So, how is 2025 shaping up? Virtuoso panel talks U.S. tariffs, luxury trends & slowdowns

Despite geopolitical challenges, the travel industry’s future is bright as agencies report a strong start to 2025, generating sales that exceed last year thanks in part to clients booking trips far in advance.

At least that’s how four travel professionals from Canada’s luxury sector see it.

At a press conference Wednesday (April 16) about the state of travel, as it relates to luxury bookings, consortium Virtuoso – in Toronto for its regional “On Tour” event, where it welcomed 105 travel advisors and 77 suppliers at The Ritz-Carlton – held a panel discussion to unpack the latest travel trends and frontline insights. 

Moderated by Úna O’Leary, general manager for Canada at Virtuoso, the talk featured Susan Lawson, director of engagement at Trevello Travel Group; Catherine Davis, a travel advisor from Zebrano Travel; Karen Marquardt-Wyers, a travel advisor from TTI Travel; and Meredith Burbidge, director of leisure client engagement at Direct Travel.

How is 2025 shaping up?

So, how is 2025 shaping up, despite the “elephant in the room” (this being, U.S. President Donald Trump, his rhetoric about making Canada the 51st state, his tariffs on Canadian imports, and reports of travellers being detained by U.S. officials and advice from Ottawa to expect scrutiny at U.S. ports of entry, including of electronic devices).

“It started out strong,” said Marquardt-Wyers, noting that her bookings, for spring and summer this year, started ramping up last fall.

READ MORE: Canada updates U.S. travel advice: “expect scrutiny,” electronic devices could be searched

What’s changed, she said, is that travellers are now “pausing” their plans to await the results of the upcoming Canadian election (set for April 28) and to see what happens with President Trump’s tariff policies, which have led many Canadians to rethink their U.S. travel plans and book elsewhere.

“They’re hesitating for a second, but I think as soon as the election happens, people will start making decisions again,” she said.

Susan Lawson said Trevello finished 2024 with sales 25 per cent higher than the previous year, also signalling a strong start. The host agency’s goal, this year, is to increase business by another 25 per cent, she said.

READ MORE: California launches campaign to encourage Canadians to visit in Trump dig: “Don’t let him ruin your beach plans”

“We are feeling a slowdown,” Lawson said. “But we are trending ten per cent over last year, so we’re pleased with that.”

As far as travel behaviours are concerned, Lawson said most of Trevello’s clients are not cancelling trips, but shifting their vacations to other places.

Consumers are also “really leaning on advisors,” Lawson later added.

“They trust advisors to have the right information and guide them to a place that meets their needs,” she said. “More people are wanting to work with an advisor to feel more comfortable.”

The “ultra-luxe” perspective

Catherine Davis from Zebrano (which serves ultra-high-net-worth clients) has a set amount of luxury customers that do “very epic trips,” and for her, those epic trips went up in value last year.

“This year, the same thing is happening,” she said. “I haven’t seen a slowdown yet.”

She said “ultra-luxe” customers tend to be more comfortable with uncertainty and fluctuations around currency (the Canadian loonie, as it has been well documented, is also weak).

“It may not affect them in the same way it affects others,” she said. “Right now, we have people going to the U.S., and people going elsewhere.”

One trend, unrelated to politics, that Davis sees is a rise in demand for cooler destinations.

“Especially for clients without kids,” she said. “Shoulder season is a good time to visit Italy and Spain. We’re also seeing [interest] in Switzerland, New Zealand and Tasmania.”

And lesser-known places, like Bhutan. “Clients are asking, ‘Where can I go next, that’s off the beaten path, but still in that ‘epic’ category,” she said.

READ MORE: “Florida is feeling the impact”: New Cirium data sheds light on the decline of Canada-U.S. flights

Meredith Burbidge from Direct echoed sentiments about 2025 starting well.

“We’re trending upwards for this year,” she said. “I think as everyone settles into that ‘new normal,’ they’ll continue booking, but make different choices.”

She said Europe and river cruising are performing particularly well.

Apologies from the U.S.

Marquardt-Wyers has a lot of U.S. clients. She said these days, most calls “start off with them apologizing” for the deteriorating relationship between the U.S. and Canada.

“It’s a role reversal for us, right?” she said.

To that end, she’s seeing more U.S customers contacting her to book trips to Canadian destinations, such as the Atlantic provinces, where the Virtuoso-approved Fogo Island Inn, off the coast of Newfoundland, is located. 

“Their dollar is so strong. It’s a bargain compared to what they’d get in their own country,” she said.

She added that some U.S clients, amid Trump’s global trade war, are worried they’ll be judged in other countries – but not in Canada, interestingly.

“I think we feel like brothers and sisters. I don’t think there’s a line that’s been drawn. Will that continue? I hope it does,” she said.

The good news is…

How are prices influencing travel decisions? Speaking for Trevello, Lawson said she hasn’t seen prices come down.

“But what we are seeing is that consumers want more value for their money and peace of mind,” she said.

Beyond consumer habits, Lawson added that despite political and economic headwinds, Trevello is still seeing a steady flow of new-to-industry advisors join its network.

“We are still growing,” she said. “People are still wanting to get into the industry – as recent as yesterday – which is good news.”

Trends that need to go away  

The panel also touched on travel trends they’d like to see go away.

“I don’t enjoy planning cookie-cutter trips,” Marquardt-Wyers shared. “I’d prefer to dive into [trips] that provide more unique experiences.”

She’s also mindful of combatting overtourism and how some destinations aren’t equipped to handle a mass volume of visitors.

“As much as White Lotus [the hit HBO TV series that, this season, is set in Thailand] is great for tourism, I always say to people to wait until [crowds] go down because you don’t want to be in that flux of people.”

She prefers to “start a trend” and create exceptional experiences in places that aren’t caught up in the hype of pop culture.

One trend Burbidge would like to see disappear is the notion that artificial intelligence (AI) can plan a vacation in the same way a travel advisor can.

“AI cannot,” she said. “Our advisors have relationships with hoteliers, tour operators…they can get clients into places that are not accessible. AI may tell you that something exists, but that’s about it. It’s not going to be able to open that door for clients.”

The rise of domestic travel

With Trump’s trade war in full swing, and amid calls to “buy Canadian,” advisors are also seeing a rise in demand for domestic travel.

Marquardt-Wyers shared one anecdote about a client who suggested putting the brakes on a trip to Japan, and move it to next year – depending on how the upcoming election turns out.

“She may switch her trip to a domestic experience and support our economy,” Marquardt-Wyers said. “I think this is really top of mind for people.”

Lawson said there are certainly luxury travellers that want to stay in Canada and visit places like Tofino, B.C.

Davis also pointed out that “this isn’t our first rodeo” when it comes to dealing with external challenges, referring to the pandemic.

“We’ll pivot, we can figure out how to travel locally…The key is to be flexible,” she said.

Virtuoso’s take

The insights come as Virtuoso Canada, which now has 27 agencies, representing 1,435 advisors, reports double-digit growth in outbound leisure spend for 2025.

Virtuoso is also seeing sales growth across its global network, with cruise, for one, showing one fascinating trend – yacht vacations in 2024 were up 76.2 per cent over 2023.

Last year’s global average booking window has also risen to 125 days out, compared to 118 days in 2023.

O’Leary pointed out that Canadian luxury travellers are invested in adventure, noting the rise in safari bookings.

In terms of destinations to watch, there’s a “huge return to Asia,” O’Leary said, with Tokyo, Kyoto, and Bhutan all showing sales increases of over 100 per cent.

And cool vacations, like to the ski slopes of Courchevel, St. Moritz, and Val-d’-Isere, continue to attract interest. 

There’s also a return to the countryside – to the United Kingdom, Algarve, and Athenian Riviera, O’Leary said.

Virtuoso has also identified specific trends for the Canadian market.

They include “Ice-olated Escapes” (like Scandinavia and Antarctica); “Sailing Solo,” (activities for solo cruisers); “Born to be Mild” (trips that may involve hiking in the morning, and pool time in the afternoon); “You Tell Me Travel” (customers asking travel advisors about new places they should go); and “Palate & Place” (trips that involve homecooked meals in destinations).

As for destinations on the rise, Portugal, Antarctica, Costa Rica, Iceland and Colombia all make Virtuoso’s hit list.

The consortium is also putting a spotlight on sustainable tourism, recently sharing survey results that show how world events are reshaping the way luxury travellers explore.

“Sustainability is really important. We talk to our advisors about making sure they understand how to help people make sustainable travel decisions,” O’Leary said. “People want to know where their money is going, and how it’s being spent.”

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