A “mood of buoyancy” has returned to the travel industry, according to Hays Travel founder John Hays, who contrasted “the pits” of 2009 with the highs experienced this year.
Speaking at the Hays Independence Group conference in Portugal this weekend, which immediately followed the agency’s retail conference, managing director Hays said that Hays Travel’s like-for-like passenger numbers were up 9% in 2014, with 8% more spend per passenger recorded and long-haul and cruise bookings in particular on the up.
Hays Travel profit margins were up 10.5% in the year to October 14.
“Our optimism and confidence has returned and this is reflected by the results of our members,” Hays told Independence Group delegates. “Six years ago the results were shocking in comparison; January 2009 was the pits and no one was sure of their jobs.”
He said that the turnaround looked to be continuing for 2015 with forward bookings looking “superb”.
Contextualising the turnaround in the company’s success, Hays pointed out that the industry as a whole was experiencing a change in fortunes.
“The 1% inflation rate means people are willing to spend.
“Outside investors are showing a greater interest in the industry and recent investments show things are getting better”, said Hays, pointing out the recent buyouts of Gold Medal and Travel2 by dnata.
Jane Schumm, Hays IG retail, PTC and training director, said that the group’s total travel sales for the year to October 2014 were £272 million, up 14% on the previous year.
Individually, Hays retail sales were up 11% and Bath Travel retail sales were up 8% in the period.
Overall commission earned was up 15% to £23.6 million.