CONFERENCE
Hays IG urged to discount less and focus on service
H
ays Travel Independence Group (IG) members have been urged to make sure they are controlling
discounting and focusing on growing their margins. Hays Travel chief operating
officer Jonathon Woodall-Johnston encouraged business owners to recognise the added value that agents offer and cautioned against attempts to beat online rivals on price. “We don’t need to go in with the
best price,” said Woodall-Johnston, adding: “We’re very good at customer service and we’re investing in it, so why wouldn’t customers want to buy with somebody they can trust?” About 130 delegates heard
that IG members had grown their passenger numbers by 15.8% year on year, based on the period May 1, 2023 to February 29, 2024. Gross sales for the period rose
by 22.2% year on year, while profits increased by 21.7%. Woodall-Johnston encouraged
Dame Irene Hays
We’re very good at
customer service, so why wouldn’t customers want to buy with somebody they trust?
members to emphasise their expertise and the value they bring to customers, but added that it was also important to “get the product mix right”. He recommended products that
offer a higher profit per passenger, with cruise being among the sectors highlighted. IG members have grown their
proportion of cruise sales to nearly 17%, but that share lags behind the proportion seen across Hays’ retail division (25.3%). The company wants cruise sales to represent 33% of its overall business. Woodall-Johnston highlighted
the potential for Sunday bookings and recommended that agents sell
ancillaries and insurance at the point of booking. The conference focused on the
potential of the lates market, with Hays Travel regarding lates as a second peak-selling period. Company chair Dame Irene Hays
said the business would be spending “significantly more” on its lates campaign this year compared with previous years. “We know from our data that
many of our customers will travel in
2024 but they haven’t booked yet,” she said, pointing to “latent demand”. Agents heard that it was important
in the lates market to create a sense of urgency to encourage customers to book immediately. During a session on social media
tips, agents were told that artificial intelligence tools could be used to help create effective messages. Hays Travel social media manager Natalie Heatlie said ChatGPT was among the useful resources.
Lates market ‘could fund upcoming wage rises’
Dame Irene Hays suggested the lates market could help agency owners cover rising costs as wage hikes draw near. The chair of Hays Travel highlighted the
national living wage is set to rise by nearly 10% next month when it increases from £10.42 an hour to £11.44. Hays said wages for more senior staff could
also be expected to rise, leading to a “huge” overall impact, but added the lates market could play a role in funding the cost increases.
12 14 MARCH 2024 Hays also pointed out energy costs are
expected to fall by around 10% from April, depending on the contract, while rents look set to remain at the same level and borrowing costs are forecast to remain at between 3.75% and 4.5% at the end of the year. Hays said: “Hays Travel has never had
any debt in 43 years, so we’ve got a really good-looking balance sheet. “We’re more than happy to use the cash balances to support our members.”
travelweekly.co.uk
Jonathon Woodall- Johnston
Hays Travel IG 2024:Andrew McQuarrie reports from Leeds
Natalie Heatlie (left) with marketing manager Dionne Evans
PICTURES: Hays Travel
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