There is still a sense of optimism and opportunity in the trade, says Travel Weekly’s Lucy Huxley
A fresh rise in the Bank of England interest rate last week revived concerns about the impact on mortgage rates and consumer spending, with further rate rises now forecast and fears that only a recession might bring stubbornly high inflation under control.
All in the travel industry will be watching for any signs of momentum starting to slow in a year which has seen marvellously healthy demand to date. Yet as we report this week, sales remain strong and higher holiday and flight prices – which have themselves contributed to the high inflation rate – have been maintained.
While most anticipate some shift in travel-buying habits as many household budgets become increasingly squeezed, there is still a palpable sense of optimism and opportunity in the trade.
As we also report this week, Althams Travel is the latest agency to outline significant growth plans, with new shops sought and a homeworking division under consideration. Tui, Hays Travel, Barrhead Travel, Dawson & Sanderson and other smaller companies have indicated similar plans recently in a healthy riposte to those wishing to put a nail in the coffin of the high street.
Abta chief executive Mark Tanzer warned of the transformative impact artificial intelligence (AI) could have on the industry, and with Booking.com unveiling an AI integration with its systems this week, that process is well under way. But Althams managing director Sandra McAllister is correct in asserting that many customers still look for the reassurance of a trusted travel agent. Should there be a recession, customers may be even keener to ensure their money is well spent and secure.
Comment originally from Travel Weekly, June 29 edition