Agents could be missing out on the growing market for 8 to 13 night holidays, according to GfK Ascent-MI chief executive Sarah Smalley.
Speaking at the TTA Worldchoice conference at Heathrow, she said sales of 8 to 13 night holidays are up 25% for summer 2010, with bookings driven through direct channels rather than the trade.
The trend has been driven by customers being more time-poor and is likely to carry on into 2010, she said.
“Don’t assume people want a 14-night holiday,” she told members. “There is an appetite for consumers to move in that direction, so if you are able to then you should adapt to that.”
“Agents, you are not selling as many (8-13 night holidays) as you could. It is imperative you ask consumers what they are looking for – or you could perhaps be missing out on profit.”
Smalley quoted statistics showing that agents’ market share has fallen from 51% to 50%.
“They lost share because they were very good at selling the ‘loss-leaders’ – those holidays that have dropped out of the market (because of the capacity cuts by the big two),” said Smalley.
However agents’ sales for this Summer still accounted for 61p in every £1 spent on travel. “Agents are more successful in selling high value holidays, like cruise or long haul,” she said.
The travel industry needs to re-educate customers that they will not find a bargain at the last minute. “There is a general perception that they (customers) can get a fantastic bargain and we still have a way to go in fighting this perception,” she said.
Meanwhile, consumer confidence has started to turn a corner, she said.
“For the last three months agents have been increasing their revenues. From looking at the embryonic stages there is a suggestion of a pick-up in confidence.”
Smalley said the industry’s chance of benefitting from the World Cup in South Africa would depend on consumer confidence.