Dollar rate bites but sales still strong Juliet Dennis


The trade is starting to feel the effect of the weak pound-dollar exchange rate but sales remain resilient despite rising living costs. The value of the pound against


the dollar plunged to $1.21 in mid-May, although it rallied this week to about $1.25. The Advantage Travel Partnership


said the exchange rate was hitting new sales due to higher flight prices and resort costs. Leisure director Kelly Cookes


said: “People are looking at whether they can go to the Indian Ocean or Far East where it is cheaper.” She added: “Trading-wise, the US is dropping off versus 2019, and we’re


hearing that from suppliers too. But in volume terms it is still one of the top long-haul destinations.” Barrhead Travel president


Jacqueline Dobson said the US and Caribbean were still popular. “Demand for travel remains strong but flight prices are increasing,” she said. All-inclusive holidays, cruises and


multi-centres with added value were mitigating price increases, she added. Alistair Rowland, chief executive


of agency Blue Bay Travel, which also has a tour operation, described the strengthening dollar as “very damaging” but insisted it was “not putting people off travel”. Alan Bowen, legal advisor to


the Association of Atol Companies (AAC), agreed: “The strength of


Cruise leaders tip 2023 to be record year for the sector


Harry Kemble Clia Conference, Southampton


Cruise specialist agents are confident 2023 could be a record year for the sector after two industry leaders talked up a rapid rebound from the pandemic. Speaking at last weekend’s Clia


Conference, Royal Caribbean International EMEA vice-president Ben Bouldin and Norwegian Cruise Line Holdings chief executive Frank Del Rio said current trends suggested the sector could enjoy a record year. Chris Gardner, chief executive at Cruise.co.uk, agreed with the


4 26 MAY 2022


forecast, saying: “Looking at the UK and Germany, 2023 is going to be a banger because of pent-up demand.” He said the cost-of-living crisis


was the “only cloud on the horizon”. Cruise365 director Anthony


Blackmore said 2023 could be “a massive year” for new-to-cruise passengers and returning cruisers. “They’re coming back in numbers


and the process of getting on the ships is getting easier,” he added. “It (2023) should be an absolutely


amazing year.” Alison Earnshaw, managing


director of Cruise118 parent World Travel Holdings, said she could see


We’re all very surprised that inflation at 9% and the war in Ukraine don’t appear to be having an effect


the dollar is not great, but we’re not seeing an impact yet. Costs in resort will be a lot higher, but it has not affected bookings.” Overall the market was “strong”,


he said, admitting: “We’re all very surprised that inflation at 9% and the war in Ukraine don’t appear to be having an effect.” Rowland reported the first


signs of consumers downgrading


to lower-priced holidays, but most agents reported clients were paying full balances for this summer. Miles Morgan Travel owner Miles


Morgan said: “The impact is minimal this year because everyone wants a holiday. Our sales are substantially ahead of our expectations.” Pole Travel director Jill Waite


added: “Most people are paying balances. They just want to go away after two years.” Idle Travel has enjoyed its


best-ever January, February, March, April and May in 39 years’ trading. Director Tony Mann said: “We’re getting a lot of new customers and a broad spectrum of ages.” Dobson said pent-up demand had kept trading at or above 2019 levels.


Ben Bouldin (centre)


“no reason” why next year could not be the sector’s biggest-ever. “Sales are very strong for 2023 –


ahead of 2019 for a good number of cruise lines,” she added. Ottokar Rosenberger, chief


executive of Cruise1st parent Dreamlines, echoed the upbeat predictions, saying 2023 could be an “absolutely bumper” year for cruise. Simone Clark, Iglu’s senior


vice-president for global supply, said passengers would return as confidence grew with the removal of testing and other Covid measures. She said: “It will get easier to sell a cruise holiday.” Bouldin, who confirmed the line’s


upcoming new ship Icon of the Seas would debut from Southampton next year, told the Clia Conference: “Let’s be clear, from this point forward, we’re growing. Next year will be a bigger year for the industry than 2019.” In a pre-recorded interview, Del


Rio likened the pick-up in sales for each of NCLH’s brands – Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises – to a “hockey stick”, with a sharp upturn. He added: “If you look at our


forward bookings, 2023 could be the


best year in the industry’s history.” i Clia Conference, page 12 i Get Social, page 31


travelweekly.co.uk


PICTURE: Steve Dunlop


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