Great Rail Journeys is on track for a “strong presence” in the peaks booking period despite a “volatile” market in the UK.
The York-based escorted tour and river cruise specialist is also planning more fam trips for travel agents in 2023 as it aims to build trade partnerships in areas where sales are strong, according to the new chief executive.
Dave Riley stepped up from his role as group chief finance officer in September to take over the reins from outgoing chief executive Peter Liney.
He said: “We will have a presence on TV over the peaks but we are still finalising that.
“We expect lots of activity in January and February.”
Great Rail Journeys had been sponsoring ITV travel documentaries but that partnership ended recently, said Riley.
“We will have a strong presence in the peaks and we’re doing some regional testing,” he commented.
He said “business is flying” for the company’s US brand, Vacations By Rail, which offers North American and European tours to American clients.
“Its 2023 revenue will be double that of 2019, a phenomenal achievement,” he said.
However, he said the UK market is “volatile” as it follows “the media sentiment” so consumers are “sometimes positive and sometimes negative”.
“The Great Rail Journeys brand is trading well at the moment, especially for 2023; we feel very positive,” he said.
“It will be over pre-pandemic levels in 2023.”
However, commenting on sister brand, Rail Discoveries, which caters for the “value end of the market”, Riley said: “Some customers are cautious because of the cost of living so we have to be more agile about what we are selling, with more products in the front end of 2023 rather than the back half of 2023.
“The uncertainty drives customer caution.”
Riley said the company is seeing “significant supplier pressures” across Europe but is not passing on the full impact of the cost prices – although prices for 2023 will be about 10% up on 2022.
“The big challenge for most tour operators is the volatility of the currency; it has a huge impact on planning,” he said.
The firm has also faced a “significant” challenge dealing with rail strikes in the UK, which have affected customers travelling to St Pancras by train for their holidays.
“There is huge frustration and uncertainty for customers,” said Riley.
Great Rail Journeys can switch customers to coaches or alternative rail services but the problems add to the workload at a time when new recruits are being trained.
However, staff have been buoyed by working in a new head office in York, and by a brand refresh, he added.
He said there is a team in the York office dedicated to working with the travel trade, which accounts for about 10%-15% of all sales – a similar proportion to pre-pandemic levels.
“We do have fantastic trade partners but we are niche,” he said.
“We are trying to find more partners, unlocking those pockets – particularly for our European programme.
“Some areas across the country are particularly strong, so that’s how we are aligning with the trade.”
The team recently held a fam trip for agents to visit Switzerland and is looking to hold further trips in 2023.
“We are getting people walking into agents to book our holidays,” he said.
“People want that comfort of booking with a reputable provider.
“There is a real opportunity to take advantage of rail as a wonderful way to travel and avoid airports.”
He said his top priority is the customer and making the business more appealing consumers want more “authentic” experiences.
“Our range has broadened; we have new Greece and Tuscany tours which focus on local flavours and experiences – activities clients cannot source themselves,” he said.
A desire for more sustainable tours means more enquiries are coming from younger travellers and the operator is working with York University to quantify its carbon emissions across our portfolio.
Next year will also mark the 50th anniversary of the company, which is looking to recreate its first ever tour, a rail trip to Egypt, as part of its jubilee celebrations.