NEWS


The Advantage Travel Partnership noted a change in destination mix while others said confidence to book had been affected


War casts shadow over sector as trade reports mixed sales picture


Juliet Dennis and Ian Taylor


A mixed sales picture was emerging as the war in Ukraine approached the end of its third week but agents said holiday demand remains strong. Bookings have slowed for many


agents compared with the boom of the past two months, while others reported a switch in destinations or seasons being sold. Spear Travels chairman


Peter Cookson said bookings had dropped to 50% of pre- Covid levels as the Ukraine situation worsened. “Lots of people are still asking


but it was unclear why some clients were not committing. Inspired Travel managing director


Kate Harris agreed: “It’s taking people longer to decide but whether they are stalling for more certainty, I don’t know.” The Advantage Travel Partnership


STORY TOP


reported a change in destination mix amid an 8% rise in sales among members last week. Sales for the eastern Mediterranean slowed while bookings for the western Mediterranean increased. Leisure director Kelly


Cookes said: “Volumes aren’t


about holidays but confidence to book has diminished rapidly,” he said. Premier Travel’s sales last week


were down 8% on 2019, with shops quieter, the first time “in a while” it has not been in a positive sales position versus 2019. Director Paul Waters said the


“demand and want to travel is there” travelweekly.co.uk


slowing but destinations being booked are changing.” Other agents continued to


enjoy brisk trading and described consumer uncertainty as simply “taking the edge off” sales. Miles Morgan Travel chairman


Miles Morgan said: “Sales have dropped a little but you won’t catch me moaning. We’re still in a great


position compared to where we were [during the worst of the pandemic].” Idle Travel remained “crazy busy”


but with sales slower than in the past two months. “I’m at the point where I have to decide if I take on someone else,” said director Tony Mann, while admitting the situation in Ukraine remained a concern. Paul Hardwick, head of


commercial at Fred Olsen Travel, said big bookings were “keeping turnover and income fairly high” as overall sales slowed, but reported more rebookings than cancellations. Polka Dot Travel said there was


little doubt war was damaging late sales. “Rising energy costs and the increased cost of living, along with the uncertainty the war creates, will make life more difficult the longer it goes on,” said director Mark Johnson. Alan Bowen, legal advisor to the


Association of Atol Companies, also predicted an impact. “Ukraine is quite close to Bulgaria and Turkey and Jet2 cancelled


holidays to Bulgaria last week,” he said. Operators selling Europe saw


a “sudden change” last week, he reported. “Calls are coming through, but it’s increasingly difficult to sell. Ukraine is the only thing on the news.” Bowen said consumer confidence


could be further hit in the next month by the cost of petrol, gas and electricity bills, hikes in council tax and national insurance, and by airline surcharges. “We’re not seeing fuel surcharges yet, but airlines are talking about them,” he said. An airline source said: “It’s hard to


evaluate the impact [of the war]. The wider concern is over escalating costs and consumers’ disposable income. That has to have a bearing.” A second aviation source said:


“Flights to eastern Europe have cratered. It seems the recovery has stalled.” Loganair and river cruise line


CroisiEurope were among the first operators to confirm fuel surcharges on departures.


17 MARCH 2022 5


PICTURE: Shutterstock/Jiri Flogel


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