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Travel agencies weather economic downturn better than direct sell

Travel agencies are weathering the economic downturn better than direct sales channels, according to research by GfK Ascent Mi.


GfK Ascent Mi chief executive Sarah Smalley said its Leisure Travel Monitor has revealed market revenues are down by 7% overall, with agents and direct channels seeing the same percentage drop in passenger numbers.


However, travel agents have been less affected by falling sales than direct channels, which have declined by one in four bookings.


Smalley said: “The direct channel is actually suffering much worse in revenue.


“People appear to be going into the high street for the comfort that the travel agent can give them when making a booking.”


The increased trust in travel agents has coincided with growth in the number of higher-value bookings made, she confirmed.


Holidays worth less than £800 have seen a decline, while holidays costing between £1,000 and £1,200 have seen the biggest increase at 5%.


Smalley said mid-haul holidays remain the biggest sellers, accounting for more than half of all bookings made. Spain remains the single most popular destination, attracting more than twice as many passengers as the second most popular destination, Greece.


Smalley was speaking at the ABTA Talking Travel tourist board seminar in London this week.

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