Consumer desire for holiday ‘value’ reaches new high

The importance of offering  ‘value’ to holidaymakers has intensified to unprecedented levels in the current market, Advantage Travel Partnership agents have been told.

Advantage Travel Partnership chief commercial officer Kelly Cookes told a panel discussion at the consortium’s annual conference in Malta that members were reporting a desire for more value from customers booking all types of holidays, from budget breaks to luxury retreats.

She said: “What is interesting to me is the focus on value. It’s nothing new but I have never seen it be a driver like it has been in the last few months with consumers wanting their budgets to stretch further, in budget and luxury holidays. People want more for what they can afford.”

Much of the demand for more experiences or services as part of a holiday was likely to be driven by what consumers see online, she said, stressing that agents needed to improve their use of social media in their businesses.

She said: “I think a large portion [of demand for more value] will be driven by social media. Consumers want to go to the best restaurants and have cultural experiences.”

She added: “It’s not okay [for agents] just to be active on social media; have a content plan. Everything is about personalisation and showing your customer how to understand that and using the content to inspire not just to sell holidays.”

On a separate panel, Kuoni UK managing director Mark Duguid similarly insisted there was a need for agents to offer more product that was not “easily available elsewhere” to stand out in the market.

He said: “I don’t think just offering great service is enough [for agents]. I think you need to differentiate by offering value by either being the cheapest, which means competing with online players, or in a different way, through product. In travel there is a ‘sea of sameness’.”

John Sullivan, Advantage commercial director, agreed: “People don’t just want to be treated well. They want value.”

He linked this the rise in all inclusive bookings, with all inclusive resorts offering more extras as part of the holiday.

The consortium has reported a doubling in all inclusive bookings every three to four years. In 2018 approximately 7% of members’ bookings were for all inclusive resorts, by 2022 it reached 15%, and this year it has reached 30%.