Speaking to Travel Weekly, TravelManagers’ executive general manager Michael Gazal outlined the top trends the consortium is already seeing in 2025 including the rise of cruise, Europe and bespoke travel.
What trends do you see dominating the travel industry in 2025?
MG: The growth of cruising will continue to be significant. We’ve already seen a 26 per cent year-on-year increase, which is remarkable considering the strong base we started from. This includes everything from small expeditionary ships to ultra-luxury liners. Our agents play a crucial role in this, with many becoming accredited cruise masters or undergoing CLIA training. Destinations-wise, Europe remains the leading market for us. Over the past several years, Europe has consistently accounted for at least 40 per cent of our entire TTV/
Has demand for European travel not been impacted by the unfavourable exchange rate?
MG: Interestingly, no. Australian travelers remain highly committed to Europe, despite the weaker dollar. Southern European countries—Spain, Portugal, Italy, Greece—as well as Morocco and North Africa are seeing strong demand. Scandinavia and other parts of Europe are also performing well. Overall, the region remains dominant for us, covering everything from independent travel to escorted tours.
Are you seeing growth in other regions?
MG: Absolutely. South America is up 18 per cent, and Asia has grown by 12 per cent. These increases suggest that travelers are broadening their horizons beyond traditional European hotspots.
Are you seeing more demand for tailor-made experiences?
MG: Bespoke travel is growing significantly. Our online travel agency (OTA) sales are up 13 per cent, reflecting this trend. Many travelers are requesting custom 25-day independent itineraries across destinations like Italy. At the same time, escorted touring has grown by over 6 per cent, particularly small group tours of 8-10 travelers. Companies like Intrepid, G Adventures, and Back-Roads are leading this trend.
Technology seems to play an increasing role in travel. How is TravelManagers using tech to improve efficiency?
MG: Last year, our theme was ‘working smarter,’ and we’ve been investing in technology to help agents operate more efficiently. We launched the proprietary Trip Builder System, which aggregates accommodation options, and a workflow management tool called Flowjo. These tools save agents significant time—some report recovering 5-7 hours per week. AI is also being integrated into our systems, particularly in itinerary planning. Our focus for them is to really consider what they want to use that extra time for? Is it to have a better work life balance? Is it to invest that time back into their business and grow their business even more?
Looking ahead to 2025, what initiatives are you focused on?
MG: We’re rolling out the CATO Touring Academy to enhance agent education on touring products. We’re also expanding our corporate travel division, catering to the SME market. Additionally, our partnership with Signature is strengthening our position in the luxury sector, providing agents access to high-end hotel programs and destination management companies.
Any personal goals for the year ahead?
MG: Winning the lottery would be nice! But more realistically, ensuring our network continues to thrive by improving efficiency, reducing burnout, and providing clarity for agents in managing their businesses.
