Travel Market Insights
Teodor Mihail on Evolving Expectations
Teodor Mihail has been a travel advisor for almost twelve years. An independent advisor with Centre Holidays, Mihail started Unravel World Travel after working for many years at a brick and mortar agency. He’s visited 45 countries and says he’s seeing travellers’ expectations evolving; more than ever, travel is being thought of as a necessity.
“I see it as a necessity too and many people are seeing it from that perspective now; the pandemic made people realize they took travel for granted,” Mihail told Travel Market Report Canada in an interview earlier this month. “In the end it’s the memories you’re going to remember, and more people just want to create memories and enjoy and then look after their finances later.”
Mihail says he of course still has clients looking to travel on a budget, but more and more are looking for higher-end properties and destinations.
“I’ve had clients who come to me with higher budgets and say, for example, they want to visit Jamaica instead of Cuba. They also want to upgrade to Preferred Club rather than a Standard Room. They want something higher end and they will pay for that. And about 40% of the time I have those requests, they want to add more inclusions. They want lounges, in Jamaica they want Club MoBay. They want to prepay for their seats, they want everything to be done so it’s all there waiting for them. And they prefer to make their life easier by having the travel agent take care of all that for them”.
But what about those clients who have a lower budget to start with? With travel in general being more costly in the past couple of years, we wondered if Mihail had any tips on setting those expectations and potentially growing the sale.
“I always begin with their budget and if it’s an unrealistic one, then I simply tell them it’s just not doable. But then I ask, would you be open to other dates, or maybe an all inclusive if they were looking at a Caribbean cruise for example. I have to find out their needs so I can best find something that fits what they’re looking for. I also always offer the suggestion that if you pay a bit more you will get what you really want. It’s important to set that expectation – if they come in wanting Cuba because it’s cheap, I can tell them that for a couple hundred more they can get a budget resort in the Dominican. That’s exactly my approach; if you can budget a bit more, you can get that right.”
Mihail says a big consideration in getting those higher-budget clients is how advisors market themselves.
“I used to advertise flight deals on my social media and very good last minute deals, and my advice is that’s not the way to go,” he says.
“You want to advertise the new Norwegian ships or guided tours like Globus. That’s not to say those clients will come right away, but if you keep yourself out there, and people can see you offer higher-end product, you will naturally attract clients with a higher spend.”
“I also recommend advisors advertise themselves based on their experience. How many countries have you been to? Show when you’ve attended a FAM to a higher end destination and get your image out there in order to avoid getting those last minute deal clients.”
“Travellers are savvy and are paying more for their experiences. This is how their mindset is now. They want an elevated experience and to really escape the stress of work. Lounges everywhere are getting busier because people are learning about them. Higher end hotel room categories are selling fast. Tours and cruises have limited last-minute availability.
This goes to show how travellers are looking for an elevated experience”.
Travel Market Insights
Luxury, Credit Cards, Deals: Hotel Earnings Preview
Many analysts believe the major hotel groups are positioned to report steady, if unspectacular, growth in the second quarter, thanks to enjoying more tailwinds than headwinds.
In April, Hilton CEO Chris Nassetta predicted that travel demand would stabilize after the passage of President Trump’s tax and budget bill and summer negotiations over tariffs. In May, Marriott issued upbeat guidance for the year and assumed no U.S. recession would emerge.
Second-quarter results will show whether that optimism reflected confidence or wishful thinking. Earlier this year, revenue per available room (RevPAR) had been recovering but remained below 2019 peaks in several key markets and segments.
Reports we’ll be tracking this week: Hilton (Wednesday) and Wyndham (Thursday). Marriott, Hyatt, IHG, Choice, Accor, and others will roll out in the coming weeks.
Sources of Streng
Travel Market Insights
U.S. Visa Sticker Shock: New $250 ‘Integrity Fee’
Many travelers applying for U.S. tourist visas should be prepared to pay at least an additional $250 for a new “Integrity Fee.”
It’s part of the recent budget law and hasn’t been implemented yet, but the Department of Homeland Security is authorized to start charging this fiscal year. Starting in Fiscal Year 2026, which starts October 1, the Visa Integrity Fee will be adjusted annually for inflation.
It applies to travelers applying for non-immigrant visas, but people from the more than 40 Visa Waiver Program countries are not subject to the Visa Integrity Fee.
Travelers are eligible for reimbursement sometime after the visa expires as long as they don’t overstay the visa expiration date by more than five days or engage in unauthorized work.
“There is no timeline for implementation of the fee or direction as to how the fee will be collected and refunded,” according to the U.S. Travel Association.
One issue: It may discourage travelers from visiting the U.S. because they would have to shell out $250 and wonder if they would ever get the reimbursement.
“This fee, which will be at least $250 and comes on top of existing visa fees, adds an unnecessary financial barrier for international visitors,” said Erik Hansen, US Travel’s senior vice president, government relation affairs. “Among the top deterrents to visiting the U.S. are cost and visa wait times. And the new visa integrity fee increases the upfront costs of visiting the U.S. 144%, while doing nothing to lower interview wait times. Even if it is technically reimbursable, the added complexity and cost will discourage visitors.”
$24 I-94 Fee
That’s not all of the costly news for some international arrivals in the new law: The application fee for the I-94 arrival and departure record will rise to $24 from $6.
This fee will likely apply to travelers entering the U.S. by land, and to travelers from Visa Waiver Program countries.
This fee will also increase each year with inflation. Those exempt from filling out the form include American citizens, resident aliens, most Canadians, and aliens with immigration visas.
$40 ESTA Fee
The Electronic System for Travel Authorization (ESTA) fee is rising to $40 from the current $21. This will be paid by travelers who enter the U.S. from Visa Waiver Program countries at least through 2034.
These are the Visa Waiver Program countries, according to the U.S. Department of State:
Visa Wait Times and Cost
A family of four from Brazil, which is not a visa waiver program country, would pay $1,876 in visa fees under the new pay structure to travel to the U.S., an increase of more than $1,100, according to the trade association.
“At a time when the U.S. should be focused on attracting more international visitors, especially ahead of global events like the World Cup and Summer Olympics, burdening them with higher fees and reducing funding for Brand USA is counterproductive,” Hansen said. “We need smarter policies that enhance our global competitiveness, not ones that make the U.S. a less welcoming destination.”
Revenue Generators
Backers of the fees, however, see them as revenue generators.
For example, 20% of the I-94 fees are earmarked for the Land Border Inspection Fee account, 20% go to Customs & Border Protection, and 60% ends up in the Treasury Department general fund.
Regarding the ESTA fee, $10 goes to the Department of Homeland Security for cost recovery, $13 is funneled to the Treasury Department for Deficit Reduction, and $17 of the fee goes to the Travel Promotion Fund, which funds Brand USA.
The travel industry’s top event returns this fall.
September 16-18, 2025 – NEW YORK CITY
Travel Market Insights
Grand Canyon Fire Destroys Historic Lodge
Parts of the Grand Canyon National Park have been closed for the rest of the 2025 season as wildfires burn across the region, covering parts of one of the U.S.’s most visited natural landmarks in smoke.
The North Rim’s Dragon Bravo Fire exploded in size by 500 acres on the evening of July 12 as gusty winds, dry air and above-normal heat hit the area.
The fires destroyed the historic Grand Canyon Lodge and numerous surrounding cabins, according to the National Park Service.
Firefighters say there is currently zero containment.
“We are devastated by the loss of the Grand Canyon Lodge and historic buildings on the North Rim. All guests and staff are safe,” the lodge said in a statement, adding that it will be in touch with visitors who have future bookings.
Aerial footage released by the National Parks Service on Friday showed the remains of the famous lodge.
Grand Canyon Closures for the Rest of the Season
The cause of the fire was linked to lightning strikes, according to local reports.
Early damage assessments suggest that between 50 to 80 structures have been lost, including park administrative buildings and visitor facilities. No injuries or fatalities have been reported.
Fire fighting efforts continue around the threatened area.
But with fire activity still high and infrastructure at risk, officials say the North Rim will remain closed to all visitors for the rest of the year.
The South Rim, which receives the majority of visitor traffic, remains open.
Skift’s in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift’s editorial team.
The travel industry’s top event returns this fall.
September 16-18, 2025 – NEW YORK CITY
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