p4 news Jan29 27/1/10 20:55 Page 4
news
29.01.2010
The recession officially ended this week, but the industry saw a bed bank collapse and a household
name pull out of travel. Do the figures reflect the reality on the high street? By TTG reporters
RECOVERY.
0.1% is good for Strong consortia
public confidence
THE ECONOMIC growth reported at the end of
sales lead revival
last year may be only 0.1% but industry leaders
believe it could still boost consumer confidence. THE THREE main agents’ consortia “exceptional for the trade” with summer
However, they warned it would take time for have reported sales up 20% at
people to feel reassured about job security, and different times over last two
C
O
sales up 20%. Advantage’s overall
tax rises expected after the general election months, amid tentative signs of a STO
VER sales since Christmas were up 12%.
could potentially set back growth. recovery on the high street.
R
Y
Global Travel Group managing
director Dave Clayton said sales since
Ian Mounser, Superbreak sales director, said Advantage, Global and TTA World- Christmas were up 20% and last week
the government’s announcement would help make choice figures came as the government up 23% - taking them close to 2008 levels.
customers feel more confident about spending. announced that economic growth of 0.1% in the “Demand has certainly returned. From our per-
He predicted public sector job losses after the last three months of 2009 meant the recession spective and that of the agents I have spoken to
election, but thought they would not be severe was officially over. it’s a very positive time,” he said.
enough to derail a recovery. Retail chains also reported positive sales, with TTA Worldchoice managing director Simon
Advantage leisure director Julia Lo Bue-Said Hays Travel predicting January would be back to Hargreaves said trading was still tough but
added that it was too early to talk about the end the pre-recession levels of January 2008. The members’ sales were 20% up in December, which
of recession but the announcements could only Co-operative Travel claimed its busiest ever was “encouraging”.
add to confidence. trading day on Saturday, beating all records for However, Bath Travel joint managing director
“We are on a roll here and we are starting to passenger numbers and sales. Stephen Bath said package holidays were
see a bit of confidence back and consumers There were also signs that traditional agents “still suffering” although cruise sales were up
looking to book holidays.” had weathered the storm better than direct sales on last year.
However, Global managing director Dave channels. Advantage leisure director Julia Lo “It does not feel like we are out of recession.
Clayton said: “Although the recession is officially Bue-Said told a Cimtig seminar that overall direct I think that Britons probably feel poorer now
over I don’t think people really believe it and sales for the season to date had dropped 11%, than they did last January,” he said.
historically there is always a lag with things like but agents were down only 7%.
unemployment still rising for six months or so She told TTG that last week’s sales were ■ Cimtig seminar report, p9
after the recession end.”
Hays Travel chief executive John Hays said the
incoming government would have to raise taxes
TIME LAG.
of cut spending to reduce its deficit, which would
lose public sector jobs and slow down recovery.
Recession will linger for lates market
Stephen Bath, joint managing director of Bath
Travel, added that consumers needed to see the THE LATES market could be hit because poorer so the have nots might not grab the lates,” he said.
pound strengthen against the euro before a real customers will be the last to shake off the reces- Other online players said many companies
recovery would take root. sion so may not grab their usual last minute deals. would be relying on strong January and February
Steve Endacott, chief executive of On Holiday sales after spending the tail end of last year
Group, said wealthier customers with mortgages struggling to survive to reach the peak period.
The sales figures that signal recovery? suffered a “confidence crisis” in the summer but Getabed.co.uk managing director Matt Stuart
would now be prepared to commit to a holiday. predicted more failures but said his company
UP UP UP
But the lates market was dominated by people was trading 138% up year on year.
20% 23% 20%
who grabbed a holiday if they could afford it, and He also warned that exchange rate problems
last December last week last week they would be the last to emerge from recession. could worsen if the pound weakened because
at TTA Worldchoice at Global at Advantage “If we are just exiting a recession, there will be a Britain lost its AAA credit rating or there was a
lag with credit card restrictions and employment, hung parliament after the election.
04 29.01.2010
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