Miles Morgan says rising costs offer agents a great opportunity to get their customers looking ahead to next year
Two weeks ago, Travel Weekly hosted its Future of Travel Conference. With many of you so busy, you will not have been able to attend, so let me give you my take on what I learnt.
Travel agent leaders Dame Irene Hays and Steve Bryne gave a very positive view of the future for travel agencies. They said an extreme focus on customer service would be required to succeed.
For me, this highlights to those people attempting to win their business simply on price that they might have to up their game on customer service. Sound familiar, Mr O’Leary?
They also agreed that combining tech and face-to-face service was the winning formula. The Covid pandemic has really brought this into focus, and the challenge of finding both the right tech and especially people is now paramount for businesses.
Industry regulation experts shared a similar view of the shape of things to come. They voiced concern about industry failures that could arise if the cost-of-living crisis delivers the expected cash shortage among the public.
These comments were made ahead of the mini‑Budget, which could cause potential extra issues, and before the sad demise of Arena Travel. My take on this was to keep a close eye on costs as we go into the winter, and avoid any ‘fat’ reappearing in the business after everyone was forced to slim down all costs during Covid.
Too little, too late
I listened with interest to the airline and airport representatives as they discussed the challenges faced both during and post-Covid. I am afraid I was left thinking they misread the summer demand and undercooked their staffing before trying to ramp up too late to save queues and cancellations.
I started to recruit in October and November for my January peak season. Despite Omicron I kept the pedal down on that recruitment drive and backed a return of business, which paid off.
Airlines and airports clearly did not have the same confidence. Before the conference I thought Brexit and the labour shortage it caused would be the reason they gave for the disruption but that wasn’t mentioned, which surprised me.
Tour operators and cruise lines at the event agreed prices will only go one way in 2023: up sharply. I also took note of a new stat, that an airline’s costs are 25% fuel. The Putin effect is clearly huge on the price of oil, and with fuel bought in dollars the pound’s weakness against the dollar is clearly adding to it. It made me think to look out for what a tour operator’s policy is around surcharges – they are a nightmare for a cash-strapped customer.
Ever one to look for an opportunity, the “book early” message has never been so important, and I am sure it will mean we can bring bookings forward to exploit this opportunity. As a travel agent who takes pride in building a good reputation, it’s nice to think many bookers will reprice their holiday again in 2023 and think what a top piece of advice they had from their agent!
Final click
Google, king of stats, gave its views on the world of search for all things travel. Among the barrage of figures, the one I picked out was yet another increase in the number of companies contacted by a holidaymaker before they finally book. It really does focus the mind on what you can do to impress and stand out to make you the final click or winner of that holidaymaker’s booking.
But this does not really change what we do as a business. Our focus on smiles, product knowledge and passion for our customers remains so important to being successful in 2023 and beyond. The added competition does keep you on your toes, though, which is no bad thing.
Overall, it was an excellent day. For those who rarely or never attend this type of event I would urge you to do so. Time away from the office is difficult to find, but raising your head above day-to-day ‘stuff’ is important to challenge the way you run your business and keep you thinking about your plans for tomorrow, rather than solely looking after today.