Ian Taylor


Cost of living could lift package sales 76%


proceed compared with 58% in May. However, consumers’ intention


Consumers view the rising cost of living and flight cancellations as major impediments to travel despite demand returning to pre-pandemic levels, according to the latest research. A survey in mid-June of 1,000


UK adults by market research firm BVA BDRC found three out of five regard the cost of living as a barrier to overseas holidays and half (49%) view cancellations and delays as a barrier, well ahead of concerns about Covid (23%). But these concerns could be boosting package sales, say researchers. Confidence that holidays would


go ahead fell month on month, with just 51% confident June trips would


to travel returned to 2019 levels with three out of four (76%) intending to take an overseas holiday in the next 12 months. Flexible cancellation policies


remained the number-one incentive to booking a trip, highlighted by 41% of respondents, ahead of special offers (36%). Just under a third of respondents remained concerned about Covid requirements. The research found a decline in


the proportion intending to book long-haul, especially to the US and Canada. The 12% expressing an intention to have a North American holiday was seven percentage points down on 2019. The research also found a decline


Agents report dip in demand but say business still brisk


Juliet Dennis


Travel agents have reported a slight decline in overall sales but said business remained brisk. Last-minute, short-haul bookings


have continued to dominate sales but agents also cited rising demand for long-haul holidays for future seasons, particularly 2023. High prices and a fear of summer


airport disruption were blamed for the slowdown. Love To Travel director Joanne


Dooey said: “It’s quietened down in the past 10 days or so. It’s a


4 30 JUNE 2022


combination of high prices and adverse reports of cancellations.” Polka Dot Travel director Mark


Johnson agreed: “Sales are slightly down from previous weeks but we’re selling more long-haul.” Flight cancellations had made


clients “really wary”, said Spear Travels chairman Peter Cookson, who added summer 2023 sales were “busier than normal” because holidaymakers had left it too late this year and didn’t want to miss out next year. The Advantage Travel Partnership


said members’ sales were down 2% last week on the week before


Proportion of people who intend to take an overseas holiday in the next 12 months


in the length of intended trips from an average 9.9 days in 2019 to 8.7 in the next 12 months – contradicting industry reports that customers are spending more on longer durations. BVA BDRC research director Jon


Young said: “The cost-of-living crisis is having a significant impact.” But one of the consequences


appears to be increased interest in package holidays. Young noted a relative decline in intention to take holidays in France and Italy and said:


Turkey index significantly higher on all-inclusive packages with their higher levels of reassurance.” The survey found respondents’


‘comfort’ with overseas travel had returned to within eight percentage points of the pre-pandemic level – an eight-point improvement on April, 16 points better than February and 25 points up on January. BVA BDRC surveyed 1,000 UK


adults between June 10-17 for its ClearSight UK International Holiday Tracker.


“France and Italy attract relatively high proportions of independent bookers. It’s possible this is less appealing than package trips in a time of financial uncertainty, lingering Covid uncertainty and cancellations. “Greece, the Canaries and


Jet2’s free child places have ‘given the family market a boost’


but revenues were up 19%, with 45%-50% of bookings still for departures within 12 weeks. Barrhead Travel reported a “rush


in last-minute breaks” at the start of the Scottish school holidays, while The Travel Network Group said sales for seasons beyond this summer now formed most of members’ bookings. Chief commercial officer Vim


Vithaldas said: “We’re beginning to see a shift from lates to winter 2022-23 and summer 2023.” Deben Travel also noted an uplift


in 2023 sales and cited price as the critical problem this summer. Owner


Lee Hunt said: “There doesn’t seem to be enough availability and what there is, is overly expensive.” However, some agencies said they


had not seen any slowdown. “We’re absolutely flying,” said Miles Morgan Travel owner Miles Morgan, who reported a rise in long-haul sales. Idle Travel similarly reported


its “best-ever June”. Director Tony Mann said Jet2holidays’ decision to add “tens of thousands” of extra child places from 10 airports was driving sales at just the right time. “The family market needed a bit of a boost because of the prices,” he added.


travelweekly.co.uk


PICTURE: Shutterstock/TravnikovStudio


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