The Co-operative Travel managing director Mike Greenacre has warned that the second half of 2008 will be “much tougher”.
Greenacre, whose business operates more than 400 high-street travel agencies, said the group was cautious about the remainder of the year after a successful first half.
He said: “I think everyone has been surprised by the success they have enjoyed in the first half of the year. Confidence is now ebbing away and I understand July to October is the peak time for remortgaging deals so a lot of the population will be focused on their own personal situations.
“Fuel and food bills are set to rise dramatically and I don’t think people have realised that. I think we are in for a much tougher second half.”
November and December are traditionally quiet times for travel agents and this has the potential to be even more the case this year, he predicted.
So far the economic climate had failed to hit travel, according to Greenacre, with the UK weather and “sod it factor”all helping to boost bookings and prices have been higher than this time last year because of reduced capacity. Next year package holiday prices could rise further, he added.