Expect a steady flow of sales rather than a first quarter boom, says If Only general manager Gordon McCreadie.
Much ink has rightly been used covering the effect of the pandemic and the errors that were made as it unfolded. Now, as the threat starts to recede, it is important we learn from those mistakes and take advantage of consumers’ changing buying habits, their needs and how we service them as an industry.
Shares in Peloton crashed last week after reports that it would temporarily halt production in response to falling demand. Few things represented the lockdown-omics boom better than the soaring sales of the company’s exercise bikes and treadmills. Yet while the news isn’t great for its shareholders, it is positive for our industry, as easing restrictions see consumers return to real life – going to gyms and restaurants and taking much-missed holidays.
As an industry, we need to get positive messages about the experience of travelling into the media so we can clearly showcase to consumers the benefits of travelling and booking with the security and knowledge that only travel agents, homeworkers and operators can provide. The consumers who bought Peloton bikes are fairly wealthy, with nice houses and stable jobs, and they are now looking to spend the cash they have amassed in lockdown on items such as luxury holidays.
Booking trends
At If Only, we have seen luxury package sales rise significantly in recent weeks. While a few weeks doesn’t make up for the past two years, bookings are definitely moving in the right direction. Average booking values have increased by 44% versus 2019 as agents book more higher‑end five-star hotels, and we have also seen a 25% rise in booking duration.
However, buying habits are changing, and we need to be prepared. The booking-to-travel windows are contracting, and even with significant pent-up demand, I think we should expect a steady flow of bookings across the year, rather than the traditional first-quarter boom. Despite this trend, I believe availability will become an issue as the year progresses, so we do need to encourage customers to book as soon as possible.
Another development to emerge from the pandemic is the positive use of technology in our daily lives. Despite Zoom’s share price also dropping recently, the evolution of video calling and better broadband allowed large-scale homeworking during the pandemic, and agents and operators will need to continue to use these channels to interact with consumers and each other.
We all need to get back to our offices and support our high streets, but it would be foolish to ignore these changes and the attitude towards flexible working that has also emerged. At If Only, we are using hybrid working to bring our office back as a place for teams to collaborate and work together, while also easing the lives of staff juggling families and jobs, and enhancing productivity and the work-life balance at the same time.
Business review
As we emerge from the pandemic, our focus is to further elevate our business proposition and the services we offer, while also evolving our in-resort offering.
We have carried out a detailed overhaul of our entire selection of hoteliers, ground handlers, transport partners and excursion providers from around the globe, which has resulted in a 20% reduction in the number of suppliers we will work with in the future. This means we now work exclusively with a carefully curated portfolio of partners to help us to create perfect luxury holidays across all destinations within our programme.
As Covid 19 begins to recede in the rear-view mirror, everyone should assess their businesses as we have, learn from the experiences and developments of the past two years and work together as an industry to pursue a future hopefully free of lockdowns, testing and traffic light systems.
It’s time to wave goodbye to the worst years our industry has ever experienced, make travel beautiful again and celebrate together.