Superbreak joint managing director Nick Cust talks to Edward Robertson about domestic tourism, trade relations and the opportunities the 2012 Olympics will bring to London
Domestic tourism and short-break specialist Superbreak is celebrating its 25th birthday this year.
During this time the company has expanded its business from 65,000 customers in its first financial year to more than 1.5 million in the 2007/08 financial year.
Annual turnover through agents has risen from £2.75 million to £70 million annually, while the number of staff has increased from 14 to 278.
In 1985 Nick Cust joined Superbreak Mini-Holidays as sales and marketing manager, before taking part in the management buyout in 1990.
The company was then acquired by Holidaybreak, formerly Eurocamp, in 1995 and has been based in York ever since.
Now Superbreak joint managing director, Cust has seen the domestic short-breaks market change dramatically over the past 23 years and is preparing for more ahead.
What’s your take on the domestic tourism market?
We’ve seen continual growth in the UK for hotel short breaks and the sector is now set for a bit of a renaissance, especially with the rise in the value of the euro. Hotels have come a long way in terms of quality in the UK, especially as customers’ expectations have increased.
Hand in hand with the rise in quality, you see hotels wanting to sell to customers and become much more welcoming and open. Quality in hotels will continue to improve if you look at some of the investment that is now being made.
What do you think the biggest threat to the domestic market has been in the past 25 years?
The advent of low-cost flying has probably been a threat to domestic short breaks, but we have weathered it incredibly well. People are taking more short breaks than ever as UK product continues to improve.
In the current climate, the biggest threat would be a vibrant housing market – if you’ve just moved house then you’re not going to take a short break.
Do you think the current credit crunch will slow down your business?
Not too much. If you look at our customer age group it is mostly 35 to 55-year-olds, and if you get to the top end of that age group they’ve all lived through the last housing crash and probably not mortgaged themselves to the hilt.
The real problem lies with the 20 and 30-somethings who have taken out 100% mortgages at an interest rate of 3%, but who are now paying a 6% rate.
Superbreak has long enjoyed good relationships with the trade. Is that because of the product the company is selling or for other reasons?
Travel agents are very loyal – if you get it right for them they will continue to support you. They’ve also taught us some good service disciplines.
If you are a direct-sell merchant and you get a booking wrong, all you are doing is upsetting one family. However, working with a retailer with 5,000 customers on their books, we have to get it right for the retailer or risk losing an awful lot more.
With all the talk of online competition and the internet’s increasing popularity, do you think agents have a future?
Customers want face-to-face dialogue before they buy and while the web will be an obvious option for a night away, for anything more than that, travel agents have a great role to play.
Agents can also upsell massively. If they are taking a honeymoon booking, they may sell the couple their honeymoon, but the real money to be made is from the
20 or 30 guests who will attend the wedding and need to book some overnight accommodation.
What do you think needs to be done to ensure the 2012 Olympic Games in London benefit tourism?
Those in charge have got to work very hard to make sure that post-2012 there is enough going on to take up the opportunities from the Games.
The Olympics will be a wonderful window to show what London has to offer and, while we as residents may take it all for granted, there’s so much history – it has got to be one of the three major cities in the world.
The overseas inbound market will do well because of it and that will drive the domestic market.
So how should the industry maximise the opportunity?
We mustn’t rest on our laurels and we mustn’t think the PR will be sufficient. We’ve got to have major exhibitions and good cultural events in place for 2013 and 2014.
Let’s have a blockbusting art exhibition going on at a national gallery and an event equivalent to the Tutankhamun and Terracotta Warriors exhibitions. West End shows remain vital too; more than a quarter of people booking weekend breaks in London with us are booking shows too.
Do you have any other concerns for the future?
There’s little thought given to integrated tourism policies in government. For example, there was recently a campaign encouraging people to visit York in the same week the council decided to extend paid parking hours. Parking is essential for shopping and it is a great driver of tourism.
Road congestion is also a problem across the country. At seaside resorts the casinos would have been a great catalyst for investment and I would also like to see some great conference facilities built in these resorts so they can compete with overseas destinations.
When I worked in Blackpool I was surprised just how quiet it got, especially when it is our prime UK seaside destination and it is within two-and-a-half hours of 50% of the UK population.
- Read our report on a recent debate on domestic tourism featuring Nick Cust
Profile
- Lives: Skelton, near York.
- Status: Married to Rebecca with two teenage children.
- Education: Hotel, catering and tourism management degree at the University of Surrey.
Employment History
- 1980: Joined budget coach and camping operator NAT Holidays as a graduate trainee.
- 1983: Joined the English Tourist Board as a travel trade officer.
- 1985: Joined Superbreak Mini-Holidays as sales and marketing manager, where he now holds the position of joint managing director.
