U.S. Travel Agency Market Grows, Driven by Leisure & Luxury Demand

The U.S. travel agency market is thriving, fueled by rising demand, higher prices, and a shifting advisor landscape, according to Phocuswright’s U.S. Travel Agency Landscape 2024 report.

In 2023, gross bookings surged 28% to $109.7 billion, continuing a strong post-pandemic recovery. While growth is expected to moderate, agency sales are projected to rise another 9% in both 2024 and 2025, with leisure agencies leading the expansion and corporate travel regaining momentum.

Leisure travel dominates, accounting for 65% of agency sales, with luxury experiences, cruises, and guided tours driving revenue. Cruise sales skyrocketed 152% in 2023, with travel agencies handling two-thirds of bookings. By 2027, agencies will represent 25% of all U.S. travel sales.

The advisor landscape is evolving, with new professionals replacing retirees and more advisors returning to storefront offices. Home-based contractors still dominate, but traditional agencies are regaining ground. Advisors cater to a high-income clientele, with 73% over 40 and 58% earning over $100K annually.

Digital marketing remains key, with email, Facebook, and Instagram leading engagement. TikTok adoption is rising, but remains secondary. 86% of advisors are aware of generative AI, though adoption is still limited.

Looking ahead, 72% of travel advisors have a positive outlook despite concerns over rising travel costs and airfare. With a strong foothold in high-value segments and a growing corporate market, U.S. travel agencies are well-positioned for continued success.

Tags: phocuswire, SyndicEx250323B

U.S. Travel Agency Market Grows, Driven by Leisure & Luxury Demand

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