Custom tour operators based in Europe see enormous potential in the U.S., where they say a market of wealthy customers is looking for tailor-made travel.
These companies say the U.S. has a strong presence of guided tour operators but fewer options for custom travel, making it ripe for them to penetrate a market where there's less competition. Demand for their products -- curated, small-group experiences that can't be replicated on packaged tours -- is being driven by travel advisors and their high-net-worth clients looking for bespoke travel, according to the operators.
Red Savannah, based in Gloucestershire, England, reports a 115% rise in bookings from U.S. travelers this year compared to prepandemic. But agency sales in the U.S. market have exploded even more: 405% since 2019, the result of targeting the trade "quite hard" after emerging from the Covid shutdown, said Red Savannah founder George Morgan-Grenville.
Red Savannah has concentrated on the U.S. market since its founding in 2011, with about 45% of its business now from the U.S. Morgan-Grenville, former global managing director of Abercrombie & Kent, saw the potential while at A&K, realizing that group tour operators in the U.S. were plentiful, while there were fewer custom operators.
Morgan-Grenville said the U.K. market for bespoke travel, on the other hand, is mature. That makes companies that have long serviced custom travel clientele, like Red Savannah, attractive to U.S. travel advisors who are looking for operators that have expertise in creating luxury packages with high-touch service for wealthy clients.
Red Savannah specializes in Europe and also has a villa portfolio, which Morgan-Grenville said advisors like. The company has relationships with agencies like Brownell Travel in Alabama and Avenue Two Travel in Pennsylvania.
Courtney Regan, founder of Travel Struck in Oakland, Calif., said there are fewer U.S.-based established custom tour operators "that can both service within the U.S. and then internationally."
And as the U.S. luxury travel segment grows, she said, it creates a domino effect: more clients need more advisors, who need more luxury suppliers. Operators like Red Savannah, which she has worked with for its villa portfolio, can meet that demand.
"We rely very heavily on these suppliers to deliver extraordinary experiences to our clients," she said. "There is a lot of wealth, and people looking for [these] experiences."
Other custom tour operators are also sharpening their focus on the U.S. market, and similarly seeing growth from the travel agency channel.
Luxury adventure specialist Pelorus Travel, based in London, has observed a 150% spike in U.S. leads brought by trade partners this year compared to last, said co-founder Jimmy Carroll. In the U.S., 65% of clients who book with Pelorus come through advisors, which Carroll said demonstrates "the potential that the U.S. has to offer."
"We know the U.S. market is huge in terms of U.S. clientele wanting to travel," Carroll said. "The U.S. mindset is 'let's make money and spend it,' which is brilliant."
Audley Travel, based in Oxfordshire, England, is honing in on advisors with the April appointment of Cathy Kusuma as vice president of trade and partnerships. Kusuma, who has held positions with Cruise Planners and Holland America Line, said her goal is to educate travel advisors on the value of custom travel.
The operator traditionally focused more on direct-to-consumer booking, but changed its approach after seeing trade-led sales start to rise in 2023.
"Tailor-made travel is gaining momentum in the U.S., with more travel advisors interested in offering their clients an itinerary that is completely bespoke and designed just for them," Kusuma said. "This brings an incredible opportunity for us to show the trade what our country specialists can do."
Audley and Scott Dunn, based in London, are among the operators that have offices in the U.S., strengthening their local presence. Audley opened its Boston office in 2014, while next year marks 10 years for Scott Dunn, which opened offices in New York and Solana Beach, Calif.
Scott Dunn has been "testing the waters" of a new approach to working with travel advisors after seeing organic growth in the channel, said Fiona Batten, who in August was named senior vice president in the U.S. The former Envoyage Australia sales director said Scott Dunn is assessing how to build out its advisor network. Batten said Scott Dunn recently hosted U.S. advisors on a fam trip to India and this fall is taking a group to Iceland, showcasing potential itineraries.
Untamed Travelling, a custom tour operator based in the Netherlands that specializes in Africa, is also developing a plan to work more with U.S. advisors. Its bookings have mostly been direct so far, said founder and director Jozef Verbruggen, but it now sees potential in the U.S. travel trade.
"We're exploring ways to engage with the advisor community more and bring Untamed Travelling to more clients as our presence in the U.S. continues to grow," he said.
Editor Ⅰ: Zhang Congxiao
Editor Ⅱ: Bao Gang
Editor Ⅲ: Liu Guosong
