NEWS


Agents say families are looking to budget by booking all-inclusive properties in shoulder seasons or as far ahead as 2024


Sales robust despite expected interest rate and tax increases


Juliet Dennis


Travel agents report bookings continue to defy the economic gloom despite a further interest rate hike likely this week and more tax rises predicted later this month. The Bank of England was


expected to raise interest rates by 0.75% to 3% at its rate-setting meeting on Thursday (November 3), the largest rise for more than 30 years and the highest rate since the financial crash of 2008, pushing up mortgage rates and the cost of loans. That increase will come ahead of


a government financial statement, now due on November 17, aimed at plugging a £50 billion hole in the country’s finances and expected to raise taxes as well as cut spending. An unnamed Treasury official


warned this week: “It’s going to be rough. Everybody will need to contribute more in tax. We won’t be


travelweekly.co.uk STORY TOP


able to fill the black hole through spending cuts alone.” Despite this, agents reported


another robust week, with notably strong long-haul, luxury and cruise sales, and families looking to budget by booking all-inclusives in shoulder seasons or as far ahead as 2024. Jet2 and Jet2holidays boosted the


buoyant picture by adding 45,000 seats for October 2023 half- term in response to “sustained demand” to destinations including the Canaries and Turkey to allow families to “get


the price locked in” now. Bailey’s Travel managing director


Chris Bailey was among those to report a “mega month of sales”. “It beggars belief,” he said,


but cautioned: “Cashflow is still problematic. Most of the profit is going to pay off [Covid] loans.” Sam Smith Travel sales and


commercial manager Suzanne Cumpston said the pandemic had made travel more precious,


particularly for mature clients. “One customer came into our


office and booked three holidays at once. The bubble has certainly not burst yet,” she said. Cumpston noted “definite


growth” in luxury and long-haul sales, adding: “More families are choosing all-inclusive or villas and we have noticed huge growth in cruise, as this is mostly seen as all-inclusive.” Polka Dot Travel director Mark


Johnson also reported “plenty of long-haul” bookings but added: “People are planning further ahead, taking advantage of the great deals, including travelling off season.” Barrhead Travel said budgeting


for 2023 was key for clients. President Jacqueline Dobson said: “Value, low deposits and the option to benefit from monthly payments are front of mind for holidaymakers.” World Travel Lounge managing


director David McDonald said summer 2024 was already selling well, with clients booking further


ahead to spread the cost, but stressed: “Our average booking value is still higher than pre-Covid.” Spires Travel owner Paul Knapper


cited “definitely more advance bookings [for] over a year ahead than in previous years”, helped by tour operators offering guaranteed prices and departures for 2024. Tivoli Travel director Jo


Richards said bookings were a mix of last-minute, 2023 and 2024. She said: “We’re busy. Most people are throwing caution to the wind.” Sales volumes for Advantage Travel


Partnership last week were similar to the previous week but 61% up on revenue for the same week in 2019. The consortium’s most popular


departure months for 2023 were March and May. “Shoulder months are performing well,” said chief commercial officer Kelly Cookes. The US, Hong Kong, Thailand,


Singapore and the Maldives were top sellers last week, although short-haul took the largest share (67%).


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PICTURE: Shutterstock/NadyaEugene


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