Key ministers for sector unveiled Ian Taylor
The government has confirmed the ministers responsible for most policy areas affecting travel after Rishi Sunak became prime minister on October 25, ending the uncertainty since the collapse of Boris Johnson’s government in July. However, it remains unclear who
will be responsible for consumer affairs at the Department for Business (BEIS) and oversee any review of the Package Travel Regulations. The consumer affairs minister will also be responsible for the Competition and Markets Authority, which will have new powers to rule on breaches of consumer law, such as on refunds to consumers, and to impose fines without first going to court. Grant Shapps, the former
transport secretary, heads the Department for Business, and Graham Stuart, minister for climate at BEIS, has responsibility for the government’s net-zero strategy. Baroness Vere has been
confirmed as minister for aviation and the maritime sector, including cruise, ending speculation that Huw Merriman – former chair of the Transport Select Committee of MPs – would be appointed aviation minister. Merriman is minister for rail, with Mark Harper – who led opposition to Covid restrictions as chair of the Covid-19 Recovery Committee of Conservative MPs – as transport secretary. Jesse Norman has been named minister for decarbonisation at the Department for Transport (DfT). An aviation source told
Hike in interest rates ‘yet to hit trade bookings’
Juliet Dennis
The biggest jump in interest rates in more than 30 years has failed to materially hit agents’ sales but some fear the impact of the crisis will not be felt until early next year. Travel firms are closely
monitoring sales as the financial crisis deepens, but admitted it was “difficult to predict” if and when bookings would be affected. The Bank of England raised
interest rates by 0.75 percentage points to 3% last week and predicted the UK would be in recession until 2024.
4 10 NOVEMBER 2022 Consortia acknowledged the
rise would impact consumer spend, but The Travel Network Group chief executive Gary Lewis said: “What should reassure those in our outbound sector is data showing households’ willingness to travel, prioritising travel over material goods. We also know customers will make choices that fit their budgets.” Advantage Travel Partnership
chief commercial officer Kelly Cookes said: “Any increase in interest rates means a decrease in discretionary spend which could impact sales. That said, we’re yet to see any impact.”
The consortium reported a
“slight” bookings dip week on week but sales remained 2% up on 2019. Hays Travel North West also
traded down last week. Managing director Don Bircham said: “It’s so difficult to predict. We have rising interest rates, inflation and a recession, and yet we have full employment, pent-up demand for travel and folks with money under their bed. I’m not sure the trade has ever faced that mix.” The Holiday Village managing
director Paula Nuttall said constantly changing headlines could “play into the hands of agents”.
The appointments
are broadly positive, with plenty of previous travel sector knowledge
Travel Weekly: “It’s the best line-up at the DfT for a long time.” New tourism minister Stuart
Andrew has the usual list of responsibilities, including equalities, sport, youth, arts and heritage, after replacing Lord Kamal. Previous tourism minister Nigel Huddleston has moved to the Department for International Trade. Culture secretary Michelle Donelan, appointed in September, remains in post. The industry must also engage
with the Foreign Office, the Home Office and the Treasury – where John Glen, tourism minister for six months in 2017, is chief secretary. Abta director of public affairs
Luke Petherbridge said: “The new appointments are broadly positive, with plenty of previous knowledge of the sector across key departments. “We’re working to demonstrate
to the new ministers how vital the travel industry is for the economic recovery of the UK.” He added: “We’re really pleased
the aviation minister, Baroness Vere, will be speaking at Abta’s Travel Matters conference next month.” Merriman’s successor as chair of
the Transport Select Committee has yet to be elected, but Petherbridge said: “We will be engaging with the new chair.”
Trade leaders fear impact of a drop in consumer spending
“People don’t know what to
believe any more,” she said, adding the diversity of the group’s businesses had “never been more important”. Deben Travel owner Lee Hunt
agreed agents could benefit as clients turned to professionals for advice. He predicted the “telling time”
would be January, saying: “That’s when we take a lot of family bookings.” C The World director Carolyn
Park noted: “Some people are smiling because they are finally getting interest on savings while others are tearing their hair out because mortgages are going up.”
travelweekly.co.uk
PICTURE: Shutterstock/TippaPatt
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