Strong demand for travel professionals and low shop rents are encouraging growing numbers of independent agents to open shops on the high street.
As demand for holidays remains high, agents say the sector continues to defy the cost-of-living crisis affecting spend in other sectors.
In recent weeks, Now Lets Travel, Seaside Travel, Love To Travel, Baldwins Travel, Sunlounger Travel and Kuoni have announced new branches, while Premier Travel, Travel House and Fred Olsen Travel have been among those to open stores this summer.
Newcomers include student brand Kilroy and homeworker Tim Potter, with both opening shops in Bristol over the past week.
Footfall returning
The expansion comes as the British Retail Consortium reports continued recovery on the high street, with footfall “slowly returning towards its pre-pandemic levels”.
But the BRC also warned the cost of living crisis has “put a squeeze on discretionary spending, pushing many consumers towards value brands” while KPMG head of retail Paul Martin stressed the resilience of retail in general is beginning to fade, with high street casualties “starting to emerge”.
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“With shoppers becoming more calculated and aware of what they are getting for their money than we have seen for a long time, retailers will have to fight harder for every sale,” he said.
Abta said agents’ popularity had been boosted by more-thorough planning by clients.
A spokesman added: “For many this will have led them back to the reassurance and expertise of the high street agent.”
Abta reported members enjoying business from customer who have never used a high street agency before but wanted the “extra protection of knowing they could turn to them for help if a problem occurred with their holiday or travel arrangements.”
Strong conditions for growth
Miles Morgan Travel owner Miles Morgan said high demand for travel and agents’ services had combined with a drop in high street rents to provide strong conditions for growth.
“Small wonder when you add all these things together that the high street is doing well,” he said, adding: “All the macro conditions are in our favour, but the winners will be those who manage micro things best: amazing staff who enjoy what they do and are knowledgeable.”
He stressed the need for reduced business rates in the longer term for continued expansion. Retail, hospitality and leisure businesses are entitled to 75% off rates up to £110,000 until March 31, 2024.
Premier Travel managing director Paul Waters agreed rate relief had removed “significant cost” and helped retailers to expand. The miniple opened its 26th shop this summer and plans more in the next 12 months. He said: “Travel is currently bucking the trend and people will forgo other things because they feel they deserve a holiday.”
Reassurance and service
Now Lets Travel owner Paul Johnstone also cited strong sales and demand for “hand-holding” for boosting expansion.
“There are not many parts of the retail sector that are seeing the growth we are as an industry. It comes down to the customer wanting that reassurance and service,” he said, adding: “Even though there is a cost of living crisis we are still attracting sales well above last year and that’s given us momentum.”
The agency had just one shop pre-Covid but now plans to open a sixth, in Stockton-on-Tees, with a possible seventh on the horizon.
Kelly Cookes, chief commercial officer at The Advantage Travel Partnership, said agents recognised it was “a good time to make the move to the high street” with landlords offering attractive rents.
She added. “We get asked a lot by our members if we know of any travel businesses across the country that are considering winding down their branches so they can open in their place.”
Advantage member Sunlounger Travel admitted the chance to open a third store in October in a premium shopping centre in Milton Keynes – and up to 25 stores within five years – had come earlier than expected.
“We didn’t think we’d be able to do that until many, many stores down the line,” said director Iain Kirkbright.
The Travel Network Group put members’ expansion down to consumers returning to book with agents based on their enhanced service levels and for peace of mind – and said all sorts of agents were benefitting from the trend.
Stephanie Slark, director of membership services, said: “It’s not necessarily the high street, as we are seeing pop ups and out of town locations, such as garden centres. Also, homeworking is seeing a lot of growth and success.”
Independent Travel Experts managing director Gary Gillespie also cited homeworkers switching to open on the high street. Pebble Shore Travel and Craig Goodridge Travel have both opened in markets, in Scarborough and Sheffield respectively, this year.
“They’ve both seen an increase in business and also tapped into new niches as a result, Craig is a cruise specialist but is now booking coach tours for older clientele too. Rachel has discovered a loyal market for ocean cruises and delivering strong sales as a result,” he said.