If your Instagram feed looked anything like mine this year, it was flooded with Santorini selfies, reels of Rome and “LOLs” from London. Certainly, airfares to Europe this year had surged, yet somehow just about everyone in my extended circle found a way to afford lavish getaways to the Old World.
With inflation, the tug and pull of supply and demand and the rising costs of both labor and jet fuel, the price of international airlift will likely remain high in the coming year. And actually, next year might be the see the highest spending yet.
Based on sales data across multiple years and a poll of more than 50,000 customers, travel insurance marketplace Squaremouth predicts that 2024 will be the most expensive year on record for travelers.
“There is no sign that prices will drop anytime soon, and it may be a case of getting their trips in before prices go even further up,” said James Clark, marketing content specialist at Squaremouth.
There is no sign that prices will drop anytime soon, and it may be a case of getting their trips in before prices go even further up.
Despite the rise in airfares, Squaremouth reports that European destinations have become more popular among users, with 40% of customers insuring trips to Europe despite above-average costs.
Other trusted industry partners agree that Europe will be red hot in the coming year. According to the results of the United States Tour Operators Association’s annual travel trends and forecast survey and Virtuoso’s Luxe Report, the top international travel destinations for 2024 are all European, with Italy in the coveted No. 1 spot.
Combating Sticker Shock
The excitement for Europe is absolutely there, but what happens when clients go to book their tickets and find higher rates than they’ve seen in years? They often reconsider the scope of the trip, or may even opt out altogether.
Steven Gould, owner of Goulds Travel and associate director of Luxera Travel, now spends more time with clients and encourages them to go deeper in the destination, making the perceived splurge more worthwhile and meaningful.
“It’s your job to educate them on why airfare has increased, how to increase the value of their vacation and what to expect moving forward,” he said. “At Goulds Travel, we work with our clients to extend their stay, adding multiple cities or destinations into one trip, which makes the cost more palatable because it provides more value for the time they’re spending in Europe.”
Gould suggests asking clients if they have airline points or miles they could use for a specific portion of the trip. Or perhaps they have status for upgrades, which can make for an even better experience.
“The reality is that prices probably will not be dropping drastically over the next 12 to 24 months,” he said. “So, people need to understand that if they want to travel, this is the price they need to pay.”
The reality is that prices probably will not be dropping drastically over the next 12 to 24 months. So, people need to understand that if they want to travel, this is the price they need to pay.
Suzy Schreiner, owner of Azure Blue Vacations, recently returned from hosting a successful Christmas markets cruise on the Danube River, from Budapest to Vienna. She has been helping her clients stay positive this year by educating them about flight pricing. To that end, she is positioning the higher cost of Europe airfare as the new norm, making sure clients understand that airfares are priced this way due to demand.
“I do this so that they do not feel like they are overpaying,” Schreiner said.
She also makes suggestions that can help clients save money. For example, instead of searching for routing that is specific to a client’s trip, she suggests that they check nonstop routing to a hub in Europe, such as Amsterdam; Frankfurt, Germany; or London.
“Then, they can use a smaller carrier for the inter-Europe flights,” she said. “This will also help clients who are utilizing mileage for their tickets.”
Seek Out Supplier Air Promotions and Inclusions
Both Schreiner and Gould work with suppliers that offer air promotions and programs as part of the overall vacation package. This path also protects the advisor’s commission by keeping the base price the same — the discount to the client comes in the way of the flight credit or flat-rate fare.
Airfare promotions are not only a win for travel planners and clients, they also prove advantageous for suppliers. AmaWaterways had such success with its AirPlus promotion this year that the company upgraded it to an ongoing program with 24/7 air department support. Through the AirPlus program, the river cruise line provides guests with a flat rate for roundtrip airfare to Europe from all major U.S. gateways. Economy air is $899 per person, premium economy is $2,299 per person, and business class is a fixed $4,299 per person.
“We give clients peace of mind — they know exactly what they're going to pay, even as airfares fluctuate,” said Jazzmine Douse, director of national accounts for AmaWaterways. “And then on the back end, AirPlus gives our air department time to search for the best rate and be able to deliver the best routing to the client."
We give clients peace of mind — they know exactly what they're going to pay, even as airfares fluctuate.
“There are some tickets that we will take a little bit of a loss on, and some that will offer a little bit of profit, based on the seasonality and timing of those tickets being purchased,” she said. “But overall, it puts us in a position to provide desirable schedules and make sure that we don't impact the booking process and, ultimately, the relationship with clients and advisors."
For even deeper savings, clients can combine AirPlus with AmaWaterways promotional fares, such as a 20% off promotion for select Europe sailings in 2024.
Advisors can also educate clients on flexible payment options. For instance, clients may defer paying in full with a $750 deposit for economy and premium economy, or $1,000 deposit for business class. They can choose to pay via installments or wait until 90 days prior to departure to pay the difference.
Armed with valued partnerships, research, education and tools, advisors are in a unique position to pull certain levers that can help a client’s dream Europe trip come to fruition.
“Travelers are deciding to explore the world and create new memories now or in the very near future because, if there’s one thing they’ve learned over the last few years, it’s that no one knows what tomorrow will bring,” Gould said. “The truth is that demand for trips to Europe has increased exponentially now that people are realizing that travel needs to be a part of their lives.”
