NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK
push up prices. But demand overall should hold up as consumers prioritise spending on holidays.” Tanzer said: “The suggestion
that people are taking shorter holidays in two and three-star hotels is a sign of wealth being lower. It’s a sign of how much people have to spend on holidays in the long term. “There are segments
powering ahead where people have disposable income – you can see margins holding up there – and others where it’s going to be tough, where it’s going to be a volume game.” Miles Morgan, managing
director of agency chain Miles Morgan Travel, reported “a record year” in 2017 and said: “The report confirms that our market, ABC1s and 55-plus, is a winning sector to be in. “Cruise is particularly
buoyant at the moment.” But he said: “Some other
sectors, particularly the family market, will be squeezed. “The economy is slowing,
interest rates are going up, Brexit concerns will start to crystallise. It doesn’t take a rocket scientist to work out all-inclusive will become more popular because people need to budget.
“The battleground for
easyJet, Jet2 and Thomas Cook is going to become challenging. Margins will come under pressure if these guys keep increasing capacity.” Helen Caron, Tui UK and
Ireland distribution and cruise director, said: “We see strong demand for all-inclusive, for cruise [and] for differentiated hotels. We are looking forward to a strong January.” Sophie Dekkers, easyJet UK country director, added: “Forward bookings for us are up year on year, given that Ryanair and Monarch capacity has come out of the market.”
Travel Weekly Business Breakfast: Industry experts reveal sector’s
Abta chief Tanzer urges progress in Brexit talks
There is reason to be “more concerned” about Brexit than a year ago, Abta chief executive Mark Tanzer warned, saying: “We’re closer to people making business decisions and booking decisions.”
Tanzer told a Travel Weekly Business Breakfast: “The clock is ticking – we need to see some movement. If it were just a business decision, nothing would change, but there is a political dimension that runs alongside the business logic and I don’t think we’ve made any progress in moving the political debate. “The core message that we
want to keep aircraft flying and be able to move key staff is the one we’ve been carrying to [the UK] government and to European governments. “I do think there will be an
aviation agreement. Whether we’ll be able to fly to all the places we fly to at the moment is up for negotiation. The sooner we get clarity, the better for the industry and for travellers.”
Industry figures demand honesty over EU outcomes
The government “needs to start an honest discussion” about the consequences of Brexit, according to Abta chief Mark Tanzer, who insisted this has “not happened yet”. Tanzer said: “We need people
to be able to come to this country from the EU to support the tourist economy and businesses. “But it’s not just that. When you’re in Brussels, people say,
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travelweekly.co.uk 4 January 2018
TANZER: ‘The clock is ticking – we need to see some movement’
He added: “We’re trying to
ensure customers don’t lose confidence [and] feel they can book and be able to travel with all the freedoms they have [now].” Miles Morgan Travel managing
director Miles Morgan warned: “Uncertainty cripples any sector. A lack of clarity causes businesses to slow decision-making. People want to know what’s happening. “The quicker decisions can be made the better, but there seems no likelihood of that.” Freedom of movement of
‘You won’t have access to markets without regulatory convergence. Tell us what you want.’ The government is still saying, ‘We can have everything’. At a certain point they have to say, ‘OK, we can’t have it’. We’re in this Pollyanna world where ‘everything will be fine’.” Tui UK and Ireland distribution
and cruise director Helen Caron agreed: “Customers aren’t aware of some impacts that may come.” However, she warned: “Having that conversation might work against us in the short term. “We need to make sure we don’t create more uncertainty.”
labour remains a major concern, particularly for pan-European businesses. EasyJet UK country director Sophie Dekkers said: “We’re starting to see European crew wanting to be based in Europe and UK crew requesting to come back to the UK because they don’t know what will happen.” Tui UK and Ireland distribution and cruise director Helen Caron said: “Freedom of movement for our representatives and for our ships’ crews is important. We’re considering all scenarios.”
CARON: ‘We need to ensure we don’t create more uncertainty’
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