Peak-season bookings may not pick up until well into the new year with the credit crunch leading to a focus on short-haul sales, according to the trade.
Agents predict sluggish sales between Boxing Day and New Year’s Day, with an initial bookings surge from January 2 when consumers return to work.
But sales may not realistically pick up until the second or third week of January after the first pay packets and credit card bills of the year.
The Co-operative Travel head of retail Trevor Davis said sales could be slower to take off because consumers are being bombarded by so many retail campaigns. “Sales fever will take hold and people will be spoilt for choice. We are already seeing major stores slashing prices before Christmas.
“We will be ready but in my view we might not see any real activity until after January 2.”
Newcastle upon Tyne-based Holiday Discount Centre managing director Steve Campion agreed: “Six years ago sales would pick up on Boxing Day but now it tends to be January 2 or 3. People going back to work will drive the bookings surge rather than the advertising campaigns.”
Elite Travel Group general manager Nigel Ham believes a mid-month upturn is more realistic. “The 15th of the month is the first pay packet so the second half of January and start of February are likely to be good,” he said.
But Campion admitted consumer money worries could hit sales generally. “There is a significant risk of a shortage of cash from the customer’s point of view. The credit crunch will have some impact – the question is how much.”
Cosmos Holidays sales director Andy Washington said the gloomy economic forecast could lead to more short-haul bookings. “These factors will lead to short haul selling well throughout January due to the better prices while high-value niche product holidays will sell slowly.”