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Salary Forecast 2008: travel retail and business travel sectors

Welcome to part one of AA Appointments’ Salary Forecast 2008 – your chance to compare your rate of pay with that of the rest of the industry



AA Appointments’ last travel industry salary forecast predicted that a retail agent with computer skills was set to enjoy an increase of up to 13.6%.


In fact, the maximum increase the job attracted in 2007-2008 was 8.3% in Scotland.


Many of the heftier increases in salaries over the last few years have been market adjustments, following the lean years in the aftermath of the 2001 terrorist attacks.


Now there’s a return to stability and, with the market realigned, AA Appointments now predicts a quieter outlook on the salary front for the year ahead.


Business travel salaries


Nowhere is this better illustrated than in the forecasts for London business travel outfits, which we are featuring this week along with London retail and the retail and business travel sectors in Scotland, north of England and north Wales, Midlands and south Wales and the south of England.


“This year business travel will see steadier salary increases because last year it experienced large increases of 7%-8%,” said AA Appointments managing director John Tolmie. This was because business travel struggled to attract staff in 2006, and so upped salaries the following year.


But the outlook is still reasonable, said Tolmie. “We’re still seeing above-inflation increases. This is indicative of patterns across the country – it’s supply and demand.”


Travel retail salaries


On the retail front, consolidation has left its mark in London. “Area manager-wise, the pool is decreasing and consolidation has driven down wages,” said Tolmie.


With fewer potential employers it’s harder to jump ship. As a result, retail area managers’ salaries are static in many areas, with a zero percentage increase expected this year in London and just a 3.5% rise in Scotland.


Consolidation is also affecting retail managers in Scotland, London, and the south of England, which could have a knock-on effect down the line.


“Generally there is a consensus that there aren’t that many of these jobs around. So when jobs do crop up there won’t be many candidates because they have moved on. This will boost salaries.”


Tolmie foresees tension in the north of England and north Wales this year where business travel salaries are expected to show zero increases. “There is a tipping point that will come fairly soon. If businesses don’t pay £19,000 for a business travel consultant they won’t get the staff. Right now, it’s a case of wait and see.”


It’s a similar picture in the Midlands and south Wales. “The Midlands is stagnant. This is down to some fairly strong increases last year. If you’re an employer in the region, you’ll be quite happy about this as you won’t have to fork out loads for increases,” said Tolmie.



  • Next week: analysis of figures for reservations and auxiliary posts


Salary Forecasts by region:






 

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