Both Thomas Cook and TUI Travel have recently been in the national press suggesting that there has been little sign of the current credit squeeze affecting consumers’ holiday intentions. This is encouraging news for the travel sector.
Casual observers may be forgiven for running the argument that, with disposable income under pressure and the public seemingly determined to still have their ‘main holiday’, demand for short breaks might suffer.
This has not been Superbreak’s experience in similar past cycles and it is my view that the short break market, particularly the domestic sector, will trade relatively well during the next 12 months or so.
I say this for a variety of reasons. First, the average age of people who take short breaks is higher than that of the travel-buying public overall. Older people have fewer financial worries. Indeed, many of our customers are net savers rather than borrowers.
Second, fewer people are moving house, which frees more people up to consider taking a short break.
Booking lead times inevitably shorten in times of economic uncertainty and, with short breaks in the UK being easy to book and take at the last minute, consumers can literally put their things in the back of the car and go. Added to which the current euro exchange rate is making UK breaks look relatively better value.
The public’s psychology can play a part, too. When times are tough the ‘sod it’ factor can kick in, whereby people decide they just need a break as an antidote.
So, these are challenging times for all businesses – both travel and otherwise – all competing for consumers’ hard-earned income. But times through which the short break market can be successful.
As ever, those that are best at delivering great product and service will be the ones that thrive, which is how it should be.
