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Trade reports US slowdown amid mounting cost pressures

By Juliet Dennis and Samantha Mayling

The trade has reported a slowdown in US bookings but says it remains a top-selling long-haul destination, with extra capacity and its more‑stable exchange rate tipped to boost future sales.

Agents and operators attributed the sales dip over the past six or seven weeks to high prices in destination, hotel and flight costs, and capacity issues.

Love To Travel owner Joanne Dooey said: “We’ve seen a slump for Orlando. The big issue is cost. We’ve got Florida regulars who go every year but they are put off booking for next year because of the cost of living in the US.” Dooey said her branches were pushing multi‑centre, escorted tours to the US as a “value‑for-money” option.


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Kelly Cookes, chief commercial officer at The Advantage Travel Partnership, admitted: “We initially saw strong sales to the US. These have dipped in recent weeks, possibly due to us moving into a lates market, or due to flight prices. Despite this, it remains one of our best-performing long-haul destinations.”

Trade-only operator If Only general manager Gordon McCreadie described the US as “a real slog” to sell at the moment.

He said multigenerational trips to Florida continued to perform well but added: “Trying to get capacity to New York is a nightmare. The pound against the dollar is not great. There are a lot of things impacting against the US’ success.”

Premier Holidays product manager Jayne White said the lower end of the market was most affected by price concerns.

She cited “exceptional” sales but cautioned: “Demand has slowed a little in the last month. We are hoping prices have peaked, with exchange rates more stable and increased capacity from airlines.”

The operator has enjoyed growing popularity in high revenue, multicentre itineraries at the higher end of the market with the Deep South, East Coast cities and Alaska cruising the most popular.

Newmarket Holidays product director Richard Harrington said the operator’s standard price tours had “come back to the fore” despite an increase in bookings for higher-priced tours at the start of the year. This year US sales are outperforming 2022 but had yet to reach pre-pandemic levels, he said.

He was optimistic about 2024 sales to the US, aided by an improved exchange rate, and said escorted tours provided a way for clients to manage their costs.

He added: “Availability is on the up as the US domestic market starts to travel internationally again. Interest from UK travellers is strong and it’s definitely back as one of our top-selling destinations. 2023 is outperforming 2022 but is not yet back to pre-pandemic levels, which were very strong. We’re optimistic for 2024, when we expect booking numbers to grow again.”

Ocean Holidays said longer stays, combining multiple destinations, such as Orlando theme parks with a stay in Miami or Florida Keys, and multigenerational trips were proving popular.

The company said April and May were its busiest April and May since 2019, with many clients booking further ahead, such as for 2026. About 20% of sales are now coming from the trade compared with 10% pre-Covid.

Co-founder Harry Hastings said: “Naturally customers are worried about the cost of living crisis but as we are able to guarantee prices for departures up to 2026 with a deposit as low as £125 per person with flexible payment plans available, this really helps customers budget and spread the cost of their dream holiday without missing out.”

G Touring sales director Sarah Weetman was also upbeat.

“Like most people, our customers are concerned about the cost of living and exchange rates, however we were not seeing this affecting forward bookings, our customers are able to book their holiday in advance with a competitive deposit which helps to budget for the holiday of a lifetime,” she said.

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