There has been much speculation at recent travel conferences and in the media regarding the likely pressure on short break spending over the next 12 months.
There is undoubtedly a squeeze on discretionary consumer expenditure right now, as a result of the economic downturn and uncertainty. The argument follows that short breaks, seen by some as an unaffordable ‘luxury’ at present, will be foregone, while consumers save for their main holiday.
This will, no doubt, be the view in some households. However, there are many counter arguments and it is my view that UK hotel short breaks could form a bigger proportion of total holidays and breaks taken in 2009 than this year. What are my reasons for this view?
No one denies that booking lead times will get even shorter and UK breaks are easy to book at the very last minute.
The strength of the euro makes breaks at home great value compared with European city breaks, plus there is now less budget flying capacity, making UK short breaks an easier and more affordable option.
Consumers are likely to turn back to travel agents as they look for greater protection, so as the market softens, UK short break operators will be able to deliver more special offers for agents to promote and sell.
Typical hotel break customers will be less affected by the downturn as many tend to be slightly older, perhaps empty-nesters, with a reasonable disposable income. Short breaks are also extremely habit forming.
Finally, this is a product sector where the retailer does not need to discount, offers attractive commission rates and where the agent can sell at the same prices that are available to the consumers directly. Therefore, the outlook for UK short breaks is quite encouraging.
