Specialist travel firms have 'opportunity to raise prices'

Specialist travel firms have an opportunity to put up their prices next year, according to Travel Trade Consultancy director Martin Alcock.

 

Speaking at this year’s Aito Overseas Conference, Alcock suggested there was scope for The Specialist Travel Association (Aito) firms to raise prices based on early feedback from the Aito Insights Survey.

 

The survey results showed 89% of Aito members’ customers viewed the last holiday they took with an Aito member as “good” or “excellent” value for money.

 

Alcock urged Aito members “not to be shy” about ensuring they covered their costs, adding that a recent survey by TTC of 100 tour operators showed evidence of companies successfully putting up prices in the current market for next year.

 

He said: “Most have managed to achieve price increases. Even with all the Budget increases, in salaries for example, and the general rate of inflation, even with all of this, there is probably scope for you to increase your costs enough to protect your margins.”

 

He cited the demographic of most customers of Aito companies as the rationale for price rises.

 

“My view is that because their customer base is wealthier and more insulated from many of the budget measures, there is probably now scope to increase prices further.

 

“Fear [of what was in the Budget] was stopping them from booking but now we have the budget and it’s not as bad.

 

“If customers are happy, don’t be shy about making sure you are covering your input costs.”

 

Roy Barker said the Aito Insight Survey results also suggested Aito customers were already spending more money with Aito members.

 

He said: “People are spending more money but seeing it as good value. What we are seeing from the operator and agent side is that passenger numbers are growing at a slower rate than average booking values.

 

“It is a slightly restricted market but they are spending more money. That’s not to say passenger numbers are not growing, they are just growing at a slower rate to booking values.”