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Are Americans traveling this summer? Where are they headed?
Are Americans traveling this summer? Where are they headed?

Travel Weekly

time4 days ago

  • Business
  • Travel Weekly

Are Americans traveling this summer? Where are they headed?

Clockwise from top left: Hopper lead economist Hayley Berg, host Rebecca Tobin and cruise editor Teri West talk about Americans' summer 2025 travel plans. Subscribe now using your favorite service: What is going on with summer travel? As Memorial Day passes and Americans prepare to take to the roads and skies, we've heard a lot of mixed messages from travel companies about what this year might bring. Just a few weeks ago we spoke on the Folo podcast about "chop" and "noise" in projecting future booking patterns. In this episode Hopper lead economist Hayley Berg returns to talk about her data: Whether Americans are traveling and, if so, where their summer plans might take them. We talk about the obvious destinations and the hidden gems -- plus one great summer-booking tip. With us is cruise editor Teri West, who looks into research from the Mastercard Economics Institute on its travel trend report. This episode was recorded Thursday, May 22 and has been edited for length and clarity. Episode sponsor: This episode is sponsored by the Globus Family of Brands Related links: Asian Cities shine in Mastercard Economics Institute's 2025 travel trends report Volatility is making hotel forecasting difficult Travel advisors voice their concerns about job cuts and the economy Related Folo by Travel Weekly episodes:

A sustainability premium is a tough sell -- but what about Gen Z?
A sustainability premium is a tough sell -- but what about Gen Z?

Travel Weekly

time20-05-2025

  • Business
  • Travel Weekly

A sustainability premium is a tough sell -- but what about Gen Z?

Teri West When I explored the question of whether cruisers, particularly in the expedition and luxury market, would be willing to pay a sustainability-related premium, the answer I received was, essentially, "no." Cruise executives and advisors who specialize in these products told me that while customers may care about sustainability, the destination itself and the price are still their primary concerns. If one line was to charge an extra fee for sustainable efforts, it could lose customers to a competitor, they said. But that story may change in the decades to come, as younger generations mature, grow their wealth and start talking with their money. "I have a 19-year-old daughter who's my youngest one, and she has a complete different focus on environment and sustainability than I ever had at that age," Hurtigruten COO Gerry Larsson-Fedde told me. "And that's the generation that's coming. That's the generation that will be our guests in the future. And we really need to be prepared for that." Studies have for years documented the way Generation Z consumers think about the environment when they shop. Capital One reported in March that a little more than half of Gen Z shoppers are more likely to choose a product based on its sustainability than its brand name. The comparable rates for Gen X and Baby Boomers were 11% and 20%. When asked whether they would be willing to pay more for sustainable products, 73% of Gen Z respondents answered "yes" in a 2019 study conducted by consumer data analyst First Insight. That's a higher rate than any other generation; just 55% of Gen X respondents and 42% of Baby Boomers had the same answer. But that was six years ago, you say. Consider this: In the same study conducted two years later, the rate had continued to increase for every other generation -- but especially for Gen X, which surged to a 78% willingness to pay more. There is less data available about whether and how younger travelers prioritize sustainable travel, but what is available shows many are thinking about the Earth when taking trips. For example, half of the students surveyed for StudentUniverse's State of Student Travel in 2024 report said they prioritize booking with companies that have strong environmental credentials. Of course, the desire to prioritize the environment doesn't always align with how Gen Z shops in practice. Fast fashion, for example, is still popular; 72% of college students reported shopping a fast-fashion chain in a 2022, according to a report published by ThredUp. But fast-fashion products are also amongst the most affordable for building a wardrobe. In 10, 20 or 30 years, we could expect the wallets of those then-college students to be more robust and, perhaps, discerning. There is already a sector of people unwilling to cruise because of the industry's environmental impact, said Gari Senderoff polar travel specialist with Cruise Planners. "And let's face it," he told me, "Nobody really, absolutely needs to cruise. People need to fly, but no, this is a luxury that nobody really needs." If upcoming generations continue to prioritize lowering their environmental impact, the industry could lose out on more customers who choose to put the environment first. Or it could work proactively. "You can't start in 20 years," Larsson-Fedde said. "We need to start now."

As it approaches its four-year cruising anniversary, Virgin Voyages has goals
As it approaches its four-year cruising anniversary, Virgin Voyages has goals

Travel Weekly

time13-05-2025

  • Business
  • Travel Weekly

As it approaches its four-year cruising anniversary, Virgin Voyages has goals

Teri West NEW YORK -- Debuting its first ship to homeport in the Northeastern U.S. may be Virgin Voyages' biggest undertaking this year, but it's far from its only goal as the cruise line approaches its fourth anniversary. As Virgin Voyages grows -- its fourth ship, the Brilliant Lady, will debut in New York in September -- and works to gain customer loyalty, it is eager to make each ship distinct, tempting customers to try a new one to access different cuisine and entertainment. And through partnerships with travel advisors and its own advertising, Virgin Voyages aims to address a misconception: That its product is not just for young adults eager to party but one that can be enjoyed by adults of all ages. Last month, CEO Nirmal Saverimuttu, COO Michelle Bentubo and chief marketing officer Nathan Rosenberg engaged with travel advisors at the Virgin Hotel in midtown Manhattan, talking with them about the Brilliant Lady's upcoming debut. There were murmurs of agreement from agents in the room when Saverimuttu asked whether their clients believe Virgin is a "party cruise line." It's something a recently launched ad campaign intends to contradict, by featuring adults of all generations on Virgin enjoying activities from running to pasta-making classes. "We've been trying to support you all with better marketing messages ... to help you tell the story, because the reality is Virgin Voyages is for anybody traveling without kids," Saverimuttu told the advisors. "That's it." Keeping onboard concepts fresh One of Virgin's biggest competitive assets is its dining options, and it knows that means it needs to keep the concepts fresh. Saverimuttu said that customers were "repeating a lot. They're coming back far faster than we ever expected them to, which is a good thing, but it's a challenge for us that we have to keep evolving the product." He hinted at new menus underway, and that week, the brand announced that Brilliant Lady would debut a Spanish-inspired restaurant, Rojo by Razzle Dazzle. Scarlet Lady, by comparison, has a Razzle Dazzle restaurant with Chinese cuisine called Lucky Lotus. "What are the differentiators we can put on each of the ships, that you're only going to get this experience when you go on that vessel?" Bentubo said in explaining the philosophy. On the entertainment side, for example, the offerings on the Brilliant will be unique, she said, with seven original productions. Other features Virgin has underway aim to simplify and add incentives to the booking and arrival process. A pre- and post-cruise package involving the New York Virgin Hotel is in the works for Brilliant Lady-bound guests. A new Brilliant Bounty incentive will give advisors $200 per new Brilliant Lady customer booked for the next two months. That money can be used any way an agent chooses, including handing it directly to the customer should they need an extra push to convince them the price is right. And the company is redoing its Circle program for group bookings, which Saverimuttu conceded was too complex. "The intent for us was to create a program that was very flexible, that was not complicated, but unfortunately I think we have failed the second half," he said. "We have too much flexibility, so the whole thing's become a mess." Virgin Voyages' positive booking trends Virgin said that as of the end of its first quarter, March 31, it wasn't feeling the effects of global sentiment about U.S. policies, which have prompted some foreign travelers to avoid visits to the U.S. "We have not seen a slowdown from our Canadian market," Bentubo said, adding that Canadian revenue was up 45% and bookings grew by 36% in Q1. The one trend the company was watching was a move to closer-in bookings, she said. And Virgin is aware that customers may be increasingly cautious about discretionary spending, Bentubo said. "We will have to remain focused on making sure that we are providing the value, so that when somebody chooses to spend that money, and they want to spend it wisely, that they're getting the most for their dollar," Bentubo said. "And that is why I think that we've not experienced [a slowdown]. People are booking us, and our revenue has been phenomenal over the last three months ... because we offer a value experience."

It's me, you're new water-loving cruise editor
It's me, you're new water-loving cruise editor

Travel Weekly

time06-05-2025

  • Travel Weekly

It's me, you're new water-loving cruise editor

Teri West I've always been drawn to water, likely because it both calms and exhilarates me. I find swimming to feel like being on another planet, your body suspended, the world completely muffled. What a thrill to leave the ground behind. Swimming laps has long been one of my favorite ways to de-stress, a part of my morning (or evening) routine now for nearly 20 years. Growing up, nerves would follow me at swim meets all the way up until the buzzer and then would fall away as soon as I entered the water, transported. Even just being within view of a river can have a similar soothing effect, and I'm lucky to have plenty of access to such views in New York City. And many of my favorite travel memories involve water: Finding swimming holes in the woods, snorkeling with rays, hiking on cliffs above the Mediterranean, rafting in Ecuador as butterflies fluttered by in waves. I know I'm not the only one who finds peace through water, which is probably why so many vacations are built around being near it. Cruising, however, is new to me, and in my first month at Travel Weekly, it has already allowed me to experience water in a new way. Sitting on my balcony on the MSC World America during its inaugural festivities a few weeks ago, I was mesmerized by the sea below, a different depth and shade of blue than I typically experience on the shoreline. The ship can accommodate a maximum of 6,762 guests, and as a city lover I enjoyed the buzz throughout as I hopped from activity to activity. But I also had a peaceful little corner of it, for just me and the open ocean. Yes, I also tried the water slides, including a wild one with a vertical drop, which reminded me it's been too long since I've gone to a water park. But hey, no need to book tickets for one now. Cruises should keep me content for a while. So that's me, your new, water-loving cruise editor at Travel Weekly. I couldn't be more thrilled to be here working alongside such smart, adventurous journalists and covering what has already proven to be a dynamic beat. Travel journalism is an exciting transition for me after years in political reporting and other local news. The writer takes to the water on a slightly smaller craft than a cruise ship. Photo Credit: Courtesy of Teri West Now, in addition to heading to the neighborhood pool after work, clearing my head after packed days of interviews and writing, you'll also be able to find me at the cruise ship pool. Or any spot onboard with a good view.

River cruise veteran John Waggoner on the Victory revival
River cruise veteran John Waggoner on the Victory revival

Travel Weekly

time05-05-2025

  • Business
  • Travel Weekly

River cruise veteran John Waggoner on the Victory revival

John Waggoner abruptly exited retirement last year to revive Victory Cruise Lines, purchasing its two former ships from the bankruptcy of American Queen Voyages, the line he'd founded. Cruise editor Teri West spoke with Waggoner days before the naming of the Victory I about the brand's revival and what the future might hold. John Waggoner Q: What has the journey been like to reach this moment? A: We didn't have much time to think about this because the boats came up for auction, and there was only 30 days that you had to get your letter of interest in, get your deposit in, go to the auction, close, do a cash closing and then you have two boats. And you go, "All right, well, now we need to set up a whole company and do a bunch of repairs and set up a sales and marketing team, set up a reservation center, set up office space, hire all the crew." And we've done all that in just over a year, like 380 days. Q: I'd imagine that a lot of it was just pure adrenaline. A: I think more terror, but yeah. But I would say fear is a good motivating factor sometimes. Q: What do you think makes the Great Lakes a good cruise destination? A: One couple has been on 60 different cruises, and their reason to take this cruise is, "We don't have to fly overseas. We don't have to take a six- or eight- or 10- or 12-hour flight. You're right here. We get to stay close by for medical care and everything else, and we get to learn more about our country." Q: Are there other locations that these ships are headed? A: We just need to hit a home run our first year, so we need to focus just on the Great Lakes. But for 2026, I think we'll add some Eastern Seaboard cruises, maybe a Bahamas trip and maybe winding up in New Orleans. We're working on those itineraries now, but they won't be until the end of 2026. Q: American Cruise Lines bought four of American Queen Voyages' vessels, then scrapped a couple of them. I'm curious how you felt about that. A: I put my heart and soul into American Queen, and anytime you put your heart and soul into something you see get destroyed, you have to say, "Geez, that just doesn't feel good at all." Q: How will the experience on these vessels differ under the new ownership? A: One guest just said, "John, after you left, the spark went out. The flame went out. You could see it in the employees. So service wasn't as good, food wasn't as good, entertainment wasn't as good, because a lot of the really good people left. But now that you're back, oh, my God, there is more heart and soul. Everybody is so friendly, the food is excellent, the entertainment is excellent, the short trips that you put together." And I think that's a difference between an owner that's been in the maritime business for 50 years and the fact that you bring the whole team together that's an experienced team. Q: How are you feeling about, not just what folks onboard are saying but about sales, bookings and where business is headed? A: We were at about 70% of our revenue target before we even ran our first trip, which is remarkable. I would say I'm like every other cruise operator in the last three or four weeks. As an investor, watching my 401(k) go down is concerning, but I think we'll all get through that.

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