Major travel firms have given mixed predictions on trading and suggested it was now a case of “wait and see” for the outcome of next month’s budget.
Jet2holidays chief executive Steve Heapy told the 2024 Travel Weekly Future of Travel Conference bookings had softened in recent weeks due to “an air of pessimism” generated by the new government’s statements on the economy ahead of its October 30 autumn budget.
Speaking as part of a panel debate, he said: “September is looking vey much like the previous month. Over the last couple of weeks the market has probably softened a little bit.
“I think people are quite worried about the numerous doom and gloom messages being banded about, and the October budget and the inevitable tax rises much of the population will suffer. There is a lot of nervousness.”
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Noting the “very late booking market” seen this year, he added: “I think it’s a case of wait and see what the [government’s] budget brings and then acting accordingly.”
Loveholidays chief executive Donat Retif gave a more upbeat market assessment, adding the election and establishment of a new government had given the market “some certainty”.
“I cannot say I have seen a negative impact on trading,” he said, adding: “September has been outstanding; better than August and July. We can’t complain. We are more optimistic for the market as a whole.”
EasyJet holidays chief executive Garry Wilson cited sales growth of “at least 30%” year on year this year, adding the company was focused on sustainable growth rather than “chasing capacity” to the detriment of margins.
“Our numbers are very positive,” he said, and also remarked on the “very late” booking pattern this year.
But he also pointed to some negativity around winter sales, adding: “For winter you can feel there is a little pessimism there. If hotels are not pricing properly it could be difficult.”
City breaks were selling well, he noted, but there was relatively less choice for sun destinations. “We are seeing growth in line with expectations but it’s maybe not as easy as last winter,” he said.
Wilson said easyJet holidays remained focused on becoming a £250m a year business over the next one to two years. He predicted the operator would make “at least £180m profit” next year. Its annual pre-tax profits grew 221% to £122 million in the year to September 30, 2023.