NEWS cost-of-living crisis in the UK dominated discussion at Abta’s forum in Marrakech


Singer reports rise in use of search filters in value hunt


M


ore consumers are looking to May for cheaper holiday prices


as one strategy to tackle the rising cost-of-living problems, conference delegates heard. Richard Singer, chief executive


of Ice Travel Group, which owns icelolly.com and TravelSupermarket, said more people were searching for earlier summer breaks as booking values were lower. He said consumers with money


would still spend it on holidays, despite the squeeze on many household budgets. More customers were checking


a wider range of search filters and different durations and destinations, he said, adding that Turkey was the fastest-growing option. Singer was speaking on a panel


alongside Dame Irene Hays, owner and chair of Hays Travel, and Garry Wilson, chief executive of easyJet holidays. Wilson said prices would


gage bills is big worry


decent family vacation over a year,” he said. “We have heating, energy and fuel bills


and then the mortgages – it really worries me, it’s coming down the hill.” Giles Hawke, Cosmos Tours chief


executive, said he feared the political “turbulence” would continue, adding: “Consumers don’t like uncertainty; we’re living in an uncertain world.” But he said it might mean there would


be fewer holidays costing just £200 or £300 – levels that make it very hard for operators to make a profit. “It will be a good thing if we recalibrate the industry,” he added.


“inevitably” rise and pointed out that Turkey accommodation costs were in sterling.


From left: Richard Singer, Dame Irene Hays, Garry Wilson and moderator Chris Ship


However, he added: “There will


be places that offer good value and customers will seek those out.” Wilson said Covid “reminded


people what it is like when you don’t travel”, adding: “It has made people more focused; they will give up spending on other things.” He said the operator was already


65% sold for this winter season and there was “huge demand” for city breaks – despite some research suggesting such trips would be what people would give up. And he reported that customers


were still booking four and five-star hotels for summer 2023, rather than trading down.


Hays agreed that consumers are


likely to sacrifice other purchases such as furniture and kitchens before they give up their holiday. Commenting on the cost-of-living


impact, she said: “There is definitely a concern that there is a lag in the trends; we have to watch it very carefully. There will be a lag, but even mid to long-term, travel will not be affected.” She said consumers were


returning to high street agents in their “droves” and Hays Travel was seeing more new customers than ever. “Covid has taught people to


book with a travel agent for trust and security, for value for money and for expertise,” she told delegates.


‘Don’t expect return to economic normality soon’


The travel industry will see no return to political or economic ‘normality’ and must prepare for a hit to customer demand from the sinking pound and rising mortgage rates. That is the view of political broadcaster and


journalist Lewis Goodall, who said: “You will have been hoping 2022 and 2023 would be years of normality, but normality is highly unlikely.” He noted “we’ve become accustomed to the era of


cheap money” and warned: “That era has come to an end, and that will affect travel.”


travelweekly.co.uk However, he added: “Cheap money did not lead to a


consumer boom. Real incomes are worth no more than they were in 2003.” Goodall highlighted the current political, economic


and international instability, noting: “The new government is only a month old and we’ve seen the rewriting of UK economic policy and a sterling crash lead to a Labour lead of 20-30 points. “Liz Truss is looking for growth. On the face of


it, that should be good for the travel industry. [But] government policy has had a chilling effect.”


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