born, vice president of marketing for Globus, the ideal is providing flexibility within a package format.

“No doubt Boomers are leading the charge for personalization, but they’re also the masters of making the most of their time and money,” said Born. “To that end, I’d challenge the notion that there’s a trend towards custom ‘a la carte’ vacations at the expense of packages and tours. The more substantial trend for travel sellers is to deliver personalization and freedom within a package that provides simplicity and good value.”

According to Born, Globus and Cosmos tours and Monograms packages do just that.

“They all allow for personalization pre-trip, through MyGlobus, MyCosmos and MyMonograms excursion choices, as well as on-trip through tour directors and local hosts who help facilitate the use of ample free time,” said Born. It’s all in a simple package that saves valuable time on-trip by providing all the connections and special VIP (no line) access.”

Packages pieced together from scratch following the requests of clients may not work as easily in the field as they do in the imagination.

“Custom packages, on the other hand, can be a collection of disparate parts,” said Born, “leaving it to the traveler to connect one component with another without any on-trip support. And for the agent, not only is it time-consuming, but unprofitable, as many components offer little, if any, commission.” 

For Isramworld, the custom trips have solidified into a separate line of business that appeals to a separate demographic, not cannibalizing the escorted tours side of Isram’s business. “For several years now the team at Isramworld has been reporting a consistent upward trend for customized tours,” said Richard Krieger, president of Isramworld. “Our statistics certainly support that this is a solid market and the effect on traditional motorcoach sightseeing is not an issue. These are two separate demographics, with different likes and expectations from an Isramworld travel experience.”

The trend toward customization goes hand in hand with the rising interest in special interest themed tours. “We have seen a growing interest in the vacation themes segment,” said Chris Accomando, president of Sceptre Tours, “where travelers have a specific interest they are building their vacation around, whether it be culinary, adventure, garden tours etc. The growing trend is definitely on a flexible itinerary with a strong theme behind it."

Although the two types of travel appeal to different kinds of travelers, tour operators acknowledge that people may want to travel different ways at different times.

“There is a niche for both group and custom programs, because they appeal to quite different audiences,” said Emily Harley, director of media relations for International Expeditions. “But at International Expeditions, we have crossover with our clients who know us, and they may fluctuate back and forth. There seems to be a specific market for people who want to travel with others in the security of traveling with a group, and one for those who want to create a private experience for their immediate companions. These options don't compete, but can enhance.”

“We are seeing growth in both group and custom travel to China,” said Mark Grundy, president of Wendy Wu Tours. “They are two very different types of client, looking for different experiences. Our group travel clients like the idea of an all-inclusive program knowing that everything has been taken care of from the visa to all meals, hotels, sight-seeing, attractions, domestic and international airfare on proven itineraries that have been perfected over 16 years.”

In the custom travel market, said Grundy, “clients are looking for unique and custom experiences, so when they go home to their country club or board room they can brag about spending the night in one of Chairman Mao’s summer palaces, or lunching with the farmers who discovered the terracotta warriors.” 

Travcoa President Jerre Fuqua says that custom travel is bringing a new demographic of customers to Travcoa.

“Over the past decade we have had an increased demand for Custom Travel, initially for small family groups, affinity organizations or friends traveling together who want a Travcoa-style itinerary designed exclusively for them. However, in recent years the increase we are seeing for Custom Travel is mainly from new guests that are not seeking a group travel experience - family members of our escorted tour guests who know Travcoa as a brand their parents trust, and new guests who are attracted to the quality of experience the Travcoa brand represents but want a more personalized experience.”

More of the Same

Some operators say that custom travel is nothing new for them.

Avanti Destinations, which was built on the technological capacity to manage independent travel, is now seeing the industry moving toward the model it has had many years.

“For Avanti, as a leader in independent travel, this trend has resulted in the doubling of our revenues over the past four years,” said Harry Dalgaard, president of Avanti. “We have seen this growth not only in the traditional East and West Coast markets, but also in the Midwest. What’s more, these discerning travelers are younger than one might expect – about half of them are age 50 and under.”

For tour operators like Mayflower Tours, which does a substantial group travel businesses, operating custom trips is a what they do.

“What we are seeing at Mayflower Tours is more exclusive groups on our escorted holidays,” said Mary Stachnik, senior vice president of Mayflower. “What I mean by 'exclusive' is that the preformed group travels with only their group, whether there are 15 or 40 travelers. They request an exclusive fare and usually base their pricing on the estimated number of travelers they will get. They are generally an affinity group and their travel planner accompanies them on the trip. They usually choose one of our preset itineraries and then add pre or post components, special attractions or dining experiences.”

“Customize tours are not new for Ya’lla Tours,” said Ronen Paldi, president. “We have been offering them for more than 15 years to all of our destinations (including Cuba), for both FIT and groups. We encourage all of our travel agents customers to ask us to customize whatever itinerary they need for their clients, as we have the knowledge, expertise, and ability to do so. And, we can give guaranteed rates 18 months in advance and provide the quotes, in most cases, within 24-48 hours.

“So, what you call the new trend, has been the norm for Ya’lla Tours and our customers for many years.”