Destinations

Analysis: Travel agents and the UK holiday market

In the run-up to British Tourism Week, Edward Robertson looks at how agents are developing a lucrative trade in the domestic market and what others can do to kick-start their UK sales

Travel agents who are embracing domestic tourism as part of their business models are finding its a welcome boost for business.

A combination of regular business, often in low season periods, good commissions, early-paying customers and the ease by which a deal can be closed all mean they are not only looking at easy sales but profitable ones too.

DJ Travel owner Susan Ockley said she has always depended on strong UK sales from when she first took over the agency in Sunderland nine years ago and while families may now book the same trips online, she has retained the elderly market which has led to domestic breaks accounting for 80% of all her sales.

She said: “I decided to deal with the older market and in the last eight years it’s been very successful and it’s getting better all the time. I still get the families for the likes of Haven or Butlins but not like I used to.”

Ockley added the elderly market is a good one to target as many of them find it hard to secure insurance for overseas travel at a reasonable price while others dislike the problems inherent in overseas travel.

She now organises coach packages for her target market to hotels across the UK, particularly during the week in the low season when prices are cheaper. The last trip she organised in January to Nidd Hall in Harrogate took 98 customers.

Hyde Barker Travel sales and marketing director Robert Turner agrees that domestic sales is an untapped market for many agents. Domestic sales account for nearly a third of all sales at the agency which has four shops in Nottinghamshire and the figure is still growing.

He said London, York and Edinburgh are the most popular cities for short breaks thanks to the convenience of the high speed east coast train line and he has capitalised on this by sending two members of staff to the capital on a mini-fam trip where hoteliers were keen to meet them.

Turner said: “We know the West End so well that we’re very good at putting people in the nearest hotel to the show they’re visiting. We know our musicals from our drama and can switch sell if needs be.”

He agrees the financial rewards are good too, adding: “The other good thing from a cost point of view is you can not only compete with the internet but the deals are so good you can also return a good commission. Unlike doing a cruise booking you don’t have to discount.”

“From a cost point of view is you can not only compete with the internet but the deals are so good you can also return a good commission.”

Sunderland’s Tates Travel manager Joanne Hagley said after 30 years in the business, the agency now has a strong reputation for domestic travel and it accounts for between 90% and 95% of all its sales.

She added: “We’re probably the biggest agent for holidays in the UK in Sunderland and that’s because we actively promote them. I think you’ve totally got to promote them in the first place for customer to book them.”

She recommends advertising in local newspapers and admits word of mouth has also proved a positive, adding: “We’ve been going  for so long we’ve got the reputation with the British market.”

While Hagley said the agency sells all types of domestic breaks to all age groups, she said it is the pricing which helps close the sale. She added: “The majority of the time it is with no discount as people are happy to pay the price so you’re not losing any of your commission to make the sale.”

Superbreak sales director Ian Mounser agreed customers are unlikely to demand discounts on domestic holidays and particularly city breaks.

He said; “With city breaks customers tend to book fairly late, therefore if you find somewhere that fits the bill and it is a price you’re happy you aren’t going to shop around for another couple of days for a better price.”

He added the as the operator depends on agents for around 55% of all its sales, it doesn’t offer cheaper prices direct while it also tries to match hoteliers’ direct prices.

Mounser added Superbreaks also works hard to build a relationship with agents in order to get the best out of them, adding: “If you’re in their faces and visiting them regionally you can start to build up a relationship with that, you can advise them of the best times to start selling, who the customers are to sell to as well as what we’ve got that’s new coming through and you can help them get the best out of the web site.”


UK holiday sales tips

Know the destination

It may sound obvious but organising a mini fam trip to big-selling UK destinations not only allows you to improve your knowledge but also builds relationships with the relevant suppliers.

Consider your market

Older travellers are some of the biggest fans of domestic breaks and are among the most reliable customers. Group travel is strong in the domestic market and agents must work out the best way of accessing both markets.

Be aware of local transport routes

If your nearest train station offers a direct line to some of the UK’s best city break destinations then start targeting that market too. Train companies can offer special fares through the trade but it is up to agents to find out about these.

Keep watching your TV

Saturday night TV shows such as How Do You Solve a Problem Like Maria? and Any Dream Will Do have been credited with fuelling a renaissance in London’s West End. Keeping an eye on what’s popular with the public should give you ideas of what will sell well.

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.