More consumers are looking to May for cheaper holiday prices as one strategy to tackle the rising cost-of-living problems, delegates at Abta’s Travel Convention heard.
Richard Singer, chief executive of Ice Travel Group, which owns icelolly.com and TravelSupermarket, said more people were searching for earlier summer breaks as booking values were lower.
He said those consumers who have cash will still spend it on holidays, despite the squeeze on many household budgets.
More customers are checking a wider range of search filters and different durations and destinations, he said, adding that Turkey is the fastest growing option.
Singer was speaking on a panel alongside Dame Irene Hays, owner and chair of Hays Travel, and Garry Wilson, chief executive at easyJet Holidays.
Wilson said prices will “inevitably” rise and pointed out that Turkey accommodation costs are in sterling.
However, he added: “There will be places that offer good value and customers will seek those out.”
Wilson said Covid “reminded people what it is like when you don’t travel”, adding: “It has made people more focused, they will give up spending on other things.”
He said the forthcoming winter season is already 65% sold and there is “huge demand” for city breaks – despite some research suggesting such trips would be what people would give up.
Also, customers are still booking four- and five-star hotels for summer 2023, and not trading down, he added.
Hays agreed that consumers are likely to sacrifice other purchases such as furniture and kitchens before they give up their holiday.
Coming on the cost-of-living impact, she said: “There is definitely a concern that there is a lag in the trends; we have to watch it very carefully.
“There will be a lag, but even mid- to long-term travel will not be affected.”
She said consumers are returning to high street agents in their “droves” and Hays Travel is seeing more new customers than ever before.
“Covid has taught people to book with a travel agent for trust and security, for value-for-money and for expertise,” she told delegates.
She agreed recruitment is “very much an issue” in the sector but said it is improving at Hays Travel with initiatives such as their ‘thank you’ giveaways, which have seen staff scoop prizes such a car or having their mortgage and bills paid.
Hays also highlighted how important it is for travel to be seen as “sexy” again – a message she is getting across to Hays Travel’s 42 apprentices.
“We tell them [travel] is the sexiest business in the world…we are making people’s dreams come true.”
Photo credit: Arif Gardner