Comment: Let’s hope for another extended peaks

It scarcely seems believable that the first month of 2024 is already behind us – it feels like only yesterday we took the tinsel down.

The opening weeks of the year have been typically jam-packed, with an epic Globe Travel Awards and the launch of the world’s largest cruise ship just two of this year’s high points.

Among these celebrations, there have been a string of encouraging trading updates from travel agencies and suppliers alike, with many reporting beating previous sales records.

This coming weekend is set to offer another indicator of the ongoing strength of demand, particularly in the all-important family sector, as more people receive their January pay cheques and assess whether to commit to a school holiday break.

If that hoped-for boost materialises, the trade will then be eyeing a repeat of last year’s trends, when peaks maintained momentum well into the year.

The Bank of England will this week give a steer on its outlook for the year ahead and, while a cut in interest rates isn’t expected yet, the tone of the update will also be important for the industry’s prospects. If the Bank is relatively upbeat and offers increased hope of a turning point in the current cost-of-living crisis, that could help give customers the confidence to turn interest into confirmed sales in the coming months.

There’s no doubt demand is there, but with plenty of added capacity to fill, those currently feeling the greatest squeeze will be key to ensuring this strong start is maintained across all demographics.