High-street travel agents are enjoying increased levels of footfall and a gradual rise in bookings for autumn and winter but warn sales are not at the levels needed once furlough ends.
With around two weeks of the peak school summer holidays left, most agents say they are now focused on autumn sales and the need for immediate cashflow.
Millington Travel owner Nigel Armitage said enquiry levels were up by around 60% in the last fortnight compared with May to July, with around a third of current bookings due to depart before December. But he stressed sales were “nowhere near normal trading” levels.
He said: “There has been a slight increase [in bookings for autumn and winter] but most customers are holding off booking.
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“They either have already committed to this summer in the UK or shorthaul. There’s only really the Caribbean to sell longhaul. World borders need to open so longhaul can start trading again for holidays and corporate travel.”
The end of the furlough scheme on September 30 is likely to be a problem for most agents, he predicted.
He said: “Furlough for the travel sector needs extending, it’s as simple as that. Businesses cannot cope with 20% of normal trading. We need further grant support from local councils to help businesses through the winter period.”
Fred Olsen Travel also reported that bookings for 2022 remained higher than for this year despite a ”marked increase in August, September and October” sales over recent weeks, including new clients who have turned to the company after online bookings were cancelled at the last minute.
Paul Hardwick, head of commercial, said: “Footfall has increased over the past three to four weeks but it’s still way down on what we would expect at this time of year normally.”
Growing consumer confidence in cruising was helping to drive autumn sales, mostly for shorthaul destinations, he said.
He added: “September and October is selling well, in particular cruises. We are seeing lots of people who have already booked for 2022 now adding in a 2021 autumn cruise as confidence in cruising returns.
“It is nearly all shorthaul for this year but longhaul, in particular for the Caribbean, is increasing in demand for January onwards.”
Advantage Travel Partnership said trading was flat last week on the previous week but ”getting closer to 2019 levels”. In total, 21% of all members’ bookings last week were for August while a further 19% were for September.
Leisure director Kelly Cookes said bookings showed there was a “very late market” but said: “October demand is increasing and we are seeing lots of enquiries for half term coming through.”
Top sellers for the consortium currently are the Canary Islands, followed by Greece and mainland Spain. Advantage also reported growing demand for the Caribbean.
Peter Cookson, chairman of Spear Travels, said enquiries and bookings were increasing for later in the year, with footfall “positive”, but insisted it was “not the September, October rush we were expecting”.
He said the group was now discussing its post-September plans, adding: “We are doing what we can to encourage people to book on social media but you get the feeling that even if we were offering free holidays at present many wouldn’t take them.”
Deben Travel owner Lee Hunt said his optimism was tempered by concern for the period after the end of the furlough scheme.Remove featured image
He said: “What has made me more optimistic is that people are paying their balances for travel in September to November and not cancelling. Existing clients are happy to travel.
“But we are not seeing a big lift in new enquiries for this year, only for next year. I am worried about furlough coming to an end. I don’t want to have to let staff go.”
C The World director Carolyn Park said the market was “not all doom and gloom” but agreed the issue for agents was cashflow in the coming weeks.
She said: “The forward order book looks pretty good; we just need more volumes of people going now. Sales are alright, but not spectacular.”
Her agency is one of scores of The Travel Network Group agencies to have signed up to rent out desk space and provide staff to work for Covid test provider Eurofins as part of a deal struck by the consortium to help members’ businesses until sales pick up further.
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