Agents see rising booking values as clients want more inclusions

Agents on a Travel Weekly webcast have reported average booking values (ABVs) have increased over the peaks period as clients are upgrading or adding more elements to their holiday.

 

Gary Gillespie, managing director at Independent Travel Experts (ITE), part of The Travel Network Group, said his homeworking group saw ABVs up about 12-13% year-on-year and John Sullivan, Advantage Travel Partnership commercial director, said the consortium had seen rates rise by 6% generally and 11% for cruises.

 

Gillespie said clients were spending more money, booking more luxury holidays and opting for more all-inclusives and excursions.

 

“So [they are] spending but making sure they got as much packed into that holiday as possible,” he said.

 

Sullivan agreed: “They are not looking for the cheapest price. They’re looking for the most they can get…a continual demand for more value.

 

“People are looking at bolt-ons, add-ons…maximising the value. It isn’t just the flight, the hotel and the transfer.”

He said all-inclusive sales accounted for 40% of the January total, up from 37% year on year.

 

“I sound a bit like UK Gold, because I just keep repeating this message the whole time,” he said.

 

“Last year was all about value, and the one prediction we made was coming into this year was it would be about value.”

 

More: Agencies eye shop openings and recruitment amid strong peaks

 

Nicola Park, Seaside Travel owner, told the webcast: “Even with short-haul, [clients] want trips included, and they want room upgrades and better hotels.”

The panellists agreed the demand for upselling and extras can benefit agents because they can boost their earnings and win over clients.

 

“We are finding, particularly this last 12 months, that customers are driving the agenda,” said Gillespie.

 

He said clients return several times to ask for different rooms or tweaks to the booking: “It is a lot more work, from the agent’s point of view, to actually get that inquiry converted to a sale than before.”

 

Tricia Lester, head of retail at four-branch Ashdown Travel, noted how “great relationships” with suppliers can help to get bookings over the line “whether it be a Teams call [or] a little added value”.

 

Parks commented: “A lot of people now want big trips and don’t know how to start it or put it together.

 

“And, if something goes wrong, we’re always there.”

 

Sullivan agreed, citing the example of a client coming into an agency asking for a fortnight in Majorca but ending up with two weeks in Thailand.

 

“It is that surprise and delight – and that agent adding extra value,” he said.

 

Gillespie said the TTNG’s Digital Assistant helps ITE homeworkers to add value because it uses AI but is tailored to recommend options with preferred suppliers.

 

“We had one inquiry that other week…someone wanted to do a tour of UFO sites in the US,” he said.

 

“The Digital Assistant brought up a full itinerary.”