The travel trade is optimistic a price war will be avoided this summer as late sales pick up, and consumers remain focused on value for money rather than the cheapest deals.
Writing in Travel Weekly, TUI Travel UK managing director Dermot Blastland said: “Don’t assume everyone who walks into your agency is after a rock-bottom price. Our research shows that, more than anything, customers want value for money.”
April and May bookings were down 12%, according to market research company GfK Ascent MI, but all-inclusive holidays have continued to sell well in the lates market. Chief executive Sarah Smalley said: “The price of these holidays has not come down year-on-year, so we know it’s not about price. People are paying for value.”
On Holiday Group sales director Brian Young said late sales had improved in the past three weeks, with more families than normal among those booking as the economy stabilises and job worries lessen.
He added: “A lot of agents say they are not interested in the cheapest deal. Prices are stable and we should make decent margins in peaks.”