CONFERENCE The Co-operative Travel Consortium Conference 2022: Midcounties agency


Post-pandemic price boom slows due to cost of living


T


he gap in average selling prices of holidays sold by The Co-operative Travel Consortium’s


agents between now and in 2019 is starting to close as consumers become more budget-conscious. Speaking at last week’s The


Co-operative Travel Consortium Conference, head of retailing Alison Holmes said average prices were higher at the start of this year when customers booked holidays for the first time since Covid. The drop in average sales prices


compared with the start of the year was evidence of consumers becoming more budget-conscious due to the cost-of-living crisis, she said. She revealed there was now only a


£19 difference in the average sale price per passenger for holidays booked through the consortium’s 130 agents


We are seeing a


shift with people now being more budget-conscious when booking their holidays


compared with 2019. Average sale prices were now £1,155 per person compared with £1,136 in 2019. “At the start of the year, customers


were spending more money because they had savings from Covid,” she said. “People were going farther afield and spending more, but as we have gone through the year the gap has closed.” Holmes attributed this to rising


household costs and interest rates as well as market uncertainty. She added: “We are seeing a


shift with people now being more


budget-conscious when they are booking their holidays.” The consortium’s margins remain


higher than in 2019, at 10.3% now versus 9.3% three years ago. The average discount being


offered by consortium agents has dropped from 2.6% in 2019 to 2.4% now, but Holmes urged members to bring this down further. “It would be good to get below


2%,” she told members, adding: “The average discount in our retail shops [Your Co-op Travel] is 1.5%. It would be good to get to that level.” Consumers were also continuing


to wait until closer to departure than pre-Covid to book, said Holmes, who anticipated a continuation of the later-booking trend. “I think this will happen into


2023. People are waiting to see if they can afford their holiday,” she added.


Nuttall calls for ‘day’s grace’ for balance payments


Travel Village Group boss Phil Nuttall has called for consortia to agree with suppliers to give “a day’s grace” on deadlines for final balance payments from clients. Nuttall said clarity was needed


on what to do if an agent could not get hold of a client on the final day a holiday balance was due to be paid to an operator. As a rule, agents collect


balances well in advance of the final due date set by the operator, but Nuttall pointed out agents sometimes had to chase until the end of the day payment was owed. Nuttall urged consortia


bosses to agree with suppliers to allow “a day’s grace” so agents could wait until the following day to see if the client had paid


8 13 OCTOBER 2022 Phil Nuttall


before cancelling the holiday if necessary, rather than cancelling at the close of the working day on the final payment date. “It happens to us about once a month when we cannot get hold of customers,” he said. “We want something in the agency agreement to give us a buffer.” Agents incur cancellation


fees from midnight on the final payment date, but Nuttall said clients could decide to pay just before midnight – after the agent has cancelled the booking at the end of the working day. This can cause an additional


headache for agents the following day, added Nuttall, particularly if the client wants to rebook and prices have risen.


‘Value messages will be


Key messages for next year’s peak sales period will include price guarantees, added-value holidays and ‘book early’ deals, according to The Midcounties Co-operative’s travel bosses. Head of retailing Alison Holmes


outlined results of recent Mintel research, which predicted pressure on household finances will continue into 2023, with consumers likely to look at ways to mitigate the impact of rising prices and budget, potentially sacrificing shorter second holidays. She anticipated more operators


looking to offer attractive price messages to encourage bookings during the cost-of-living crisis. “I think January will be really


Delegates soak up the sun in Sicily between conference sessions


Sara Dunham


travelweekly.co.uk


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