Luxury travel bolsters revenues

Agencies across the country have reported declining footfall but increased revenues as demand for luxury travel replaces traditional bucket and spade holidays.

Meeting for the final time last week before six of the 11 chairpeople step down in April, ABTA’s Council of Regions’ members said they were in agreement about the state of the market for first time in six years.

Christine Blocksidge, manager of Taylor Travel in Preston, said agents must get used to doing more business with less customers.

“Two weeks ago I had one customer all day on Saturday. I started to panic because I¹m not used to sitting idle in my agency,” she said.

“But that one person booked travel worth £6,000, which is more than double my daily target of £2,500. This is a glimpse of our future.” Doreen McKenzie, proprietor of Belfast-based Knock Travel, agreed.

“Sales numbers are down, particularly the three-star package market, but the value of average bookings is up,” she said.

“The long-haul market is now the largest part of our business.” Most council agents deracked Thomson and First Choice product after the operators cut commissions in 2005 and are now switch-selling, said Sandra Murray, proprietor of Normanton agency Sandy Travel.

“There are less people coming in the door but they are buying a better standard of hotel, four or five star rather than two or three,” Murray said.

Daniele Broccoli, partner at Peterborough-based Britaly Travel, estimated his agency’s average sale in 2006 is £1,300 per person, compared to £800 in 2005.

“Bucket and spade is dead in the water,” said Bristol-based Compass managing director John Stephens. “But luxury tailor-made holidays have pushed up revenue up by at least 25% year on year.”