Agent Diary: Managing agency costs with business health is a balancing act

Every quarter in travel seems to make us refocus on a different part of the business. After the busyness of peak season, attention starts shifting towards costs, staffing, forecasting and preparing for the months ahead.

It is always difficult talking about money and the balance between rising costs, pay increases and protecting businesses for the future. People deserve recognition, progression and fair pay, especially in an industry where so much relies on personal service and relationships. We are incredibly lucky at Arundel Travel to have a team that genuinely cares about customers and each other.

I will be honest, though – this year, those conversations around pay rises and staffing have felt more difficult than ever. We have found ourselves balancing head against heart, trying to do the right thing for staff while also protecting the long-term stability of the business against what could still potentially be a very unknown few months ahead.

Value focus

That uncertainty is being felt across the industry. Amid concerns about the Iran conflict, oil prices and the EU’s new EES system, customers are understandably paying closer attention to the headlines. It’s not stopping people travelling altogether, but it is making some pause a little longer before booking.

Our team has spent a lot of time talking to customers about package holiday protection, financial security and what being an Abta member actually means

As a result, conversation around value has become far more important. Customers are still prioritising holidays, but they are looking much more closely at what they are getting for their money. Value is no longer just about the cheapest price online. More and more, customers are looking at flexibility, financial protection, expert advice and reassurance.

Interestingly, some of the most positive conversations we have had in store recently have centred around exactly that. Our team has spent a lot of time talking to customers about package holiday protection, financial security and what being an Abta member actually means.

Customers are often genuinely reassured when we explain how package holiday regulations protect their money and what support is available if something changes. In fact, we have seen a really positive increase in new customers walking through the door specifically because they feel more comfortable booking a protected package holiday through an Abta member.

Pay talks

That same balance between value, protection and sustainability also links back to businesses themselves. 

Operating costs continue to rise regardless – wages, utilities and general overheads all increase while booking patterns can feel slightly less predictable.

The conversations around minimum wage increases are always interesting. Personally, I do sometimes think the wording itself creates the wrong perception.

The phrase ‘minimum wage’ can sound negative, almost as though businesses are trying to pay the lowest amount possible, when in reality most independent businesses are trying to pay fairly while also navigating rising operational costs and protecting long-term jobs. As so often, it can be a balancing act.