Market conditions are solid but clients are cautious, says TTNG

The market in 2025 has proved to be “solid” so far this year for the travel industry, according to The Travel Network Group – but lates are getting later as many customers remain cautious about spending.

 

Vim Vithaldas, TTNG chief commercial officer, told delegates at the consortium’s conference in Bucharest that 2024 was a record year for the industry – and a record year for TTNG.

 

Describing the year to date as “solid”, he said passenger numbers are up 3% year on year, with revenues up 10%.

 

He noted how 2024 had seen two peak booking periods, with many family sales “coming through in the late market”.

 

“We are seeing that again – plus pay day peaks [with] more and more marketing around pay day, and cruise months and touring months.

 

“Traditional peaks won’t come back, so you need to adapt accordingly.”

He said the family market is facing challenges so customers in this sector are “trying to find value for money” – but sales for older customers and those in the luxury market are “performing well”.

 

“Lates are super late,” he said, noting a “surge in three-star bookings as the mid-market is squeezed”.

 

He noted how clients are booking ever later, with 65% of bookings in May being for summer 2025. A fifth of bookings last month were for winter 2025-26, driven by low deposits, while just 8% were for summer 2026. The corresponding figures for May 2024 were 59%, 15% and 14%.

 

He also flagged how cancellation rates have been “creeping up” to about 4% in the past two weeks as final balances are becoming due.

 

“People are thinking twice,” he told delegates.

 

Vithaldas said the economic backdrop might seem to be “gloom and doom” judging by news headlines, so “people are not necessarily feeling rich”.

 

Agents are also having to contend with higher costs for National Insurance, wages and business rates.

 

However, unemployment is low, inflation is steady, interest rates are going down, and real-term wages are up 2.1%, “so we should all be feeling slightly wealthier”, he added.

 

He said UK consumers are “protecting” their money for travel but are proving “tougher to convert”.

 

“Travel spend remains solid but caution is growing,” he told the conference.

 

“They are thinking twice before writing that big cheque.”

 

More than 400 delegates are at the conference in the JW Marriott Bucharest Grand Hotel, from June 14-17.

 

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