Recessions always throw up a few surprises, but could it be that this latest downturn will prompt a renaissance of the high street for travel retailing?
The death of the high street has long been predicted but, although agency numbers have declined, they have done so less dramatically than some of the most dire forecasts.
Now a series of travel retailers and operators have started talking about expanding their retail estates, with some even establishing a high street presence for the first time.
While online became the key battleground and web distribution costs increased, the recession has seen more high street units become available and landlords offering some extremely competitive rates.
Teletext, Kuoni and Virgin have made retail shops a central part of their business strategies, while established high street players Tui Travel, Thomas Cook and The Co-operative Travel are also talking about expansion.
Former independent retailer Mark Johnson, now a First Choice franchisee, has 12 shops and aggressive expansion plans thanks, in part, to the cheaper rents.
“We are expecting to open two or three shops this year and another two or three next year. We are looking to get to 20 within five years,” he said.
“At the moment we are able to negotiate amazing deals on premises, including ‘free rent for a year’, and sales are strong and getting better all the time.”
A long-term ambassador of the high street, Hays Travel founder John Hays is not surprised to see agencies in vogue once more. He added: “We started in shops and have been profitable; it is where our core expertise lies. There are no rapid expansion plans but we have kept opening shops and will carry on doing so.”
Some Hays Independence Group members are also expanding their shop presence, including Travel Angels, which has just opened its sixth shop, in Chard, Somerset.
Owner Peter Grayson, who is keeping an eye out for more expansion opportunities, said: “Many people have pulled away from the high street retail market but we believe there are opportunities.
“Retailers are realising there is a place for the high street for people who understand it, and a lot of homeworkers are also looking to come back to the high street.”
Thomson and First Choice have announced plans to open about 30 new shops over the next two years.
Distribution director Nick Longman said: “Our customers say they value the face-to-face element and many see the benefits of having a travel agent do the work for them.
“Some value the knowledge, some want the reassurance of having an expert make the booking, and an increasing number simply do not have time to research.”
The travel brands coming to a high street near you
Kuoni is targeting up to 25 own-branded shops, demonstrating its belief in the power of face-to-face retailing. Chief executive Peter Rothwell said last week “upmarket, independent, owner-manager travel agents who know their customers extremely well” were the strongest source of business.
Virgin Holidays recently revealed it plans to expand its 30-strong network of stores in similar locations to existing premises in Tesco, House of Fraser and Debenhams.
Sales and distribution director Chris Roe said: “They are not designed to dilute or steal business away from agents.”
Teletext Holidays’ second store of a planned 20 in Tesco Extra shops will open in the next few weeks. Managing director Victoria Sanders described this physical presence as a key part of the retailers’ brand strategy that will complement and enhance its online offering.