Agents and operators are surviving a difficult lates market thanks to early bookings for next year and little discounting.
The trade had been keeping its fingers crossed that a surge in late bookings would make a vital difference for many businesses that have suffered this year due to the recession.
The Met Office’s retraction of its “barbecue summer” forecast has failed to kick-start sales for many businesses, and there are concerns travel agency failures are set to surge in the autumn.
Bawtry Travel Worldchoice proprietor Katherine Doyle said the agency’s year-on-year revenues were flat this month, adding: “We haven’t had the mad rush we thought we might have got for lates.
“I’ve been booking breaks for June, July and October next year. People committed to the UK this year because of the forecast, but now, thanks to the false promise of a barbecue summer, next year we will see them come flocking back.”
Bailey’s Travel managing director Chris Bailey agreed the lates market had failed to materialise, leaving the agency around 12% down in revenues for July compared with the previous year.
He said staff were no longer wasting time looking for bargain-basement late deals for this summer, adding: “We’re booking cruise and long haul for next year.”
Meanwhile, Stowaway Travel director Paul Stowe said his agency was on a par with last year’s revenues, with the situation being helped by a lack of mass discounting in the current lates market by operators.
He said: “There is some discounting out there. It is the small operators who have got stock left [who are] discounting as opposed to the bigger guys who are holding out [on price].”
Platon Loizou, managing director of Turkey specialist Jewel in the Crown, said his company had been hit hard after being forced to discount, adding: “Business is coming in, although the price [of a holiday] is about £40 lower than last year.
“It is impossible to make the margins we were making last year; it is horrible.”
Cosmos aviation director Michael Vinales admitted discounting was being used to drive the operator’s slower Greek and long-haul package markets, although he added this tactic was strategic, with plans to revert to normal prices once the market picks up.
He added: “The market has picked up. We have seen an increase in business since the weather forecasters said it was going to be a wet summer.”
However, Premier Holidays head of sales and marketing Debbie Goffin said the operator had avoided discounting after seeing year-on-year growth since Easter.
She added: “The prices are good because the airlines and hotels have been discounting. There’s never been a better time to take long haul.”