LETTER FROM THE EDITOR Dear Travel Advisor, Despite some predictions that COVID-19 would permanently change the industry, Europe is once again dominating vacation plans in North America. According to almost every consumer survey, travelers are once again flocking to Europe, taking full advantage of the post pandemic reopening that blossomed over the last two years. And, they’re using travel advisors to do so. Advisors speaking to TMR as part of the Outlook on European Travel Trends, said that even after 2022, when Europe accounted for all annual sales, they expect 2023 land sales to double, with clients heading to Italy, France, Greece, and more. TMR is excited to release this Outlook on European Travel Trends, sponsored by ALG Vacations, to get you the information you need in order to take advantage of this European travel renaissance. In the following pages you’ll find information on what kinds of travel clients are booking, and to where. There are insights on the top trending European destinations, how much clients are spending, which platforms clients want to be communicated on, and more. You’ll also find information on how successful advisors are finding clients for European travel, including a list of the top lead generation sources, and the biggest obstacles for advisors who want to sell more Europe, including just how impactful high air fares and vacation costs are to their clients. We want to thank ALG Vacations for sponsoring this research and the 900-plus travel advisors who helped us build this report by taking the time to answer questions and give us their own, personal insights. We are humbled to be the voice for travel advisors in North America and hope you find the research useful and employ it to continue to build your business in 2023 and beyond. Sincerely, Daniel McCarthy Editor-in-Chief, Vice President Travel Market Report

2023 Europe accounted for 40% of all annual sales in 2022 for the 909 US and Canadian advisors who participated in this survey. The outlook for 2023 European land trips is bullish across categories. Advisors expect the number of sales to double. Italy (85%), France (66%) and Greece (62) were the top destinations in 2022. Countries such as Czechia, Sweden, Belgium and Finland could emerge as new popular destinations. 65% of those booking European vacations were repeat travelers and 56% were booking trips with multiple countries. 60% of advisors said that their clients are most likely to book an altogether new set of European destinations. Urban city centers and the countryside were the most popular draws for US and Canadian travelers. Couples (74%), seniors (72%) and empty nesters (71%) continue to be the top client segments that advisors plan to sell to in 2023. Growth is likely in the luxury (70%), multi-generational (69%), and millennials (54%) segments. Advisors expect the highest growth in 2023 from the affinity groups client segment (43%). 57% of advisors said that the premium hotel segment was the most booked accommodation type. Budget is the least preferred category. Rail (77%) and private car rentals (61%) were the most booked means of ground transport in 2022. Nearly 9 out of 10 advisors said that clients booking European vacations were looking to experience a new culture and cuisine. Cultural and historical attractions were the biggest influencers when picking a European destination. Nearly 7 out of 10 advisors said that their recommendation of a destination was also a key influencing factor. A vast majority of the advisors (84%) said their clients were booking 8-14-day vacations in Europe. Word of mouth continued to be the top lead generation source (84%) for advisors, with social media consistently growing as a significance source of referrals (41%). Facebook (52%), WhatsApp (45%) and Zoom (44%) were the top messaging apps used by advisors. Only 5% said that they were not using any of the apps mentioned. High air fares (70%) and vacation costs (45%) were the top challenges in selling a European vacation, said advisors. Advisors said FAM trips (64%), improved booking tools (56%) and better call center operations (51%) would be helpful supplier support in selling more vacations. 68% of the respondents were independent contractors. More than one in two advisors had over 10 years of experience in the industry. 40% of advisors with 11-20 years of experience totalled over $1 million in annual gross sales in 2022. 9 out of 10 advisors expected to see a double-digit growth in sales from European vacations in 2023 compared to 2022. 73% of advisors said they wanted product or destination training. 78% of advisors said they would prefer FAM trips, while less than 4 out of 10 advisors said they would like offsite training. KEY FINDINGS