News

Storms force shop closures but fail to dent peaks momentum

Travel agency bosses forced to close shops due to winds of up to 100mph say the severe weather has failed to dampen growing peaks momentum.

The bullish trading statements echoed those from agents and operators around the country and came as the Met Office predicted “storm clustering” could lead to further disruption during February.

Agencies in Northern Ireland and the central belt of Scotland were among those that closed their shops as Storm Éowyn left thousands without power, damaged homes and led to more than 1,000 flight cancellations.

Barrhead Travel closed all of its branches in Scotland last Friday, just weeks after new managing director Nicki Tempest-Mitchell took up her role.

One property suffered slight damage, she said, but the rest of the retail estate was unscathed and staff successfully worked from home.

“We actually finished slightly up on the previous year,” said Tempest-Mitchell. “We didn’t believe that was possible because closing our Scottish branches was huge, with the business they would normally do.”

Oasis Travel, which has eight shops in Northern Ireland, was also unable to open stores on Friday, but managing director Sandra Corkin said she was “confident” the staff would be able to make up for any lost business.

Jason Calvin, director of Portadown-based Thompson Travel, said consumers’ priorities “shifted massively” because of the storm.

“Instead of booking a holiday, people had to think about repairing their homes,” he added.

Despite the lack of bookings on Friday, when the agency’s shop was closed, this month’s sales remain better than January last year, with the company’s annual ‘Holiday Showcase’ credited as driving the majority of business.

The Advantage Travel Partnership said storm disruption was “minimal” across its membership.

Summing up last week’s performance, chief commercial officer Kelly Cookes said:

“We saw volumes dip slightly week on week but continue to trade ahead of last year in terms of both bookings and revenue. The average sale value also continues to be strong.”

Stephanie Slark, director of membership services at The Travel Network Group, said last week’s sales were the best of the month up to that point. “We remain optimistic that the upcoming payday will further enhance sales and sustain this upward trend into the following week,” she added.

Some members were affected by the storm, she said, but trading on Wednesday and Thursday was “particularly robust” and last week the group welcomed 12% year-on-year growth in all-inclusive short-haul and mid-haul package bookings.

Protected Trust Services revealed its agents, which number about 160, had generated year-on-year revenue growth of 8.9% so far this month, equating to more than £1.8 million.

Fred Olsen Travel retail director Paul Hardwick also reported positive figures, noting a 47% year-on-year increase in sales last week, with three large-scale holiday shows helping to boost bookings.

Dnata Travel Group’s UK B2B brands also reported “an exceptional trading performance” last week, with Gold Medal seeing its best-performing week since the end of the pandemic.

Its specialist brands also reached new highs, with Cruise Plus and Incredible Journeys reporting their best weeks for revenue and margin.

Journey Latin America reported last week was the best in its history, with sales through agents performing particularly well.

But other specialists revealed high numbers of late bookings, adding that availability was proving to be a challenge, which was particularly the case in the long-haul market.

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.